This rate directly impacts your borrowing and is the percentage of interest the lender charges on the loan amount. Knowing it means and calculating it before you take a personal loan is a smart move.
To meet a range of financial demands, Fibe provides personal loans with affordable interest rates, including the lowest personal loan options. You can get the best value for your borrowing needs, thanks to the transparent and fair structure of these rates. The borrower's credit profile, which indicates their creditworthiness and ability to repay debt, might affect the interest rates.
Fibe is a desirable choice for anyone looking for rapid and reasonably priced borrowing because its rates are usually lower than those of traditional banks. Fibe's personal loan rates are designed to offer financial relief with affordable repayment terms, regardless of the purpose — home renovations, unexpected medical expenses or debt consolidation.
Furthermore, its expedited application procedure which is 100% digital guarantees instant approval and payout, which facilitates borrowers' access to funds when needed.
| Loan Amount | Interest Rate (Per annum) | Tenure | Processing Fee |
|---|---|---|---|
| Up to ₹50,000 | 12-16% | 12-24 months | 1% of loan amount |
| ₹50,001 - ₹1,00,000 | 11-14% | 12-36 months | 1-1.5% of loan amount |
| ₹1,00,001 - ₹2,00,000 | 10-13% | 12-48 months | 1.5-2% loan amount |
| Above ₹2,00,000 | 9-12% | 12-60 months | 2% of loan amount |
Processing costs are a one-time expense subtracted from the loan amount during disbursement. Since it has a direct impact on your borrowed amount and repayment cost, review these terms carefully before applying.
Late payments or missed EMIs (Equated Monthly Instalments) also result in penalty charges. To ensure a seamless loan repayment experience, being aware of these is vital to prevent unforeseen expenses.
Some lenders also charge a penalty if you decide to repay the entire loan before the tenure ends. Fibe has zero charges for foreclosure, which gives you better control over repayment.
| Types of Charges | Amount | |
|---|---|---|
| Service Charges | Rate of Interest | Starting from 16% p.a. On a reduced balance basis |
| Processing Fees | Starting from 2% of the loan amount plus GST | |
| Annual Percentage Rate | Starting from 18% p.a. | |
| Foreclosure charges | Nil | |
| Stamp Duty | 0.1% of the loan amount | |
| Penal Charges | Mandate Rejection Charges | ₹250 plus GST |
| Bounce Charges | ₹500 plus GST | |
| Late Payment Charges | ₹500 plus GST or 3% of the total loan amount, whichever is higher as per the overdue amount |
Understanding these charges helps in better financial planning and avoiding unnecessary penalties. Make sure you compare lenders on this basis to get a personal loan at minimum interest rate.
While searching for the lowest interest rate personal loan in India, it is crucial to take into account the Annual Percentage Rate (APR). It varies from the nominal interest rate as it accounts for a variety of fees and servicing charges. So, a lower APR typically means a more inexpensive loan.
What is the interest rate on a personal loan? Personal loan interest rates in India vary based on several factors including the borrower's credit score, income, loan amount and loan tenure. Generally, these rates can range from 10% to 24% per annum, making it essential to understand things before borrowing. A higher credit score usually results in a lower interest rate, while those with lower scores may face higher rates. Lenders also consider the applicant’s debt-to-income ratio and employment stability.
Interest rates come in two varieties: fixed and variable. Fixed rates are predictable because they stay the same for the duration of the loan. However, floating rates are subject to alter in response to shifts in the market. What is the best interest rate on a personal loan for you? This can be answered by comparing several lenders and their offers in order to get the best rate customised to your financial circumstances.
Personal loan interest rates are calculated based on several key factors that contribute to the overall cost of borrowing. These are mentioned below:
Credit Score: A high score indicates good creditworthiness. This leads to lower personal loan rates. Conversely, a lower score results in higher interest rates due to higher risk for the lender.
Income and Employment Stability: We assess income and employment stability to ensure you have a steady source of income to repay the loan. Higher income and stable employment usually translate to lower interest rates.
Loan Amount and Tenure: The borrowed amount and tenure also affect the interest rate. Typically, higher loan amounts and longer tenures might attract higher interest rates due to the extended risk period for the lender.
Lender’s Base Rate: All lenders have a base rate. This is impacted by market conditions as well as the monetary policy implemented by the RBI. This base rate serves as the starting point for calculating interest rates, with additional margins added based on the individual borrower’s profile and the lender’s policies.
Type of Interest Rates: Fixed rates remain constant throughout the loan tenure, providing predictability in repayments. However, floating personal loan rates can vary with market conditions, which may lead to fluctuating monthly payments or longer tenures. Understanding these factors can help you negotiate better terms and choose loans that suit your pocket. At Fibe, you can benefit from fixed interest rates, so you can plan repayment easily.
Yes, improving your credit score, reducing existing debt and negotiating with lenders can lower your personal loan interest rate.
Stable employment and extensive experience suggest reliability, leading to potentially lower interest rates on loans.
A higher credit score generally results in lower interest rates, reflecting reduced risk to lenders. Fibe offers personal loans at a lucrative rate even to those who are ‘new to credit’
Maintain a high credit score, steady income, low debt-to-income ratio and shop around for competitive rates to get a reasonable interest rate.
Lenders use your income to assess repayment ability, influencing the interest rate; higher income often leads to lower rates. At Fibe, you can get a personal loan instantly if your monthly in-hand salary in metro cities is ₹25,000 per month.
Ever heard of a ‘Money Mule’ scam? It’s when scammers trick people into using their bank accounts to move money for illegal activities — often without them realising it. The Reserve Bank of India (RBI), through its campaign RBI Kehta Hai, wants to make sure you stay informed and protected from such financial traps. What’s …
Continue reading “RBI Kehta Hai: Protect Yourself from Money Mule Scams!”
When it comes to buying a smart TV, price may be one of the first things on your mind. However, you should also look at audio-visual specifications, size, resolution and more before making a final decision. Upgrading to a smart TV is now a must as all the devices are becoming smart in this digital …
Continue reading “How to Own One of the Best Smart TVs in India”
Changing the interior design of your house or maintaining your property can be a big expense. With everyday expenses, saving money for home improvement can take a long time. In this case, a personal loan for interior decoration can help you upgrade your home décor and make it as luxurious as you like without delay. …
Continue reading “Know How To Bring Interior Design Ideas To Life With Personal Loans”
Download the Fibe App – the cool new vibe to finance – to avail of a loan in just a few clicks from anywhere.
Subham Pawar
Shilpi Mukherjee
