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Current Interest Rates for Personal Loans

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 11.99%!

The interest rates on a personal loan can typically vary anywhere between 11.99% and 29.99% p.a. based on the eligibility calculation and how you fulfil the personal loan eligibility requirements of the financial institution.

Charges Minimum Maximum
Rate of Interest (ROI) 11.99% 29.99%
Annual Percentage Rate (APR) 11.99% 35.99%

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

Getting a low personal interest rates 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 11.99%* onwards

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 interest rates for personal loans 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
 

    Penal Charges On Personal Loan Interest Rates

  • For default in payment of interest and/ or principal amounts

    3% per month on defaulted amount (Annualized Penal Charge of 36%)

  • Dishonour of any cheque/
    payment instruments

    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 EMI is due but valid instrument is not available for banking due to Mandate rejected by Borrower’s bank or EMI Post-dated cheques(wherever applicable) are not available. Tata Capital charges a nominal amount of Rs. 450 + GST

Other Charges On Personal Loan Interest Rates

  • Processing Fees

    Up to 4% of the loan and GST

  • Personal Loan Hybrid Term Loan Annual Maintenance Charges

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

  • 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.

  • Stamp Duty Charges

    At actuals (As per applicable laws of the state)

  • Broken Period Interest (BPI)

    Broken Period Interest amount and 1st EMI date depend on the Disbursement Date and the final figures would be mentioned in the Welcome Letter and Repayment Schedule


    • Note: GST, other government taxes and levies as applicable, will be payable on all fees and charges.

Pre-Payment Charges On Interest Rates For Personal Loan

  • Part Payment Charges

    • Lock-in Period is 12 months from the date of disbursement

    • A part prepayment charge of 4.5% shall be applicable on the part prepayment amount. 

    • A part prepayment charge of 6.5% shall be applicable on the part prepayment amount during the lock-in period

    • No part prepayment charges shall be applicable on payment of upto 25% of disbursed Loan Amount during the entire loan tenure.

    • Third party / other financiers cheque / payment instruments are not allowed for part-payment

  • Foreclosure charges on Term Loan Facility

    • Lock-in Period: 12 months from the date of first disbursement
    • 4.5% on the principal outstanding at the time of foreclosure.
    • In case the Borrower forecloses the Facility within 12 months after doing partprepayment, foreclosure charges of 4.5% will be levied on the principal outstanding plus part prepayment amount.
    • Any prepayment/foreclosure made during the Lock-in period will attract additional 2% over and above the prepayment/ foreclosure charges mentioned in (a) above on the principal outstanding at the time of foreclosure.

  • Foreclosure Charges in Personal Loan Hybrid Term Loan Cases

    • Lock-in Period: 12 months from the date of first disbursement.
    • 4.5% on the Dropped down 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 amount.

  • Foreclosure Report

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

    • Note: GST, other government taxes and levies as applicable, will be payable on all fees and charges.

How is the Interest on Personal Loan Calculated?

The personal interest rates are 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 interest rates 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

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.

    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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FAQs on Personal Loan Interest Rates

Are personal loan interest rates fixed or variable?

Personal loan interest rates are of two types

#. Fixed interest rate: Here, lenders charge you a constant personal loan rate throughout the tenure. Here, your total interest payable and EMIs remains fixed.

Can I negotiate over my personal loan's interest rate?

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 725 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.

What additional costs are there for personal loans?

When you apply for a personal loan at Tata Capital, there is a processing fee of 4% 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.

What factors can affect the interest rate I am offered on a personal loan?

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 725 and above.

    #2. Repayment history

    A clean credit history with no EMI defaults and disciplined payments is preferred.

    #3. Income

    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.

Are there any discounts or promotional offers on interest rates for personal loans?

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.

Can I get a detailed breakdown of the charges and fees for personal loans?

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 4% 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. 

    Charge 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 On Actuals
    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

Can I get a statement or summary of the interest and charges paid on my personal loan?

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.

Does Tata Capital offer lower interest rates for borrowers with a good credit score?

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.

Can I make use of any special deals or offers on personal loan 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.

What effect does my credit score have on the personal loan 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 725 or higher.

Are there different interest rates for personal loans for different customer groups or professions?

At Tata Capital, we offer personal loans starting at 11.99%, 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. 

What is the prepayment/foreclosure charges?

    Prepayment or foreclosure charges are fees imposed by lenders when you repay your personal loan early. Tata Capital allows you to prepay your personal finance with certain conditions.

    #1. Part Prepayment is allowed once a year; the minimum gap between two-part prepayments is six months. 

    #2. A maximum of 50% of the principal outstanding is allowed through part prepayment during a single year. 

    #3. No part payment is allowed during the first 12 months (Lock-in period).

    #4. The minimum part-payment amount must be greater than or equal to two months' EMI

    When it comes to prepayment charges, Tata Capital allows you to part prepay up to 25% of the principal outstanding (after the 12 months lock-in period) without any penalty or additional fee. However, part prepayment amount of over and above 25% will attract prepayment charges as applicable.

What is Annual Percentage Rate (APR)?

Annual Percentage Rate (APR) is the measure of ROI of the loan plus all fees and charges including insurance which are levied to the loan. Accordingly, the APR will have a higher value than the ROI for the loan.

What is the stamp duty charge for a Personal Loan?

Stamp duty and other charges will vary from one state to another, as the laws of each state tend to differ.

What are the tips to avail instant personal loan at affordable interests?

To secure an instant personal loan at affordable interest rates:

  • Maintain a high credit score (725+).

  • Explore pre-approved offers from lenders.

  • Apply for a loan with your existing loan provider.

  • Enquire about festive rate concessions.

  • Compare offers across 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 11.99%. 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.

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What our customers say about us

Everything was good, including communication and call service.

karuneshwar tiwari

Personal Loan | 23 Feb, 2025

Absolutely fantastic, helpful, and so kind towards customers.

PRASHANT KUMAR SINHA

Personal Loan | 13 Feb, 2025

Absolutely perfect service from Tata Capital.

Mistry Shivam

Personal Loan | 12 Feb, 2025

Excellent service—keep maintaining it

ANURAG PANDEY

Personal Loan | 05 Feb, 2025

I am satisfied with your services and I recommend my friend, if they need financial help, to go with Tata Capital.

MANISH KUMAR

Personal Loan | 19 Jan, 2025

Thanks for the service. It was quick, and I received immediate resolution to my query. Extremely happy with the Tata Capital loan service.

CHANDRA MOHAN MOHAN BANDLA

Personal Loan | 18 Jan, 2025

Tata Capital's service is very good. We recommend them for their fast loan process. Thank you.

RAJ KUMAR

Personal Loan | 17 Jan, 2025

Best financial sector. Good quality of Tata Capital: 1) Good service 2) Customer care response is very good 3) Loan process is quick. Totally a very good service. A lifetime memory. I will always remember their service. Very helpful to people. Thank you very much to the entire team.

VEENA S

Personal Loan | 16 Jan, 2025

It was a great experience with loans from Tata Capital. Their employee's behavior was very good. I am highly satisfied with their loan services.

DIPANKAR SARKAR

Personal Loan | 14 Jan, 2025

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