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

What Are Personal Loan Interest Rates and Charges?

Personal loan interest rates in India refer to the costs associated with borrowing money through a personal loan. The interest rate is the percentage charged on the loan amount, which can be either fixed or variable depending on the lender's policy. Fixed rates remain constant throughout the loan term, while variable rates can change based on market conditions.

Personal loan interest rates in India differ from lender to lender and also vary based on factors such as age, income, and creditworthiness. Borrowers who meet the eligibility criteria and have a strong credit history can generally qualify for lower interest rates, which reduces the overall cost of the loan.

In addition to the personal loan interest rates, there are several other charges that borrowers may come across. These include processing fees, late payment fees, and prepayment charges. Understanding these personal loan interest rates and charges is important for managing your loan effectively and avoiding unexpected costs.

Let us further understand the types of personal loan interest rates, a detailed breakdown of personal loan fees and charges at SMFG India Credit, and how you can secure the lowest interest rates for affordable borrowing.

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 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

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

Current Interest Rate on Personal Loan

SMFG India Credit personal loan interest rates start at 13% per annum for salaried and self-employed applicants for a maximum of 60 months, which means you can get EMI as low as ₹ 2,275* per month. The interest rates and processing fee (Up to 5% of the total loan amount + GST) 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 - Feb 2025
Personal Loan Interest Rate Starting at 13% per annum
Processing Fee Up to 5% of the total loan amount + GST
Loan Tenure Up to 60 months
Lowest EMI Per Lakh `2,275 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 Up to 3% plus GST charged monthly (33% 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)
500
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 Up to 5% of the total loan amount + GST
*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

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 rates in India include:

  • Age of the Borrower: Lenders usually prefer that the borrower be younger, above 22 years old, and not close to retirement age. This is because younger applicants usually have more working years and the potential to increase their income to comfortably repay the loan.
  • Credit Score: The borrower must have a good credit score of 750 or above. A good credit history indicates responsible credit behaviour and thus increases the likelihood of securing a lower interest rate.
  • Occupation: The borrower ideally shouldn’t be involved in an occupation that is considered riskier and has uncertainty. A salaried professional may have better bargaining power on personal loan interest rates compared to self-employed professionals.
  • Employer: Working with a reputed employer increases your chances of getting a lower interest rate on a personal loan. A steady source of income also suggests good financial stability.
  • Repayment Capacity: A lower debt-to-income ratio, ideally 30% or below, indicates that you have a manageable level of debt relative to your income. This can lead to more favourable interest rates.
  • Relationship with the Lender: If you are an existing customer with the lender, the process of getting a personal loan gets easier. Long-term customers with a strong repayment history may be eligible for preferential personal loan interest rates in India.

How to Get the Lowest Interest Rate on a Personal Loan?

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

  • Improve Your Credit Score: By aiming for a high credit score, closer to 900, it improves your creditworthiness and ability to get lower personal loan interest rates in India.
  • 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 an 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 the 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 loan application and determining personal loan interest rates. Always prioritise and make a loan repayment, including credit card dues, on time.

Conclusion

Understanding personal loan interest rates and the factors that influence them can help you make informed decisions and secure the best possible terms. Factors such as age, income, and creditworthiness significantly affect interest rates on personal loan schemes. By prioritising maintaining a high credit score and a good repayment history, you stand to get lower personal loan rates in India.

At SMFG India Credit, you can get personal loans of up to INR 30 Lakhs* at attractive interest rates starting from 13%* per annum. Explore our personal loan eligibility criteria and the documents you will require, and apply today! We recommend checking out our free online personal loan eligibility calculator and EMI calculator before applying. They will help you plan your finances better by giving you an estimate of the maximum loan amount you may qualify for and the monthly payments you may expect.

Page also available inहिन्दी - Hindi

* 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.

`
50,00030,00,000
%
13%36%
Months
12 Months60 Months

Your Calculated EMI*

 8,302

FAQs

What is the personal loan processing fee?

The processing fee is Up to 5% of the total loan amount + GST. 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 13%* 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 13% - 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 13%* 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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