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Personal Loan Interest Rate

Your personal loan interest rate determines your regular EMI payments towards the loan repayment. At Tata Capital, we offer personal loans at low interest rates, along with a flexible repayment tenure.

Moreover, interest rates can vary for different borrowers depending on key eligibility factors like your monthly income, CIBIL score, loan amount, loan tenure, repayment capacity, employment nature, debt-to-income ratio, financial history, and more. So, the lower the interest rate on your personal loan, lower is the EMI that you need to pay, and more convenient your loan repayment becomes.

With Tata Capital, enjoy an affordable personal loan at lowest interest rates in the industry, starting at just 10.99%!

The interest rates on a personal loan can typically vary anywhere between 10.99% and 35% p.a. based on the eligibility calculation and how you fulfil the personal loan eligibility requirements of the financial institution.

*Final ROI may vary based on credit checks and other parameters

Getting a low interest personal loan is preferable for reducing your interest outgo and overall costs. Availability of loans can depend on numerous factors; make sure to consider them before applying. You can also use a personal loan EMI calculator to understand to calculate your principal EMIs and interest payable and plan your repayment.
 

Salaried Any amount 10.99%* onwards

How is Interest Rate on Personal Loan calculated?

The personal loan interest is calculated using - flat rate and reducing balance method.

In the flat rate method, the interest paid remains fixed. The total interest payable is calculated on the loan amount borrowed throughout the loan tenure. Hence, the personal loan rates stay constant and don’t lessen even when the principal amount reduces as you pay your monthly instalments.

Contrarily, in the reducing balance method, the interest rate is calculated on the outstanding balance amount, which decreases every time you pay an EMI.

The mathematical formulae for interest on personal loan interest calculation are as follows:

    Flat Rate

    EMI = (Principal + Total Interest Payable) / Loan tenure in months

    Here, Total Interest Payable = Principal x Personal Loan Rate x Loan Tenure/100

    Reducing Balance Method

    EMI= [P x R x (1+R)^N]/[(1+R)^ (N-1)]

    Where P = Principal Amount

    N = Loan Tenure in months

    R = Personal loan ROI or rate of Interest

Personal Loan charges

When applying for a personal loan, a critical factor in choosing the right loan is the interest rate and accompanying charges applicable to the loan. Your personal loan interest rate determines your regular EMI payments and other charges can affect the loan affordability.
 

At Tata Capital, we offer competitive personal loan interest rates and levy nominal loan charges, including processing fees. You can use a personal loan EMI calculator to determine your EMI payments and plan your repayment accordingly.
 

Below are the different charges applicable to the personal loan
 

Processing Fees Up to 5.5% of the loan amount + GST
Penal Interest 3% per month on the overdue amount
Statement of Accounts Rs. 250 + GST of hardcopy
Loan Cancellation Charges 2% of the loan amount or Rs. 5750 (whichever is higher)
Duplicate Repayment Schedule Rs. 550 + GST per instance
Part Payment Charges 2.5% on an amount over and above 25% of the principal outstanding
Foreclosure Charges 4.5% of the principal outstanding at the time of foreclosure (2% extra if closed within the lock-in period of 12 months from disbursement)
Foreclosure Charges for Top-up 2.50% on the future principal outstanding on the current loan

Miscellaneous charges

  • Dishonour Charges

    These are those charges that are levied in case of an EMI bounce per instance. In other words, these charges are levied when you miss a personal loan EMI payment due to inadequate funds in your bank account. At Tata Capital, you’ll be required to pay Rs. 600 for every Cheque/Payment Instrument Dishonour.

  • Mandate Rejection Service Charge

    Charges will be levied if new mandate form is not registered within 30 days from the date of rejection of previous mandate form by Borrower’s bank for any reason whatsoever. Tata Capital charges a nominal amount of Rs. 450 + GST.

