Fullerton India Credit Co. Ltd. is Now SMFG India Credit Co. Ltd.

Current Interest Rate on Personal Loan

SMFG India Credit personal loan interest rates start at 11.99% per annum for salaried and self-employed applicants for a maximum of 60 months, which means you can get EMI as low as ₹ 2,224* per month. The interest rates and processing fee (Between 0% - 6% of the loan amount) make up for the total cost of the loan. Please do note that the exact interest rate applicable to you would also depend on the loan tenure you select (between 12 - 60 months) and the loan amount requested. Depending on our policy at the time of loan application, your requirement and profile, we decide the best personal loan rates applicable. You can then draw your monthly budget accordingly so that it is possible to pay the EMIs with ease.

Please see below, a complete list of personal loan interest rates, fees & charges. The below charges are indicative. Detailed break-up of charges will be part of the Loan documents.

SMFG INDIA CREDIT PERSONAL LOAN INTEREST RATES - Apr 2024
Personal Loan Interest Rate Starting at 11.99% per annum
Processing Fee Between 0% - 6% of the loan amount
Loan Tenure Up to 60 months
Lowest EMI Per Lakh `2,224 for 60 months
Prepayment Charges 0% to 7%*

At SMFG India Credit, we bring you the best personal loan interest rates based on your individual and financial profile as well as your requirement. Apart from interest charges, we also charge processing fees and foreclosure charges are applicable in case of prepayment or foreclosure of the loan. Provided below is a brief snapshot of the current personal loan interest rates and the factors that influence its finalization.

Please refer to the policy and charges before applying for a personal loan online.

Personal Loan Fees & Charges

Here are SMFG India Credit personal loan fees and charges to help you understand the same in detail,

There are a few personal loan charges to keep in mind. These, along with interest rates influence the total cost of the loan. Below enlisted is information on the applicable fees and charges.

All charges mentioned in the below table are in INR (₹)

Fee Type Applicable Charges
Late payment charges (applicable for payment default) 2% plus GST charged monthly (24% per annum) on the overdue amount calculated on day-to-day basis
Collection of Cheque/Cash
(per collection)
NIL
Cheque /ECS/NACH dishonoured Charges
(per dishonour of cheque/ECS/NACH per presentation)
300
Swap Charges- for replacement of Post-dated cheques to ECS
(per instance)
500
Swap Charges- for replacement of ECS to ECS
(per instance)
500
Loan Cancellation charges
(loan cancelled before first EMI)
1,000
Processing Fees Between 0% - 6% of the Loan Amount
*Foreclosure charges/ pre-payment penalties shall not be charged on all floating rate term loans sanctioned to individual borrowers

Personal Loan Foreclosure Charges

Summarized below are the personal loan foreclosure charges applicable, if you wish to close your personal loan account before the end of the loan tenure..

No. of EMIs paid (Excluding Pre-EMI) Foreclosure Charges
0 to 17 EMI(s) fully paid 7% of the Principal Outstanding
18 to 23 EMI(s) fully paid 5% of the Principal Outstanding
24 to 35 EMI(s) fully paid 3% of the Principal Outstanding
36 or more EMI(s) fully paid No Foreclosure Fee

Types of Personal Loan Interest Rates

There are two types of personal loan interest rates, fixed interest rates and floating interest rates. Most personal loan lenders offer a fixed interest rate. Let’s understand the difference between the two.

Fixed Interest Rate

Under the fixed interest rate type, the interest amount of the whole loan tenure can be determined at the start of the loan tenure. 

The formula for personal loan interest calculation under fixed interest rate type is:

Total Interest Payable = Principal * Rate of Interest * Loan Tenure

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

Floating Interest Rate

Under the floating interest rate type, the interest payable on each EMI has to be calculated after the payment of each EMI as the rate of interest on personal loan is not constant.

The formula to calculate the interest on the outstanding personal loan amount:

Interest Payable = Outstanding Loan Amount * Interest Rate * Remaining Loan Tenure

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

P= Principal Amount
R= Rate of Interest
N= Loan Tenure in Months

In this method, the interest rate for the outstanding loan amount is calculated as per the prevailing interest rate after the payment of each EMI.

Please note that SMFG India Credit offers personal loans at a fixed rate of interest.

Factors that Affect Personal Loan Interest Rates

The determination of personal loan interest rates is affected by many factors, including both external and internal factors. Some of the key factors that affect personal loan charges include:

  1. Age of the Borrower: The borrower must be of lower age, above 21 years and not close to the retirement age
  2. Credit Score: The borrower must have a good credit score of 750 and above
  3. Occupation: The borrower shouldn’t be involved in a job that is considered riskier and has uncertainty. A salaried professional enjoys a better bargaining power on interest rate compared to self-employed professionals. 
  4. Employer: Working with a reputed employer increases your chances of getting a lower interest rate on a personal loan.
  5. Repayment Capacity: You should have a lower debt-to-income ratio that will help you to get a personal loan easily
  6. Relationship with the Lender: If you are an existing customer with the lender, the process to get a personal loan gets easier

How to Get the Lowest Interest Rate on Personal Loan?

