Tagged: personal loan interest rates

How to get Low – Interest Personal Loans

Personal loans like any other loans are offered at an interest rate that is majorly dependent on the income profile of the applicant. Having said that, unlike other loans, a personal loan is generally unsecured and the lender does not have any authority on the usage of the money. As you know, there is an eligibility criterion on the basis of which a borrower gets a loan, different lenders have different criteria for this unsecured loan as well. However, there are also some factors that affect the eligibility of a personal loan and these factors are as follows:

Factors Affecting Personal Loan Eligibility

It is important to understand that there are some factors on the basis of which you get a personal loan and these factors are as follows:

Monthly Income: A regular and good source of income if one of the most important factors in the loan amount that a borrower can get from the banks or NBFCs. So, the more you earn the lower rate you will be offered.

personal loan rates

Age: The age criteria for a loan borrower is between the age of 21-58 years. However, some lenders have the upper limit of 65 years as well. The reason behind this is that young people are generally free from financial responsibilities as such and thus the repayment is expected to be smoother in this case.

Monthly Expenses: To get a personal loan, monthly expenses like investments and other responsibilities of the borrower are considered by the banks. In the case of personal loans, is generally expected that the applicant must have a smooth saving of more than 50% of his/her monthly salary after meeting all the monthly expenses.

Any Other Loan: Banks often find it easier to lend money to the borrower’s who have no other running loan. Thus, if you have any other loan, lenders will take into account the remaining income you have after the deduction of the other EMIs. However, if you are not having any other loan, the path is going to be smoother.  

Credit History: The credit history of the applicant is most importantly taken care of as CIBIL score play a very important role in getting a personal loan. It is important to understand that credit history defines your performance during the repayment procedure and the loan application of a defaulter is not easily accepted by the banks.

Job Stability: A person who has good working experience with a minimum of 2-3 years can get a hassle-free loan. Thus, if you are a stable employee of your current employer, lenders will find it easier to trust you and hence approve your application.

Relationship with the Bank: Maintaining a healthy relationship with the banks/NBFCs is very important to get a personal loan smoothly. People who are are an existing customer of the particular bank they are applying at, have a greater chance of getting low-interest personal loans.

Category of Your Employer: If the borrower is working in an MNC or the employer comes under fortune 100 companies, the loan eligibility increases as the loan repayment capacity also increases. Banks and NBFCs have specialized personal loans for MNCs and other reputed firms and the present lowest interest rate on a personal loan is 11.29% offered by Kotak Mahindra Bank.

Eligibility Criteria-

Now, the person who matches the above-mentioned factors will be eligible for this type of loan. Other than this, there is a certain personal loan eligibility criterion also that is required to match with the applicant’s profile. This eligibility is, however, subject to change from profession to profession, from one applicant to another, and from one lender to another as well. For the basic idea, here is the general required criteria:

For Salaried:

  • The applicant must be above 58 years
  • Minimum Net Monthly Income of the applicant should be ₹15,000/-.
  • Good score
  • Minimum work experience of the applicant should be 1 year

For Self-employed:

  • The age of the applicant should be between 24-65 years
  • Net Monthly Income of the applicant should be ₹2 lakhs
  • The applicant must have a minimum work experience of 3 years
  • Good cibil score

Personal Loan Interest Rates in Top 5 banks

  • ICICI Bank-11.59% p.a. onwards
  • HDFC Bank-15.75% p.a. onwards
  • Axis Bank-15.50% p.a. onwards
  • State Bank of India- 11.90% p.a. onwards
  • Kotak Mahindra Bank-11.29% p.a. onwards

Thus, you can decide which bank is giving your lowest rate and then apply for the one that suits your purpose. It is also advised to be true to your needs as well as affordability for a smoother loan.



Article Source: http://www.imfaceplate.com/aashnabatra/how-to-get-lowinterest-personal-loans

Know the Personal Loan Amount You are Eligible For

When there is an urgent need of funds people generally opt for personal loans as the processing time is less and no collateral is required to avail this loan. Also, the personal loan can be used for any purpose. There is no restriction on usage of the amount disbursed under a personal loan. But the concern is how much can you borrow on a personal loan. Since the requirement of all individuals is not same, therefore it is important to ascertain the value required and the amount the lender can grant.

