Current Interest Rate on Personal Loans
Check the online interest calculator to find accurate repayment details based on the latest personal loan interest rate. It helps you plan better and choose the best loan option.
Type of fee |
Applicable charges |
Rate of interest |
10% to 31% p.a. |
Processing fees |
Up to 3.93% of the loan amount (inclusive of applicable taxes). |
| Flexi Facility Charge | Term Loan – Not applicable Flexi variant - A fee will be deducted upfront from the loan amount (as applicable below)
*All the Flexi charges above are inclusive of applicable taxes *Loan amount includes approved loan amount, insurance premium, and VAS charges. |
Bounce charges |
Rs. 700 - Rs. 1,200 per bounce. |
| Pre-payment charges | Full Prepayment
Part-prepayment
*Foreclosure will be processed post clearance of first EMI |
Penal charge |
Delay in payment of instalment(s) shall attract Penal Charge of Rs. 8 - Rs. 12 per day per instalment from the respective due date until the date of receipt of the full instalment(s) amount. |
Stamp duty (as per respective state) |
Payable as per state laws and deducted upfront from loan amount. |
Annual maintenance charges |
Term Loan: Not applicable Flexi Term Loan (Flexi Dropline): Up to 0.295% (inclusive of applicable taxes) of the total withdrawable amount (as per the repayment schedule) on the date of levy of such charges. Flexi Hybrid Loan: Up to 0.295% (inclusive of applicable taxes) of the total withdrawable amount during the initial tenure. Up to 0.295% (inclusive of applicable taxes) of total withdrawable amount during subsequent tenure. |
| Broken period interest / Pre-monthly Instalment interest |
Method of recovery of "Broken Period Interest/Pre monthly instalment Interest" would be as follows: EMI Date : 2nd For Term Loan: BPI amount will be capitalised, i.e added to Principal amount on Due date / Deducted from disbursement EMI Date : 7th For Term Loan: BPI amount will be capitalised, i.e added to Principal amount on Due date / Deducted from disbursement Scenario 2: If Loan is disbursed between 7th and 10th of the month: |
Note: Additional cess if any, will be applicable to all charges according to state law.
*Terms and conditions apply.
How to apply for a Personal loan in Bangalore, Karnataka?
Step-by-step guide to apply for a personal loan
- Click on ‘APPLY’ at the top of this page to open our online personal loan application form.
- Enter your 10-digit mobile number and the OTP sent to your phone.
- Fill in the application form with your basic loan details, such as your full name, PAN, date of birth, and PIN code.
- Now, click on PROCEED’ to visit the loan selection page.
- Enter the loan amount that you need.
- Choose the repayment tenure – you can select tenure options of 12 months to 96 months and click on ‘PROCEED’.
- Complete your KYC and submit your application.
Our representative will guide you on the next steps. The loan amount will be transferred to your bank account on the successful verification of your documents
Conclusion
In conclusion, a personal loan in Bangalore is a convenient and flexible financial solution for various needs. Whether you need funds for education, medical expenses, or home renovations, there are options available to suit your requirements. Even if you have a low credit score, you can still avail of a personal loan for low CIBIL score in Bangalore. By meeting the eligibility criteria and providing the necessary documents, you can secure a loan with ease.
What is the personal loan interest rate?
The personal loan interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. Lenders determine this rate based on various factors, including the borrower's creditworthiness, income, and the prevailing market conditions. If you meet the lender’s criteria well enough, you may be eligible for the lowest interest rate personal loan.
Interest rates for personal loans can be fixed or variable. The fixed rate remains constant throughout the loan tenure, providing predictability for monthly payments. Conversely, variable rates may fluctuate based on market changes. Typically, borrowers with higher credit scores secure lower personal loan rates. Comparing rates from different lenders is crucial to finding the most favourable terms for a personal loan, minimizing overall borrowing costs.
You can calculate the interest on personal loan with our interest calculator.
How to calculate personal loan interest rate?
