Personal Loan Interest Rates

Personal loans are quite easy to get. Very less documentation, streamlined processes, and instant amount transfers. However, just like any other loan, personal loans are also accompanied by their respective personal loan interest rates. It is a certain amount that the lender charges to the borrower. 

The interest rate of a personal loan can depend on a variety of factors, such as the amount, the EMI you are willing to pay, the tenure, and even the lender, in certain cases. Use a personal loan EMI calculator to understand how the personal loan affects your finances.

There is no rule to calculate the personal loan interest rate. Instead, your rate of interest on the personal loan may differ from one financial institution to another. To get a complete picture of your personal loan interest rate, it is a good idea to look across a variety of personal loan lenders and choose the option that gets you the best deal with minimum hassle.

There are plenty of factors that can affect the interest rate on your personal loan. But one of the biggest factors is your credit score. If you have a good and high credit score, the bank is reassured that you will pay back on time and consider you less of a risk. Hence, you will get a lower rate of interest. On the other hand, having a low credit score pushes up the rate of interest significantly, as banks are more reluctant to offer you a loan.

The lowest interest rate for a personal loan starts at 12% at Airtel Finance. A good credit score helps secure a personal loan with a lower interest rate. Therefore, if you complete all your repayments on time, then it helps to rank positively on your credit score and banks will lend you a loan with a lower interest rate. Having a good credit score, exciting bank offers, comparing personal loan interest rates across banks, and even negotiating with the bank lender can help you get the lowest interest rates on your personal loan.

Your credit score is extremely important when you are applying for a personal loan. A good credit score denotes that you can get an instant loan quite easily. However, on the back of a bad credit score, the interest rates will be higher. Moreover, there can be cases when the lender outright denies lending money to you because of a bad credit score. Thus, keeping a healthy credit score is of utmost importance.

Personal loan interest rates can be both fixed and variable. It all depends on what is ultimately convenient for you. For example, if you like to plan your finances, then a personal loan with a fixed interest rate is good for you. On the other hand, if you do not mind fluctuating interest rates, then a variable rate of interest can be a good idea since you will have to pay lesser interest when the rates are low.

Yes, you can negotiate for a lower personal loan interest rate if your payment history and credit report are good.

Airtel Personal loans have multiple lenders. You can compare the interest rates easily online. If you wish to check with other lenders, contact individual banks/lenders for more information.

If the interest rate is calculated on a daily/monthly reducing balance, the interest is charged on the remaining outstanding loan amount. This method effectively reduces the interest amount on the overall loan.

Contact the lenders’ POC (Point of Contact) to know more about discounts on interest rates.

The balance transfer method refers to transferring the balance loan to a lender that charges lower interest rates. You will have to pay certain fees for the balance transfer. Ultimately, you will be paying lower interest rates with the balance transfer.

APR or Annual Percentage Rate is charged by the credit card companies on any outstanding credit card bill. On the other hand, interest rates for personal loans are charged by the lenders on the personal loan principal amount.

The interest rates for a personal loan depend on the following factors:

• Lender’s policy


• Credit Score


• Payment history

A personal loan is an unsecured short term loan. The borrower doesn’t have to put in any collateral to get a better interest rate. Maintain a good credit history and payments to ensure you can negotiate a lower interest rate.

Personal loans are offered at both floating and fixed interest rates. If you choose a floating interest rate system, the lender can revise the interest rate as per RBI’s repo rate.

Talk to the lender’s POC to know about more special low-interest rates on personal loans.

A flat personal loan interest rate is a lending interest rate that doesn’t change for the whole loan tenure. It is calculated for the entire principal amount at the beginning of the loan tenure.

The interest rate on a Rs. 1 lakh personal loan depends on the lender and your credit score. You can calculate the interest rate and EMI amount using Airtel personal loan EMI calculator.

Airtel Finance has multiple lending partners. Each lender has their own interest rate policy for a 3 lakhs loan. Talk to the lender for exact information.

Every lender has their policy when it comes to interest rates. Check with multiple lenders and get the best interest rate for a 5 Lakhs personal loan.

You can find out the interest rate on an 8 Lakhs personal loan from your lender. Make sure your credit score is above 700 to negotiate for a lower interest rate for your personal loan.