All Banks’ Personal Loan Interest Rates in One Place

Personal loans are among the most popular financial instruments and can be used by anyone for any expense. These quick-to-get loans have become very popular in the last few years. Most banks and non-banking financial institutions offer personal loans.

How do you figure out which personal loan deal is best for you? Many people who want a personal loan in India only look at the lender’s reputation. It is not the right strategy. You should always compare the personal loan interest rate before you select a personal loan.

The interest rate is an important factor in the selection because this will determine how much loan you have to pay. Compare personal loan offers based on their interest rates and choose the most suitable deal for you.

How do personal loan interest rates vary?

Personal loan interest rates usually start at 10.49% per year. Personal loan interest rates depend on many factors. For example, once you submit your application, it will be scrutinised according to the following criteria:

• What is your monthly income?
• How long have you been working at your current firm?
• For self-employed applicants and business owners: how long have you been running your business?
• What is your credit score?
• How’s your credit history?
• Have you defaulted on other loans?
• Do you have other loans that you are repaying?
• How much EMI can you afford?

All these factors contribute to the personal loan interest rate you are offered. Scrutinise your application before you submit it, as there are ways to get a lower interest rate.

How can I apply for a low-interest personal loan?

If you want to get a low personal loan interest rate, here are some things you should consider.

• Build and maintain a credit score of at least 750.
• Check with banks and NBFCs for instant or pre-approved personal loans because you may qualify with some lenders who do not have strict criteria.
• Keep track of the interest rate discounts that lenders offer during the holidays. Check out online financial markets to compare personal loan interest rate offers from different lenders.
• Build a good credit history by paying your other loans and credit cards on time.
• Apply for a loan with a lender you already know. For example, if you have a home loan with Piramal Finance, you can always apply for a personal loan with the same lender. They might offer a lower interest rate if you have maintained a good relationship.

What are the things that affect personal loan interest rates?

Lenders set interest rates based on how much it costs them to get money and how risky it is to lend to each borrower. Here are some of the things that can change the personal loan interest rate:

1. Credit Score: When setting interest rates, many lenders look at your credit score. The lowest personal loan interest rates are given to people with better credit scores. So try to keep your credit score at or above 750. Good money habits, like paying your credit card bills and EMIs on time and not applying for multiple loans or credit cards in a short period of time, will help you maintain your credit score.
2. Employer: When setting the personal loan interest rate, many lenders look at the applicants’ employment history. Interest rates are usually lower for salaried people than for self-employed people because salaried applicants have more certainty about their income. When it comes to salaried applicants, the government and PSUs usually get lower interest rates because their jobs and incomes are more stable. The next group is people who work for MNCs and other well-known private sector companies. This is because these companies are thought to be more likely to survive economic downturns than other private-sector companies.
3. Existing banking or lending relationship with the lender: Many lenders offer lower-interest-rate personal loans to existing customers. So, if you want a personal loan, you should always contact the banks or NBFCs with which you already have a relationship.
4. Income: A higher income means you are much more likely to repay the loan. The lender has less risk when providing you with a loan, and many lenders may offer lower interest rates on personal loans.

Personal loan interest rates from top banks and NBFCs

These are some of the personal loan interest rates available. However, the interest rate you are offered depends on your application.

Conclusion

In India, personal loan interest rates depend on several factors, the most important of which is income. Different banks have different ways of classifying loans, which is how they figure out interest rates.

You can apply for personal loans even if you are self-employed or a salaried employee. However, you may have different interest rates depending on your work history. Therefore, before you submit your application, compare personal loan interest rates from various lenders. It will help you understand what lenders look for in ideal borrowers.

Personal loans offer various benefits. If you are looking for a personal loan, your search ends here. Piramal Finance provides personal loans at competitive interest rates and with flexible tenures. Visit Piramal Finance to learn more.