Personal Loan Interest Rates: What to Expect?

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Among several consumer debt products, the demand for Personal Loans is rising. According to RBI data, the outstanding Personal Loan amount stood at ₹35.2 trillion in June 2022, which is 18% more than the previous year’s statistics. However, one thing that most people are concerned about is personal loan interest rates. After all, they make up a large part of the loan’s total cost. While looking for a Personal Loan, you will notice that different lending institutions offer different personal loan interest rates in India. Apart from their internal policies, NBFCs determine interest rates based on several factors, including the applicant’s income, credit rating, financial obligations, repayment history, employment, loan amount, repayment tenure, etc. Maintain a high credit score, reduce the DTI ratio, and borrow less to get the lowest personal loan interest rates. Selecting a shorter loan term also reduces the interest cost, increasing the EMI amount and saving the total payable interest. Compare several financial institutions and take a pick for the lowest interest rate.

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