EMI = (Principal + Total Interest Payable) / Loan tenure in months
Here, Total Interest Payable = Principal x Personal Loan Rate x Loan Tenure/100
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.
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.
Personal loan interest rates are a significant factor to be taken into consideration because it determines the total cost of servicing the loan. Let us see how.
Every loan EMI comprises of two components viz; the principal and the interest. If your total interest amount is high, it will directly increase your total sum payable.
That’s because the personal loan EMI you need to pay, for repaying your principal amount over the decided loan tenure is governed by the latest personal loan rates applicable. Here, a lower personal loan interest rate will reduce your overall interest payout, thereby requiring you to pay lower EMIs to the lender over the loan tenure.
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:
The processing fee is a non-refundable fee levied by lenders while processing your personal loan application. You are charged this one-time fee even if the loan does not get sanctioned. At Tata Capital, you are charged up to 5.5% of the loan amount + GST.
Penal interest is the rate of interest lenders charge on a delayed EMI payment. You are then required to pay the outstanding instalment inclusive of the additional interest on a personal loan. The penal interest at Tata Capital is levied at 3% per month on the overdue amount.
The following miscellaneous charges are also involved under personal loans -
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.
|Customer Profile||Loan Slab||Interest Rate%*|
|Salaried||Any amount||10.99%* onwards|
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.
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 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.
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 Rs. 100 + GST per repayment instrument.
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.
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)
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.
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.
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.
The following factors can impact your latest personal loan interest rates.
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.
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.
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.
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.
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.
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 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.
Here are a few different ways to get lower interest rates when applying for a 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.
Personal loan interest rates are of two types
#1. Fixed interest rate: Here, lenders charge you a constant personal loan rate throughout the tenure. Here, your total interest payable and EMIs remains fixed.
#2. Variable interest rates: Variable or floating interest rates are subjected to economic fluctuations. Initially, you can get low-interest personal loans, but the lender can adjust the rates based on the repo rate. So, the interest amount varies during the loan tenure.
You can negotiate your personal loan’s interest rate based on the following factors-
#1. Your financial profile: Build and maintain a high credit score, preferably 750 or above.
#2. Your repayment history: Lenders will be more willing to offer you a better interest rate if you have a good repayment history.
#3. Your relationship with the lender: You may be able to secure a personal loan at a lower interest rate and better terms if you have a good relationship with the lender.
When you apply for a personal loan at Tata Capital, there is a processing fee of 5.5% of the loan amount. It is a one-time, non-refundable fee charged for processing the application form. Additionally, you will need to pay the applicable GST charges on the processing fee.
The factors that can affect personal loan interest rates are:
#1. CIBIL score
You can get more attractive interest rates with a CIBIL score of 750 and above.
#2. Repayment history
A clean credit history with no EMI defaults and disciplined payments is preferred.
Your income significantly determines your personal loan interest rates. The lender extends more competitive interest rates if you belong to the high-income bracket.
#4. 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.
#5. 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.
Interest rates and promotional offers on personal loans varies from lender to lender and market conditions.
However, if you want to look for pre-approved offers for personal loan application process, click here.
Charges on personal loans are as follows-
#1. Processing fee
This is a non-refundable and one-time processing fee. It’s charged even if the loan is not approved. We charge a nominal processing fee which is up to 5.5% of the loan amount + GST.
#2. Penal interest/additional interest
Penal interest is the rate of interest lenders charge on a delayed EMI payment. The penal interest at Tata Capital is levied at 3% per month on the overdue amount.
|Bounce charge||Rs. 600|
|Mandate rejection service||Rs. 450 + GST|
|CCOD annual maintenance||0.25% of reduced assigned limit OR Rs. 1000/- (whichever is higher)|
|Outstation collection||Rs. 100 + GST|
|Statement of accounts||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||2% of Loan Amount/ Facility amount OR Rs. 5750/- (whichever is higher)|
|Payment instrument swapping||Rs. 550 + GST|
|Duplicate repayment schedule||Rs. 550 + GST|
|Duplicate NOC||Rs. 550 + GST|
Yes, you can switch between variable and fixed interest rates or vice versa. However, it's important to note that most lenders typically impose a nominal conversion fee for this service.
Yes, you can request a statement or summary of the interest and charges paid on your personal loan from your lender. We provide a statement showing all the transactions made in your loan account during a given period. You can download a statement of account on the Tata Capital website for free.
Personal loan interest rates depend on your credit score, monthly income, job stability, loan amount, and tenure. If you have a high credit score, a good repayment record, and a high monthly salary, you will easily qualify for a loan and get low-interest rates.
Yes, it is possible to use special deals or offers on personal loan interest rates. Lenders occasionally provide promotional offers or discounts on interest rates.
Your CIBIL score shows how good you are at repaying loans, and it's essential if you want to get a personal loan at a low-interest rate. You can get even better personal loan interest rates if you have an excellent CIBIL score. A high credit score is considered to be 750 or higher.
At Tata Capital, we offer personal loans starting at 10.99%, which is the best and lowest in the industry. We offer personal loans specifically curated for people in different professions. So, if you are a doctor, a government employee, or a woman looking for personal loans at affordable interest rates, we have got you covered.
Yes, you can convert your floating personal loan interest rate to a fixed personal loan interest rate by paying a nominal conversion fee for this service.
Floating or variable personal loan interest rates can change based on economic conditions. Initially, you may get a low-interest rate on your personal loan. However, because the repo rate influences floating rates, the lender can adjust the rates according to changes in the repo rate. As a result, the amount of interest you have to pay can vary during the entire loan repayment period.
On the other hand, with fixed-rate loans, lenders charge you a consistent interest rate for the entire loan duration. This means your total interest payment and EMIs remain the same throughout the loan tenure. Therefore, the repo rate does not have any impact on the interest rate of fixed-rate loans.
Excellent service. Communication skills was good and trustworthy service for customer.
Fast and quick process. Much helpful during emergency.
Excellent service ,no hidden information kept, usefully provided facility of loan and other things. Thanks for cooperative staff
Good service, understanding the requirements of the customer.
Everything is fine. There is no lack of service department. I am 100% satisfied.
Great experience. Unbelivable for me that in such a short time my loan was approval and disbursment.
Good Services from Tata Capital to understand need of perople.
Friendly team members easy understandable of the product. Good Service!
Achieving a target is easy, maintaining your focus is difficult. Don’t lose sight of your aim & vision. You have been doing an outstanding job so far. Keep up the good work! Best wishes .
Click allow button to receive notifications