Latest Personal Loan Interest Rates 2022

Banks	Interest Rate*	Loan Amount
Allahabad Bank	9.05% onwards	As per the applicant’s profile
Andhra Bank	8.90% onwards	Up to 15 lakhs
Axis Bank	7.35%-21%	50,000-15 lakhs
Bajaj Finserv	12.99% onwards	Up to 25 lakhs
Bank of Baroda	10.50-12.50%	50,000-10 lakhs
Bank of India	9.35% onwards	Up to 20 lakh
Bank of Maharashtra	9.55%	Up to 20 lakh
CASHe	30% to 36%	9,000 – 4 lakh
Central Bank	8.5-10.05%	Up to 10 lakhs
Citibank	10.50-18.99%	50,000-30 lakhs
Early Salary	24% to 30%	8,000 – 5 lakh
Federal Bank	10.49% onwards	Up to 25 lakhs
Fullerton India	11.99 onwards	Up to 25 lakhs
HDFC Bank	10.50-21.00%	50,000-40 lakhs
Home Credit	13-30%	25000 – 2.40 lakh
HSBC Bank	9.75-15%	Up to 30 lakhs
Private Bank	10.50% onwards	50,000-20 lakhs
IDBI Bank	9.85-10.10%	25,000-5 lakhs
IDFC First	10.49% onwards	1 lakh-40 lakhs
Indiabulls	13.99% onwards	Rs. 1000 to Rs. 15 lakh
Indian Bank	9.05% onwards	As per the applicant’s profile
Indian Overseas Bank	7.05-12.05%	Up to Rs. 5 lakh
IndusInd Bank	10.49% onwards	50,000-15 lakhs
Kotak Mahindra Bank	10.75% onwards	50,000-25 lakhs
Kreditbee	10.99-18%	1000 – 2 lakh
MoneyTap	13-24.03%	Rs. 3000 to Rs. 5 lakh
Money view	1.33% p.m. onwards	Rs. 10,000 to Rs. 5 lakh
Muthoot Finance	14.00% onwards	50,000-10 lakhs
Punjab National Bank	8.95% onwards	50,000-15 lakhs
RBL Bank	14-23%	1 lakh-20 lakhs
Standard Chartered Bank	10.49% onwards	1 lakh-50 lakhs
StashFin	11.99% to 59.99%	1000 – 5 lakh
SBI	9.60% onwards	Up to 20 lakhs
TATA Capital	10.99% onwards	75,000-25 lakhs
UCO Bank	8.45% onwards	Up to 10 lakhs
Union Bank of India	8.90% onwards	Up to 15 lakhs
Yes Bank	10.99% onwards	1 lakh-40 lakh

About Personal Loan Interest Rates

A personal loan is an easy method to solve your financial difficulties. It is the best method to obtain a loan because it is readily accessible and most banks offer it at reasonable interest rates. As implied by its name, Personal Loan is a financial product designed to assist individuals and provide fast cash liquidity. The loan amount may be utilised for medical expenses, education, or wedding expenses.

This lending arrangement is known as an unsecured loan because no collateral is required. Continue reading to learn more about the advantages and interest rate of a Personal Loan.

Important details regarding Personal Loan Interest Rates:

A fixed monthly payment must be made to the creditor for your loan balance.

Loans can now be disbursed quickly and easily within 24 hours, contingent on loan amount and credit history.

Always maintain your bank accounts, as banks continue to view them as evidence of your capacity to repay a loan.

Never attempt to borrow an amount that you cannot afford to repay to the bank within the specified time frame.

Must preserve your records means your profile speaks for you, so avoid making mistakes when submitting your documents to the bank.

The majority of Personal Loan rejections are based on the documents you provide, and your current location also plays a significant role when applying for a loan.

Keep your records as straightforward as feasible. Provide authentic documentation

The CIBIL Score is crucial for this form of loan. By reviewing your credit history, the bank determines whether or not you are financially stable.

How can I obtain a Personal Loan with the lowest interest rate?

Follow the below procedures to obtain the lowest interest rate on your personal loan:

Improve Your Credit Score: Your credit score reflects your creditworthiness. Applicants with a high credit score receive the most favourable terms on their personal loans in terms of interest rate, processing fee, etc. Before applying for a loan, you should always keep an eye on your credit score. If your CIBIL score is below 750, you should work to raise it. Your likelihood of obtaining a personal loan increases if your credit score is greater than 750.

