Personal Loan Interest Rates And Balance Transfer Rates

Personal Loan Interest Rates

(Last updated on : 13 June 2017)

Personal loan interest rates in India depend on various criteria, among which major is the income level. Different banks have different classifications based on which interest rates are calculated. To start with whether you are working for an employer (salaried) or you are an employer yourself (self – employed).
Latest Offers for the month of June 2017:
RBI cuts repo rate by 25 basis points to 6.25%. As a result, EMIs of your personal loan will come down. The major offer of October is NIL processing fees on personal loans. So, if you are looking for personal loan, apply now & get the best offers for yourself and save up to Rs. 5000.

Interest Rates of personal loans are :-

  • Citi Bank Special Schemes of 11.49% to 13.99%
  • HDFC Bank offers Special Rates of 10.99% to 17.72%
  • Kotak Mahindra Offers Loans at 11.29% to 18.00%
  • ICICI Bank Personal Loans offers at 11.29% to 18.00%
  • Axis Bank Personal Loans @ 11.99% to 18.5o%
  • Tata Capital Personal Loans offers 13.50% To 18%
  • Bajaj Finserv Personal 11.99%
  • IDFC Bank Personal Loans offers 11.49% to 15.00%
  • Fullerton India Personal offers 15.50% to 23%.
  • RBL Bank offers 14.00% to 18.00%.
  • Capital First Personal Loan Rates 12.00% to 18.00%.

 

 

 

 

Balance Transfer Rates of Personal loan are :-

Rate – 11.29%          PF – 1500 Rs

*Balance transfer amount should be minimum 50 Thousands Rs.

 

 

June Bonaza Offer –

Axis Bank Balance transfer Rate and Fresh Loan Rate  :-  10.99%.

 

*Limited period offer, T&C apply.

 

 

 

 

 

 

 

 

1.Income: If your Income is above a certain limit, Banks believe that your chances of not paying are lesser as you have Income to pay. Most Banks have categories according to income where they give different rates.
As your monthly income goes higher the rate of interest on your personal loan will be lesser.The rates are defined for customers who have income between twenty thousand to fifty thousand and fifty thousand to seventy five thousand.If you have income above seventy five thousand you will get lower rates.

2.Your Company Status: Banks define Companies in 3-4 categories.These are
Cat A or Elite or Top 500 companies
Cat B
Cat C
Others

Anyone working in these companies can take Personal loan from Banks.The better category of your company will mean lower rate of interest. Banks classifies these companies on the size of company and reputation.

Banks believe working customers with better category companies are less likely to default so they give lesser rates to Cat A companies.

So if your company is new and not Categorized in the Banks you are likely to get a higher rate or no loan from the Banks.
So all start up company employees expect that your Personal loan will come at a higher rate or you can be refuse.
3.Credit and Payment History:Banks follows Cibil scores/rating before deciding giving loans. If your payments for Credit Cards and Loans is not upto mark , you have the most likely chance of being rejected for the loan or the Bank will give you at a much higher rate.
Cibil score is in the range of 0-900. Most Banks prefer customers for Personal loan with score above 750 and if your score is above 800 you can expect a .25% basis drop on your rate for the Personal loan.

4.Relationship with your Bank:The Bank where you have your Salary account/Savings account is likely to pass on you to some special rate for your personal Loans or Processing fee.
Banks want to retain there customers and will go all out to give lower rates for Personal loan customers who have accounts or Credit Card with them.

Banks have special schemes for rates of interest for Personal loan for all it customers. So when you are considering to take the lowest rate Personal loan you should always check with your bank who do you have your salaried account.

5.Individuals Negotiating Skills:Based on your above points you can always ask Bank to give you waivers on Rates, Fees Etc.

Factors effecting Self Employed customer for Personal loan rates:

  1. Annual Income tax return- If your income is high and you are a large company you can expect rates to be lower for you.
  2. Type of Business- Banks are ready to give lower rates to sound business .So all Manufacturing and sound business professionals get a better rate of Interest on the personal loan.
  3. Special rates to Self employed professionals- Banks really likely to fund Doctors/Engineers/Ca and Architects. Banks believe these set of customers very rarely default and hence there rates are better from others.

 

 

 

 

 

 

Disclaimer: Please note that the interest rates given here are based on the market research. To enable the comparisons certain set of data has been reorganized / restructured / tabulated .Users are advised to recheck the same with the individual companies / organizations. This site does not take any responsibility for any sudden / uninformed changes in interest rates.
Banks/ Financial Institutions can contact us at info@loanserve.in for inclusions or updates.

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