Personal loans are an excellent option for funding significant purchases or merging debts. When thinking about a personal loan, it's important to consider key factors. These include interest rates when you get the money, processing fees, and any extra charges.
Piramal Finance instant personal loans come with competitive rates, minimal processing fees, and no penalties for early repayment.
How to Get the Lowest Personal Loan Interest Rate?
You can get a low-rate interest personal loan from Piramal Finance based on your credit score, employment, income, and age.
Income and Employment Status
Your income and employment status can determine your ability to repay the loan. Having a steady job increases your chances of getting low interest personal loans. Essentially, Piramal Finance requires proof of income and a stable job before approving a loan.
Credit Score
Your credit score is one of the significant factors affecting personal loan interest rate. If you have a good credit score, Piramal Finance will likely offer you lower personal loan rates. Make sure to pay your previous loans & bills on time and keep balances low on your credit cards.
Age
Younger applicants can usually repay loans better than older applicants. Consequently, younger applicants are eligible for lower interest rates compared to their older counterparts.
Timely Repayments
Missing repayments will harm your credit score. Always pay on time or contact Piramal Finance if you have trouble. They can assist you in finding a solution.
Discounts & Offers
Piramal Finance promotes various offers on personal loan interest rates, so make sure you are aware of what is available.
Personal Loan Interest Rates – Features & Charges
Get a loan at competitive fees & Interest rates. Below is the table for our fees and charges –
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Labels:
- Personal Loan Features & Fees
- Details
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Row 1:
- Personal Loan Interest Rates
- {plintrestrate}* p.a. onwards
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Row 2:
- Loan Amount
- ₹ 25,000 to ₹ 5,00,000
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Row 3:
- Processing Fees
- Up to 5% plus applicable taxes
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Row 4:
- Loan Tenure
- 3 - 60 months
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Row 5:
- Prepayment Charges
- ₹ 0
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Row 6:
- Foreclosure Charges
- ₹ 0
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Row 7:
- Stamp Duty
- At actuals (as per state)
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Row 8:
- Cheque Bounce Charges
- ₹ 500 plus applicable taxes
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Row 9:
- EMI Bounce Charges
- ₹ 500 plus applicable taxes
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Row 10:
- EMI Pickup/Collection Charges
- ₹ 250 per visit plus applicable taxes
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Row 11:
- Cash Collection Charges
- 1% of collection amount of ₹ 50,000 and above in cash + taxes
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Row 12:
- Change of Loan Repayment Mode
- ₹ 500 plus applicable taxes
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Row 13:
- Loan Cancellation after Disbursement
- Interest accrued & due plus applicable taxes
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Row 14:
- Loan Repayment Schedule (applicable for physical copies only)
- ₹ 500 plus applicable taxes
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Row 15:
- Change of Loan Repayment Mode
- ₹ 1000 plus applicable taxes
Personal Loan Interest Rates – Features & Charges
Get a loan at competitive fees & Interest rates. Below is the table for our fees and charges –
How to Calculate Personal Loan Interest Rate?
The personal loan ROI can change depending on numerous factors, such as
- Credit Score: A higher credit score can help you secure a lower interest rate on a personal loan
- Loan Term: A shorter personal loan term generally comes with a lower rate of interest
- Other Factors: Income, employment status & age are some of the key factors in determining the personal loan interest rate
Once you obtain the loan amount and interest rate, you can calculate your monthly EMI using the formula below.
- EMI = P x R x (1+R) ^N / [(1+R) ^N-1]
Here,
P - Principal
R - Rate of Interest (Monthly)
N - Loan Tenure
Calculating personal loan interest manually is complex, better to use a Personal Loan EMI Calculator
Personal Loan Interest Rate Calculator
Salaried people with a minimum monthly salary of ₹15,000/- can apply for an instant loan.
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Labels:
- Fixed Interest Rate
- Floating Interest Rate
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Row 1:
- Interest rate for personal loan remains constant.
- Interest rate changes as per market conditions.
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Row 2:
- You will need to pay a constant amount of EMI during the entire repayment period.
- The EMI amount may vary during the repayment period.
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Row 3:
- Benefits: provides stability, suitable for large-ticket purchases.
- Benefits: provides flexibility, adjusts as per prevailing market rates.
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Row 4:
- Ideal for loan borrowers who are not willing to take risks.
- Suitable for loan borrowers who can take risks.
Fixed and floating interest rates have advantages and disadvantages; consider all factors before deciding.
Get a Personal Loan from the Nearest Piramal Finance Branch
Types of Interest Rates in Personal Loan.
Interest rates come in two forms, fixed and variable. Let us have a look at all the primary features
Fixed and floating interest rates have advantages and disadvantages; consider all factors before deciding.
Frequently asked questions
- Step 1 - Apply for Instant Loan
- Step 2 - PAN Verification
- Step 3 - KYC Verification
- Step 4 - Submit Bank Account Details
- Step 5 - Provide Work Information
- Step 6 - Upload Bank Statement
- Step 7 - E-mandate and E-sign
After you complete the process, the loan disbursed to your verified bank account.
For Example:
Let’s assume your Personal Loan Details are as below:
Loan Amount - ₹ 500,000
Loan Tenure – 5 Years
Monthly EMI – ₹ 11,374
Net Effective ROI – 12.99%
Your Monthly EMI Break-up will be –
1st Month EMI Break-up – ₹ 5,413 Interest + ₹ 5,961 Principal
6th Month EMI Break-up – ₹ 5,083 Interest + ₹ 6,291 Principal
7th Month EMI Break-up – ₹ 5,015 Interest + ₹ 6,359 Principal
Loan Balance at the End of the 7th Month - ₹ 456,890
Let’s see how Part Payment can help you in reducing the interest rate –
If you receive additional funds and choose to pay some extra amount as a part payment, for example ₹ 50,000 along with your EMI of ₹ 11,374 at the end of the 6th month, your Net Effective Rate of Interest will reduce, and you will be able to save more, as below:
1st Month EMI Break-up – ₹ 5,413 Interest + ₹ 5,961 Principal
6th Month EMI Break-up – ₹ 5,083 Interest + ₹ 56,291 Principal (₹ 6,291 actual principal amount + ₹ 50,000 your additional funds)
7th Month EMI Break-up – ₹ 4,473 Interest Rate + ₹ 6,901 Principal
Loan Balance at the End of the 7th Month - ₹ 406,348
Updated Net effective ROI – 9.92%
Updated Loan Tenure – 4 Years 5 Months
Savings – 3.07% on Total Interest that is ₹ 36,274