interest rates on personal loans

interest rates on personal loans

Personal Loan Calculator: Estimate Your Interest and Monthly Payments

How to use this personal loan calculator

1. Choose your credit score range. For example, if your credit score is 740, you’re in the excellent range. If you don’t know your credit score, you can get a free credit score on NerdWallet.

2. Choose your desired loan amount, or how much you want to borrow. Typical personal loan amounts range from $1,000 to $50,000.

3. Pick a loan term, or how long you need to pay back the loan, ranging from 12 to 60 months. A longer loan term will result in lower monthly payments, but higher interest costs.

4. Hit calculate to see your results. Results are explained in detail below.

5. Click the “pre-qualify now” button to compare rates from multiple lenders before choosing a loan.

Understanding your loan results

Monthly payment: This is what you can expect to pay each month toward paying back your loan, based on the loan amount, loan term and your estimated rate. Monthly payments are lower when you choose a longer loan term.

Estimated annual percentage rate: This is the interest rate plus all fees, calculated on an annual basis and expressed as a percentage. Borrowers with higher credit scores typically receive lower APRs, but lenders may also take into account your debt-to-income ratio, among other factors. Most personal loans carry fixed rates, meaning your interest rate and payments won’t change over the life of the loan. The estimated rates included in our calculator are based on a survey of lenders in NerdWallet’s personal loan marketplace.

Total principal: This is the amount borrowed that you must pay back over the loan term, not including interest. Borrowers with good credit can usually secure higher loan amounts.

Total interest: This is the total amount of all interest payments you’ll make over the life of the loan. A borrower with a high credit score will likely pay less interest than someone with bad credit. The longer your loan term, the more interest you’ll pay.

Most lenders allow you pre-qualify and see estimated rates without affecting your credit score. You can pre-qualify on NerdWallet by entering in basic personal information, including your employment status, annual income and Social Security number, as well as your reason for borrowing and requested loan amount. NerdWallet always recommends comparing rates from multiple lenders to ensure you get the least expensive loan.

Learn more about pre-qualifying for a personal loan, including how to boost your chances of approval and what to do after pre-qualifying.

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 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.)

(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)

(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)

(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.

    Interest rates on personal loans

    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)

    The Average Interest Rates of Personal Loans

    Like loan amounts, interest rates vary among lenders. As a rule, though, lenders charge borrowers higher interest rates for personal loans than for other types of loans. Average interest rates for personal loans range from 16 to 30 percent, according to BankBazaar.com. Inquire about the rates several different lenders charge before applying for a personal loan with a particular lender.

    Variable Vs. Fixed Interest Rate

    Compare interest rates before deciding on a loan. Variable interest rates may seem lower at first, but the rate can change over the term of the loan whereas a fixed interest rate will remain the same. Choosing a loan with a fixed rate of interest could save you money in the long run. If you consider taking out a loan with a variable interest rate, find out what the rate cap is limiting how much the interest can increase within a specified period of time. Lifetime interest rate caps limit the amount of interest a lender can charge during the term of the loan.

    If you belong to a credit union, apply there first for a personal loan. Qualifying for an unsecured personal loan could get you an interest rate one or two percentage points lower than a bank would offer you. Unlike banks that operate to earn a profit, credit unions are nonprofit financial institutions that return earnings to members by offering them lower interest rates on loans. Although no collateral is required for personal loans, some credit unions will give you a lower interest rate on the loan if you borrow against your deposit balance.

    You might be able to get a lower interest rate if you apply for a loan at a small community bank rather than a major commercial banking institution. This is especially true if you are an established customer with good credit. If your credit score needs improving, a community bank is often more flexible in its lending requirements. Community banks continue to offer qualified customers personal loans at rates that average between 5 and 12 percent. Terms can vary from customer to customer depending on your credit, current income and length of history with that bank.

    Since most personal loans are issued as unsecured loans, they pose more of a risk to lenders. That's why interest rates for unsecured personal loans are higher than for loans secured with collateral. Assets used as collateral lower the risk to the lender thereby lowering the interest rate on the loan. Lenders consider that if you have something to lose, you are less likely to default on repaying the loan. In many cases, the rate on an unsecured personal loan can be more than 10 percent, as reported by LendingTree. The interest rate on a home equity loan for the same amount of money is normally lower, and unlike the interest you pay on a home loan, the interest you pay on a personal loan is not tax deductible.

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