Personal Loan Interest Rates

Personal Loan Interest rates refer to the interest that falls due, for every period, on the loan amount that you decide to borrow. From the lender’s perspective, personal loan interest rate is actually the premium which is charged from you for taking a risk with their money and lending it to you. The total interest accrued on a sum that you borrow primarily depends on the interest rate, principal amount and the tenure (usually in months). Personal Loans are unsecured in nature, hence slightly expensive in terms of interest rate as you don’t have to pledge any collateral in case you default.

Factors That Determine Personal Loan Interest Rates

Organization

The better the organization you work for, the better are your chances for low personal loan interest rates. When you work for a reputed organization that has a stable foothold in the market, and is renowned, the lender distinguishes you as a stable employee, and guarantees your repayment capabilities.

Credit Score: Your credit score/CIBIL score determines how potentially risky you are to the lenders. A low credit score indicates that you have the potential to cause losses to the bank. In simple words, a credit score is a simple marker of whether you would be able to repay your loan, and whether you have successfully repaid your past loans on time. So, the higher your credit score, the lower will be your personal loan interest rate.

Your Monthly Income:

May be it sounds unfair to you, but a higher income usually implies your repayment potential. In simple words, the more your income, the more you can negotiate with your lender for lower personal loan interest rate. For instance, if your monthly earning is INR 50,000/-, the lender will likely to give you a personal loan interest rate around 15% to 20%. However, if your monthly earning is more than INR 50,000, you would be able to negotiate with your lender to give you a lower personal loan interest rate. Hope you got a rough idea, that how the personal loan interest rates decreases as your income increases.

Relationship with the bank

When it comes to opting for a personal loan, your loyalty or your relationship with the lender matters! So, if a borrower have been loyal to a particular lender, and all your transaction have been with the particular lender, chances are that they would reduce the personal loan interest rate. It is likely that your lender can offer you better personal loan interest rate because even the lender would not want to lose a valued customer. Hence, it is always better that you apply for a personal loan from a lender where you usually have your accounts.

 

Your Age: A borrower’s age also plays an important role in determining personal loan interest rate. Individuals who are young, and have just started working, will be charged low-interest rates because of easy recovery in the near future. And those who are near to the retirement age will be charged more interest rates.

Tips To Get Personal Loan at Low Interest Rates

Personal Loan is unsecured in nature, and that’s why it becomes an easy and handy financial tool in most of the cases, hassle free to repay. However, since you don’t have to pledge any collateral against the loan, you may find personal loan interest rates slightly on the higher side.

Here’s what a borrower can do to get the best personal loan at low interest rate-

Build Your Credit Score: If you apply for personal loan with a credit score of 750+, it is always beneficial. Your credit score makes you financially solid and more credible in the lender’s eyes. However, if you have a low credit score, it is because of you haven’t made consistent repayments of previous or existing debts. In order to get best personal loan interest rates, it is advisable that you improve your credit score.

Personal Loan Comparison

A borrower should choose a lender with care; otherwise you may end up in a financial mess. Most financial pundits advise personal loan comparison, before you choose the one, as there may be some hidden charges, policies, etc. So, to get a right personal loan interest rate, first of all you have to select personal loan. Then, a proper personal loan comparison is needed, where you compare all its features, and interest rates with others. That way, a borrower can rule out the loans with EMI’s that are beyond his or her budget. So, all you have to do is to compare the personal loan interest rates across the lenders and apply for the one that meet your profile and requirements.

Personal Loan Interest Rates Comparison of All Banks

With Apna Loan, you can compare the quotes among top banks and NBFC’s in India within a jiffy. With Apna Loan, a borrower can perform personal loan comparison with the list of lenders that fit your budget. So, to get a deal of your choice, you can compare the quotes of some of the best banks like HDFC, SBI, Citibank, Axis Bank, Kotak Bank, and so on.