Avoid Missing Repayments: Your credit score may be negatively impacted if you neglect a loan or credit card payment. Before determining the interest rate for a loan, loan providers typically consider a borrower’s repayment history. Those with a history of timely EMI and credit card payments will likely be charged a lower interest rate.

Keep an Eye Out for Offers: Banks and financial institutions typically offer limited-time promotional interest rates during holidays. If you register for a loan during the promotional period, you may receive a lower interest rate.

Compare Personal Loan Interest Rates: Before submitting an application for a personal loan to a specific bank, it is necessary to compare the interest rates levied by various NBFCs and banks. This will enable you to obtain a personal loan with an attractive interest rate.

Negotiate with the Lender: If you are an existing customer of a bank or have a strong relationship with the loan provider, you can negotiate for the lowest interest rate on a personal loan. This should be done by submitting a formal written request to the loan provider.

Eligibility Criteria for Personal Loan:

CIBIL Score: Your credit history is summarised by your CIBIL Score. A CIBIL report, sometimes referred to as a (CIR) Credit Information Report, is used to determine the score. Through it, the history of all prior loan and credit card payments is examined.

Salary: Based on your net pay, the bank determines the loan amount. Therefore, be sure to exercise good judgement when deciding how much debt you should take on.

Location: Another important factor when choosing a loan is location. Only if the bank has a branch close to where you are currently residing can you apply for a loan.

Tenure of the loan: Each bank has a distinct loan term for customers. Therefore, you must determine how long you want a personal loan.

Age: A person can apply for a personal loan if they are between the ages of 21 and 60. Both persons who are salaried and self-employed are subject to the condition.

Company Profile: For salaried individuals, this means that your company’s history is reviewed to see whether or not it is on the list of banks. For those who work for themselves, the age of the business and how much profit it generates annually are taken into account.

Special Discounts: The bank with whom you now have a salary account may not necessarily provide you with the greatest loan interest rate. Try to learn more about which bank is required to give what in this instance. There may be additional banks that can offer you several alternative fascinating and alluring lending programmes. Avoid falling for a trap.

Processing Fee: Last but not least, all banks charge you a processing fee when approving the amount of your loan.

Capability: Only apply for loans that you can promptly recoup from the bank.

Avoid Taking many Loans: If you take many loans, whether they are from the same bank or from separate banks, the bank may assume that you won’t be able to repay the amount of the loan in a timely manner. To prevent having your loan rejected, make sure you are not participating in several lending schemes.

Avoid Reapplication: Many banks do not grant credit to applicants who have already applied within the previous six months. When reapplying for a personal loan, try to leave at least six months between applications.

Stability: If you work in a corporate environment, you must be more stable. If you are self-employed, your business must generate a sizable profit and be able to compete in the market. You should always make sure that you have the ability to repay the money to the bank.

Loan Amount: Apply just for the loan amount you believe you are qualified for.

Eligibility: By visiting this link, you can determine your eligibility: Loan Eligibility Personal

Factors Affecting Personal Loan Interest Rates

CIBIL Score: Lenders evaluate your CIBIL score to assess your creditworthiness and determine if you can repay the loan in full and on time based on your credit history. You can obtain a reduced interest rate if you have a high credit score.

Level of Income: After credit score, lenders require proof of your level of income as it shows your ability to repay loans and, if high, frequently qualifies you for a reduced interest rate.

Credit Utilisation Ratio: This is the proportion of credit that you have available to you to credit that you have actually used. A credit utilisation ratio of up to 30% is typically regarded as favourable because it shows a greater ability to repay.

Fixed Obligation to Income Ratio (FOIR): This is the proportion of your entire income to the sum of your current EMI payments and credit card bills. Knowing your income to repay the additional loan you’re requesting for is helpful. To acquire a good interest rate, FOIR should be kept as low as possible—at least less than 50%.

Multiple Loan Applications: Avoid submitting numerous loan applications at once to protect your credit score and increase your chances of receiving a loan with a low interest rate.

Relationship with the Bank: If you currently have a savings account or a loan with the bank, it will have an impact on the interest rate that will be charged to you in comparison to any new customers.

Floating versus Fixed Interest Rates – Which is Preferable?

If you choose a personal loan with a fixed interest rate, you will be charged the same interest rate throughout the loan’s repayment term.

The variable or floating interest rate is tied to the Marginal Cost of Lending Rate (MCLR), so the rate of interest fluctuates as the MCLR changes.

By selecting the option with a fixed rate, you know exactly how much you will pay each time. Those who wish to organise their finances should select this option.

However, you can choose a variable/floating interest rate, which has the advantage of requiring you to pay less if the MCLR falls.

Total Cumulative Interest Calculation

Annual interest on a loan is computed using the following formula:

I = P x (R/100)

Such that, 

• I = interest payable, 
• P = Principal (loan outstanding) and 
• R = Rate of Interest (annual percentage rate)

While the above formula can be applied to a one-year personal loan, a multi-year loan may have a distinct principal amount each year of repayment. To determine the total cumulative interest on a personal loan, add the annual quantity of additional interest. Suppose you wish to avoid performing such intricate calculations. In this instance, it is advisable to utilise an EMI calculator, which will immediately provide you with information such as the total interest payable on your home loan.

Guidelines for obtaining a low PL Interest Rate

The rate of interest on a personal loan is typically reduced if the lender perceives you to be financially responsible. The following are some options for obtaining a loan with a low interest rate:

• Maintain a high credit score and a spotless credit record.
• Ensure that you have no outstanding debt, i.e., a credit utilisation ratio of no more than 30%.
• Apply for a personal loan with a lender you have worked with in the past.
• Choose a secured personal loan, such as a loan secured by shares, NSC, KVP, LIC, or something comparable.

Methods to Reduce Total Interest Payment

Although it may not be possible to obtain the lowest possible interest rate for your loan, there are three methods to reduce the total amount of interest payable:

• Choosing a reduced term results in higher individual EMIs but less interest paid.
• Partially prepaying or foreclosing on a mortgage reduces the loan principal, resulting in a higher interest payment.
• Selecting a smaller loan quantity results in a lower total interest payment.

Benefits of Prepayment

Full Pre-Payment

When executed at the optimal time, a full prepayment can save borrowers the most money. This releases you from your loan obligation and prevents interest payments from being deducted from your account. This will enable you to concentrate on the future even more. The funds saved from a full prepayment can be prudently invested for a better future.

Part Pre-Payment

A portion of the outstanding loan balance is included in the partial payment. It will reduce both the outstanding principal and the monthly interest and principal payments.

But How Are You Going to Compile the Prepayment Amount?

Use the Personal Loan EMI Calculator frequently if you’re serious. The calculator can be used to check the repayment estimate at various points throughout time. You must handle your money very carefully in order to make a full prepayment. Establish a monthly savings target and strive towards it by cutting back on unnecessary expenditures.The same process applies even if you only wish to pay a portion of the balance. This can all be planned out and done correctly with the calculator’s help. But where should your money go in order to complete a prepayment? Your funds might be divided across mutual funds, recurring deposits, and fixed deposits.

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		Up to Rs.3999/- + GST

Points to Remember

You should take into account the following factors when selecting a personal loan with a low rate of interest:

Processing Fee: Lenders tack on a one-time fee known as the processing fee that raises the cost of the loan. Along with the rate of interest, another consideration when choosing a personal loan is the processing charge.

Prepay Charges: If you repay the entire loan amount before the repayment loan duration has ended, some lenders may assess pre-payment or pre-closing fees. Never forget to verify whether or not your lender assesses a pre-payment fee.

Customer service: Verify that the lender you have selected for your loan provides excellent customer service to the final client. You should be aware of your options for customer service and how to get in touch with them before applying for a personal loan.

Eligibility Criteria: The lender offers personal loans at low rates of interest, but you should always examine the lender’s eligibility requirements to see if you qualify for the loan or not.

Loan Disbursal: It’s crucial to ensure that the lender provides the loan disbursal fast if you need to take out a personal loan in an emergency. The loan disbursal is offered in a couple of seconds by many reputable banks and financial institutions.

Other Charges: If the processing fee, default charges, pre-payment fee, loan cancellation charges, etc. are minimal, you may be able to reduce the total cost of the loan. Some banks and financial institutions may charge you a little higher rate of interest. To take advantage of the finest offer, consider the numerous offers made by various lenders.

Discounts: Even if the bank or other financial institution has set a high interest rate, you might try to haggle with the bank for the lowest rate. Lenders frequently offer discounts to long-term clients and people who have kept up good relationships with them.

Offers: During the holiday season, a number of banks and financial institutions provide their finest offers on financial goods.

