Check Personal Loan Interest Rate Online – Loan Bazaar
Easily compare and check the latest Personal loan interest rates online at Loan Bazaar. Our platform provides up-to-date information on the most competitive rates available in the market, helping you make an informed decision. Get the financial support you deserve with our personal loans at the best rates in the market.
* Onwards
| Lender | Interest Rate (ROI) | |
|---|---|---|
| Lender | ROI | |
| Aditya Birla Capital | 9.00% Onwards * | Claim Claim |
| HDFC Bank | 10.50% Onwards * | Claim Claim |
| Kotak Mahindra Bank | 10.50% Onwards * | Claim Claim |
| Thane Janata Sahakari Bank | 10.75% Onwards * | Claim Claim |
| IC ICI Bank | 10.75% Onwards * | Claim Claim |
| State Bank of India (SBI) | 10.90% Onwards * | Claim Claim |
| Axis Bank | 11.00% Onwards * | Claim Claim |
| Bank of Baroda | 11.00% Onwards * | Claim Claim |
| Canara Bank | 11.00% Onwards * | Claim Claim |
| SVC Bank | 11.00% Onwards * | Claim Claim |
| The Maharashtra State Co-operative Bank | 11.00% Onwards * | Claim Claim |
| Dombivli Nagari Sahakari Bank | 11.00% Onwards * | Claim Claim |
| Janata Sahakari Bank | 11.00% Onwards * | Claim Claim |
| Maharashtra Gramin Bank | 11.00% Onwards * | Claim Claim |
| Indian Overseas Bank | 11.00% Onwards * | Claim Claim |
| South Indian Bank | 11.00% Onwards * | Claim Claim |
| Yes Bank | 11.00% Onwards * | Claim Claim |
| Federal Bank | 11.25% Onwards * | Claim Claim |
| Bank of Maharashtra | 11.25% Onwards * | Claim Claim |
| IDBI Bank | 11.25% Onwards * | Claim Claim |
| Punjab National Bank (PNB) | 11.25% Onwards * | Claim Claim |
| Indian Bank | 11.25% Onwards * | Claim Claim |
| Bharat Co-operative Bank | 11.25% Onwards * | Claim Claim |
| Tata Capital | 11.50% Onwards * | Claim Claim |
| Union Bank of India | 11.50% Onwards * | Claim Claim |
| Central Bank of India | 11.50% Onwards * | Claim Claim |
| UCO Bank | 11.50% Onwards * | Claim Claim |
| RBL Bank | 11.50% Onwards * | Claim Claim |
| L&T Housing Finance | 11.50% Onwards * | Claim Claim |
| L&T Finance | 12.00% Onwards * | Claim Claim |
| Fullerton India | 12.00% Onwards * | Claim Claim |
| Indiabulls | 12.00% Onwards * | Claim Claim |
| Poonawalla Fincorp | 12.00% Onwards * | Claim Claim |
| Tata AIG | 12.00% Onwards * | Claim Claim |
| Capital First | 12.00% Onwards * | Claim Claim |
| Reliance Capital | 12.00% Onwards * | Claim Claim |
| Mahindra Finance | 12.50% Onwards * | Claim Claim |
| Sundaram Finance | 12.50% Onwards * | Claim Claim |
| Bharat Financial Inclusion | 12.50% Onwards * | Claim Claim |
| Shriram City Union Finance | 13.00% Onwards * | Claim Claim |
| Bajaj Finserv | 13.00% Onwards * | Claim Claim |
| Muthoot Finance | 13.50% Onwards * | Claim Claim |
Discover the Best Personal Loan Rates Today!
A personal loan is an unsecured loan offered by financial institutions to individuals for various purposes, such as debt consolidation, medical expenses, vacations, home renovations, or wedding expenses. Since personal loans are unsecured (i.e., they don’t require collateral), the interest rate tends to be higher than secured loans like home or car loans.
Personal loan interest rates in India generally range from 10% to 14% annually, depending on the lender, the applicant’s credit profile, loan amount, and tenure. The rate can be either fixed or floating, which impacts how much interest the borrower will pay over the life of the loan.
Key Factors Affecting & Influencing Personal Loan Interest Rates
1. Credit Score: One of the most important factors determining personal loan interest rates is the borrower’s credit score. A higher Credit score (typically above 750) reflects a strong repayment history and financial discipline, which results in the lowest personal loan rates. Conversely, a lower Credit score may lead to higher rates or even rejection of your personal loan application.
