Personal Loan Interest Rates

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Latest Personal Loan Interest Rates 2020

Banks Interest Rate* Loan Amount
Allahabad Bank 12.15% onwards 50,000-20 lakhs
Andhra Bank RLLR + 3.00% to RLLR + 5.65% As per the applicant’s profile
Axis Bank 24% 50,000-15 lakhs
Bajaj Finserv 12.99% onwards Up to 25 lakhs
Bank of Baroda 11.40-16.40% 50,000-10 lakhs
Bank of India 10.50% onwards Up to 10 lakh
Bank of Maharashtra 10.85-11.85% Up to 10 lakh
CASHe 30% to 36% 9,000 – 3 lakh
Central Bank 11.25% onwards Up to 10 lakhs
Citibank 10.50-18.99% 50,000-30 lakhs
Early Salary 24% to 30% 8,000 – 2 lakh
Federal Bank 11.60% onwards Up to 25 lakhs
Fullerton India 12-36% Up to 25 lakhs
HDFC Bank 10.75-21.30% 50,000-40 lakhs
Home Credit 24% to 49% 25000 – 2.40 lakh
HSBC Bank 8.65%-10.50% Up to 30 lakhs
ICICI Bank 11.25% onwards 50,000-20 lakhs
IDBI Bank 12% – 14% 25,000-10 lakhs
IDFC First 11.50% onwards 1 lakh-25 lakhs
Indiabulls As per loan agreement Rs. 1000 to Rs. 15 lakh
Indian Bank 10.35% onwards As per the applicant’s profile
Indian Overseas Bank 10.50% onwards Up to Rs. 15 lakh
IndusInd Bank 10.75% onwards 50,000-15 lakhs
Kotak Mahindra Bank 10.99-24% 50,000-15 lakhs
Kreditbee 12.24% onwards 1000 – 2 lakh
MoneyTap 1.25% p.m. onwards Rs. 3000 to Rs. 5 lakh
Money view 1.33% p.m. onwards Rs. 10,000 to Rs. 5 lakh
Muthoot Finance 14.50% onwards 50,000-10 lakhs
Punjab National Bank RLLR+2.15 to RLLR+6.70% 50,000-10 lakhs
RBL Bank 12-23% 1 lakh-20 lakhs
Standard Chartered Bank 10.99% onwards 1 lakh-30 lakhs
StashFin 11.99% to 59.99% 500 – 5 lakh
SBI 9.60% onwards Up to 20 lakhs
TATA Capital 10.99% onwards 75,000-25 lakhs
UCO Bank 10.95% onwards Up to 10 lakhs
Union Bank of India 10.10% onwards Up to 10 lakhs
Yes Bank 10.45%- 20%  1 lakh-40 lakh

 

About Personal Loan Interest Rates

Personal Loan Interest Rates
A personal loan is an easy way of overcoming your financial problems. It is the best way to get a loan since it is easily available and most of the banks provide it at affordable interest rates. As the name suggests, Personal Loan is a financial product which came into existence for helping individual and providing quick cash liquidity. The loan amount can be used to pay medical expenses education purposes or wedding costs.
 
As there is no collateral required this loaning scheme is called an unsecured loan. Keep reading below to know more about the benefits and the interest rate of a Personal Loan.
 

Key points about Personal Loan Interest Rates:

  1. A fixed amount is to be paid every month to the bank of your loan amount
  2. You can now get easy and quick disbursal of loan within 24 hours also depending on your loan amount and your bank record
  3. Always maintain your bank accounts, because banks still consider your accounts as your stability to bear the loan amount
  4. Never try to take an amount of loan which you think will not be possible to repay to the bank in that fixed time period
  5. Must maintain your documents means your profile is what speaks for yourself, so try not to mess with your papers while submitting them to the bank
  6. Most of the rejections for a Personal Loan are done based on the documents that you provide, and your current location also matters a lot while opting for a loan
  7. Try to keep your records as simple as possible. Provide genuine documents
  8. CIBIL Score plays a vital role in this type of loan. By tracking your credit history, the bank decides whether you have financial stability or not.

What is the best way to get a Personal Loan @ Lowest Rate of Interest?