Bank Name
Interest Rate
Tenure
Other Details
View Offers
sbi-pl
11.95%
1 – 5 Years
Rs.50K – Rs.15L
Apply Now
hdfc-bank-pl
10.99%
1 – 5 Years
Rs.50K – Rs.15L
Apply Now
ICICI-pl
11.59%
1 – 5 Years
Rs.50K – Rs.20L
Apply Now
rbl-pl
14.50%
1 – 5 Years
Rs.1L – Rs.20L
Apply Now
bajaj-finserv-pl
14.25%
1 – 5 Years
Rs.1L – Rs.25L
Apply Now
tata-cap-pl
11.99%
1 – 5 Years
Rs.75K – Rs.15L
Apply Now
kotak-mahindra-bank-pl
11.50%
1 – 5 Years
Rs.50K – Rs.15L
Apply Now
axis-bank-pl
15.50%
1 – 5 Years
Rs.50K – Rs.15L
Apply Now
hsbc-bank-pl
11.49%
1 – 5 Years
Rs.1L – Rs.30L
Apply Now
fullertn-pl
15.75%
1 – 4 Years
Rs.1L – Rs.30L
Apply Now
standard-chartered-pl
11.49%
1 – 5 Years
Rs.1L – Rs.30L
Apply Now
IDFC-bank-pl
11.49%
1 – 5 Years
Rs.1L – Rs.25L
Apply Now
citi-bank-pl
11.49%
1 – 5 Years
Rs.1L – Rs.30L
Apply Now
IndusInd-bank-pl
11.99%
1 – 5 Years
Rs.50K – Rs.15L
Apply Now
maharashtra-bank-pl
12.75%
1 – 5 Years
Rs.1.5L Max
Apply Now
canara-bank-pl
12.75%
1 – 5 Years
Rs.1L – Rs.3L
Apply Now
dena-bank-pl
13.00%
1 – 3 Years
Rs.15K – Rs.1L
Apply Now
UBI-pl
14.40%
1 – 5 Years
Rs.5L Max
Apply Now
vijaya-bank-pl
13.50%
1 – 5 Years
Rs.10L Max
Apply Now
yes-bank-pl
14.00%
1 – 5 Years
Rs.20L Max
Apply Now
andhra-bank-pl
13.05%
1 – 5 Years
Rs.1L Max
Apply Now
allahabad-bank-pl
13.10%
1 – 5 Years
Rs.50K – Rs. 7.5L
Apply Now
corporation-bank-pl
12.75%
1 – 5 Years
Rs.10K – Rs. 2.5L
Apply Now
idbi-bank-pl
13.49%
1 – 5 Years
Rs.25K – Rs. 10L
Apply Now
indian-bank-pl
12.65%
1 – 3 Years
Rs.50K max
Apply Now
indian-overseas-bank-pl
12.70%
1 – 5 Years
Rs.1L – Rs. 15L
Apply Now
pnb-bank-pl
11.55%
1 – 5 Years
Rs.50K – Rs. 5L
Apply Now
karur-vysya-bank-pl
13.35%
1 – 3 Years
Rs.10L Max
Apply Now
syndicate-bank-pl
14.20%
1 – 5 Years
Rs.1L – Rs.10L
Apply Now
federal-bank-pl
13.32%
1 – 4 Years
Rs.50K – Rs.10L
Apply Now
bob-pl
11.35%
1 – 3 Years
Rs.20K – Rs.2L
Apply Now

Check Processing Fee

Depending on your lender, the processing fee varies. There are some banks and financial institutions that offer personal loans to certain customers with minimal processing fee. However, the processing fee is almost a non-refundable charge which the lenders retain even if the loan is cancelled after sanction. In addition to this, it is advisable that you check other fees like foreclosure, part-pre payment penalty charges, Cheque bounce etc. Even though these may be one time charges, you may feel you may not incur, their deduction from your sanctioned amount can considerably impact your wallet.

Personal Loan- A Multi-Purpose Loan

Personal Loan because of its versatile functions has come to be the more valuable financial products in borrower’s arsenal. And the best part about taking personal loan is its simple eligibility and competitive interest rate. All you need to have is a good credit score and be ready with some documents.  Some of the common reasons to apply for personal loan are:

Urgent Medical Obligation: Life is a roller coaster ride, with medical emergencies that can sneak peek up on you when you least expect them. However, if you spend some time shopping around on Apna Loan, you would find a personal loan to meet such obligations. In such situations, if you have a good credit score, then you can get a lower personal loan interest rate to fight this unplanned expenditure.

Debt Consolidation: essentially means taking out a new loan in order to consolidate number of other debts, and liabilities. Well, you can consolidate all your debts into a single personal loan. Yes, all you have to do is personal loan comparison and find the one which is convenient to you. With the right lower personal loan interest rate can help you tide away all other debts.

Pay off Your Credit Card Dues: This is perhaps one of the most important upsides to take a personal loan. Credit card comes with a high rate of interest, whereas a personal loan is subject to comparatively lower interest rate.