For instance, Priya took a personal loan of Rs. 1,00,000 at an interest rate of 15% p.a. for a tenure of 12 months. Here, Priya’s annual interest on personal loan will be around Rs. 8,310, and her monthly EMI will be around Rs. 9,026. Borrowers can use the personal loan EMI calculator to know the interest payable for multiple loan amounts by inputting principal, interest rate, and tenure.
The formula used by a personal loan EMI calculator for calculating the equated monthly instalment (EMI) for a personal loan is given by:
EMI = [PxRX(1+R)^N]/[(1+R)^N-1]
where,
EMI is the Equated Monthly Instalment
P is the principal amount of the loan,
r is the monthly interest rate, and
n is the number of monthly instalments.
Factors affecting interest rates on personal loan
There are multiple factors that can affect your personal loan interest rate in India. It is recommended to ensure that all of the below criteria are in good health in order to avail of the loans at low-interest rates.
- CIBIL Score: A high CIBIL Score indicates a clean financial track record and helps you secure a lower interest rate.
Typically, here is how credit score may affect your personal loan approval:
Credit rating |
CIBIL Score |
Personal loan approval chances |
Excellent |
800+ to 900 |
Excellent chances for a loan with low interest rate |
Good |
Above 750 |
Likelihood of loan approval with lower interest rates. |
Average |
From 685 to 750 |
Loan may be approved, but the interest rate might be on the higher side. |
Poor |
Below 685 |
Your loan application may not be approved. |
- Occupation: Salaried and self-employed individuals may be offered different interest rates because of the nature of their income.
- Income: Higher income helps you get a low-interest rate personal loan as lenders can be assured of repayment.
- Debt-to-income ratio: Keeping this ratio low helps reduce the risk of default as you will have more funds to pay your EMIs.
- Age: Younger applicants, with many earning years remaining, may receive more affordable personal loan interest rates than those nearing retirement.
- Employment: Being employed at a renowned organisation can help you get a better personal loan interest rate in India as there is more income stability.
- Relationship with the lender: Existing customers may get a more favourable interest rate on personal loans.
How to get the lowest interest rate on a personal loan?
To secure the lowest interest rate on a personal loan, start by improving your credit score. Maintain a good credit history by paying EMIs, bills on time and reducing outstanding debts to get better terms such as a lower rate of interest on personal loans. Compare offers from multiple lenders to find low interest personal loans. Shorten the loan term to lower the total interest paid. Negotiate with lenders to see if they can offer better rates based on your financial profile. Lastly, be aware of additional fees and charges that may impact the overall cost of the loan – not just a personal loan with low interest rate.
If you are looking to apply for a personal loan, here are a few tips that will help you avail cheapest rate of interest:
- Improve your credit score: Having a high credit score indicates your creditworthiness, which in turn makes you eligible for the low interest loan offered by banks and financial institutions. Therefore, it's advisable to check your credit score before applying for a personal loan.
- Avoid late repayments: Missing loan or credit card repayments can negatively impact your credit score. Loan providers typically consider your repayment history when determining the fluctuating interest rate for a personal loan. Those with a history of timely payments are likely to qualify for lower interest rates.
- Keep an eye for special offers: Lenders often introduce special interest rates for a limited period, especially during festive seasons. Applying for a loan during such promotional periods may allow you to secure a lower interest rate.
- Compare interest rates: Before selecting a lender for your personal loan, it's important to compare the interest rates offered by various NBFCs. This comparison ensures that you obtain a personal loan at a competitive interest rate.
- Negotiate with your lender: If you have an established relationship with your bank or are a loyal customer, consider negotiating for better terms. It's recommended to formally request lower interest rates through a written communication with your loan provider.
Fixed Interest Rates vs Floating Interest Rates: Which is better?
Choosing between a fixed interest rate and a floating interest rate depends on individual preferences and financial situations. If you value stability and predictability, a fixed interest rate is ideal. However, if you can handle fluctuations and want the potential benefit of lower rates, a floating interest rate may be more suitable.