Follow the steps below to get the lowest rate of interest on your personal loan : 

  • Increase your Credit Score: Your credit score depicts how creditworthy are you. Applicants with a high credit score get the best offers on their personal loans in terms of the rate of interest charged, processing fee on the loan, etc. Therefore, you should always keep a check on your credit score before applying for a loan. If your cibil score is less than 750, you should try and make sure that you improve it. Your probability of getting a personal loan increase if you have a credit score above 750. 
  • Avoid Missing Repayments: If you miss a loan or credit card repayment, your credit score may be adversely affected. Loan providers usually take your repayment history into account before deciding the rate of interest for a loan. Those who have paid their past EMIs and credit card bills on time are likely to be charged a lower interest.
  • Keep an Eye Out for Offers: Banks and financial institutions usually offer special interest rates for a limited period of time during festive occasions. If you apply for a loan while such an offer is running, you may be offered a lower rate of interest.
  • Compare Personal Loan Interest Rates: Before applying to a particular bank for a personal loan, it is necessary to compare the interest rates charged by various NBFCs and banks. This will help you avail a personal loan at a competitive interest rate.
  • Negotiate with the Lender: If you are an existing customer of a bank or have a good relationship with the loan provider, you can negotiate for the lowest interest rate. When doing this, it is advisable to submit a formal written request to the loan provider.

Eligibility Criteria for Personal Loan:

  1. CIBIL Score: It is the summary of your credit history. The score is derived using a CIBIL report, which is also known as (CIR) Credit Information Report. All the previous payments regarding loans and credit card history get checked through that.
  2. Salary: The bank decides the loan amount based on your net pay. So, make sure to think wisely while considering the amount of loan that you want to take.
  3. Location: It is yet another primary concern while opting for a loan. You can get a loan only if there is a branch of the bank near your current living location.
  4. Tenure of the loan: All banks have a different tenancy for giving credit. So you need to decide for how long you want a Personal Loan.
  5. Age: A person between the age of 21-60 years can avail a Personal Loan. The condition applies to both salaried and self-employed people.
  6. Company’s Profile: For salaried people, it means that your company’s background is checked whether it comes under the list of banks or not. For self-employed people, the age of the company is taken into consideration along with how much profit it makes on an annual basis.
  7. Special Discounts: It is not always necessary that the bank in which you have your current salary account is going to offer you the best loan interest rate. So try to explore more in this case that which bank has to provide what. There might be other banks as well who can give you some other exciting and attractive loan schemes. Don’t get into a trap.
  8. Processing Fee: Last but not least, all banks charge you some rate of processing fee while sanctioning your loan amount.
  9. Capability: Only apply for the amount which you can repay to the bank quickly.
  10. Avoid Multiple Loans: When you take multiple loans (means more than one loan from the same bank or different banks), then the bank thinks that you might not be able to repay the amount of to be sanctioned loan timely. Make sure that you are under no multiple loan schemes to avoid rejection for your loan.
  11. Avoid Reapplication: There are several banks that do not provide credit to applicants who have applied earlier in the past six months. Try to keep a gap of at least six months for reapplying to take a Personal Loan.
  12. Stability: Always ensure that you must have the capability of repaying the money to the bank for which you need to be more stable if you are working in a corporate sector and in case of self-employed people your company must earn a handsome amount of profit and must be sustainable in the market.
  13. Loan Amount: Only apply for the amount you think you are eligible for.
personal loan at 10.75%*

 

Factors Affecting Personal Loan Interest Rates

  • CIBIL Score: Your Cibil score depicts your creditworthiness and lenders use it as a means of checking your credit history and capability of repaying the said loan on time. A high credit score helps you in getting a Low 
  • Level of Income: After credit score, lenders need validation for your level of income as it indicates your capability of repaying your loan and often gets you a lower rate of interest if income level is high. 
  • Credit Utilization Ratio: This is the ratio between the amount of credit that is available to you and the amount of credit you have used. Usually, a credit utilization ratio of up to 30% is considered a good ratio as it indicates a higher repayment capacity.
  • Fixed Obligation to Income Ratio (FOIR): This is the ratio between the already existing EMI amounts and credit card bills to your total income. It helps to determine how much income you have to repay the further loan that you’re applying for. FOIR should be maintained as low as possible at least less than 50% to get a good interest rate.
  • Multiple Loan Applications: You should not apply for multiple loans at once as it negatively impacts your credit score and makes it harder for you to get a loan at a low-interest rate. 
  • Relationship with the Bank: If you’re an already existing customer with the bank having a Savings account or a loan, it impacts the rate of interest that is going to be charged from you as compared to any new customer.