As personal loan is an unsecured loan the bank lends the loan after evaluating the repayment capacity of the individual. This value is determined by the bank on the basis of your income and savings. So, your salary plays a vital role in deciding the loan amount you are eligible for. After referring to the information provided by you regarding the earning and expenses the bank calculates the eligible loan amount using the personal loan eligibility calculator.

apply personal loan

Personal Loan Eligibility Calculator:

Eligibility calculator is a methodical way of calculating the loan amount an individual is eligible to receive. It is a systematic way of computing the amount a lender can disburse to the borrower based on his repayment capacity. The income of the customer, savings, rate of interest and tenure of the loan are taken into consideration while computing the eligible loan amount.

Let’s use an example to learn how is the eligibility amount decided by the banks and other lending institutions.

Illustration: The monthly income of an employee working in a reputed company is ₹ 80,000. He wants a personal loan for some reason. After meeting all his expenses he is able to save 50% of his income which is ₹ 40,000. He applied for the personal loan in a bank. The bank after verifying his net income will calculate the eligibility amount using the below mentioned formula:

Personal Loan Eligibility Amount = ₹ 1,00,000 x Savings/Per Lakh EMI

Per Lakh EMI for –

Tenure – 4 years

Interest Rate – 14.50% p.a.

EMI Amount = ₹ 2,758

So, the eligibility amount = 1,00,000 x Savings/EMI

= 1,00,000 x 40,000/2,758

= ₹ 14,50,327

Therefore, the candidate having a monthly income of ₹ 80,000 can avail a loan of up to ₹ 14.50 lacs.

But before calculating the eligibility amount the bank evaluates an individual’s performance and checks whether an applicant is suitable to avail the loan facility. This evaluation is done on the basis of certain parameters. These factors decide whether an individual is capable of getting a loan or not.

Factors Affecting the Loan Eligibility: The factors that affect the loan eligibility are:

  • Monthly Income
  • Age
  • Monthly Expenses
  • Any Other Loan
  • Credit History
  • Job Stability
  • Relationship with the Bank
  • Category of your Employer

Once your application has been logged in and you receive the approval letter it is important to determine the installment amount you will be paying each month in order to pay off the debt. This will help you set aside the funds out of your income and help in timely payment of the loan. You can calculate the EMI amount using the calculator.

Personal Loan EMI Calculator:

PL EMI calculator is an online device designed for making the calculation of EMI easy. EMI stands for Equated Monthly Installment. It is the convenient monthly amount that the borrower has to pay to settle the loan availed.

The EMI consists of both principal and interest amount. This amount can be computed using the EMI calculator. It’s working is very simple. The user just needs to enter the loan amount, tenure and the personal loan interest rates. It will automatically calculate the result. And will reveal the total interest amount charged on the loan. This will help you know the installment amount you have to pay each month and the total repayment amount you will be paying by the end of the tenure.

Values you need to enter in the calculator-

  • Loan amount
  • Tenure
  • Rate of Interest

Output displayed after calculating-

  • Equated Monthly Installment (EMI) Amount
  • Total interest amount
  • Total repayment amount

Using the calculator you can even compare the various loan offers provided by different lenders and select the lender that provides best deals at reasonable rates.


Article Sourcehttps://wishfin.blogspot.in/2017/01/know-personal-loan-amount-you-are.html

Personal Loan Application – A Means to Gratify Desires Instantly

Earlier the people use to postpone their desires and wishes due to the shortage of money and wait till the time they accumulate the required amount. Till they use to arrange the funds, they lost the interest in the thing they desired earlier. This is because the pleasure derived by instant gratification cannot be received by delaying things. Also, the right things, done at right time reap good results. Therefore in today’s time, people do not leave things on time and spontaneously grab the opportunity by arranging financial credit. There are various types of loan products available in the market. But the loan that is sanctioned in the shortest time possible is a personal loan. And because of net banking, it has become easier to drop a personal loan application. But while submitting the personal loan application form the applicant must fill the necessary details.

Personal Loan Application Form:

To avail the loan facility one has to fill in the application form. The application form is available at all the bank branches. The candidates can apply for the loan online as well.

need to fill in the following details-personal loan application

  • Personal Details along with the photograph
  • Details of Co-obligant/ Guarantor along with recent photograph
  • Profession Details
  • Income Details
  • Details of Assets and Liabilities
  • Purpose of taking the loan
  • Repayment Details

Also, the candidate is supposed to submit the requisite documents. The documents required are:

Identity Proof –  PAN Card/ Passport/ Election Card/ Photo Identity issued by Government, Defence Services, Public Sector undertaking/ Driving Licence/ Photo Credit Card/ Employee’s ID Card, Letter/card issued by UIDAI containing the details of name, photograph, address and Aadhaar number

