Comodo Logo
+91-080-6821-6821 9:30 AM - 6:30 PM
(Mon-Sat)
NBFC Logo

NBFC-P2P

Registered with RBI

CoR No. N - 13.02258

OMLP2P Blogs

What Is Considered as the Best Interest Rate for Personal loan?

Interest rates are probably the primary thing you consider when opting for any loan. The lower, the better, right? Though, the answer is not that easy.


Personal finance interest rates depend on varying factors and are normally subject to fluctuations. Besides, since the personal loans are unsecured in nature, interest rates can be on higher side when compared to home or auto loans. Let's take a look at what comprises a best interest rate.


What is the average interest rate for personal loan in India?
The average interest rate varies from 11% to 36%. However, the rates can differ subjected to lender's lending policy, customers financial history / cashflow, repayment capability, and several other factors.


Understanding fixed vs floating rates
For personal loan, there are two types of interest rates- fixed and floating. In the fixed interest rate loan, lender charges a constant interest rate throughout the loan tenure. Here, total interest payable remains fixed.


In case of floating interest rate loan, interest rates are usually lower at the start. But the lender can modify it as per the current repo rate, a lending benchmark announced by the Reserve Bank of India (RBI) from time to time. So, while customers personal loan EMI may remain smaller at first, the risk of paying higher instalments amounts in the future remains.


How to get personal financing at lower interest rates?
Before applying for personal finance, evaluate loan offers from multiple lenders / financial institutions. Look for seasonal or festive deals as well.


Besides, customers credit score plays an important role in securing a lower interest rate on personal finance. A credit score preferably over 750, is considered excellent score. The personal loan interest rates also depend on regular and amount of income, as the higher the income, the lower the chances of defaulting.


How to shortlist the best personal financing option?
While a lower interest rate is enticing, one should also consider the following factors before deciding a loan offer.


Processing fee
Many lenders / financial institutions levy a processing fee, ranging from a nominal Rs. 400 to about 6% of the disbursed amount. The processing fee is included in loan application process which adds to overall repayment amount.


Hidden charges
Reading all related terms and conditions is critical before applying for any loan. It not only safeguards customer from any unseen charges but also benefits him understand his loan terms better.


Hidden charges can include advance payment / foreclosure charges, penalty on EMI defaults, loan cancellation charges, etc.


Ultimately, the interest rate applicable on personal loan depends on the lender / financial institution. Therefore, conduct thorough research on loan providers, considering current financial obligations, and keeping in mind the factors mentioned earlier before applying.


OMLp2p offers collateral-free personal financing starting at an attractive interest rate of 9.49%. Customer can plan repayment using EMI calculator by calculating EMIs and interest payable in advance.

Comments

Post Comment
Please Enter Comment

Borrow Money Online at OMLP2P.com, A New and Better Way of Taking Personal & Business Loans
IMC's India calling conference - March 25, 2019
OMLP2P - Zee Business
OMLP2P Lending Process

  • Categories
  • Popular
  • Comment
  • Peer to Peer Lending - Future of Digital Loan Market in India

    Great Post

    Read More....
  • How do I apply online for an instant personal loan?

    Required 40000 loan for medical emergency

    Read More....
Tag
Peer to Peer Lending (5) Investment (13) P2P Lending (10) Stock Market (1) SIP (1) CIBIL (2) Credit Rating (1) Loan (32) Personal Loan (22) P2P Loan (6) Borrow Money Online (5) Invest Money Online (4) Peer-To-Peer Lending (1) Earn Higher Returns (1) Instant Personal Loan (1) personal loans (2) Quick Online Loans (1) p2p loans (2) travel loan (2) holiday loans (1) personal loan for travel (1) personal finance (1) investing (2) P2P Investments (1) personal loan (22) online personal loan (1) compare personal loan (1) cash crunch (1) all purpose loan (1) Business Loan (8) Working Capital (2) Equipment Financing (1) Business Expansion (1) Office Purchase (1) Debt Consolidation (1) Travel Loan (2) Home Improvement (1) Home Renovation (1) equity shares (1) Equity Market (1) P2P trends (1) P2P market (1) Investing in P2P (1) Peer-to-Peer (P2P) Lending (1) small business loan (2) business loan (8) p2p loan (6) Business Loans (1) Protection Insurance (1) P2P Loans (2) Small Business Loan (2) Emergency Fund (2) Defense Against Debt (1) Financial Hardship (1) Building Wealth (1) wealth building strategies (1) keys to building wealth (1) Working Capital (1) Capital of a Business (1) Working Capital Management (1) p2p lending (10) investment portfolio (1) Borrowing from Friends and Family (1) Loans from Family and Friends (1) Borrowing money from a friend (1) Tax Provision (1) P2P Investment (2) Income Tax (1) Annual Percentage Rate (1) APR (1) Loan Repayment (1) Defaulted Loan (1) Auto Investment (1) Post Lockdown (1) Financial Challenges (1) Small Loans (1) Credit Score (2) CIBIL Score (1) EMI Payment (1) Loan Payment (1) Equated Monthly Installment (1) Credit History (1) alternative assets (1) alternative finance (1) Diversified portfolio (2) Medical Emergency (1) Top Up Loan (1) Family Finances (1) Unsecured Loan (1) Personal Loans (2) Credit Cards (1) Loan Application (1) Interest Rate (1)
Call Now
Loader...