Multiple banks. Different interest rates. Call it a "conflict of interest".
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    Personal Loan Flat and Reducing Interest rates

    We found 32 Personal Loan Flat and Reducing Interest rates

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    10.99% - 15.99% Fixed
    1% to 2.5%
    30L Max
    1-5 Years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Ad
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    10.99% - 14.49% Fixed
    0
    30L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Ad
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    12% - 18% Fixed
    Up to 1.5% One time fee
    15L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Ad INSTANT DECISION
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    11.99% - 19.50% Fixed
    0 One time fee
    20L Max
    1-6 Years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless approval option available
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    13.99% - 16.99% Fixed
    1% - 2% One time fee
    20L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless Approval Option Available
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    11.59% - 18.49% Fixed
    2.25% (min. ₹1149) One time fee
    20L Max
    1-5 Years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless approval option available
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    Customer Reviews
    10.85% - 11.85% Floating
    0.5% One time fee
    50 K - 10 L
    1-5 Years
    Response Time Within 30 minutes
    Guarantor Required Paperless approval option available
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    10.99% - 19.8% Fixed
    Up to 2.5% One time fee
    25L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless approval option available
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    Customer Reviews
    11.99% - 19% Fixed
    Up to ₹3000 One time fee
    25L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless approval option available
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    Customer Reviews
    17.25% - 37% Fixed
    1.5% to 6.0% One time fee
    15L Max
    1-4 Years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless approval option available
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    11.49% - 20.15% Fixed
    Up to 2%
    15L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free
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    Fees & Charges
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    Customer Reviews
    11.5% - 13.25% Fixed
    0 One time fee
    30L Max
    1-5 Years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free
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    Perks
    Fees & Charges
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    Personal Loan Flat and Reducing Interest rates is Rated as "Great!" by 73978 Users

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    Difference between Personal Loan Flat Interest rate and Reducing Interest rate

    Personal loan can be taken by a person for any purpose, it can be for a vacation, to meet medical bills, to renovate the house, etc. When you are applying for the loan, look carefully for the interest rate that is being offered to you. The interest rate is set based on your credit score, your age and the amount of loan that you have taken and the period you have chosen to repay it. Apart from negotiating the interest rate, you must also check the way the interest rate is being calculated. There are two methods by which the interest rate is calculated; flat interest rate and reducing balance interest rate method.

    Personal Loan Flat Interest rate

    As the name implies, the interest rate is calculated on the full amount of the loan throughout its tenure. The effective interest rate is higher than the nominal flat rate that is usually quoted in the beginning. For instance, Madhuri was offered a personal loan at 10% interest and the other banks that she had inquired with were offering her interest between 14-16%. She was pleasantly surprised. She started asking around and finally met with a chartered accountant friend of hers who asked her if the interest rate was calculated on a flat or a reducing balance method. On checking with the bank she found out that the interest rate was calculated on the flat interest rate method. If she would’ve taken a loan of Rs.5 lakhs for 5 years, she would be paying Rs.2,50,000 towards interest. Her EMI would be Rs.12,500. The interest paid in the first month and interest paid on the last month will not change and it will remain the same at Rs.4,167.

    Most often the banks will follow this method of calculating Interest for Personal Loans. The interest is to be paid on the entire loan amount throughout the tenure.

    Personal Loan Reducing or Diminishing Interest rate

    The interest in reducing interest rate method is calculated on the outstanding loan amount every month. The EMI includes the interest payable on the outstanding loan amount. For instance if Madhuri had taken the loan of Rs.5 lakhs for 5 years on a 16-15% diminishing interest rate, she would’ve spent Rs.2,29,542 if it was 16% diminishing interest and if the diminishing interest rate was 15%, she would’ve spent Rs.2,13,698 towards total interest. Her monthly EMI would be Rs.12,159, if the diminishing interest rate was 16%. If it was 15% diminishing interest rate it would be Rs.11,895. The interest paid in the first month if the diminishing interest rate was 16%, would be Rs.6,593 and if it was 15% diminishing interest rate, it would be Rs.6,179. The last month interest rate that is to be paid if she had 16% diminishing interest rate would be Rs.160 and if she was charged 15% diminishing interest rate it would be Rs.148.