Income Proof – Bank Statement for last 6 months, post dated cheques and electronic clearing mandates, legal documents as stipulated by the finance company, collateral security as advised by the finance company, any other document as advised by the finance company

Residence Proof – Bank Account Statement/ Latest Electricity Bill/ Latest Telephone Bill/ Latest Credit Card Bill/ Employer’s letter certifying current mailing address/Passport (valid)

Signature Verification– Valid Passport /Pan Card/ Processing Fee Cheque/ Banker’s Verification Letter

Factors Affecting Personal Loan Eligibility:

Once the application is submitted, the candidate’s profile is evaluated thoroughly. There are various parameters based on which the eligibility of the candidate is judged. The major factors affecting the eligibility are as follows:

Monthly Income – The most important criterion that helps in setting the disbursal amount is the income of the candidate. The person earning a handsome salary or high revenues is likely to get higher loan amount.

Age – When it comes to applying for a loan, the age of the applicant also matters. The age limit varies from lender to lender but in general, ranges from 21- 60 years.

Monthly Expenses – As the lender assumes that the borrower will be repaying the loan from the monthly income excluding expenses, so the applicant’s savings become a concern while calculating the eligibility.

Any Other Loan – The lenders count the applicant’s obligation to repay any other loan while deciding the disbursal amount. If the applicant has the capacity to repay both the loan simultaneously the new loan is sanctioned.

Credit History – The healthy credit history of the applicant builds up the CIBIL score which makes it convenient for the applicant to avail a loan.

Job Stability – The applicant should have a stable job and have the experience of working with the same company for at least an year. The self-employed applicant too must have a regular source of income.

Personal Loan Eligibility Calculator:

The lender checks your repayment capacity by using the personal loan eligibility calculator based on which the disbursal amount is decided. The following inputs are required to compute the eligibility value:

  • Income
  • Expenses
  • Savings
  • Personal loan interest rates
  • Tenure
  • Per lakh EMI

Now, how is the amount decided? The formula used to compute the value is:

Personal Loan Eligibility Amount = ₹ 1,00,000 x Savings/Per Lakh EMI

For the better understanding, let’s solve it using an example –

Illustration: The monthly income of an employee working in a reputed company is ₹ 80,000. He wants a personal loan for some reason. After meeting all his expenses he is able to save 50% of his income which is ₹ 40,000. He applied for the personal loan in a bank. The bank after considering his income calculated the eligibility amount in a manner specified below:

Per Lakh EMI for –

Tenure – 4 years

Interest Rate – 14.50% p.a.

EMI Amount = ₹ 2,758

So, the eligibility amount = 1,00,000 x Savings/EMI

= 1,00,000 x 40,000/2,758

= ₹ 14,50,327

Therefore, the candidate having a monthly income of ₹ 80,000 can avail a loan of up to ₹ 14.50 lacs.

Now with the availability of these unsecured quick loans, there is no need to keep your longings pending. Just file the application and access your dream at the right time.

SBI Personal Loan-Interest Rates and Eligibility Criteria

State Bank of India personal loan rates start from 11.90% p.a. which is the largest bank in India providing multiple consumer-friendly products and personal loans are one of them. Be it your wedding or your travel plan, you can do it all with this loan scheme offered by State Bank of India. So, if you are a salaried or a self-employed individual who wants to fulfill his/her pending desires but have been looking for funds, here is the dream come true offer. The bank offers personal loans under the following schemes at low-interest rates and high loan amount facility:

personal loan

  • SBI Saral Personal Loan
  • Xpress Credit Loan
  • SBI Pension Loan
  • Festive Loan
  • Jai Jawan Pension Loan

As you can see, different schemes are dedicated to a different section of the customer for different purposes. So, from any personal need like traveling or medical bill clearance or education, all your needs can be fulfilled with this unsecured loan scheme of SBI.

SBI offers one of the personal loan interest rates on with the starting rate of 11.90% (floating) p.a. Just like any other bank, this bank also has certain eligibility criteria on the basis which it offers this type of loan. So, here are the details of all the schemes.

SBI Xpress Credit loan: This scheme is an ideal loan for the people who want instant money. If you are salaried or a self-employed professional, you can get this loan between the rate of 11.90% to 14.90% (floating) p.a. Up to the loan amount of ₹15 lakhs.

