- June 5, 2020
- Posted by: Ganeshcbani
- Category: Blog
Finding the best personal loan rates can be tricky. With so many different lenders and rates available, it can be hard to know where to start. In this article, we will outline some of the most common loan types and provide a current interest rate for each. Armed with this information, you can make an informed decision about which personal loan is right for you.
Current Interest rate for Personal Loan
Our interest rate on personal loans begins at 10.75% for employed and self-employed applicants. Depending on our loan application policy, your requirement and profile, we determine the best applicable personal loan rates. The interest rates and processing fee (between 0% and 2.5% of the loan) are the total loan costs. Please note that the exact interest rate for you also depends on what loan tenure you choose (between 12-60 months) and the amount of loan you are requesting. You can then draw up your monthly budget in such a way that you can easily pay the EMIs.
Your ambitions and expectations are appreciated. We will quote the appropriate interest rate that you can afford. Following the online application, we make instant decisions on loan eligibility, communicate fees and costs in advance, and maintain transparent procedures. You will not have to think about hidden charges or penalties when choosing the lenders.
A full list of personal loan charges and rates is available below.
|Axis Bank||12-24%||50,000-15 lakhs|
|Bajaj||12.99% onwards||Up to 25 lakhs|
|Citi Bank||10.50-18.99%||50,000-30 lakhs|
|Fullerton India||12-36%||Up to 25 lakhs|
|Hdfc Bank||10.75-21.30%||50,000-40 lakhs|
|Icici Bank||11.25% onwards||50,000-20 lakhs|
|Idfc First Bank||11.50% onwards||1 lakh-25 lakhs|
|IndusInd Bank||10.75% onwards||50,000-15 lakhs|
|Standard Chartered Bank||10.99% onwards||1 lakh-30 lakhs|
|Kotak Mahindra Bank||10.99-24%||50,000-15 lakhs|
|Sbi Bank||10.50% onwards||Up to 20 lakhs|
|Tata Capital||10.99% onwards||75,000-25 lakh|
|UCO Bank||10.95% onwards||Up to 10 lakhs|
|Union Bank Of India||10.10% onwards||Up to 10 lakhs|
|Yes Bank||10.99% onwards||1 lakh-40 lakh|
Types of interest rates on personal loans
Generally , there are two forms of interest rates on a personal loan:
Floating interest rate
a) Fixed interest rate
In this case the interest rate remains constant throughout the tenure of the loan. As a result, the monthly EMI balance remains unchanged over the loan repayment period. It will help you manage your monthly spending on a long-term basis.
b) Floating interest rate
Depends on the internal benchmark or current market conditions laid down by the lender. As a result, the floating interest rate may change regularly, leading to an increase / decline in loan or monthly EMI payouts, depending on the rate up or down.
Methods of value estimation
The interest on personal loans can be measured in two ways:
a) Flat rate Flat
b) Process of Balance Reduction
a) Flat Rate Interest Calculation Process
This process shall measure interest on the total amount of the loan originally lent on the total term of the loan.
b) Reducing Interest Calculation Balance Method
When you pay off your monthly EMIs, loan portions and interest components are paid off. The principal loan amount thus continues to decrease over time. This approach measures interest on this lower amount of the loan and not on the overall amount originally loaned.
What does the calculator mean?
The personal loan calculator helps determine the corresponding interest payment (EMI) to be charged to the lender annually before the loan is paid in full.
The EMI is based on the amount, tenure and interest rate of personal loans. The calculator will let you know how much EMI you have to pay in a given personal loan number, interest rate and time.
How you can use it?
In order to reach the EMI, one must enter:
Loan amount – between Rs 50,000 and Rs 30 lakh
Tenure – tenure must be from 1 to 5 years.
Interest rate-It must be between 1% and 50%.
Interest rates may vary between lenders because different lenders can lend at different rates. Input the rate at which your lender gives you the loan for the interest rate.
Use the slider to position different personal loans and tenure in order to hit the EMI with which you are happy.
What does it show?
The results are three things-
a. EMI-This balance is payable every month before the loan is paid in full.
a. The breakdown-shows the interest rate in the EMI each month. The rest is the main monthly repayment.
c. The amortization plan indicates the allocation of interest payments and principal repayments from the EMI each month before the end of the term. The balance remaining after the payment of the EMI every month is also shown in the amortization schedule. You can download this document as a PDF.
How the result came?
The formula used to reach the EMI is:
[(1+R)^n-1] EMI = [P x R x (1+R) ^n]
Here, P= Key loan volume, R= Interest rate, n= Number of monthly installments.
Supposing that P = Rs 3 lakh, R= 15 percent per year=15/12=1,250 per month, N=60 months
((300000 * 1.250/100)^60/((((1 + 1.250/100)^60-2)) = Rs 7,137 = = ((1 + 1.250/100)^511)
Employees who work with reputable / blue chip companies, multinational companies etc. can get good deals. This is because the ability of their employers to offer permanent jobs is higher and the borrower is therefore expected to have a stable income and to be able to repay their credit dues on time.