    In the flat interest rate method, the interest is calculated on the principal loan amount. The interest on the diminishing interest rate method is calculated on the outstanding loan amount. Flat interest rates are lower than that of the reducing balance rate. The interest rate calculation for flat interest rate is easier than that of reducing interest rate. But, in practical terms, the reducing or the diminishing interest rate method is better as you will not be spending more towards the interest.

    Madhuri realised that she was subject to mis-selling where the sales executive is withholding half information and is not being entirely clear about the interest rate calculation. She rejected the offer and instead chose a lender that was offering her a reducing interest rate and when she used the online interest rate calculators she realised that though she will be charged a higher rate of interest, she was saving some money.

    Always look for the documents and then go ahead with the deal. All that is shown in a rosy hue is not always the best thing, there is a catch. If you are unaware of the financial products, then approach a person who can help with that regard. Don’t fall prey to the sales gimmick of the sale executives. Compare the offers and make use of the free online interest rate calculators and only when all your queries are answered, go ahead with the offer.

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  • Personal Loan Flat and Reducing Interest rates Reviews

    • HDFC Bank Personal Loan
      "Need to improve in services"
      0.5 1.0/5 "Really Bad"
      My personal loan is from HDFC Bank and the services has not been up to the mark. They need to know how to handle a customer and how to communicate as well. The team has to be more professional. The interest rate and charges is not a concern but the services is not satisfactory.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "One stop solution for the financial products"
      0.5 4.0/5 "Great!"
      If any body is in need of any kind of financial products, they can go visit the bankbazaar web site, which really helps the customer to get the financial products with the best rates in the market. The web portal with bankbazaar is easy to understand and very easy to use and customer friendly portal, because it has designed in a simple way. Overall I am happy with the bankbazaar.com service.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 25, 2017
    • Fullerton Personal Loan
      "Good and excellent"
      0.5 3.0/5 "Satisfactory"
      I haven't received any kind of status updation about my personal loan application. They have made a call and explained me about the product, after that they have not informed that why my loan got canceled. I would suggest Fullerton can work customer centric in future. Overall I can say I am satisfied with the service.
      Was this review helpful? 0
      , new delhi
      Reviewed on May 25, 2017
    • Karur Vysya Bank Personal Loan
      "The best service"
      0.5 5.0/5 "Blown Away!"
      Karur Vysya Bank offered me the personal loan. The documentation part was very simple, they asked me the documents which was easy to produce. I submitted form16, last six month bank statement and salary certificate along with the signature of my institute. Hardly they had taken four days, they delivered such a fast service. I felt easy to go with Karur Vysya Bank. They are good enough.
      Was this review helpful? 0
      , erode
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Good Service"
      0.5 4.0/5 "Great!"
      When I visited bankbazaar website I found easy to apply for the loan over there. The moment I submitted my loan application, I received calls from them and they were good in providing proper response for my loan application. I had no issues with bankbazaar as I received regular calls from them.
      Was this review helpful? 0
      , erode
      Reviewed on May 25, 2017
    • ICICI Bank Personal Loan
      "Not Satisfied"
      0.5 1.0/5 "Really Bad"
      I preferred ICICI bank for the personal loan. But the bank demanded me to provide salary payslip which I could not produce so I had to close the loan application with ICICI bank. But I got the loan from Karur Vysya bank. ICICI should have been provided alternate options for the documents.
      Was this review helpful? 0
      , erode
      Reviewed on May 25, 2017
    • HDFC Bank Personal Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      HDFC Bank personal loan is fine, There is no drawback till now. There is no issues or challenges with them as such. They dint ask for too many documents for loan processing.The loan amount I have opted for 98 thousand and the rate of interest is 12.15% processing fee and charges 2400.
      Was this review helpful? 0
      , pune
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Good Service"
      0.5 4.0/5 "Great!"
      The services at Bankbazaar has been excellent, a quick process and the website is very helpful. There were no hassles in getting information about the banks and the offers and it was overall a very good experience. The follow up calls are satisfactory too
