Personal Loan Interest Rates

Personal loan, also known as ‘unsecured loan’ is the instant money lent to a borrower without asking for any collaterals, such as a home or a car. Personal loans amounting from Rs. 50,000 to Rs. 30,00,000 are available for salaried and self-employed individuals across India, depending upon their loan repayment capacity and loan tenure.

What is a Personal Loan Interest Rate?

A percentage of total loan amount charged, mostly annually, by the lender to a borrower, for lending his money is called interest rate. It is charged on the total unpaid portion of your outstanding loan. The interest rates differ widely across various lenders. It is one of the major influencing factors for a borrower to decide whether or not to take a personal loan and to choose the right lender.

How to Calculate Interest using Personal Loan Interest Rate?

Here’s how you can calculate the interest on the total loan amount. Divide the interest rate by the number of payments and multiply it with the principal amount. That is,
interest rate
no. of payments
x
principal loan amount = interest
  Here, the principal loan amount will be the full loan amount if you are calculating the interest for the 1st pay back. For example, if you are calculating the interest for a single year of the loan tenure, the number of payments will be 12.

Role of Interest Rate in a Personal Loan

Many of us literally do not know the role played by interest rate in a personal loan. All we look for is the lowest interest rates while applying for an Unsecured Loan. Fundamentally, interest is the fee that you are paying to someone who is lending you his money. It is the profit that they earn by lending. Hence it is very important to know the interest rate that is charged on your total loan amount. After all it is a part of the monthly repayment that you are doing from your savings. Nowadays, even credit card holders go for a personal loan to consolidate their debts of multiple credit cards. Because the interest rate charged on a personal loan is much lower compared to that charged in credit card. Their interest rate on multiple cards gets simplified and they have to pay for only a single interest every month.  

Tips to get Best Personal Loan Interest Rates

  1. Take advantage of your CIBIL score
    The loan approval criteria for most of the banks includes a credit score of 700 to 900. Why not flaunt your good score to get a better deal of loan when it gets rejected for a bad credit score? It will increase your creditworthiness using which you can also request for a lower interest rate than usual.
  2. Add value to your employer
    If you work for an esteemed company, the transparency of job stability and regular income becomes easier for the lender. And if your employer is already in their listed companies, the discounted interest rates will be cherry on the top!
  3. Good repayment track record
    If you have successfully repaid the loan amount for any loan in the past, use it as a ladder to get quick loan approval with lower interest rates.
  4. Look for festive offers
    Grab those exceptionally beneficial loan offers which are declared during festivals and are for limited period only. You may get hold of very low interest rates, which in turn will help you cut down the loan expenses.
  5. Calculate the Interest
    Before you jump over a loan by seeing only the low interest rates, you may find yourself paying for a flat rate which asks you to pay the interest throughout the loan tenure. Whereas a diminishing Unsecured Loan Rate asks for interest towards outstanding loan amount only. Hence calculate the interest over your entire loan tenure using the calculation method shown above and then proceed.

Best Personal Loan Interest Rates in India

Bank Loan amount Interest rate Processing fee
RBL Bank Rs. 1 lac to Rs. 20 lacs 14% onwards Up to 2.5%
HDFC Bank Rs. 15,000 to Rs. 15 lacs 14.75% to 20.70% Up to 2.50%
Kotak Mahindra Bank Rs. 15,000 to Rs. 15 lacs 10.99% to 24% Up to 2.5%
IndusInd Bank Rs. 50,000 to Rs. 15,00,000 11.25% onwards Up to 2.5%
Capital First Up to Rs. 15 lacs 12% to 18% Up to 1.5%
Fullerton India Up to Rs. 30 lacs 20% to 49% 1.5% to 6%
Aditya Birla Finance Up to Rs. 30 lacs 11% to 13.75% 1%
Lending Kart Up to Rs. 15 lacs 10.99% onwards 2%

Benefits of Personal Loan Interest Rate

  1. Low Interest Rate
    In case of personal loans, the interest rates are usually lower compared to other loans like home loan or a car loan where you have to pledge collaterals also, which in turn charge you higher interest rate. Therefore, better compare the interest rates offered by various lenders and select the best. Qbera offers the best on par interest rates starting from 13.99%.
  2. Budget planning
    As the interest is a part of the monthly repayment you do over a loan tenure, interest rate helps you plan your budget accordingly.
  3. Fixed interest rate
    A fixed interest rate helps close your loan tenure quickly because the interest rate in a personal loan remains fixed till your loan tenure ends. You don’t have to worry about the fluctuating interest rates that keep tampering the monthly payable amount, as in the case of secured loans.

Processing Fees

Qbera Personal Loan Eligibility Criteria

  1. Your age should be atleast 23 or older.
  2. If you have taken a loan or a credit card in the past then you must:
    • Have a net monthly income of Rs. 20,000.
    • Have no defaults in the past 2 years.
    • Have current residential proof (valid passport, valid driving license, voter’s ID, Aadhar Card, registered rental agreement, 2 month’s utility bill).
  3. If you have not taken any loan or credit card in the past then must:
    • Have a net monthly income of RS. 25,000.
    • Have no cheque bounces in the last 6 months.
    • Have current residential proof (valid passport, valid driving license, voter’s ID, Aadhar Card, registered rental agreement, 2 month’s utility bill).

Qbera Personal Loan Interest Rate

How to Apply for Personal Loan from Qbera?

FAQs

 
  1. What is interest rate?
    The interest rate is the fee charged by a lender to a borrower for using his money.
  2. What is personal loan interest rate?
    A percentage of total loan amount charged, mostly annually, by the lender to a borrower, for lending his money is called personal loan interest rate.
  3. Is the interest rate for personal loan high?
    The interest rate for personal loan is lower compared to credit cards and other secured loans. It starts at 13.99% at Qbera.
  4. What is the personal loan  fees charged for a personal loan on Qbera?
    The processing fee for a personal loan on Qbera is as low as 2-3%.
  5. When do I get rejected for a personal loan on Qbera?
    If you do not meet the basic qualification criteria of Qbera, then you may get rejected for a personal loan.
  6. In how many days can I re-apply for a personal loan on Qbera?
    You will have to wait for 3 months to apply for a personal loan on Qbera again.
 

QBERA

We are a Bangalore-based company offering digital, quick, hassle-free personal loans to people when they need them.

Loan amounts range from Rs.50,000 to Rs.7,50,000. APR ranges from 14% to 24%. Loan lengths range from 12 to 48 months. Administration fee ranges from 2% to 4%.

* Subject to Risk Profile

E-mail: contact@qbera.com
Phone: 1800 4198 121
Whatsapp:+91 89719 28484
Address:
1st Floor, Wolfpack Workspaces,
#39, 8th Main Road,
Vasanth Nagar.
Bangalore 560 052

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