interest rate on personal loan

interest rate on personal loan

Interest Rates of Personal Loan Mar 2018

Comparison of Personal Loan Interest Rates from Top Providers

Personal Loans Interest Rate Comparison of Top Banks/NBFC (updated 24th March, 2018)

Processing Fee - 1.50% to 2.00% + Service Taxes

Processing Fee - 2.25% - 3% of the loan amount

Processing Fee - 1.99%

Processing Fee - 0.25% to 1.50%; Min - INR 999, Maximum - INR 25,000

Processing Fee - 0.25% to 1.50%; Min - INR 999

Processing Fee - 0.25% to 1.50%; Min - INR 999

Processing Fee - Up to 2.50% of loan amount

Processing Fee - 1.0% to 2.0%

Processing Fee - 0.50% to 1.00%

Processing Fee - 1.50% to 2.00% + Service Taxes

At all times personal loan will help you sail easily through all expenditures that you are stuck with due to funding shortage. Everything from renovating your house to going for vacation needs money, not necessarily there will be enough money for the same. This is where personal loans come into play. It is essential to consider the interest rates at which these loans are offered, some banks offer low and attractive interest rates while others are too high and unaffordable. Rate of interest is calculated considering various factors by each bank.

There are mainly two kinds of interest rates namely fixed and variable or floating. Every individual can personally choose which type of interest they prefer on their loan amount. Fixed rate personal loan and variable rate personal loan are the two kinds; the first one is where the rate of interest is locked throughout the life of personal loan, this cannot be changed at any time even if the rate falls or goes up over the coming years. The latter is the right opposite, where the rate is subject to market volatility. If the interest rate in the market falls, you will have to just pay the reduced rates and vice versa. While fixed rate is a kind of hedging of market volatility, variable rates are helpful is you are expecting the interest rate in the market will fall.

In addition, all interest rates charged by banks/NBFC’s which Finance Buddha works with follow a written down value principle. For more details on the amortization schedule please click here.

The table below shows the indicative rate of interest charged by various banks. The final rate offered by the bank may differ depending on the profile and other evaluation parameters that a bank might choose.

Factors Deciding Interest Rates of Personal Loans

  • Income Level and Loan Amount Comparison: The rate is totally dependent on the income level and the company an individual works. This information is compared with the loan amount and they will gauge if you are capable to repay the loan without defaulting. According to the risk involved in your repayment strategy the interest rate varies.
  • Loan Tenure: This is another important factor that determines the rate, the shorter the loan in the higher the interest rate will be and vice versa. EMIs are regular and fixed return for lending banks, thus when the return is for long period the rate will decrease respectively.
  • Credit Rating of the Individual: CIBIL check is conducted by each bank to understand the credit worthiness of the borrowers. In case of any default payment records, huge outstanding loan, fraudulent track records, banks has every right to cancel the loan or charge higher interest rate. This is the very reason, it is essential to keep a good track record of financials for present and future plans.

There are mainly two types of lenders: Secured lender vs. unsecured. Interest rates for each of these will vary according to the way it is structured. Secured lender will require a security either a movable or fixed one to lend the loan. In case of default, the ownership of this security will be moved to the lender. In this case the interest rate will be low as they have less risk. Their risk can be mitigated easily with the help of security pledged.

On the other hand, unsecured loans have high rate of interest. The risk involved in default is high. They have no direct option to receive the money without going for legal assistance. Borrower can decide whether to choose secured loan or an unsecured one.

Fees & Charges on Personal Loans

Though each bank has different ways of charging fees on personal loan, the basic structure is pretty much the same. They will consider all factors of the amount that is loaned, individual criteria and more. Few common fees and charges are listed here.

  • Processing Fee: Every borrower will be charged with a non-refundable processing fee, this will be different depending on the loan particulars and bank’s policies.
  • Part Payment/ Part Pre-Payment Charges: Most banks offer an option to partly pre-close the loan amount. Say you borrowed 10 lakhs and have paid 3 lakhs till date through EMI, there has been some extra income and you wish to reduce the outstanding amount in your bank. This is when part pre-payment option comes into place. Through this either your tenure to re-pay will reduce or you monthly EMI will reduce. But there are charges applied for the same.
  • Payment Delay Charges: An additional charge is levied by every bank on the outstanding amount that is not repaid within the specific date. It is essential to make sure payment/ EMIs are processed within deadline to avoid these charges.