To get this loan, you must cover the below eligibility criteria:

  • The applicant must be an employee of central and state government employee, Quasi-Government, Central PSUs, Profit making State PSUs, Educational Institutions of National Repute and selected corporates
  • The minimum monthly income of the applicant should be ₹7,500/-
  • The EMI/NMI ratio should not exceed 50

Pension Loan: This scheme is dedicated to the Pensioners and Family Pensioners (including Defence Personnel) and the interest rate offered under this scheme is 12.45% p.a. (floating) and up to the loan amount of ₹14 lakhs. To apply, you must cover the below criteria set by the bank:

  • The maximum age of the applicant should be 76 years
  • The person must be drawing a pension from the central or state governments and have his/her pension account with SBI
  • If the family pensioner is the spouse of a pensioner who is authorized to receive the pension then they too must not be over 76 years of age.

Saral Personal Loan: This scheme requires the below criteria:

  • Self-employed engineer
  • Doctor
  • Minimum work experience of 2 years for an MBA graduate
  • Available for Chartered Accountants and Architect

Festive Loan: SBI is one of those banks that brings festive offers on SBI personal loan that are affordable and people-friendly as well. So, if you want money for the same purpose, you have to match the following criteria:

  • Government employees or those working for PSUs or even private or public institutions/establishments with a minimum work experience of 2 years.
  • Minimum Net Monthly Income of ₹3000/-
  • The self-employed applicants must have the work experience of 3 years.
  • Individuals with a regular source of income like pension or interest from TDR or NSC or Govt Securities can apply.

Other than the above-mentioned criterion, the general eligibility to apply for PL at SBI are as follows:

For salaried individuals:

  • The minimum age of the applicant should be 21 years
  • The maximum age of the applicant should be 58 years
  • Minimum Net Monthly Income should be ₹5,000/-
  • Total work experience should be at least 2 years
  • Years in current residence should be at least 1 year

For Self-employed:

  • The minimum age of the applicant should be 21 years
  • The maximum age of the applicant should be 65 years
  • Minimum Net Monthly Income should be ₹7,000/-
  • Total work experience should be 2 years

Thus, on the basis of the above rates and eligibility, you can choose the scheme that suits your purpose and enjoy the benefits of low-interest rates and flexible tenure. So, what else do you want? Get started and apply now!

Axis Bank personal loan: Know more about it

Are you in need of cash? Are you not able to go for a holiday? Want to buy an expensive accessory for your home? Need money for the marriage expenses? Lack of fund is holding you back to fulfill your whims and desires. The answer to all the worries is Axis Bank Personal Loan, which is designed to give you funds for your personal needs. You can use the amount for all kind of needs and emergencies. The axis bank provides the minimum loan amount of ₹50,000 and the maximum amount of ₹ 1,50,000. The repayment tenure ranges from 12 to 60 months.

The bank being one the most trusted private sector bank with its network spread in many cities of India. It is the third largest private bank of India. It provides the Personal Loans on the basis of cities that has been categorized in tier 1, 2, and 3. On the basis of your location they offer you the interest rate. It gives the best rate of interest to its customer starting from 15.50% onwards. You can also transfer your existing high- interest loan from another bank to Axis Bank.

Axis Bank Personal Loan

Eligibility criteria-

Age- The minimum age required at the time of application is 21 years and the maximum age at the time of loan maturity should be 60 years.

Nature of job– You should be a salaried individual. The salaried doctors, an employee working in Public and private limited companies, central government sector employees, state government employees, public sector undertaking employees can avail the personal loan.

Minimum monthly income- The minimum monthly income is required by the bank to see your earning and how much you can pay as EMI. It also determines the amount that can be sanctioned to you. Your minimum net salary should be ₹ 15,000 per month.

Credit Score- It is important for you to have a good credit score in order to avail the personal loan from the bank. It determines the credit history of the borrower and show if the borrower is trustworthy or not.

Documents required-

Once you meet the eligibility criteria, the next step is to be ready with all the documents required for the sanctioning of the personal loan. The documents required to avail the amount is mentioned below-

  1. Signed application with recent passport size photographs.
  2. Age Proof- PAN Card/ Aadhar Card/ Passport
  3. ID Proof- Pan Card/ Passport/ Aadhar Card/ Driving licence.
  4. Residence Proof- Utility bills/ allotment letters.
  5. Bank Statement- Last 3 months bank statement/ last 6 months bank passbook.
  6. Income Proof- Latest salary slip/ ITR/ Form-16.
  7. Signature verification proof.