Criteria |
Fixed Interest Rate |
Floating/Variable Interest Rate |
Definition |
Interest rate remains constant throughout the loan tenure. |
Interest rate changes periodically based on market conditions. |
Stability |
Provides stability and predictability in loan repayments. |
Repayments can vary, leading to uncertainty in budgeting. |
Interest Rate |
Typically higher than initial floating rates to hedge against market fluctuations. |
Usually starts lower but can increase over time with market changes. |
Risk |
Lower risk as the rate is locked in and unaffected by market volatility. |
Higher risk due to potential rate hikes, but also the potential for rate decreases. |
Suitable For |
Borrowers preferring consistent and predictable payments, useful for budgeting. |
Borrowers who can handle potential payment fluctuations and are willing to take a chance on lower rates. |
Flexibility |
Less flexible; prepayments or changes may incur penalties. |
More flexible; often allows for early repayment with fewer or no penalties. |
Market Conditions Impact |
Unaffected by changes in market interest rates. |
Directly impacted by market interest rate movements. |
How to apply for a personal loan
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Frequently asked questions
Lowest-interest personal loans are the perfect solution for urgent financial needs. This will make it easier for you to make repayments. Here are a few factors that can help you find the best rate on a personal loan:
- Maintain a good credit score
- Compare personal loan interest rates to get the best offer
- Look for seasonal offers
- Qualify based on your employer’s credibility
It is recommended to compare the rates offered by different lenders to find the best personal loan interest rate in India. When applying for a personal loan, keep in mind that interest rates are not the only factor to consider. Other aspects, such as processing fees, prepayment charges, loan tenure, and repayment flexibility, should also be considered to ensure that you choose a loan that best suits your needs and financial capabilities. With Bajaj Finance Limited, you can get a personal loan with an interest rate starting at 10% p.a.
The Reserve Bank of India (RBI) lends money to commercial banks at a repo rate. When the repo rate goes down, interest rates and EMIs for both individuals and banks tend to go down as well.
Repo rate only affects the personal loan rates if you choose a floating interest rate.
GST is not applicable on the interest portion of a personal loan but may be applicable on other aspects.
Personal loan interest is not tax deductible when it is used for personal expenses.
You can pay back your personal loan within 12 months to 96 months months. That is, you can spread out your EMIs over a maximum of 8 years.
Yes, there are part-prepayment charges applicable on a personal loan. However, if you have used the Flexi Loan facility, part-prepayment fees do not apply to you.
High current debt levels increase the perceived risk for lenders, often resulting in higher interest rates due to the borrower’s higher debt-to-income ratio.
Balance transfer may help you by moving your existing loan to a new lender offering lower interest rates, thereby reducing your overall interest burden and monthly EMIs.
Amortisation schedule charges are fees for providing a detailed breakdown of each EMI, showing the principal and interest components.
Your income plays a crucial role in determining your loan interest rate. A higher income often leads to a low-interest rate because it demonstrates your repayment capacity. Lenders use your income to assess the risk and decide on a favourable rate that aligns with your financial stability, potentially resulting in a lower interest rate.
Acquiring a personal loan with a low CIBIL Score can be challenging, as your credit score can influence your loan terms. Research extensively, and improve your creditworthiness over time to enhance your chances of securing a low-interest loan.
In most situations, lenders are unable to change the interest rate on personal loans during the loan term. The interest rate is normally fixed from the start of the loan, providing repayment stability. However, it's advisable to review the loan agreement to confirm if any provisions exist that allow rate changes under specific circumstances.
The variable or floating interest rate fluctuates on a regular basis based on a predetermined benchmark, which is frequently connected to market conditions such as the prime rate or LIBOR. Changes are made at specified times, such as monthly, quarterly, or annually, as defined in the loan agreement, and may have an impact on the borrower’s repayment amount.
The interest payable on a Rs. 1 lakh loan varies depending on the loan terms. For example, the total interest payable for a Rs. 1 lakh loan, at an interest rate of 12% p.a. for a tenure of 2 years will be approximately Rs. 12,976.
The EMI for a Rs. 20 lakh personal loan depends on the interest rate and tenure. For example, at 14% interest over 5 years, the EMI would be approximately Rs. 46,565.