Make every use of the above tips and information to reap the benefits of personal loan!

Personal Loans have been redefining the world of credit in the past decade or so. A loan that comes with no strings attached and can be availed for a massive range of requirements that need financial support for fulfillment. Nearly all indigenous and multinational banks in the Philippines offer Personal loans to Filipinos with a stable source of income. Compared to loans of similar functioning, a Personal loan is far more cost effective for the borrower as it comes at competitive interest charges along with minimal fees. This article deals with the most prominent aspect of availing a loan, the foremost determinant of your decision of availing a particular loan,the Interest Rate.

Interest Rate For Personal Loans in the Philippines

Monies that you borrow from the bank are billed interest, a percentage of the principal amount computed either on a fixed or floating basis and added to the monthly repayment after breaking it down on the basis of the term(tenor). Based on the various input factors such as the principal amount, tenor and other determinants, the impact of interest charges varies. The thumb rule is, lesser the rate and tenor, lower is the overall charges billed.

In the Philippines, Personal Loans are offered either on a Fixed Interest Rate or Variable Interest Rate basis. In the former option, the rate is even and stays intact throughout the loan term whereas it may fluctuate on the basis of pre agreed terms during the loan tenor. Most of the loans disbursed under the PL category in the country are on fixed interest rate basis. In the next section, let's take a sneak peak into the factors that affect interest rates.

Determinants That Affect Personal Loan Interest Rate

Though all banks aim at providing the most “Competitive9rdquo; rates, not all of them can be weighed on the same scale. Depending on the bank and prevailing rates, the interest charges varies for Personal Loans.

Market Conditions and Govt. Regulations

The current economic scenario, regulations from the central bank(BSP) have an important say in determining the outcome since rates published by the borrowers are indexed to the external factors.

The quantum of loan has a significant say in determining the rate of interest. If the loan amount is substantially higher as per bank standards, you may be offered a rate lower than the published rates or vice versa.

The borrower is flexible to choose a loan tenor of their choice. Though a low tenor means lesser burden for you in terms of the interest charges, selecting a bigger term is rewarded by banks with a significantly lower rate of interest.

Perhaps, the only factor that digs into your past credit. Banks and financial institutions rely heavily upon credit reports provided by external agencies and also systems maintained internally to assess the creditworthiness of the applicant. If you’ve a sound track record, be assured of being offered the most competitive interest rate for the personal loan.

Ongoing promos and offers, specially during festive seasons can make you eligible for a lower rate of interest for personal loans. Some of the most visible fees such as processing charges can also be waived during the promo period. The details are generally available on the web portal of the bank.

How To Get Lower Rate of Interest on Personal Loan in the Philippines

Having a good credit performance in the past does wonders when you apply for a personal loan in the Philippines. Previous cases of defaults or late payments may go against you when your application is processed and therefore you may be offered a loan on a higher rate of interest. If you’ve not availed a loan/credit card in the past, you may be required to provide a collateral to secure the loan amount.

Its very important to negotiate either during the time of application or after the loan is approved. Banks do maintain a lower limit, paving way for negotiations on the base rate of interest. Do ensure you maintain contact with a single representative and negotiate until you think the best is being offered to suit your budget.

The most sensible thing to do before applying is to compare personal loan products offered by various banks and financial institutions. This task not only ensures that you’re well informed about the loan offers from various banks, but also get detailed information on the interest rates offered by the lenders. This way, you can make a list of banks you would like to apply with on the basis of suitable terms and rates.

Leading Banks Offering Personal Loan in the Philippines

  • BDO Personal Loan
  • Eastwest Bank Personal Loan
  • Planters Bank Personal Loan
  • RCBC Personal Loan
  • Robinsons Bank Personal Loan
  • BPI Personal Loan
  • Citibank Personal Loan
  • China Bank Savings Personal Loan
  • HSBC Personal Loan
  • Maybank Personal Loan
  • Standard Chartered Personal Loan
  • PBCOM Personal Loan
  • PSBank Personal Loan
  • Security Bank Personal Loan
  • Sterling Bank of Asia Personal Loan
  • UCPB Personal Loan

Personal Loan Interest Rates - Bank Wise

At present, the bank is offering a promotional rate of 0.98% per month until December 21, 2015. The table below gives you details of the actual rate rate of interest for various tenor options.

