Top Features and Benefits of Personal Loan
Flexible Loan Amount
Instant collateral-free and online loans from Rs.5,000 to Rs.10 Lakh
Quick Eligibility Check
Skip the long queues and check your loan eligibility with us in just 2 minutes
Hassle-free Loans
From eligibility check and document verification to loan disbursement, the entire process is online, enabling you to apply for loans from the comfort of your home
Affordable Interest Rates
Economical interest rates that are easy on your pocket starting at just 14% annually
Personal Loan Interest Rates and Charges
Interest rates and other charges for personal loans applied through Moneyview are transparent and affordable with no hidden costs. Take a look at the applicable charges below -
| Fees and Charges | Amount Chargeable |
|---|---|
|
Interest Rate |
Starting from 14% per annum |
|
Loan Processing Charges |
Starts at 2% of the approved loan amount |
|
Penal Charges on Overdue EMI |
24% per annum plus applicable taxes, if any |
|
NACH Bounce |
Rs.500/- each time |
|
Loan Cancellation |
You can cancel your loan anytime before the disbursal. However, if you wish to cancel the loan after the amount has been credited to your bank a/c, you can cancel the same within the cool-off period of 3 working days. |
Foreclosure and Part-Prepayment Charges
The foreclosure and pre-payment charges for personal loans through Moneyvieware as mentioned below -
| Fees and Charges | Amount Chargeable | ||||||||
|---|---|---|---|---|---|---|---|---|---|
|
Foreclosure Charges |
Nil but foreclosure can be done only after a minimum number of EMIs have been paid as illustrated below-
|
||||||||
|
Part- Prepayment Charges |
Part-prepayment is not allowed |
Factors That Affect Personal Loan Interest Rates
Lenders set interest rates based on their cost of funds and their assessment of the credit risk of their loan applicants. The following are some of the most important elements that can affect your personal loan interest rates:
Credit Score
A number that indicates your creditworthiness is your credit score. It demonstrates your financial stability and establishes a certain level of confidence between you and the lender. Maintaining a high credit score can help you become more qualified for personal loans and also improve your chances of having the loan approved.
Income
A significant factor influencing your interest rate is your income level. Banks typically charge borrowers with higher-income jobs an interest rate that is lower than that of borrowers with lower-income jobs. Because higher incomes are suggestive of better financial standing and a greater likelihood of timely loan payback, banks frequently rely on them for loan repayment.
Repayment History
One of the most important things that lenders take into account when determining the interest rate on a personal loan is your repayment history. Maintaining a strong payback history guarantees that lenders view your credit profile as low-risk when granting new loans, including personal loans.
Use a personal loan calculator to calculate multiple EMIs for varying loan amounts and tenures to better plan your repayment schedule and assess whether the loan fits within your budget.
Existing Relationship with the Lender
In case you have done business with a lender before, they might provide you with competitive interest rates on personal loans. This is because lenders typically try to retain clients in this manner and are inclined to trust borrowers whose financial records they have on file.
Additionally, a good rapport between you and the lender helps speed up the approval process. An EMI calculator can be used to determine which offer is the best if you have received many offers from different lenders with whom you have done business.
Debt-to-Income Ratio
This figure shows you how much debt you owe in relation to your income at any given point. The bank granting you the loan may charge you a higher interest rate since it is deemed riskier if your high salary is mostly used to pay off your existing debts. Banks are likely to impose a higher interest rate on borrowers with high debt-to-income ratios since they are viewed as a burden on the lender.
Types of Interest Rates
There are two main types of personal loan interest:
1. Reducing or Variable Interest Rate
Reducing or variable interest rates is a type of personal loan interest rate that fluctuates regularly. A personal loan's variable interest rate is tied to the Reserve Bank of India's repo rate adjustments. The adjustable interest rate is also known as a lowering or variable interest rate.
2. Fixed or Flat Interest Rate
The interest rate on the loan amount is fixed under this method and remains constant throughout the loan term. The lender determines the rate based on assumptions about the average discount rate over the loan term.
How to Get the Lowest Interest Rate on Personal Loans?
The best way to meet your urgent financial needs is to apply for low-interest personal loans. This makes it easy for you to make repayments. Use the strategies below to get the lowest interest rate on a personal loan.
