Personal Loan Interest Rates

The interest rate on a Personal Loan can vary depending on several factors such as the lender, the borrower's credit score, and the loan amount. It's important to compare rates from different lenders to find the best deal. Rates can vary widely based on the borrower's creditworthiness and the lender's policies. To get an accurate idea of the interest rate you might qualify for, it's best to check with individual lenders and review their terms and conditions.

Personal Loan processing charges can vary depending on the lender and the loan amount. Typically, these charges range from 1% to 3% of the loan amount. However, some lenders may have a fixed processing fee, such as up to ₹4,999. It's important to carefully review the terms and conditions of the loan agreement to understand all the charges associated with taking out a Personal Loan. Additionally, borrowers should compare offers from different lenders to find the most competitive rates and fees.

To qualify for a Personal Loan, most lenders typically require a minimum monthly salary of ₹25,000. This minimum income threshold helps ensure that borrowers have the financial capacity to repay the loan. If your salary is ₹20,000, you may not meet the eligibility criteria set by many lenders. However, eligibility requirements can vary between lenders, so it's advisable to check with individual lenders to see if they have any flexible options or if you can meet other eligibility criteria that they may have.

The actual cost of a Personal Loan varies, depending on several factors. These include the amount borrowed, the applicable interest rate based on the chosen loan repayment tenure, the loan processing fees, stamp duty and other statutory charges, as well as the GST levied on these costs. Additionally, there are costs associated with certain repayment-specific circumstances such as defaulting on EMI payments, cheque/payment bounces, and the borrower’s decision to prepay the loan before the stipulated tenure.

Interest on a Personal Loan depends on various factors such as credit score, repayment history, principal amount, tenure.

You can use the Personal Loan EMI calculator link to see how interest is calculated.

If you have taken a loan of ₹1 lakh at an interest rate of 12% for 12 months, then the interest for the first month will be: = 1,00,000 x (0.12/12) = ₹1,000

Interest is the amount a lender charges the borrower for availing of a loan. The amount depends on the interest rate, a specific percentage of the principal amount.

The EMI for a ₹20 lakh Personal Loan depends on the tenure and the interest rate. For example, if the given interest rate is 10.85% and the tenure is 60 months, the EMI for ₹20 lakhs will be ₹42,988. You can use the Personal Loan EMI calculator on the HDFC Bank website to check for yourself.

The minimum salary for Personal Loans is ₹25,000 net income per month.

A flat Personal Loan Interest rate is an interest rate that is calculated on the total amount of the Personal Loan throughout its tenure. The calculation is done without taking into consideration that the monthly EMIs eventually reduce the principal amount.

A reducing Personal Loan interest rate is a method used to calculate the interest rate on the outstanding loan amount every month. The EMI here includes the interest payable on the total due loan amount.

Example: If an individual has opted for a Personal Loan of ₹5 lakhs for 5 years on a 16% diminishing interest rate, then they would have spent ₹2,29,542 towards total interest. Going by this calculation, the -

• Monthly EMI would be ₹12,159
• Interest paid during the first month would be ₹6,593 6,667
• Last month interest rate – which is to be paid – would be ₹160

Stamp duty and other charges will vary from one state to another, as the laws of each state tend to differ.

​​​​​​​Amortisation Schedule charges for HDFC Bank Personal Loans are ₹50/- per schedule for physical copy. Customers can also download from our website free of cost.

You are offered a personal loan interest rate ranging from a minimum of 10.40% to a maximum of 24.16% IRR, with an average of 11.47%, applicable for loans sanctioned between January 1, 2025 and March 30, 2025, depending on your profile and creditworthiness.

You are required to pay a processing fee of up to ₹6,500/- + GST when applying for a personal loan. This fee is non-refundable, regardless of whether the loan is later cancelled or rebooked within the cooling-off period.

You are responsible for paying stamp duty and other statutory charges as per the actual applicable laws of your respective state. These charges are mandatory and non-refundable, regardless of whether the personal loan is subsequently cancelled.

You will be charged ₹50 per amortisation schedule if you request a physical copy. However, you can download the amortisation schedule for free from the bank’s website if you prefer a digital version.

You need to pay ₹500 to request a change in your repayment mode for a personal loan. This fee is applicable per request and is exclusive of any government taxes that may be levied additionally.

You will incur a charge of ₹450 for each instance of a returned payment. This fee applies if your loan instalment payment fails due to insufficient funds or any other reason.

You can cancel the loan during the cooling-off period, but interest from disbursement to cancellation will be borne by you. Processing fee, stamp duty, and GST are non-refundable. Rebooking the loan incurs a charge of ₹1,000 plus applicable government taxes.

You will be charged a delayed payment penalty of 1.50% per month (equivalent to 18% annually) plus applicable taxes on the overdue instalment amount if the EMI is unpaid after a grace period of 7 calendar days from the due date.

You must pay a charge of 4% of the principal outstanding plus GST if closing the loan within 24 EMIs, 3% post 24–36 EMIs, and 2% after 36 EMIs. These charges apply to both full and part prepayments of the personal loan.

You may part-prepay the personal loan only after completing the first EMI. It is allowed once per financial year and twice during the loan tenure, up to 25% of the principal outstanding. Applicable charges will match full closure charges based on your EMI count.