Personal loan interest rates in India depend on various criteria, among which major is the income level. Different banks have different classifications based on which interest rates are calculated. To start with whether you are working for an employer (salaried) or you are an employer yourself (self – employed).

Read below the factors effecting Interest Rates **

To help its customers get the best interest rates on personal loans, deal4loans has consolidated all the information regarding latest rate of interests at one place. To get updated rate of interest on personal loan, keep visiting this section.

(For others for 4 yrs.)

(For Special Companies)

(For 75,000 & above salary)

(For 50,000-74,999 salary)

(For 35,000-49,999 salary)

(For Below 35,000 salary)

(Special Rates for Loan Amount b/w 10lakhs - 30lakhs)

(BT for Listed Companies)

(For Special Companies)

(For 75,000 & above salary)

(For 50,000-74,999 salary)

(For 35,000-49,999 salary)

(For Below 35,000 salary)

(Special Rates for Loan Amount b/w 10lakhs - 30lakhs)

(BT for Listed Companies)

(For Special Companies)

(For 75,000 & above salary)

(For 50,000-74,999 salary)

(For 35,000-49,999 salary)

(For Below 35,000 salary)

(Special Rates for Loan Amount b/w 10lakhs - 30lakhs)

(BT for Listed Companies)

(For Special Companies)

(For 75,000 & above salary)

(For 50,000-74,999 salary)

(For 35,000-49,999 salary)

(For Below 35,000 salary)

(Special Rates for Loan Amount b/w 10lakhs - 30lakhs)

(BT for Listed Companies)

(Special rates for Loan Amount b/w 5 lacs - 20 lacs)

(For Special Companies)

(BT rates for listed company)

(Salary Above 75,000)

(Salary 50,000 -75,000)

(Salary 35,000 -50,000)

(Salary 20,000 -35,000)

(Special rates for Loan Amount b/w 5 lacs - 20 lacs)

(For Special Companies)

(BT rates for listed company)

(Salary Above 75,000)

(Salary 50,000 -75,000)

(Salary 35,000 -50,000)

(Salary 20,000 -35,000)

(Special rates for Loan Amount b/w 5 lacs - 20 lacs)

(BT rates for listed company)

(Salary Above 75,000)

(Salary 50,000 -75,000)

(Salary 35,000 -50,000)

(Salary 20,000 -35,000)

(Special rates for Loan Amount b/w 5 lacs - 20 lacs)

(BT rates for listed company)

(Salary Above 75,000)

(Salary 50,000 -75,000)

(Salary 35,000 -50,000)

(Salary 20,000 -35,000)

(Special rates for Loan Amount b/w 5 lacs - 20 lacs)

(BT rates for listed company)

(Salary Above 75,000)

(Salary 50,000 -75,000)

(Salary 35,000 - 50,000)

(Salary 20,000 -35,000)

(Special rates for Loan Amount b/w 5 lacs - 20 lacs)

(BT rates for listed company)

(Salary Above 75,000)

(Salary 50,000 -75,000)

(Salary 35,000 - 50,000)

(Salary 20,000 -35,000)

(Salary above 1lakh)

(For 20,000-99,000 salary)

(For Tata Group Companies)

(Salary above 1lakh)

(For 20,000-99,000 salary)

(For Tata Group Companies)

(Salary above 1lakh)

(For 30,000-60,000 salary)

(For 20,000-30,000 salary)

(For Tata Group Companies)

(Salary above 1lakh)

(For 30,000-60,000 salary)

(For 20,000-30,000 salary)

(For Tata Group Companies)

(Salary above 1lakh)

(For 30,000-60,000 salary)

(For 20,000-30,000 salary)

(For Tata Group Companies)

(Salary above 1lakh)

(For 30,000-60,000 salary)

(For 20,000-30,000 salary)

(For Tata Group Companies)

(Special Rates for Loan Amount above 10 lakhs)

(Salary above 75,000)

(Salary above 50,000 - 74999)

(Salary 35,000 - 49,999)

(Salary 20,000 - 34,999)

(BT Rates for Listed Companies)

(Special Rates for Loan Amount above 10 lakhs)

(Salary above 75,000)

(Salary above 50,000 - 74999)

(Salary 35,000 - 49,999)

(Salary 20,000 - 34,999)

(BT Rates for Listed Companies)

(Special Rates for Loan Amount above 10 lakhs)

(Salary above 75,000)

(Salary above 50,000 - 74999)

(Salary 35,000 - 49,999)

(Salary 20,000 - 34,999)

(BT Rates for Listed Companies)

(Special Rates for Loan Amount above 10 lakhs)

(Salary above 75,000)

(Salary above 50,000 - 74999)

(Salary 35,000 - 49,999)

(Salary 20,000 - 34,999)

(BT Rates for Listed Companies)

(Special Rates for Loan Amount above 10 lakhs)

(Salary above 75,000)

(Salary above 50,000 - 74999)

(Salary 35,000 - 49,999)

(Salary 25,000 - 34,999)

(BT Rates for Listed Companies)

(Special Rates for Loan Amount above 10 lakhs)

(Salary above 75,000)

(Salary above 50,000 - 74999)

(Salary 35,000 - 49,999)

(Salary 25,000 - 34,999)

(BT Rates for Listed Companies)

(Salary > 75,000 & Loan Amount > 15,00,000)

(Salary > 75,000 & Loan Amount - 10 Lacs - 15 Lacs)

(Salary > 75,000 & LA 75,000 & Loan Amount > 15,00,000)

(Salary > 75,000 & Loan Amount - 10 Lacs - 15 Lacs)

(Salary > 75,000 & LA 75,000 & Loan Amount > 15,00,000)

(Salary > 75,000 & Loan Amount - 10 Lacs - 15 Lacs)

(Salary > 75,000 & LA 75,000 & Loan Amount > 15,00,000)

(Salary > 75,000 & Loan Amount - 10 Lacs - 15 Lacs)

(Salary > 75,000 & LA 75,000 & Loan Amount > 15,00,000)

(Salary > 75,000 & Loan Amount - 10 Lacs - 15 Lacs)

(Salary > 75,000 & LA 75,000 & Loan Amount > 15,00,000)

(Salary > 75,000 & Loan Amount - 10 Lacs - 15 Lacs)

(For 50,000 - 75,000 Salary)

(For 35,000 - 75,000 salary)

(Below 35,000 salary)

(for 75,000 & above salary)

(For 35,000 - 75,000 salary)

(Below 35,000 salary)

(for 75,000 & above salary)

(for 75,000 & above salary)

(for 35,000 - 75,000 salary)

(below 35,000 salary)

(for 75,000 & above salary)

(for 35,000 - 75,000 salary)

(below 35,000 salary)

(for 75,000 & above salary)

(for 35,000 - 75,000 salary)

( below 35,000 salary)

(for 75,000 & above salary)

(for 35,000 - 75,000 salary)

( below 35,000 salary)

(For 50,000- 1 Lac Salary)

(Below 50,000 Salary)

(For 1 Lac & above Salary

(For 50,000- 1 Lac Salary)

(Below 50,000 Salary)

(For 1 Lac & above Salary

(For 1 Lac & above Salary

(For 50,000- 1 Lac Salary)

(Below 50,000 Salary)

(For 1 Lac & above Salary

(For 50,000- 1 Lac Salary)

(Below 50,000 Salary)

(For 1 Lac & above Salary

(For 50,000- 1 Lac Salary)

(Below 50,000 Salary)

(For 1 Lac & above Salary

(For 50,000- 1 Lac Salary)

(Below 50,000 Salary)

(For Super CAT A)

(For Super CAT A)

((undertaking letter required) )

((undertaking letter required) )

Top 5 factors that effect your Personal Loan Interest Rates:

: If your Income is above a certain limit, Banks believe that your chances of paying are higher as you have a regular income. Most Banks have categories according to income where they give different rates.

As your monthly income goes higher, the rate of interest on your personal loan will be lesser. The rates are defined for customers who have income between Rs. 20,000 to Rs. 50,000 and Rs. 50,000 to Rs. 75,000. On the other hand, if you have income above Rs. 75,000 you will get lower rate of interest.

2.Company Status: Banks define Companies in 3-4 categories namely

  • Cat A or Elite or Top 500 companies •Cat B

    4.Relationship with your Bank:The bank where you have your Saving account/Salary account is most likely to give you some special rate of interest or processing fees on personal loans. Banks make sure that their personal loan and credit card customers get better options as compared to other banks. So, before applying to other banks for a personal loan, check your own bank rate of interests

    5.Individuals Negotiation Skills:Keeping in mind the above information, you can always negotiate and ask Banks for special waivers on Interest Rates, Processing Fees, etc.