1. Keep Your Credit Score in Good Shape
Your credit score measures your creditworthiness based on previous credit management behaviors. A credit score of 700 or 750 makes you eligible for a personal loan. In general, a higher score indicates a better chance of loan approval.
2. Shop Around for the Best Deal from Different Lenders
A little research will help you find easy personal loans. Compare personal loans from various providers to determine the best interest rate and features. This will take some time, but it will help you make the most informed decision possible.
3. Keep an Eye Out for Seasonal Deals
Customers are informed of special offers by SMS and email by lenders. If you want to save money on your loan, keep an eye out for these bargains. These offers provide you with short-term interest rate discounts. During the holiday season, these discounts are typically available when you apply online.
4. Try Negotiating with Your Lender
If you earn a good income and work for a recognized public or private company, the lender considers you a trustworthy candidate. So take advantage of this possibility to get lower interest rates. Your company's good name can help you get a lower interest rate because the lender is certain that you will have the funds to make the payments on time.
How to Apply for an Instant Personal Loan
Check Eligibility
Visit the Moneyview website or download the loans app, provide all the necessary details, and know your eligibility in just 2 minutes
Select Loan Tenure
Based on the options given, you will have to select the loan amount and repayment term of your choice
Upload Documents
Easily upload all of the necessary documents online for verification
Amount Disbursed
After your documents are verified and the loan agreement is submitted, the loan amount will be credited to your bank account within 24 hours in most cases
Personal Loan Interest Rates - Related FAQs
The rate of interest for personal loans on the Moneyview digital lending platform starts at an affordable 14% per annum and varies based on the amount availed, your credit score, repayment history, etc.
Yes, a small amount is charged as a processing fee and starts from 2% of your loan amount. The amount is decided by Moneyview's lending partners' system based on multiple factors. It will be deducted from your loan amount while the remaining balance will be transferred to your bank account.
If you are unsure of how much to pay and the interest rate charged, visit the Moneyview loans app and check the column titled ‘Monthly EMI’. This section will also display the duration of the loan and the amount that you need to pay as monthly EMI. Additionally, the entire interest that you will be paying on the loan will also be given as a reference.
Your EMI or Equated Monthly Installment consists of a portion of principal amount as well as interest payment on the loan. The EMI amount on your loan depends on the principal amount, the loan tenure, and the rate of interest.
Moneyview's partner lenders follow the reducing balance method for interest calculation.
Yes, you can. As Moneyview's lending partners use their unique algorithm to process loan applications, individuals with relatively lower credit scores can also avail of personal loans through Moneyview. However, the minimum credit score requirement is a CIBIL score of 650.
When the risk-free rate of interest, which is usually determined by a central bank, is lower than the historical average for an extended period of time, it is called a low-interest-rate environment.
The majority of banks charge personal loan interest rates ranging from 10.50% to 24% per annum. Your interest rate will be determined by a number of factors, including your credit score, income, employer, age at the time of application, and so on.
A decent personal loan interest rate is one that is less than the national average, which is less than 12%.
The principal source of revenue for most commercial banks is interest income. It is completed by removing money from depositors who do not want their funds right now. Depositors are compensated with a particular interest rate and the security of their savings in exchange for depositing their money.
There are various banks in India that offer the best personal loans to their customers. The rates offered by different banks vary between 8.30% p.a. and 49% p.a.
According to survey data from Q2 2021, the average interest rate on a personal loan is 9.4%. Personal loan interest rates can range from 6% to 36%, depending on the lender and the borrower's credit score and financial history.
There are several ways to reduce the interest rate on loan amount such as maintaining a good credit score, having a good repayment history, working under a credible employer, etc.
Interest rates on personal loans are available at both fixed and adjustable rates. A fixed-rate loan's interest rate will remain constant during the loan's term. A floating-rate loan, on the other hand, has interest rates that fluctuate with market movements.
Because EMIs are paid monthly, the interest rate will be calculated monthly. As a result, if the interest rate is 10%, you must divide it by 12. In addition, the number of months will be the tenure. If you have a 20-year loan, the term will be 20x12 = 240 months.
It is completely legal for registered banks/lenders to charge interest on personal loans.
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