Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply
Quick Links for loans
Quick Links for Insurance
Investment
Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Personal Use Loan > How does a Low Rate Regime impact the ‘Total Interest’ of your Personal Loans?

Personal Use Loan

How does a Low Rate Regime impact the ‘Total Interest’ of your Personal Loans?

How does a Low Rate Regime impact the ‘Total Interest’ of your Personal Loans?

There is no doubt that the current rates being offered for personal loans are among the lowest in last many years.

Some credit for such low rates can go to the unexpected event of demonetization. The remaining is mostly due to an under control inflation which has allowed policy makers to reduce key policy rates that eventually decide borrowing rates.

Now lower interest rates mean lower personal loan EMI. But that is not the only thing you benefit from. It can also save you thousands of rupees in total interest paid as well as help you clear your loans before its original term.

Lets see how interest rates affect your personal loan dynamics.

Suppose you wanted to take a personal loan of Rs 10 lac personal for 4 years. The current rate being offered is 16%. But earlier (before rates fell), the same loan from the same lender was available at 18%. Lets see how this drop of 2% in personal loan interest rates can help you save some money:

For Personal Loan at 18%
EMI - Rs 29,375
Interest Paid - Rs 4.1 lacs

For Personal Loan at 16%
EMI - Rs 28,340
Interest Paid - Rs 3.6 lacs

Now as you might have noticed, the change in EMI is just about one thousand. But when it comes to total interest you pay during the course of loan, you save almost Rs 0.5 lac. And that is not a small amount. Total interest paid is the amount borrowers pay over and above the principal loan amount. So the lower it is, better it will be for them. Isn’t it?

Infact, if you are ready to pay a higher EMI (that of 18%) even for a loan that you are taking at 16%, you can reduce your loan tenure by few months. So you will be relived of your loan burdened much earlier than what would originally would have possible.

Apply Now
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Important Information

Investor Information

Visit us on:,Visit us on: www.tatacapitalmoneyfy.com,www.tatacapitalmoneyfy.com

Our Private Equity Funds

Amalgamated Companies

Top Branches

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.