  • CCOD Annual Maintenance Charges

    CCOD Annual maintenance charges are the charges levied on those who have chosen a flexible funding option such as PL Overdraft. It is charged for the maintenance of the Overdraft limit. At Tata Capital, 0.25% of reduced assigned limit OR Rs.1000/- (whichever is higher) shall be payable at the end of the 13th month.

  • Collection Charge

    If the cheque, you have issued for payment has been made to a non-local branch, Tata Capital will levy an outstation collection charge for the collection of such cheques. Tata Capital charges will be ‘At Actuals’

  • Statement of Accounts

    Lenders charge a certain amount to issue your Statement of Account - a statement having a list of all transactions made in your loan account during a given period. At Tata Capital, you will be charged only if you ask for a hard copy in case of branch walk-in at Rs. 250 + GST. Downloading a statement of account on the portal is free of cost.

  • Loan Cancellation Charges

    If you wish to cancel your personal loan immediately following the process of loan disbursement, then you are charged a loan cancellation charge. Tata Capital levies 2% of the Loan Amount/ Facility amount OR Rs. 5750/- (whichever is higher)

  • Payment Instrument Swapping Charges

    If you wish to exchange or swap your eMandate or post-dated cheques from another account for EMI repayment purpose you will be charged Rs. 550 + GST per instance.

  • Duplicate Repayment Schedule

    Tata Capital will share a welcome letter with Repayment Schedule post availing of Personal Loan. In case you need a duplicate statement of the Repayment Schedule you will be charged Rs. 550 + GST per instance.

  • Duplicate NOC

    If you need to apply for a duplicate No Objection Certificate (NOC) due to any reason, Tata Capital will issue a new one in your name for a charge of Rs. 550 along with the GST charge.

Part-payment charges

  • Part Payment Charges

    • Part Prepayment is allowed once per year and the minimum gap between two-part prepayments to be six months.
    • A maximum of 50% of the principal outstanding is allowed by way of part prepayment during a single year.
    • A part prepayment charges of 2.5% shall be applicable on amount over and above 25% of principal outstanding and up to maximum 50% of principal outstanding
    • No part payment is allowed during the first 12 months (Lock-in period).
    • Minimum Part prepayment amount to be greater than or equal to 2 months EMI.
  • Foreclosure Charges

    • Lock-in Period: 12 months from the date of first disbursement.
    • 4.5% of the principal outstanding at the time of foreclosure.
    • 2% extra of the principal outstanding to be levied if closed within lock-in period
  • Foreclosure Charges for Top-Up

    • 2.50% on the future principal outstanding on existing loan.
    • Foreclosure charges shall be levied only if new rate is lower than existing rate.
    • Lock-in Period: 12 months from the date of first disbursement. 2% extra of the principal outstanding to be levied if closed within lock-in period.
  • Foreclosure Charges in CCOD Cases

    • Lock-in Period: 12 months from the date of first disbursement.
    • 4.5% on the Dropped down limit amount.
    • Any prepayment/ foreclosure made during the Lock-in Period will attract additional 2% over and above the prepayment/foreclosure charges mentioned above on the Dropped down limit.
  • Foreclosure Report

    • Soft Copy – Nil
    • Branch Walk-In – Rs. 199 + GST

What are the factors affecting Personal Loan interest rates?

The following factors can impact your latest personal loan interest rates.

CIBIL score

Your CIBIL score that reflects your repayment capability plays a decisive role in securing a personal loan at low interest rates. With an excellent CIBIL rating, you can get more attractive interest rates.

Repayment history

Besides your CIBIL score, the lender also reviews your past credit record to determine your current personal loan interest rates. A clean credit history with no EMI defaults and disciplined payments is preferred.

Income

Your income significantly determines your personal loan rates. If you belong to the high-income bracket, the lender perceives you as more likely to be stable and timely repay the loan and extends more competitive interest rates.