2. Income and Employment Stability: Lenders assess your income level and job stability to determine repayment capacity. Borrowers with stable, high-paying jobs or businesses will likely receive more favorable interest rates, as they are considered low-risk.
3. Loan Amount and Tenure: The loan amount and repayment tenure affect the personal loan interest rate. Larger loan amounts or longer tenures may attract higher rates. Generally, short-term loans are associated with the lowest interest rate, while long-term loans can lead to higher rates.
4. Lender’s Policies:
Each lender has different risk management practices, which can result in variations in interest rates. Banks or financial institutions with more aggressive lending policies may offer the lowest personal loan rates to attract customers, while others may charge higher rates based on risk tolerance.
Personal loan ROI insights:
1. Credit History and Debt-to-Income Ratio:
- Lenders carefully assess your credit history along with your debt-to-income ratio (DTI).
- A clean credit history (with no defaults or missed payments) can help secure the lowest loan interest rates.
- A lower debt-to-income ratio indicates that you are not overburdened by debt and are more capable of handling additional loans. If your monthly income is high relative to existing debt obligations, you will likely receive a more competitive interest rate.
2. Lender’s Policies and Risk Appetite:
Different lenders have different risk profiles and lending criteria, which can affect the interest rate offered to you.
- Some lenders, like public sector banks, offer slightly lowest personal loan rates as they are government-backed and have a larger capacity to absorb risk.
- Private sector banks, on the other hand, may charge slightly higher rates, as they typically operate on a profit-driven model and have stricter lending criteria.
- Non-banking financial companies (NBFCs) and fintech lenders might offer more flexibility but often at higher interest rates, reflecting the higher risk of lending to consumers with less established credit histories.
3. Relationship with the Lender:
If you have an existing relationship with a lender (for example, a long-term savings or checking account or a history of previous loans with the institution), you may be able to negotiate the lowest personal loan rates or receive preferential treatment. Many lenders offer loyalty discounts or customized offers for existing customers, especially those with a strong repayment history.
4. Loan Purpose:
Although personal loans are typically unsecured, the purpose of the loan may still affect the personal loan interest rate. For example:
- Some lenders offer special rates for loans used for specific purposes like education, home improvement, or medical emergencies, as these purposes are often associated with lower risk and more predictable repayments.
- Loans for vacations or luxury purchases may come with higher interest rates, as these are seen as higher-risk expenses that don’t generate income or increase asset value.
5. Economic Conditions and Inflation:
Market conditions and inflation can play a crucial role in determining the interest rates for personal loans.
- In times of high inflation, central banks like the Reserve Bank of India (RBI) may increase benchmark rates, leading to higher interest rates across financial products, including personal loans.
- Conversely, interest rates may decrease during economic downturns or low inflation periods to stimulate borrowing and spending.
FAQs
A personal loan interest rate is the percentage that a lender charges on the amount borrowed for individual expenses. This rate determines the interest that will be applied to the initial loan amount. Depending on the loan conditions, the interest rate may be fixed or variable.
The interest rates for personal loans are affected by various factors.
- Interest rates may drop with a higher credit score.
- Your income and employment stability.
- The loan amount and tenure.
- Whether the loan is secured or unsecured.
- Lender’s policies and the current economic environment.
In some cases, it can be challenging to negotiate personal loan interest rates, particularly for unsecured loans. However, if you have a good credit score (above 750) or a long-standing relationship with the lender, you may be able to negotiate for a lower rate or ask for special offers or discounts on processing fees.
To secure the best personal loan interest rate:
- Maintain a high credit score (preferably above 750).
- Show stable income and employment history.
- Evaluate loan offers from various lenders to identify the best interest rates available.
- Consider shorter loan tenures, as they often come with lower rates.
- Have a strong relationship with the bank or lender (if applicable).
In India, the interest rates for personal loans usually fall between 10% and 24% per year. The rate you receive depends on your credit profile, income, and other factors mentioned above.
Interest rates for personal loans differ for applicants depending on various factors such as their credit score, income level, loan amount, loan duration, and the policies of the lender. Higher-risk borrowers (e.g., those with lower credit scores) are typically offered higher interest rates.
Yes, most lenders allow prepayment of the loan, either partially or fully. Making prepayments can lower your remaining principal amount, which ultimately decreases the interest you need to pay. However, some lenders may charge a prepayment fee or foreclosure charges, so checking with your lender for any applicable charges before making early repayments is essential.
A high credit score (typically 750 and above) indicates strong financial health and lower risk for the lender, often resulting in lower interest rates. A high credit score increases your chances of being offered a more favorable interest rate, as lenders consider you a reliable borrower.