New Personal Loan app In telugu

What is Personal Loan Interest Rate?

The interest rate on personal loans is the annual borrowing cost on a particular loan scheme that banks/NBFCs charge from their borrowers. The interest rate is usually expressed as a percentage of the principal loan amount. The personal loan interest rates vary from lender to lender.

Even for a particular lender, the final interest rates offered to its personal loan applicants depend on their credit scores and other aspects of their credit profile, income, repayment capacity, etc.

Personal loan interest rates offered by top private sector lenders usually start from 10.49% p.a. However, some public sector banks may offer lower interest rates for personal loan schemes.

Lenders offering personal loans finalize interest rates depending on their cost of funds, net interest margins, etc. along with the credit risk assessment of their loan applicants.

Compare Personal Loan Interest Rates 2024

Additionally, many other banks and non-banking financial companies offer personal loan schemes for individual borrowers. The interest rates offered by these personal lenders are mentioned below:

Note: Interest rates as of 21 August 2024

Banks and non-banking financial companies offer personal loan based on their risk-based pricing model, which may vary widely across lenders. Hence, prospective applicants should compare the personal interest rates before making the final loan application.

Personal Loan Interest Rates of Top Lenders

Prospective personal loan applicants should check and compare the interest rates and other features of personal loan schemes offered by multiple lenders before making the final loan application. The personal loan interest rates offered by some of the major public and private sector banks are as follows:

SBI Personal Loan Interest Rate

The interest rates offered by SBI on their personal loan schemes start from 10.55% p.a. The lender sets the interest rate for loan applicants primarily based on the type of loan scheme, applicants’ employment profile, employer profile, and existing salary account relationship.

Interest Rates:

• Xpress Elite Scheme: 11.15% – 11.90% p.a.
• Xpress Credit Personal Loan: 11.15% – 14.30% p.a.
• Xpress Lite Scheme: 12.15% – 15.30% p.a.
• Xpress Flexi Scheme: 11.40% – 14.55% p.a.
• Pension Loans: 11.30% p.a. onwards
• Quick Personal Loan: 11.40% – 14.55% p.a.

HDFC Bank Personal Loan Interest Rate

Prospective personal loan applicants can opt for HDFC Bank personal loan at an interest rate of 10.75% p.a. onwards. The interest rate set by the lender for their loan applicants depends on many factors including their credit/CIBIL score, tenure, loan amount, income, etc.

Interest Rates:

• For Salaried: 10.75 – 24.00% p.a.
• Home Renovation: 10.75 – 24.00% p.a.
• Marriage Loan: 10.75 – 24.00% p.a.
• For Teachers: 10.75 – 24.00% p.a.
• Personal Loan Balance Transfer: 10.65% p.a.
• For Government Employees: 10.75 – 24.00% p.a.

Axis Bank Personal Loan Interest Rate

Prospective borrowers can avail personal loans from Axis Bank at interest rates starting from 11.25% p.a. onwards. Although the lender has not disclosed the factors determining the personal loan rates, applicants having higher credit scores, income, repayment capacity, etc. are more likely to avail personal loans at lower interest rates from the lender.

ICICI Personal Loan Interest Rate

The interest rates offered by ICICI Bank on their personal loans start from 10.85% p.a. The rates offered by the lender differ based on their personal loan schemes. However, the bank may determine the final interest rates for their loan applicants based on their credit scores, employment profile, repayment capacity, income, etc.

BoB Personal Loan Interest Rate

The personal loan schemes offered by Bank of Baroda can be availed at interest rates starting from 11.15% p.a. The lender offers differentiated interest rates for their loan applicants primarily based on their employment profile, occupation profile, existing account relationship, if any, scheme type opted for, and salary account relationship, if any.

Interest Rates:

• Loan to pensioners: 12.15% p.a. (digital) and 12.65% p.a. (non-digital)
• Pre-approved personal loan: 12.90% – 16.40% p.a.

How Interest Rate is Determined for Personal Loan?

Banks and non-banking financial companies (NBFCs) usually calculate the interest rates for their loan applicants on the basis of the following factors:

• Lender’s cost of funds
• Net interest margins for the lender
• Credit scores, monthly income, occupation profile, and other aspects of their personal loan applicant’s credit profile
• Applicant’s existing deposit or lending relationship with the lender