Indian Bank Personal Loan Interest Rates
Last Updated : Aug. 28, 2024, 1:34 p.m.
Indian Bank offers personal loans at competitive interest rates starting at 10.25% per year for a maximum of 7 years providing an affordable financing option for various personal needs. Whether you're planning a major purchase, consolidating debt, or facing unexpected expenses, Indian Bank's personal loan interest rates are designed to offer flexibility and ease.
Indian Bank Personal Loan Interest Rate Details 2024
The current interest rates and the essential details of Indian Bank's personal loan facility, help you make an informed choice for your financial requirements. To know more about personal loan interest rates just see the table below.
Particulars | Details |
---|---|
Personal Loan | 10.25% to 15.00% p.a |
Pre-approved Personal Loan | |
Pre-approved Personal Loans to Pensioners, Salaried & Regular Income customers | 12.40% |
PAPL to Self-employed Customers | 13.00% to 15.00% |
Pre-approved Personal Loan to Home Loan customers | 11.00% |
Loan Amount | 20 Times of Monthly Income |
Tenure | Up To 84 months |
Advantages of Indian Bank Personal Loan
The following are some of the main benefits of applying for personal loans with Indian Bank:-
- Low interest rate - Indian Bank offers competitive interest rates on personal loans, which makes borrowing more affordable. Lower interest rates reduce the overall cost of the loan, which helps you save money in the long run.
- No Hidden Costs or Administrative Charges - Indian Bank personal loans come with transparent pricing. The absence of hidden charges or administrative fees ensures that you won’t be surprised by unexpected costs. This transparency helps in planning your finances better and builds trust with the bank.
- Less Paperwork - Indian Bank aims to streamline the loan application process by minimizing paperwork. With simpler documentation requirements, applying for a personal loan becomes faster and more convenient, saving both time and effort.
- Long Tenure - Indian Bank offers flexible repayment tenures, with some loans extending up to 7 years. This long tenure allows borrowers to choose a comfortable repayment plan that fits their financial situation. Smaller monthly installments can reduce financial strain, making loan repayment more manageable.
- Quick processing of the personal loan - Indian Bank's loan application and approval procedure is intended to be quick. This makes it perfect for last-minute financial demands since you can acquire funds immediately.
Factors Affecting Indian Bank Personal Loan Interest Rate
These are the factors that might affect the Personal Loan interest rate of Indian Bank-
- Maintain high Credit Score - A higher credit score typically leads to lower interest rates. This is because a good credit score indicates a responsible borrowing history, reducing the risk for the bank. Borrowers with high credit scores are often seen as low-risk customers, resulting in more favorable terms on personal loans.
- Loan Amount - The loan amount requested can influence the interest rate. Higher loan amounts may come with different rates based on the bank’s lending policies. Indian Banks may offer better rates for larger loan amounts to attract high-value borrowers, or they may charge more if the risk associated with a higher loan is perceived to be greater.
- Income and Employment Stability - Borrowers with higher income levels and stable employment are more likely to receive lower interest rates. A stable and sufficient income demonstrates the borrower’s ability to repay the loan faster, due to which there could be a reduced perceived risk to the bank.
- Type of Employment - Salaried employees, especially those working in government or reputed private organizations, might get better rates compared to self-employed individuals or those with irregular income. Most of the time Indian banks prefer to lend to individuals with a steady and predictable income source, as it reduces the risk of default.
- Market Conditions - Economic factors such as inflation, RBI policy rates, and overall market conditions can influence personal loan interest rates. If the central bank increases rates to control inflation, lending institutions may pass this on to borrowers by increasing their loan interest rates.
Calculating EMIs on Indian Bank Personal Loans at Different Interest Rates
Are you considering a personal loan but unsure how the EMI will fit into your monthly budget? What if we told you that you could estimate it in just seconds? That’s right! If you’re wondering how to calculate the EMI for a personal loan, simply use Wishfin’s Indian Bank Personal Loan EMI Calculator .
Just enter the following information:
- Principal Amount
- Interest Rate
- Tenure
The EMIs for a Rs. 4,00,000 personal loan with interest rates starting from 11%-15% p.a over terms of one to five years are shown in the table below. The loan amount and other information are customizable to meet your needs.