      Was this review helpful? 0
      , pune
      Reviewed on May 25, 2017
    • Fullerton Personal Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      I did get a proper response from Fullerton after me applying for a personal loan They were on time to contact me and give me details. I did not wish to go ahead for the loan as the rate of interest and processing charges was very high from them but no other option I had taken with them with 22% Rate of Interest.
      Was this review helpful? 0
      , pune
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Very good in services"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar surely needs a five stars as they were excellent in the process. The response was very much immediate and I am happy that with just a click away I was able to get connected to the banks and also get details of the same in one single page.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
    • Standard Chartered Bank Personal Loan
      "Nice experience"
      0.5 4.0/5 "Great!"
      Standard Chartered bank was good and on time to give me details on the personal loan. I also like the turn around time. It was a nice experience. I could not go ahead because of the changes in my personal requirement. The overall experience was good and the deal was decent on the interest rate.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Fair enough"
      0.5 4.0/5 "Great!"
      I am aware about bankbazaar.com through promotional mails. I use bankbazaar web portal which is easy to use and user friendly. The mobile application with bankbazaar.com is working very well, therefore it is convenient for one to apply for any product. Overall I am satisfied with bank bazaar service.
      Was this review helpful? 0
      , chennai
      Reviewed on May 25, 2017
    • HDFC Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      The service was not bad with HDFC on my personal loan. They gave prompt response on my personal loan application. The interest rate was on the higher side. They took around 1 week to disburse my personal loan.I can say the whole Loan process just took a week time. Overall I am satisfied with the HDFC service.
      Was this review helpful? 0
      , chennai
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Good financial advisor"
      0.5 5.0/5 "Blown Away!"
      Every service of Bank Bazaar is good, they completely taking initiative on the customer's request. The website and the mobile application is convenient to check all the financial products and its very useful to check the credit score without any hassles.
      Was this review helpful? 0
      , aurangabad
      Reviewed on May 25, 2017
    • ICICI Bank Personal Loan
      "Its Average"
      0.5 1.0/5 "Really Bad"
      I have submitted all the documents to the bank, but process was not completed. I was staying in malkapur location it was not there in their system. Hence they have rejected the application and they didn't give any other option to take personal loan.
      Was this review helpful? 0
      , aurangabad
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Easiest web portal"
      0.5 3.0/5 "Satisfactory"
      Bankbazaar website is good and it is quite easy to navigate. It is like having all things in one basket so it was very easy to check all the banks and its interest rate and other charges. Also easy to apply for the loan on bankbazaar web portal.
      Was this review helpful? 0
      , mumbai
      Reviewed on May 25, 2017
    • Tata capital Personal Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      Actually I had not submitted the required documents to Tata capital to avail the personal loan, therefore my loan application was closed. Other than that Tata capital was quite good in providing response. I do not recall anything about the rate of interest.
      Was this review helpful? 0
      , mumbai
      Reviewed on May 25, 2017
    • HDFC Bank Personal Loan
      "Nice experience"
      0.5 4.0/5 "Great!"
      I had taken my personal loan from HDFC Bank and they followed up well on my application. When I was busy and have asked them to call me back, they would willing do so at the time I asked them too. The offer on the interest rate and charges was also good.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Good services"
      0.5 4.0/5 "Great!"
      I am happy with Bankbazaar as they were very much responsive to my application. They were often contacting me and checked if my application with the bank is on track. The website is good and I appreciate the follow up calls which was done on a regular basis.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
    • Bank Bazaar Customer Support
      "Supportive Service"
      0.5 4.0/5 "Great!"
      Bankbazaar services are quite good and approachable. They immediately contacted me on my loan application. I got a suggestions on the bank according to my loan requirement and my application had been assigned to the bank without any delay. I got regular followups and updates from Bankbazaar.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 25, 2017
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