Employer’s reputation

The latest personal loan interest rates that the lender offers you also depends on your employer’s reputation. If you work with a credible organisation, the lender considers you less likely to default on EMIs and offers more attractive rates.

Debt-to-income ratio

If you are servicing multiple loans and credit cards, and your debt burden eats up a significant portion of your monthly income, the lender can consider you a high-risk borrower. It can impact the personal loan interest rates you will qualify for.

What are the types of Personal Loan Interest Rates?

Fixed interest rate

In fixed rate loans, lenders charge you a constant personal loan rate throughout the tenure. Here, your total interest payable and EMIs remain fixed.

 

Floating Interest Rate

Floating or variable personal loan interest rates in India are susceptible to fluctuating economic conditions. Here, you can get low interest personal loans initially, but the lender can revise the rates as per the repo rate. Hence, your interest payable can vary throughout the tenure.

 

Fixed and floating rates both offer a different set of advantages. While fixed rates keep your EMIs constant, you may pay significantly lower instalments with floating-rate loans. But, if current personal loan interest rates increase suddenly, you run the risk of paying bigger EMIs in the future.

Tips to avail Personal Loan at affordable interest rates

Here are a few different ways to get lower interest rates when applying for a personal loan:

  • Build and maintain a high credit score, preferably 750 or above. This will boost your creditworthiness and increase your approval rate.
  • Check for pre-approved offers from NBFCs, Small Finance Banks (SFBs), and Micro Finance Institutions (MFIs)
  • Enquire with NBFCs with whom you already have an existing loan account
  • Track personal loan rate concessions offered by lenders during festive seasons
  • Research and compare personal loan offers from various lenders

Why choose Tata Capital Personal Loan?

At Tata Capital, we offer multi-purpose personal finance tailored to meet your unique desires and financial requirements. Get quick access to collateral-free funds at competitive personal loan rates, starting at just 10.99%. With us, you can plan your repayment as per your convenience and ability to repay. Opt for a loan amount, EMI plan, and tenure that suit you.

With years of experience under our belt, we understand your needs. We extend a hassle-free online application process, minimal paperwork requirements, and relaxed eligibility criteria to ensure a comfortable borrowing experience for you.

    Disclaimer

    • The fees/charges indicated above are subject to revision at Tata Capital’s discretion from time to time.
    • Customers who have taken a loan before 15th April 2019 need to refer to the loan agreement and schedule of charges for applicable rates.
    • For the definitions of the above charges, please refer to the Master Terms & Conditions sheet.
    • Soft copies of documents mentioned in the table above will be provided free of cost. For hard copies, please refer to the above table for the applicable fees & charges.*

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What our customers say about us

Wonderful experience indeed connecting with TATA Capital.

AMAR SINGH

Personal Loan | 25 December, 2023

Tata capital's services is really good.

VIJAY DAS

Personal Loan | 22 December, 2023

Wonderful service.Whenever there is a need of money TATA capital is there !!!

HIMANSHU BORDOLOI

Personal Loan | 22 December, 2023

All support services very good. Thanks team Tata Capital.

MANISH KUMAR SHUKLA

Personal Loan | 19 December, 2023

Your service is best and easy to other bank comparison. Thank you Tata capital for fullfilling urgent need of loan.

RANJEETA KUMARI KUMARI

Personal Loan | 08 December, 2023

A good experience with Tata Capital. Less time taken for documentation also quick disbursement after approval. So thanks to Tata Capital.

Madhuri Pradip Khot

Personal Loan | 06 December, 2023

Customer service is too good. They are very helpful and courteous. Is was a good experience with Tata Capital.

ALEXANDER KUJUR

Personal Loan | 02 December, 2023

The procedure was neat and speedy. The loan was disbursed within two days. Happy to choose Tata capital services.

SAVIOROZAR A

Personal Loan | 16 November, 2023

Excellent service. Communication skills was good and trustworthy service for customer.

YUVARAJ RAI

Personal Loan | 15 November, 2023

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