    Factors effecting Self Employed customer for Personal loan Interst Rates:

    1. Annual Income Tax Return- If your income is high and you are a large company you can expect rates to be lower for you.
    2. Type of Business- Banks are ready to give lower rates to sound business .So all Manufacturing and sound business professionals get a better rate of Interest on the personal loan.
    3. Special rates to Self employed professionals- Banks really like to fund Doctors/Engineers/CA and Architects as they believe these set of customers are rarely default and hence there rates are better from others.

    Get Attractive Interest Rate On a Personal Loan

    Sometimes it happens that you find yourself in emergency money need. Of course, you will try to find an option which lets you borrow money with the smallest interest rate and minimum fees. It’s the case when service provided with short term loans through direct lenders will be so useful.

    You can easily get attractive terms and low interest rate if your credit score is high enough and your employment doesn’t arouse suspicion.

    Why should you choose a personal loan?

    A personal loan is a short term unsecured loan which is provided for a really wide range of cases. There are no strict requirements for consumers who can apply for such money help. You may use the loan to buy anything you want and be ready that some lenders may ask you to disclose your reason.

    It is just necessary to remember that a personal online loan is not a good solution for buying such expensive things like a car or a house. Using a personal loan is different from using a credit card because in the first case you will have to make installment payments and your balance is active all the time while repayments are being made.

    You are required to provide some sort of personal information when applying for a personal loan as well as when applying for any other type of loan. This information includes your passport details, employment, contacts, social security number, and details of your bank account. Note that your credit score will also be checked and its value would have a certain impact on the level of interest rate.

    The level of rate depends on some other factors like the amount of money you want to take, the term of the personal loan, except of the credit score, and it may vary from 6.25% to 11.95%. If you want to get money with a bad credit score, you will be suggested to pay up to 20% of the interest which is quite a lot. That is why it would be very good to have high credit rating. It is the rule – the higher your score is the lower interest rate you are able to get.

    There are several ways how you can get a personal loan. First of all it is reasonable to turn to your credit union or bank in order to get benefits as a regular customer.

    You will be able to get from $2 000 to $10 000 without any problems and you will get an attractive interest rate if your credit score is high enough.

    If you want to save your time and effort you may turn to online personal loan lenders. You will be required to submit personal information with an online application form.

    It will take up to 20 minutes to get an approval if you are accurate with providing personal info and if your credit score is ok.

    You will get the money transfer of your current bank account during 24 hours. It often happens that customers get money the same day. Though the interest rate may be a little bit higher, you will avoid much hassle.

    P2P (or peer-to-peer) lending is also a good way to borrow the necessary money. This is the service which makes it possible to borrow cash from other individuals.

    You may find the opportunity to submit your application over the Internet and the lender who agrees to lend you the money will contact you.

    Interest rate on personal loan

    Banks Charging Lowest Rate of Interest on Personal Loans

    Rajesh Goyal

    COMPARISON OF PERSONAL LOANS INTEREST RATES BY BANKS IN INDIA - 2015

    (Check Lowest Rate of Interest charged by Banks in India / Minimum Rate of Interest charged by Indian Banks. Best Home Loan Interest)

    Which Banks Charges the Lowest Interest on Personal Loans in 2015 ? Best Rate of Interest on Personal Loans in India ? Comparative Personal Loan Interest Rates. Latest Personal Loan Interest by Banks in India

    Different banks charge different interest rates for Personal Loans. The rate of interest also vary based on (a) the quantum of the loan; (b) period for which loan is intended to be availed etc.

    It is not possible to give the name of one bank which charges the lowest rate of interest for all tenures and all levels of loan amount. Moreover, these rates are frequently changed by banks and that too without informing media. Sometimes the details are not even updated on the website or they are so confusing that it becomes impossible to decipher the details. Therefore, we are giving below a broad idea as to the banks which are charging lowest rate of interest in a particular category. Readers are advised to check the same by clicking on the link of relevant bank from where they intend to avail the loan and they check the websites of the following banks too to ensure that they get the best deals. [The following rates have been updated in the last week of August, 2015)

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