Tenure (In Years) | EMI (at 11% Interest Rate) | EMI (at 15% Interest Rate) |
---|---|---|
1 | ₹35,352.66 | ₹36,103.32 |
2 | ₹18,643.14 | ₹19,394.66 |
3 | ₹13,095.49 | ₹13,866.13 |
4 | ₹10,338.21 | ₹11,132.30 |
5 | ₹8,696.97 | ₹9,515.97 |
What Should You Do in Order to Fetch the Lowest Interest Rate from an Indian Bank?
These are the points that you need to keep in mind and can fetch the low interest rate from Indian Bank–
- Apply for the Right Loan Amount - Only apply for the amount you need and ensure that the loan amount aligns with your repayment ability. Excessive loan amounts may raise concerns for the lender, and lead to higher rates. Being practical and precise about the loan amount can help keep interest rates lower.
- Improve Your Debt-to-Income Ratio - Try to pay off existing debts or reduce them before applying for a new loan. Keep your debt-to-income ratio (the portion of your income that goes toward debt repayments) low. A low debt-to-income ratio shows the bank that you have a sufficient income buffer to repay the new loan, increasing the chances of a lower interest rate.
- Leverage Your Relationship with the Bank - If you are an existing Indian Bank customer with a good banking history (like maintaining a good balance, timely loan repayments, or using other bank products), make sure to highlight this during the application, as banks often offer preferential rates to loyal customers who have demonstrated financial responsibility over time.
- Compare Offers and Negotiate - Don’t hesitate to compare Indian Bank’s loan offers with those of other banks or financial institutions. Use competitive offers as leverage to negotiate better terms with Indian Bank. Banks may be willing to lower interest rates if they sense that you are comparing multiple options and are ready to negotiate for better terms.
- Choose a shorter Loan Tenure - Opt for a shorter repayment period if you can afford higher monthly EMIs. Loans with shorter tenures are generally offered at lower interest rates since the bank’s risk is reduced with a quicker repayment.
Documents Required for a Indian Bank Personal Loan
These are some documents that are necessary while applying for a personal loan from Indian Bank:-
- Income Proof : (last six months’ salary slips with all deductions or latest Form 16) attested by the employer
- Employment Proof : (employment order copy, Photo Identity Card issued by the employer, employee number, etc)
- Form 16 / ITR
- PAN Card (mandatory)
- KYC documents : ( Passport, Aadhar Card, Election ID, Driving License etc).
- Authorization to debit SB account / ECS / NACH mandate.
Other Charges of Indian Bank Personal Loan
These are the additional fees and charges that might be applied to your personal loan application:-
Processing Fees | 0.51% of the loan amount, subject to a minimum of INR 512 |
Prepayment Charges | Nil |
Pre-approved Personal Loan | ₹470.00 |
NOTE: GST will be recovered separately, as all required charges are exclusive of GST. (GST 18% as of date)
Indian Bank Personal Loan Balance Transfer
If you are paying the personal loan EMI somewhere but at a higher interest rate, think of switching the loan portfolio to Indian Bank and enjoy the benefits of lower EMI and reduced interest outgo.
Example: If you have a loan of INR 6,00,000 at an interest rate of 13.70% for 60 months. It’s been 2 years since you have been paying the loan EMI. In case you get the balance transfer facility at 10%, how much can you save on this deal? Let’s find out.
Particulars | Details |
---|---|
Loan in Beginning | INR 6,00,000 |
Interest Rate | 13.70% |
Tenure | 5 Years |
EMI @13.70% | INR 13,868 |
Estimated Interest Outgo @13.70% | INR 2,32,068 |
Interest Paid Till 2-years | INR 1,40,320 |
Outstanding Balance at the End of 2nd Year | INR 4,07,491 |
EMI @10.00% for the Remaining 3 Years | INR 13,149 |
Interest @10.00% Over 3 Years | INR 65,858 |
Interest Paid Till Now + Interest Payable Over the Next 3 years | INR 2,06,178 |
Estimated Savings in Terms of EMI | INR 719 |
Estimated Savings in Terms of Interest Payment | INR 25,890 (2,32,068 - 2,06,178) |
Compare Personal Loan Interest Rates from Different Banks
Below is a table showing the personal loan interest rates from various banks for 2024 to help you make the best choice.
Frequently Asked Questions (FAQs)