Post- sanction/ pre- disbursal documents are-

Once the above documents are provided, few other formalities needs to be completed so that the process of filing for the personal loan can be completed. For the post- sanction and pre- disbursal the documents required are-

  • Duly signed Loan Agreement
  • Standing Instruction Form/ ECS form.
  • Processing fee cheque.

Interest Rate of Axis Bank Personal Loan-

The charges that are levied on the borrower by the Axis Bank Personal Loan at the time of lending the amount is mentioned below-

Rate of interest- 15.50% to 24%

Processing fee- 1.50% to 2% + applicable service tax.

Prepayment Charges- Nil

Cheque Bounce Charges- ₹ 500 per cheque bounce + applicable service tax.

EMI Calculator-

The EMI Calculator helps you to determine the monthly installment that you as a borrower are going to pay to the Axis bank. You can visit the site of the bank to calculate your EMI’s. It helps you to make a decision for yourself and taking or rejecting a personal loan becomes a relatively easy decision for you.

Features and Benefits-

The Axis bank has several features and benefits that a customer can enjoy by associating with it.

  • Quick approval and disbursal of the loan amount.
  • Less paperwork and documents.
  • Easy and hassle- free.

To fulfill your wishes or to meet with the emergencies, the lack of fund is no your problem. All of the needs and desire will be taken care of with the Axis Bank Personal Loan. The bank will assist you to get your loan quick and hassle-free.

Know all about ICICI Personal Loan Interest Rates

Planning to go on holiday to France? Thinking of renovating your home? Need a loan for your wedding? Whatever may be the situation, you can look up to ICICI Personal Loan for fulfilling your wishes. However there is no point of availing a loan without knowing anything about the interest rates.

It is very necessary for you to know about the interest rates since it plays a key role in deciding the amount of EMIs you will pay every month. Incase you don’t know much about  ICICI Personal Loan Interest Rates, you need not worry because this article will solve all your queries.

icici personal loan

Anybody who meets the eligibility criteria, be it a salaried employee or a self-employed can avail a personal loan from ICICI bank . ICICI Personal Loan Interest Rates lie between the range of 11.59 to 22%. You are also required to pay a processing fee, which is 2.25% of the loan amount you have taken.

Salaried employees and self-employed people can take a maximum personal loan of Rs. 20 Lakh and Rs. 40 Lakh respectively from ICICI Bank. You should keep in mind that you can avail the Personal Loan for a maximum tenure of five years.

It is very important for a loan applicant to carefully look at the current interest rates and then decide because he has to repay the loan amount as well. Many people without thinking twice directly go for availing the loan overlooking the interest rates. This proves detrimental in the long run. Let’s take the help of an example to throw light on this point-

Suppose Abhishek wants a personal loan for his elder sister’s wedding. He approaches ICICI Bank for the same and after checking if he is eligible or not the bank offers him a loan of Rs. 5 lakh. He requires the funds instantly and doesn’t care to check the interest rates. For Abhishek, ICICI Personal Loan Interest Rate is fixed at 16% for a tenure of four years i.e. 48 months.

Now let’s calculate the amount of EMI he has to pay every month. After calculation the monthly EMI turns out to be Rs. 14,171.

But what if he negotiates with ICICI to get same loan amount but at a lower rate of interest. The bank charges him an interest rate of 12% per annum for the same tenure. Now the situation will be quite different. Let’s calculate the monthly EMI which he has to pay under this scenario.

He will now have to shell out a monthly EMI of Rs. 13,167 which is Rs. 1004 less than the previous EMI amount which he had to pay. This means he will save Rs 1004 every month if he manages to avail the loan at a lower interest rate. So it proves the fact that knowing the interest rates is a very important point  which must be kept in consideration while availing a loan.

So now that you are well-known about the ICICI Personal Loan Interest Rates you can confidently avail a loan from the bank.


HDFC Personal Loan: Know Your Eligibility

HDFC is one of the most popular private banks of India. It is the fifth largest bank in India by an asset. It provides its customer with one of the best deal in form of personal loan. It does not need any co- applicant or a guarantor.

The Personal Loan is provided to both salaried professionals as well as self-employed. The loan amount ranges minimum from  50,000 and exceeds up to 25 lakh, the maximum limit for self- employed is 15 lakh. The tenure of repayment of a personal loan is 12- 60 months. The reason to get a personal loan can be anything, to meet the personal needs or buying a horse or an expensive appliance.

hdfc personal loan

The processing fee ranges from 0.25% to 1.5% with applicable service tax. The foreclosure charges are accepted after 12 EMI’s for salaried while 6 EMI’s for self- employed. The pre payments vary by years, for 2nd year 4%, 3rd year 3% and after 3 rd year 2% charges are charged to the borrower. It has one of the best competitive rate of interest that ranges from 11.49% to 20%.