Floating Interest Rates vs Fixed Interest Rates – Which is better?

If you choose a personal loan with a fixed interest rate, you’ll be charged the same rate of interest throughout the repayment tenure of the loan.

The variable or floating interest rate is linked to the MCLR or Marginal Cost of Lending Rate, thus the rate of interest to change as and when the MCLR fluctuates.

In choosing the fixed rate option, you have the knowledge of exactly how much you’ll have to pay each time. Therefore, who wish to plan their finances in advance should choose this option.

However, you can opt for a floating/variable interest rate as it has the benefit that you’ll have to pay a lesser amount in case MCLR drops. 

 

Compare Latest Personal Loan Interest Rates

HDFC Bank

Cat A Rates 10.99% – 15%
(For Special Companies)
15%
(For 75,000 & above salary)
15.5%
(For 35,000-75,000 salary)
17.45%
(For 20,000-35,000 salary)
11.29% – 12.5%
(Special Rates for Loan Amount b/w 10lakhs – 30lakhs)
11.39% – 11.8%
(BT for Listed Companies)
Emi (4years) Rs.2584 – Rs.2783
(For Special Companies)
Rs.2783
(For 75,000 & above salary)
Rs.2808
(For 35,000-75,000 salary)
Rs.2909
(For 20,000-35,000 salary)
Rs.2599 – Rs.2658
(Special Rates for Loan Amount b/w 10lakhs – 30lakhs)
Rs.2604 – Rs.2624
(BT for Listed Companies)
Cat B Rates 10.99% – 15%
(For Special Companies)
15%
(For 75,000 & above salary)
15.5%
(For 35,000-75,000 salary)
17.45%
(For 20,000-35,000 salary)
11.29% – 12.5%
(Special Rates for Loan Amount b/w 10lakhs – 30lakhs)
11.39% – 11.8%
(BT for Listed Companies)
Emi (4years) Rs.2584 – Rs.2783
(For Special Companies)
Rs.2783
(For 75,000 & above salary)
Rs.2808
(For 35,000-75,000 salary)
Rs.2909
(For 20,000-35,000 salary)
Rs.2599 – Rs.2658
(Special Rates for Loan Amount b/w 10lakhs – 30lakhs)
Rs.2604 – Rs.2624
(BT for Listed Companies)
Others Rates 10.75% – 17.5%
Emi (4years) Rs.2572
Pre Payment Charges Up to 4.00%
Processing Fees Upto Rs.3999/- + GST

 

Points to Remember 

While choosing a personal loan with a low rate of interest, you should consider the following points: 

  • Processing Fee: Lenders charge a one-time charge called the processing fee, which increases the loan cost. The processing fee is also important while selecting a personal loan and not only the Rate of Interest. 
  • Prepay Charges: Some lenders may charge pre-payment or preclosure charges if you repay the entire loan amount before the end of the repayment loan tenure. Keep in mind to check whether your lender charges any pre-payment charge or not. 
  • Customer Service: Make sure the lender that you have chosen for your loan offers a good customer service to the end consumer. Before applying for a personal loan, you should keep in mind the customer service options and how to contact them.
  • Eligibility Criteria: While the lender offers personal loans at low rates of interest, you should always check the eligibility criteria of the lender and whether your ‘e eligible for the loan or not.
  • Loan Disbursal: If you have to take a personal loan for any emergency, it is important to make sure that the lender gives the loan disbursal quickly. Many leading banks and financial institutions provide the loan disbursal within a matter of seconds. 
  • Other Charges: Some banks and financial institutions may charge you a slightly higher rate of interest, you may be able to save on the overall cost of the loan if the processing fee, default charges, pre-payment fee, Loan Cancellation Charges, etc., are low. Therefore, keep in mind the different offers from various lenders to avail of the best offer.
  • Discounts: Although the bank/financial institution may have specified a high-interest rate, you can try to negotiate with the bank for the lowest interest rate. Many-a-times, lenders will give a discount to existing customers and to those who have maintained a healthy relationship with them.
  • Offers: Several banks and financial institutions provide the best offers on their financial products during the festive season. 