There are many ways through which you can avail of low personal loan interest rates and that includes:

  • Improve your Credit Score: By aiming for a high credit score, closer to 900, it improves your creditworthiness and ability to get a personal loan at low interest
  • Compare Personal Loan Interest Rates: Before applying for a personal loan, always compare the personal loan fees and interest rates offered by different lenders. It helps you to get the idea of the prevailing market condition and negotiate with the lender in a better way.
  • Keep an Eye on Offers: Lenders during festive or special occasions often come out with attractive offers in form of low-interest rates on personal loans for a limited period. You can use the opportunity to avail the benefits. 
  • Don’t Miss on Repayments: Lenders often analyse your debt repayment history before approving your personal loan application. Always prioritise and make a loan repayment, including credit card due on time.
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* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.

`
50,00025,00,000
%
11.99%36%
Months
12 Months60 Months

Your Calculated EMI*

 8,302

FAQs

What is the personal loan processing fee?

The processing fee is up to 6% of the entire loan amount. This is a one-time fee which will be clearly mentioned in the loan agreement. This amount is the personal loan ROI for all the services including loan application, document verification, legal procedures, customer support, and other services involved in processing the loan.

How to calculate personal loan interest rates?

We finalize the rate of interest after reviewing several factors related to the applicant. These factors include the applicant’s age, location, employment type, work experience, net income, existing monthly obligations, and more. The personal loan minimum interest rate is 11.99%* per annum. The rates can go up to 36% depending on the applicant’s profile. To get the best personal loan rates, maintain a good credit score, clear the pending dues on EMIs, and make timely repayments on existing loans.

What is a good interest rate on a personal loan?

SMFG India Credit offers competitively priced personal loans to suit every customer’s needs. The personal loan interest rate is calculated based on several factors including your income source, employment or business stability, and existing monthly obligations. Our personal loan interest rates usually range between 11.99% - 36% per annum, depending on your unique profile that gets generated after factoring in the aforementioned details.

To know more, please check the Interest Rates section. You can also get in touch with a customer care representative or email us at   to know more.

At what rate of interest will I get a personal loan?

SMFG India Credit offers competitively priced personal loans to suit every customer’s needs. The personal loan interest rate is calculated based on several factors including your income source, employment or business stability, and existing monthly obligations.

What is the current interest rate on a personal loan?

SMFG India Credit personal loan interest rates start at 11.99%* per annum. However, the exact interest rate applicable to you depends on the loan tenure and amount requested. We decide the best personal loan rates applicable depending on our policy at the time of loan application, your requirement, and your profile.

How does my income determine my interest rate?

Borrowers with higher incomes may qualify for lower interest rates, while those with lower incomes might be offered higher rates. A higher income can positively impact your creditworthiness, improving your credit score. A higher income might give you more negotiating power with lenders, allowing you to seek better interest rates or loan terms.

How do my employment history and experience play a role in determining the rate of interest?

If you have been at the same job for a longer duration, it indicates financial stability and a reduced risk of default. A consistent job experience with increasing income over the years reflects career progression and a higher repayment capacity. Lenders may offer you a better interest rate based on this positive financial trajectory.

Are personal loan interest rates fixed or floating?

Fixed interest rates remain constant throughout the loan, providing predictable EMIs. Floating rates have to be calculated after the payment of each EMI because the rate of interest is not consistent. At SMGF India Credit, personal loans are provided at fixed rates only.

What is a flat Personal Loan Interest Rate?

A flat interest rate on personal loans is a method of calculating interest where interest is charged on the entire principal amount borrowed initially, regardless of the amount repaid. Throughout the loan tenure, the interest remains constant, and equal installments (EMIs) are paid, consisting of both the principal and interest.

What are the methods for interest calculation on a personal loan?

There are two types of personal loan interest rates, fixed interest rates and floating interest rates - 

  1. Fixed Interest, where the interest can be determined at the start of the loan tenure, and 
  2. Floating Interest Rate, where the interest payable on each EMI has to be calculated after each EMI's payment. SMFG India Credit offers personal loans at a fixed rate of interest.

What are the factors affecting personal loan interest rates?

The factors that affect your personal loan interest rates:

  • Age: You must be above 21 years.
  • Credit Score: You must have a good credit score of 750.
  • Occupation: You shouldn’t be involved in a risky and uncertain job.
  • Employer: Working with a reputed employer increases your chances of getting a lower interest rate on a personal loan.
  • Repayment Capacity: You should have a lower debt-to-income ratio.
  • Relationship with the Lender: Existing customers get a loan easily.
     

Does my CIBIL score impact my personal loan interest rate?

Yes, your CIBIL score can significantly impact your personal loan interest rate. Lenders use your credit score to assess your creditworthiness and determine the risk associated with lending to you. Borrowers with higher credit scores are less risky; they may be offered lower interest rates to reward their creditworthiness.

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