The eligibility criteria to determine your chances:

Age- The minimum age required is 21 years while the maximum age limit is 60. The maximum age at the time of loan maturity is 65 years.

Category of Work- The applicant should be a salaried individual or a self- employed.

Monthly Income- The minimum net monthly income should not be less than INR 15,000. It determines your loan amount as well as the EMI.

Job Stability- The work experience of the salaried individual should not be less than 12 months, of which not less than 1 month of the current employee. For the Self-employed, the minimum of 5 year in current business or profession. Working with well reputed company further enhances your chance to get a personal loan easily.

Cibil Score- Your past credit history, repayments of previous loan and credit card history are all very important in determining your credit score. It directly affects your eligibility to get a personal loan.

Documents- To get instant Personal loan approval following documents are needed to be kept handy-

  • An application with recent colour passport size photographs.
  • Photo ID Proof- Passport, PAN Card, Driving Card, Voter ID Card.
  • Residential Proof- Leave and License / Registered Rent Agreement/Utility bills (up to 3 months),  Passport and Business Address proof (in the case of self- employed).
  • Income Proof – For salaried- Salary Slip and Current dated Salary certificate with Form-16
  •  – For self- employed Bank Statement and ITR/ FORM-16 Office.

HDFC has a wide- spread network of branches in the country. It provides it’s customer with the best quality service both online as well as offline. They are one of the best quality service provider in the country. It gives a HDFC Personal loan with minimal documentation and has complete transparency.  It has special offers for women as well as corporate professionals.

Forces Behind Personal Loan Interest Rates

An interest rate is a subject of the supply and demand for the credit. When it comes to the demand for credit, an increased demand increases the interest rates and the decreased demand decreases the interest rates. On the other hand, the case is totally opposite with the supply of credit as the increased supply reduces the interest rates and the decreased supply increases the interest rates. Hence, depending upon the demand and supply of credit, the personal loan interest rates are decided.

Personal loan interest rates are the cost of the borrowing money that the borrower has to pay to the lender. Personal loans are usually unsecured loans that help you fulfill your personal desires. This loan is designed for the people who want to fulfill their desires but are falling short of money. So, whether you want to travel abroad or want to go for foreign education or have planned a big fat wedding for your child, a personal loan is an apt solution to all your financial needs.

personal loans interest rates

Talking about the forces behind personal loan interest rates, the lender-borrower relationship, supply and demand for the credit, inflation and the government play the key roles in deciding the interest rates of a personal loan. Since all these are dependent lenders takes the risk of giving funds, there are some set parameters on the basis of which they offer rates and these parameters are variable from lender to lender.

Why do interest rates on loans tend to be higher in a strong economy than in a weak one?

Most people find it difficult to understand the reason behind the higher rates on loans in a strong economy. Here are the simple reasons:

    • A strong economy tends to have high inflation and hence the rates are higher.
    • Borrowers in a strong economy are more likely to default on their loans so the rates are correspondingly high.
    • The demand for credit is high in a strong economy which increases the rates
    • Interest rates determine the strength of the economy, so the high rates actually keep cause a strong economy.



Factors affecting Personal Loans interest rates-

Monthly income: When it comes to interest rates, you are most likely to get lower rates if your earnings are higher.

Credit history: A healthy credit history that is if you have a good payment record, it will be an additional benefit.

Category of your employer: For a personal loan, the category of your company plays a very important role as the rates offered to the special companies is lower than the general rates.

Relationship with the bank: If you are an existing customer of your lending bank, you might get the privilege of paying lower interest rates on personal loans.

Which bank gives lowest interest rate for Personal Loan?

The interest rates offered are calculated on the basis of the details as discussed above. You can also check your personal loan eligibility with the help of the personal loan eligibility calculator and compare personal loan interest rates to make the right choice. So, the stronger your profile will be the more options you will have to choose from and hence the better rates you can get. For your reference, here is the list of the banks that give lowest personal loan interest rate:

  • SBI personal loan interest rates: 12.45% p.a. onwards.
  • HDFC personal loan interest rates: 15.75% p.a. onwards.
  • Personal loan interest rates Axis Bank: 15.50% p.a. onwards.