Benefits of Personal Loan

  1. Easy Disbursal: There is an easy disbursal involved in the process of a Personal Loan. You can now get the loan disbursed in just one-two days and sometimes within one day only.
  2. No need for any guarantor: The best thing about this type of loan is that you don’t have to show or keep any confidential papers.
  3. Personal Documents: When you go for this loan, make sure that all your documents are genuine as your documents speak for yourself.
  4. Simple Application Process: Your few documents, along with your passport-sized pictures, are required for filing your application form for a Personal Loan.
  5. Hassle-Free Process: There is no need to get confused while the process is ongoing as the bank executives help you with all your queries in one go. Just sit back and relax while the bank is doing all the formalities.

What is CIBIL Score?

CIBIL Score is the history of your payments that you have done to the bank. Depending on your bank statements and payments, the bank decides how your CIBIL Score level is. The CIR (Credit Information Report) is the history of your credit score which checks your account’s history for different loans that you have taken (if any) and the credit card history (if you have).  It is essential to maintain your CIBIL score while taking a loan because your loan sanctioning depends a lot on your credit history.

Look at the following table that will give you an idea about how banks decide your loan application procedure.

CIBIL Score Ranking
650 or below Bad
650 – 700 Delay in money
700 – 750 Normal
750 – 850 Good
850 – 900 Excellent

Influence of CIBIL Score on your loan:

 
Rejection of loans can happen based on your CIBIL Scores as well, so let us have a look at how they influence our loan application’s acceptance or rejection.
 
650 or below – If your credit score is 650 or below than that then the bank considers the applicant now eligible for the loan.
 
650 – 700 – The applicant must have skipped one or more than one payment with any bank, or he was not able to pay the amount to the bank at a given time. So this is again a primary reason for rejection of your loan application.
 
700 – 750 – Banks always go for the applicants who have a normal or above standard CIBIL score.
 
750 – 850 – This level of score history comes under a suitable category. Hence people who have scores between this gets their loan approval quite quickly.
 
850 – 900 – An excellent score level that is maintained by people have negligible chances of getting a rejection.

What is an EMI?

EMI is the Equated Monthly Installments that you pay to the bank for your loan amount. The borrower (an applicant) pays a fixed amount to the moneylender (the bank) at the end date or start date of every month.
 
The EMI is calculated based on your work profile (net salary) and the amount of loan you have to take from the bank. The scheme of EMI has been introduced by the banks so that the person can repay the loan amount by giving a fixed due every month, and there is less burden on the applicant.

Personal Loan Interest Rate Calculator

Now it is effortless to calculate your own EMI with the help of the EMI Calculator. You don’t have to rely on the banks anymore for calculating your monthly installments. EMI calculator is the easiest way to know how much you are going to pay monthly.
 
Also, with the help of the EMI Calculator, you will be able to know whether you are eligible for the loan amount you want or not.

Why Dialabank?

Dialabank helps you to choose the best option of banks by providing you a comparison of different banks so that you can make the right choice. Once you fill a simple form, which is basically to know your capability, our customer relationship managers will have a word with you and help you choose the right option.
 
You will get a call from our customer champions within two days so you can ask all your queries to them and they will try their level best to solve them.

FAQs about Personal Loan Interest Rates

 
When it comes to taking a loan from the bank, our primary concern is the rate of interest being charged by the banks on the loan amount. So let’s have a look at different questions that arise in people’s minds while going for a Personal Loan.
 
✅  Which bank has the best and low rate of interest?
 
Well, if we consider the reports, then YES bank is offering the lowest rate of interest on Personal Loan to its customers. There might be other banks as well who provide interest rate close enough to YES bank, so you have to be careful while choosing the right bank according to your budget and stability.
 
