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