Apply for Instant Loan
Download Our App
Products Personal Loan
Two Wheeler Loan
Used Car Loan
Loan Against Property
Loyalty Loan
Home Loan
Insurance
Apply for Instant Loan
A personal loan is a one-stop solution for all of your urgent financial needs such as a medical emergency, wedding expenses, higher education fees, and more. It is an unsecured form of financing, which means you do not need to put up any asset as collateral. When you avail of a personal loan, you need to repay the principal amount along with interest over a set period. However, before applying for a personal loan, you must be aware of the different types of interest rates on personal loans as well as the factors that influence the rate of interest of personal loans.
Whether you need funds for a home improvement project or to resolve a major financial crisis, Hero FinCorp is always there to help you. We offer personal loans at affordable interest rates. Based on various factors and the risk associated with your profile, we charge personal loan interest rates up to a maximum of 25% p.a.. So, what are you waiting for?
Your personal loan rate of interest in India can be calculated using two different methods. One is a flat interest rate, and another is a personal loan reducing rate of interest. Let us look at both methods in detail:
Under this method, the applicable personal loan interest rate is charged on the total principal loan amount throughout the tenure. To compute your interest rate using this method, use the following formula:
Total Interest Payable = (Principal × Rate of Interest × Loan Term) / 100
Once you know the total interest payable, you can easily compute your EMI by using the below formula.
EMI = (Principal＋Total Interest Payable) / Total Loan Tenure in MonthsUnder this, the personal loan interest rate is computed on the outstanding principal balance. It implies that every time you pay your EMI, the interest on the remaining balance is recalculated. To calculate the EMI using this method, use the following formula.
EMI= [P x R x (1+R)^N] / [((1+R)^N)-1)]
Where,
E is the EMI
P is the Principal Loan Amount
R is the Rate of Interest
N is the Loan Tenure in months
If you are having trouble calculating your personal loan interest rates and EMIs manually, then consider using Hero FinCorp’s personal loan rate of interest calculator. A rate of interest calculator for a personal loan helps borrowers to determine their EMI beforehand by using just three variables—principal amount, interest rate, and loan tenure. Once you input all three variables and click on the submit button, you will receive a loan amortisation schedule detailing your interest rate as well as EMI.
Select Loan Amount
₹
Min ₹ 50,000
Max ₹ 5,00,000
Interest Rate
15 %
Min 15%
Max 35%
Select Loan Repay Duration
12 Months
Min 12 Months
60 Months
₹ 4477
If you want to get a low-interest personal loan, you first need to learn about the factors that affect your interest rate.
When you apply for a personal loan, the first thing we assess is your income. Having a high monthly income makes you a low-risk borrower and you might get a personal loan at a low interest rate.
Your organisation plays a crucial role in determining your interest rate on a personal loan. Working for a reputable MNC or government organisation may qualify you for a low rate of interest for personal loans.
Lending to salaried and self-employed individuals involves different levels of risk. Thus, while determining the interest rate on a personal loan, we consider your occupation status as well.
Your age determines your earning potential. Compared to retired individuals, young people have greater earning capability. Therefore, if you meet all the eligibility requirements for the personal loan, your age can help you get a better interest rate. The younger you are, the lower your personal loan interest rate could be.
If you are looking for a personal loan at the cheapest rate of interest, improve your credit history. To boost your creditworthiness, make timely EMI payments and pay off any outstanding debts.
Sometimes people tend to skip their EMIs despite the availability of funds. In doing so, they not only impact their credit history but also negatively affect their future borrowing capacity including the interest rate on future loans.
Different financial institutions offer personal loans at different rates. Explore all options before making a decision. Choose the lender who offers the minimum rate of interest for a personal loan in India.
If you have a strong credit history and a decent profile, you can negotiate the personal loan interest rate with your lender. This way, you may even get the lowest interest rate on a personal loan.
Besides low rates of interest for personal loans, other factors to consider include:
It is a one-time fee that covers the costs of processing your loan application. Even though the fee is nominal, borrowers should still consider it.
If you pay off your outstanding dues before the binding due date, the lender will levy a foreclosure fee. Read the pre-closure terms and charges before signing the loan document.
Before applying for a personal loan, check the eligibility criteria on the lender's website. Choose a lender whose qualifying conditions matches your profile and makes you eligible for the lowest personal loan interest rate.
Check the availability of special festive offers and discounts.
In the face of a crisis, every minute matters. If you are availing of the personal loan to meet some urgent financial needs then do not forget to check the lender’s loan disbursement time. This, usually, varies from lender to lender. Choose a lender who offers instant personal loan approval.
You can compute the personal loan interest rate manually by using the following mathematical formula:
Interest = Principal × Interest Rate × Tenure / 100
You may also calculate it online using the rate of interest on a personal loan calculator.
The interest rate on a personal loan depends upon various factors such as your age, income, credit history, and more. Based on this, your personal loan interest rate can be as high as 25% p.a.
Your income reflects your repayment capacity. If your current personal loan interest rate is on a higher side, it could mean you don't earn enough income and the lender considers you a high-risk borrower.
When evaluating your personal loan application, the lender calculates how much of your income goes toward existing debt payments. If you spend more than half of your income on debt repayment, the lender will either deny your loan application or charge you a higher interest rate.
Working for a reputable company ensures job security and stable income. Also, your work experience reflects your employment stability. Therefore, you may get a personal loan with a lower interest rate if you work for a reputable company and have sufficient work experience.
Yes, you may acquire a low-interest personal loan if you apply with a co-applicant who has a good credit history. Another alternative is to find a creditworthy guarantor.
Follow these tips to obtain a low-interest personal loan:
Hero Fincorp Limited follows, high data and system security standard
Subscribe to our newsletter and get exclusive deals you wont find anywhere else straight to your inbox!