Benefits of Personal Loan

Easy Disbursal: The procedure of obtaining a personal loan involves an easy disbursal. The loan can now be disbursed in just one to two days, and occasionally even in just one.

No guarantor is required: The finest aspect of this form of loan is that you are not required to present or maintain any private documents.

Personal Documents: Before applying for this loan, double-check all of your personal documents to ensure their validity.

Simple Application Process: To apply for a personal loan, you must submit your application form together with a few simple papers and passport-sized photos.

Easy procedure: You won’t have to worry about getting lost during the procedure because bank executives will answer all of your questions at once. While the bank completes all the legalities, just sit back and unwind.

Current Personal Loan Rates for Pensioners

In contrast to the general population, various lenders, including SBI and PNB, offer pensioners preferential interest rates on personal loans. As a result of pensioners repaying a loan from the same bank where they maintain a pension account, the rate discount on personal loans may be substantially larger. However, the lowest rate for a personal loan is 10.40 percent.

Today’s personal loan rates for women

To increase the desire for financial independence among women around the globe, a number of leading lenders offer female borrowers subsidised personal loan rates. Discounted interest rates for female borrowers can increase employment opportunities for female employees, independent contractors, and business owners. The following personal loan companies offer the lowest interest rates:

Bank	Interest Rate	Processing Fee
PNB	8.95% -11.80%	1.8% + Taxes
SBI	9.60% -16.40%	1.00%
Kotak Bank	10.40% -17.99%	Starting from Rs.999
Yes Bank	10.40% -20.00%	Min-Flat Rs.2021
Axis Bank	10.49% -16.75%	Up to 1.75%, Min Rs.4,999

How to calculate EMI on your Personal Loan?

The Interest Rate levied on your Personal Loan is contingent on a number of factors that affect interest rates. In general, the interest rates that apply to Personal Loans are listed on the respective bank’s website; however, some websites also provide this information.

The bank’s Interest Rate has a direct bearing on your Personal Loan’s EMI, which is due immediately upon loan disbursement. Before applying for a Personal Loan, it is recommended to use the personal loan EMI Calculator to determine the net EMI pertinent to your loan.

To gain access to the EMI Calculator for your Personal Loan, you must meet certain requirements, such as visiting the website and from the loan section, locating the EMI Calculator and entering the required information. Which are the loan amount, repayment period, and interest levied on the loan amount for the repayment period. After submitting these details, the EMI Calculator will display the monthly net EMI due on your Personal Loan.

Formula to Calculate Personal Loan EMI

EMI = [PxRX(1+R)N]/[(1+R)N-R], where P represents the loan amount, R represents the monthly interest rate levied, and N represents the total number of monthly payments.

Illustration

Mr. Mehta, a 33-year-old IT Engineer, is pursuing a Personal Loan to cover his wedding expenses. He intends to file for a Rs. 10 million loan and pay it back over a period of 36 months. He anticipates an annual interest rate of 14% on the specified quantity.

Now, in order to compute the EMI applicable to the loan amount, he must visit either the website of the bank offering the loan or Dialabank in order to access the EMI calculator. Then, he must specify the loan quantity, which is 10 lakh rupees, the repayment period, which is 36 months, and the interest rate, which is 14% per annum.

The EMI Calculator then displays the applicable EMI for the loan, which is Rs. 34,177.63 per month. Therefore, the net interest payable will be Rs. 2,30,394.67, while the total quantity payable is Rs. 12,30,394.67.

Interest Calculation Methods

Two methods exist for calculating the interest rate on a Personal Loan:

1. Flate Rate
2. Reducing Balance Method

Flat rate: In this method, the total interest levied on the loan amount is determined by dividing the initial loan amount borrowed by the total loan term.

Reducing Balance Method: With the payment of your monthly EMIs, your loan’s principal and interest are repaid. Consequently, the Principal Loan Interest continues to diminish over time. This method calculates the interest rate using the decreasing loan amount rather than the initial total loan amount borrowed.

Interest Rates for Different Applicant Types:

Important among the many factors that determine the interest rate for a borrower is the type of applicant. The lender determines the interest rate based on the borrower’s category. Consequently, interest rates tend to fluctuate; listed below are concise explanations of the aforementioned criteria.