✅  Who can apply for a Personal Loan?
 
Anyone who is an employee of a company or owns a company can take a Personal Loan. All you need is your details for verification by the bank.
 
✅  Does only a bank provide a Personal Loan?
 
When a person is not able to get a loan from any bank due to any reason, then NBFCs (Non-Banking Financial Company) come into play. They provide financing to people who need immediate money and fail to get a loan from the bank. So, a bank is not the only option that you have while taking a Personal Loan. Many different NBFCs are there to provide loans. NBFCs like Bajaj Finserv and Fullerton India are popular and are known for their best quality service to its customers.
 
✅  How can I apply for a Personal Loan?
 
Anyone who needs fast money can opt for this type of loan as it gets quickly disbursed within1-2 days. You can go to the nearest bank branch, meet their customer relationship executives and ask them to help you get a loan or you can fill a form online on our website, and get in touch with one of our customer relationship managers who will give you the right knowledge.
 
✅  For how long does a Personal Loan last?
 
Personal loans have a minimum tenure of 1 year that goes up to a maximum tenure of 5 years.
 
✅  Are there any other charges included for a Personal Loan?
 
Pre-closure amount: If a person can earn or save enough money that now he can repay the remaining loan amount in one go only (which leads to the closing of a loan), then every bank has its procedure. Banks charge a maximum of 5% of the loan amount if you want to pay all the money back to the bank and hence close your loan account. The percentage of charge of the pre-closure amount on the loan amount varies from bank to bank and also on the duration of the loan.
 
Processing Fee: Every bank charges some fee while sanctioning your loan amount. Banks have different processing fees depending on your bank type and your loan amount.
 
✅  How do I avoid rejection for my loan?
 
Make sure that all your ID proofs and documents are well verified and accurate before the bank’s verification. Your history is being checked by the bank officials that where else have you applied for a loan or are there any rejections, is so then why.
 
✅  What if I’m not able to repay the loan amount?
 
If a person fails to repay the amount of the loan, then he is charged with penalties and a higher rate of interest, but no one can arrest in this case. Your CIBIL score is affected a lot if this situation arises. So try to make monthly payments on time to avoid the disturbance in your credit history. You eventually land up in civil debts.
 
✅  Can I return the money to the bank all at once?
 
Yes, of course, you can. When you have sufficient money in your savings then surely you have the right to replay all the amount in one go only. But remember that whenever this situation arrives, prepare yourself for the fact that the bank will charge some amount of interest on the loan amount that you have taken from the bank.
 
✅  Can I take more than one Personal Loan at a time?
 
No, you cannot opt for another Personal Loan while you already have one loan active. The main reason behind this clause is, the bank thinks that you will not be able to take so much of the burden of more than one loan at a time. But, there are many other factors also on which depends your sanctioning of the loan matters. So, read all terms and conditions very carefully while opting for this loan.
 
✅  How important is it to maintain your CIBIL score?
 
It is a vital part of loan processing. Your CIBIL score is checked every time you want to opt for a loan, be it a personal loan, education loan, car loan, etc. The main reason behind the idea of checking the CIBIL Score is that the bank wants to be sure about your financial stability.
 
✅  If my CIBIL score is not up to the mark, then can I get a rejection for my Personal Loan?
 
Yes, why not! If the bank feels that you do not have a solid financial background, then you might get rejected based on your credit score. CIBIL Score is the credit history that shows all your loans (if you already took a loan/loans). It keeps track of all your credit card payments (if you have a credit card) and your bank statements to ensure that when you take a loan, then you are capable of repaying it to the bank.
 
✅  What are the processing charges for a Personal Loan?
 
Processing charges are mandatory and is deducted by every bank which offers a personal loan. The processing fee ranges from 1.50% to 2%, and the costs are to be paid by the applicant to the bank while the loan disbursal procedure is going on.
 
✅  What are the things that are covered in your gross salary?
 
Gross Salary is the total amount that is paid to an employee before any deductions by the employer.
 
It includes:
 
  1. Base/Basic Salary
  2. HRA (House Rent Allowance)
  3. TDS (Tax Deduction at Source)
  4. PF (Provident Fund)

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