Personal Loan Interest Rates: Compare Interest Rates & Charges
How To Apply For Instant Cash Personal Loans In Pune?
5 February 2021
How To Apply For Instant ₹15,000 Personal Loan?
9 February 2021Applying for a personal loan? Have you compared the interest rates and processing fees? Personal loan interest rates usually start from 12% p.a. and can go up 30% p.a. A lot of factors depend on whether your loan will be approved at a low or high-interest rate.
Before you apply for a personal loan from a particular bank, financial institution or a Non-Banking Financial Company, check and compare the personal loan interest rates and other fees. Keep reading!
Table of contents
Personal Loan Interest Rates in India (Updated 2022)
| Financial Institutions | Interest Rates |
| Navi | 9.9% p.a. onward |
| HDFC | 10.50% p.a. |
| Kotak Mahindra | 10.25% p.a. |
| IDFC FIRST | 12.50% p.a. |
| Yes Bank | 13.99% p.a. |
Personal Loan Processing Fee
| Bank | Processing Fee |
| SBI | Up to 1.5% (Max. Rs.15,000) |
| Axis Bank | 1.5% – 2% |
| ICICI Bank | Up to 2.5% |
| HDFC Bank | 2.5% (Max Rs. 25,000) |
| Kotak Mahindra | Up to 2.5% |
| Tata Capital | Up to 2.75% |
| IndusInd Bank | Up to 3% |
| IDFC First Bank | Up to 3.5% |
| Bajaj Finserv | Up to 4% |
Also Read: Instant Personal Loan Apps: Features, Benefits, And Eligibility
Factors that Influence Personal Loan Interest Rates
Availing of a low-interest personal loan with Navi instant personal loan is a simple and seamless process. You are required to keep certain metrics in mind before applying for a loan:
- Good Credit Score
To get a low-interest personal loan, it is a must for the borrower to have a credit score of 750 or above. Having a good credit score gives you negotiating power as a borrower. The higher the score, the better the chances of getting the best interest rate offers from Navi.
- Monthly Income
Lenders always check your monthly income before approving your loan application. If your monthly income is above Rs.15,000, you can get a loan from most financial institutions. However, the quantum of loan and the interest rate offered will depend on how much you earn – someone earning Rs.50,000 will get a bigger quantum and better rates than someone earning Rs.20,000 per month.
- Debt-to-Income Ratio
Let’s say, you‘re earning Rs.80,000 in a month. However, about 80% of your salary goes toward your existing debt repayments. This means that your debt ratio is on the higher side and as a result, it can affect the final interest rate offered.
- Employment Status
Lenders check if you’re employed or unemployed before servicing a loan. Applicants with a stable source of income (salaried or self-employed) can get better deals on interest rates than applicants not having a steady monthly income.
Also read: How To Improve Your Credit Score
How to Get Lowest Interest Rate On Personal Loan
You can lower the interest rate offered by the lender through the following options:
- Improve your credit score: Make timely repayments to keep your credit score above 750. Ensure that you’re paying your EMIs on time. Set up auto-debit to make sure smooth EMI payments.
- Check offers: Always keep an eye out for personal loan offers. Lenders often introduce new loan offers with lower interest rates to attract customers.
- Negotiate with the lender: Negotiation happens in two scenarios – if you have an excellent score or if you have built a business relationship with the lender. If you have either of these two or both, grab the opportunity to negotiate with the lender.
- Make repayments on time: Keep paying your EMIs on time. Lenders often evaluate your financial discipline before deciding on the final rate.
Also Read: How To Get Instant ₹20000 Personal Loan Without Collateral
How to Calculate Personal loan EMI
You can make use of the Navi Personal Loan EMI Calculator to get an estimate of the exact EMIs. All that is required is to put the loan amount, interest rate offered and tenure. You will get an idea of your monthly EMIs.
Alternatively, you can use this formula to calculate personal loan EMI.
EMI = [PxRX(1+R)^N]/[(1+R)^N-1], wherein P represents the loan amount, R is the interest rate charged per month, and N indicates the total number of monthly instalments.
Final Word
A personal loan is helpful during a financial emergency. If you want to apply for a personal loan, it is best to compare the interest rates offered by banks and NBFCs. This will help you get the best deal and enable you to be able to pay back your loan on time. For hassle-free, paperless and instant personal loan disbursal, install the Navi app on Android or iOS now!
FAQs on Personal Loan Interest Rates
Ans: If you have been using a credit card of a particular provider, you may be offered a lower interest rate on your existing loan. This helps the lender retain their existing customers, in this case, you. A balance transfer offers the remaining loan balance at a lower interest rate so that it is easy for you to repay the amount.
Ans: Apply for a personal loan on the Navi Instant app starting from Rs. 5000 to Rs. 20 lakh. It is a completely contactless personal loan process, from filing the loan application to document verification. The loan tenure starts from 3 months onwards. The interest rate ranges from 18 to 36%
Ans: You can get personal loans starting at 9.9% p.a. with Navi. However, the final rate depends on a host of factors including your credit score, repayment capacity, relationship with the lender, etc.
Ans: Though you may still get a loan with a low credit score, the interest rate offered could be on the higher side. Hence, it’s always advised to have a credit score above 750.
Ans: The other fees and charges may include processing fees, late payment fees, prepayment charges, GST, etc. Navi doesn’t charge any additional fee in case you want to foreclose your loan.
Ans: You can get better deals if you have compared different lenders, a good credit score, a good business relationship with the lender, etc. That way you can even get rates lower than the advertised rates.
Ans: Lenders usually charge a late payment fee in case you miss EMI payments. It’s usually 2% per month on the overdue amount.
Ans: PAN and Aadhaar
Ans: Higher the income, lower the risk for the lender to lend the amount. It gives them a guarantee that you will be able to repay the loan EMI amount every month. On the other hand, lower-income and high loan amounts may become a cause of concern for the lender.
Before you go…
- Looking for instant 🚀 personal loans 24*7 anywhere, anytime? Install the Navi app on Android or iOS now!
- Or, maybe you’re looking to buy that house you’ve been eyeing 🏠 and you need a loan of up to Rs. 10 crores. Install the Navi app on Android or iOS now and get instant in-principle approval right away! Interest rates starting at 6.46% p.a.
- How about an affordable health insurance policy 👨⚕️ starting at a monthly premium of just Rs. 241? Install the Navi app on Android or iOS now and get your policy in under 2 minutes.
- Instead, want to put your savings into action and kick-start your investment journey 💸 But don’t have time to do research. Invest now with Navi Nifty 50 Index Fund, sit back, and earn from the top 50 companies.
