Personal Loan Interest Rates in Banks
Personal Loan Interest Rates in Banks
Personal loans are a great way of managing any short-term financial emergency. One of the first things that come to one’s mind when the word Personal loan is used is – The interest rate. Personal loan interest rate in banks and other financial institutions are high as compared to home loan or vehicle loan rate. It is no shocker –yes, definitely it will be higher, as it forms the high risk category. Personal loan is unsecured loans that are given out to salaried individuals for a definite tenure and the individual is to pay it back to the bank from their income on a monthly basis.
Being unsecured loans mean that there is no need to pledge any kind of collateral with the banks. The bank, however, while considering your application will take many points into consideration. The interest rate that the bank charges you is directly dependent on these factors. The personal loan interest rate in banks starts from as low 10.65% and may go up to 24% or even more. This interest rate is decided, keeping in a mind a variety of factors-
- Whether salaried or self-employed
- Monthly net take home salary/profit
- CIBIL score
- Your Income to debt ration of all other loans
- The applicants relation with the bank
- Is the employer a part of the database
Although the interest rates charged by banks looks daunting, personal loans are still the safest recourse for managing finance during emergencies. The EMIs and the tenure is fixed. So you can tweak it around a little bit to suit your monthly budget. The higher the tenure of payment, the lesser will be the monthly EMI. Now a day’s all banks and fintech companies, give the customers the benefit of tenure ranging from 6 months to 60 months. So you can opt for a maximum loan term of 5 years and thereby bring down the monthly EMI to suit your monthly family budget.
Banks consider a CIBIL score of 750 and above for the personal loan. But, if you don’t have that score, don’t worry, there are fintech companies like Qbera who provide personal loan to individuals with a score of 575 and above too. Also the number of companies registered with different banks have grown. For example, Qbera has more than 7 lac companies registered in its data base. This increases the probability of loan approval considerably.
Personal loans are offered for personal use of the customer and there is no specifications on its end use. So if you need money to pay for your medical bills or hospital stay, undertake renovations in your home or do major upgrading in it, Plan that long dreamt of vacation to the exotic destination or your dream wedding, to fund your education or consolidate your debts. Personal loans can do that and much more.
Interest Rate & Other Charges
||11.99% to 35.99%
|| 1% to 5% of total loan amount
||₹1,00,000 to ₹15,00,000
||12 to 60 months
- Processing Fee deduction of ₹5000 (2.5% of 2 Lacs) from loan amount, thus, the amount credited to your account will be ₹1.95 Lacs
- EMI of ₹7091 per month
- Total payable amount in 3 years = 36 times ₹7091 = ₹2,55,276
- Total Interest paid in 3 years = ₹55,276, hence, annual interest paid = ₹18,425 (which translates to an effective flat annual rate of interest of 9.21%)
- Age: 21-57 years old
- Net Monthly Income must be more than Rs. 18,000.
- No defaults in the last 24 months.
Documents Required after Digital Approval
- Aadhaar Card
- PAN Card
- 4 Cheques from your Salary Account
- Current Address Proof
- Permanent Address Proof (in case the permanent address is different from the address on Aadhaar card)
"I am really happy that I got a loan from Qbera. My application has been rejected by lenders in the past without giving any explanation for rejection. Qbera approved my loan with minimum documents. Thanks a lot once again."
I did not want to make many enquiries as many requests can lower the CIBIL score. I contacted Qbera on a Monday and by evening itself they had an offer for me. They kept me informed through every step of the process and were also flexible with regards to my commitments. In the end, the loan was disbursed within two days of documents submission. Thank you Qbera for simplifying the process and helping me find a loan. " Show more...
"It was a nice experience with Qbera. I have never seen such an easy process for getting a loan, especially when you need it the most. Thank you Qbera for your support."
"I had a hassle-free experience with Qbera. It was a very easy application procedure and in a short span of 3 days I got my loan credited to my account. Thank you so much for the support Team Qbera"
"It was very easy to get a loan from Qbera. I just applied on their website and got a confirmed offer immediately. The amount was transferred soon after. Will give it 5 out of 5"
"It's good and quick response from the Qbera team to get the loan. They are very good at the communicating the things properly and appropriately"
Following a Supreme Court Order dated 13th March, 2018, Insurance regulator IRDAI extended the deadline for linking the 12-digit unique identity number with various insurance policies.
A day after SBI hiked deposit rates across maturities, the largest lender of India also raised MCLR by up to 25 basis points. MCLR is now at 8.15 percent which was earlier at 7.95 percent. This signals a possible increase in the EMIs of all types of loans – starting from personal loans to home, auto and other loans. ICICI Bank and Punjab National Bank (PNB) also hiked their MCLR by 15 bps. PNB home loans will now be at 8.6% and for women it will be 8.55%.