Salaried or Self-Employed Applicant: The Personal Loan interest rate is affected by whether the applicant is salaried or self-employed. The interest rates for salaried applicants with a stable income from a reputable company are typically lower than those for self-employed applicants. Because employees with consistent income sources and stable employment are financially and professionally secure and therefore capable of repaying the debt. Applicants with a regular and stable source of income who are self-employed can also obtain Personal loans from various institutions at competitive interest rates.

Pensioners: A category of Personal Loans with relatively reduced interest rates has been created specifically for pensioners. The applicants can obtain these loans from SBI, PNB, etc. Nevertheless, the privilege is only available if the borrower’s bank account is held at the chosen lending institution.

Women: Some of the designated banks and NBFCs, including Bajaj Finserv and Fullerton India, offer Personal Loans to women candidates at favourable interest rates. This initiative aims to promote women’s employment and entrepreneurship so that they can become financially independent.

Note: In addition to the applicant type criteria, there are additional requirements for obtaining a Personal Loan with a favourable interest rate. Applicants with a regular and stable source of income and a spotless profile are eligible for a Personal Loan with a favourable interest rate. The profile of the applicant is also an essential consideration for the interest rate.

What is CIBIL Score?

Your CIBIL Score is comprised of your payment history with the bank. Based on your bank statements and payments, the bank determines your CIBIL Score. The CIR (Credit Information Report) is the history of your credit score, which examines your account history for various loans (if any) and credit card history (if any). It is essential to maintain a good CIBIL score when applying for a loan, as loan approval is heavily dependent on credit history.

The accompanying table will give you an idea of how banks determine the application procedure for a loan.

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:

Let’s examine how CIBIL Scores impact the acceptance or rejection of a loan application.

650 or less – If your credit score is 650 or less, the bank will now deem you eligible for the loan.

650 – 700 – The applicant must have missed one or more payments with any bank, or he was unable to pay the bank the required amount by the due date. Therefore, this is yet another primary reason for the denial of your loan application.

700 – 750 – Banks always favour applicants with average or above-average CIBIL scores.

750 – 850 – This score history falls within the acceptable range. Consequently, individuals with credit scores between these ranges have their loan applications swiftly approved.

850-900 – People who maintain an outstanding score between 850 and 900 have negligible odds of being rejected.

What is an EMI?

EMI stands for Equated Monthly Installments, which are the loan payments made to the bank. The borrower (the applicant) pays the moneylender (the bank) a specified amount at the end or beginning of each month.
The EMI is calculated based on your employment profile (net salary) and the quantity of the bank loan you must obtain. The banks have implemented EMI so that the borrower can repay the loan with a fixed monthly payment, thereby reducing the applicant’s financial burden.

The operation of a personal loan is illustrated by the following example:

Maximum Annual Percentage Rate (APR)	10.98% to 24.58%
A representative example of the total cost of the loan, including all applicable fees	Here is an illustration of the total cost of the loan:
	Total amount borrowed: ₹ 1,00,000
	Time period: 6 Months to 72 Months
	Personal Loan Interest Rate: 10.40% to 24.00%
	Processing Fee payable to Upto ₹ 3,500
	Fee payable: NIL
	Total Monthly Cost – From ₹ 1,873 for 72 Months ₹ 1,00,000 loan at 10.40% (lowest rate, longest time period) to ₹ 17,853 for 6 Months ₹ 1,00,000 loan at 24.00% (highest rate, shortest time period). This is inclusive of principal repayment.
	Annual Percentage Rate (APR) of charge including all applicable fees: 10.98% to 24.58%
	Total cost payable over loan tenure: ₹ 6,555 for 6 Months loan to ₹ 38,343 for 72 Months loan

Personal Loan Interest Rate Calculator

With the EMI Calculator, it is now simple to calculate your own monthly payment. No longer are you dependent on banks for calculating your monthly payments. The EMI calculator is the simplest method to determine the monthly payment amount.

In addition, the EMI Calculator will allow you to determine whether you qualify for the loan amount you desire.

Personal Loan Customer Care Number

You can contact the lender’s customer service line for information on the status of your loan and other details. Below are the client service phone numbers for numerous lenders.

Lenders	Customer Care Number
SBI	1800112211, 18004253800
HDFC Bank	18004254332, 1800224060, 1800221006
Private Bank	18001024242
IndusInd Bank	18605005004, 02244066666
Fullerton India	18001036001
YES Bank	18001031212
IDFC First Bank	18605009900
Axis Bank	18604195555, 18605005555

FAQs (Frequently Asked Questions)