Looking for Personal Loan Interest Rates? Your rate depends on credit score, income, loan amount, and tenure. Know it upfront to plan repayments smartly.
Calculate Personal Loan EMI
Personal Loan interest rate is the annual cost of borrowing charged by the loan providers for lending money, denoted as a percentage of the loan amount. It is an integral part of your loan EMIs. This rate depends on the RBI guidelines, the lender’s policies and the credit profile of the borrower. For example, at Hero FinCorp, Personal Loan interest rates start from 19% per annum. If you have a good credit score, a low debt-to-income (DTI) ratio and meet the lender’s eligibility criteria, you can get an attractive interest rate on a personal loan.
Hero FinCorp offers competitive interest rates on Personal Loans starting from 19% p.a. Whether you are a salaried individual or self-employed, Hero FinCorp can help you meet your instant personal loan needs. For more details about Personal Loan interest rates and other fees, look below.
| Fees & Charges | Amount Chargeable |
|---|---|
| Interest Rate | Starting from 19% p.a. |
| Loan Processing Charges | Minimum 2.5%+ GST |
| Prepayment Charges | N.A. |
| Foreclosure Charges | 5% + GST |
| EMI Bounce Charges | Rs 350/- |
| Interest on Overdue EMIs | 1-2% of the loan/EMI Overdue Amount Per Month |
| Cheque Bounce | Fixed Nominal Penalty |
| Loan Cancellation | 1. Online loan app does not charge any cancellation charges |
| 2. Interest amount paid is non-refundable | |
| 3. Processing charges are also non-refundable |
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 Months
Under 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
Make sure to have a good credit history. To do this, pay your loan EMIs and credit card bills on time.
Do not skip paying your loan EMI. You can also opt for an auto debit to ensure you do not miss an EMI.
Do consider checking the Personal Loan interest rates of other lenders before you finalise your loan.
Do negotiate the interest rate with your lender, especially if you have a good credit score.
Besides low-interest personal loan, other factors to consider include:
1. Processing Fee: It is a one-time fee that covers the costs of processing your loan application. Even though the personal loan fees are nominal, borrowers should still consider it.
2. Pre-closure Fees: If you repay the loan before the binding due date, the lender will levy a foreclosure fee. Read the personal loan charges before signing the loan document.
3. Eligibility Criteria: Before applying for a low-interest Personal Loan, check the eligibility criteria on the lender's website. Choose a lender whose qualifying conditions match your profile and makes you eligible for the lowest Personal Loan interest rates in India.
4. Special Offers: Festive deals or limited-time discounts can further lower your applicable interest.
5. Disbursal Time: In the face of a crisis, every minute matters. If you are looking for a 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 with attractive interest rates.
If you’re looking for personal loans with interest rates that are nominal, keep an eye on your credit profile and compare interest rates for personal loans offered by different providers. In general, lenders are able to offer a lower rate to applicants who have a stable source of income and a low debt-to-income (DTI) ratio.With just a little bit of work, and by using tools like the personal loan EMI calculator to check the loan interest rate and tenure, you’ll be able to determine the personal loan interest, and save thousands of rupees in interest. ways to get the lowest interest rate personal loan:
If you want to get a low-interest personal loan, you first need to learn about the factors that affect your interest rate.
Applicant should be between 21-58 years
You should be a citizen of India
Two years for self-employed and six months for salaried individuals
Applicant should at least earn a minimum amount of R.15,000 monthly
The interest rate for Personal Loan at Hero FinCorp starts from 19% to 30% per annum. However, it may vary depending on several factors we consider before sending you a loan offer. These include the following:
