What are the interest rates of personal loan in India?
Personal
loans comes with higher rate of interest as they are unsecured and do not
require any asset to be kept as security.
· Always compare different lenders before choosing your personal loan provider. Fintechs like LoansJagat offers an excellent platform wherein the borrowers can compare various lenders for their offerings like rate of interest, loan amount, loan tenure, loan disbursal time etc.
If your credit score is fair, then apply for the personal loan with a co-applicant like your parents or spouse who has better credit score. The lender takes the credit and financial aspects of both the applicants into the consideration
In
comparison to home loan and auto loan
which are secured in nature and the money is ought to be used for the desired
purpose only. Personal loans are flexible and can be used as per borrower’s
discretion.
Indian
lending and credit market is beaming with personal loan products. There are
several buyers who procure this loan to meet their personal needs. The only
hitch attached with personal loans is the fact that they come up with higher
rate of interest which usually start from 10.50% per annum.
Different lenders
charge different personal loan interest rates which are governed by several
factors like credit score, income and repayment history of the lender. Similar
to how home loan follows home loan
eligibility criteria, personal loans also comes with pre-defined
eligibility criteria.
INTEREST RATE OF
PERSONAL LOAN IN INDIA
Various
Indian banks and lenders offer personal loan. Some of the leading banks and
NBFCs along with their rate of interest and processing charges are mentioned
below:
Personal
loan provider
|
Rate
of Interest
|
Processing
Fees charged (It is charged on the loan amount)
|
10.50% -
12.99%
|
1.60%
|
|
11.55% -
13.05%
|
As decided by
the lender
|
|
15.75% - 24%
|
1.50% - 2.00 %
+ GST
|
|
12.99% onwards
|
Up to 3.99%
|
|
11.35% -
16.35%
|
2%
|
|
13.10% onwards
|
One time @
2.00%
|
|
12.5% onwards
|
1.00%
|
|
13.00% -
16.50%
|
0.5%
|
|
MCLR (12M) +
3.00%
|
Rs 500 + S.T
|
|
10.99% onwards
|
Upto 2.75%
|
|
12.95% -
13.95%
|
1.50%
|
|
11.49% onwards
|
0.50%
|
|
12% onwards
|
Upto 6.5%
|
|
11.25% -
21.50%
|
Up to 2.50%
|
|
10.75% -
17.84%
|
Up to 1% of
the disbursed loan amount
|
|
11.50% -
19.25%
|
Up to 2.25%
per annum of loan amount
|
|
12% onwards
|
1%
|
|
11.5% onwards
|
Up to 2%
|
|
14.20% onwards
|
0.51%
|
|
10.75% onwards
|
Upto 2.5% +
tax
|
|
11.29% -
19.99%
|
Up to 2.5% +
GST
|
|
14.50%
|
As decided by
the lender
|
|
12% onwards
|
1.80%
|
|
12% onwards
|
4%
|
|
11.99% onwards
|
Upto 3%
|
|
11% onwards
|
1%
|
|
13.25% -
13.65%
|
0.50%
|
|
11.25% onwards
|
Up to 2.5% +
GST
|
|
11.70% onwards
|
1%
|
|
14.40% onwards
|
0.50%
|
|
10.75% onwards
|
Up to 2.50%
|
There are
several key factors which define the personal loan interest rates. Some of the
factors are credit score, income, and relationship with the bank and company
repute. These factors determine the final rate of interest which will be
offered to you.Credit Score: A good credit score over 750 increases your
chances of getting a lower interest rate deal on personal loan. Credit score
defines your repayment history and a good score signifies that you have been
diligent with past loans.
· Income: Lenders seek your income to check for your repayment capacity and also on the basis of your income they decide on the loan amount which you would be able to repay back easily. Higher income borrowers often get better deal in terms of interest rate in comparison to one with lower incomes.
· Relationship with the lender: A good relationship with the bank also puts you in a negotiating position for better interest rates on personal loans.
· Company repute: A public sector company or an MNC is likely to get you a better deal with rate of interest. A reputed employer is synonymous to job stability and steady income. The lender takes this into consideration to be assured of timely repayments.
One can avail the lowest interest rate on the personal loans by keeping a few factors in mind.
· Aim to improve and maintain your credit score by paying the loans and debts on time.
· Keep your debt to income ratio low.
· Income: Lenders seek your income to check for your repayment capacity and also on the basis of your income they decide on the loan amount which you would be able to repay back easily. Higher income borrowers often get better deal in terms of interest rate in comparison to one with lower incomes.
· Relationship with the lender: A good relationship with the bank also puts you in a negotiating position for better interest rates on personal loans.
· Company repute: A public sector company or an MNC is likely to get you a better deal with rate of interest. A reputed employer is synonymous to job stability and steady income. The lender takes this into consideration to be assured of timely repayments.
One can avail the lowest interest rate on the personal loans by keeping a few factors in mind.
· Aim to improve and maintain your credit score by paying the loans and debts on time.
· Keep your debt to income ratio low.
· Always compare different lenders before choosing your personal loan provider. Fintechs like LoansJagat offers an excellent platform wherein the borrowers can compare various lenders for their offerings like rate of interest, loan amount, loan tenure, loan disbursal time etc.
If your credit score is fair, then apply for the personal loan with a co-applicant like your parents or spouse who has better credit score. The lender takes the credit and financial aspects of both the applicants into the consideration
