Personal Loan Interest Rates
Latest Personal Loan Interest Rates
Description of loan scheme/ product |
Interest Rate (% p.a)* |
Personal Loan |
11.99 to 18.99 |
Personal Loan Charges
PF/ Admin fee | Upto 3% |
Prepayment / Pre-closure charges | Floating Rate Schemes – Nil Fixed Rate schemes- (Excluding Byom Loans) 3% |
Charge for CIBIL report | Nil |
Cersai registration/mo dification charges | Nil |
Factors Affecting Personal Loan Interest Rates
Personal loan interest rates aren’t the same for everyone—they depend on multiple factors that lenders consider before approving your loan.
Frequently Asked Questions
1. What is the interest rate for a Personal Loan?
Federal Bank offers personal loans with interest rates depending on factors like your credit score, income, loan amount, and tenure.
2. Are Federal Bank Persoanl Loan interest rate are fixed of Floating?
Federal Bank provides both fixed and floating interest rate options:
Fixed Rate: Remains constant throughout the tenure (common for digital and pre-approved loans).
Floating Rate: Linked to the RBI Repo Rate, so it can change during the loan tenure
3. How can I get the lowest interest rate on a Personal Loan?
To secure the lowest rate:
- Maintain a high credit score (typically 750+).
- Opt for a longer relationship with the bank or salary account with Federal Bank.
- Choose a longer tenure (though this may increase total interest paid).
- Apply during special offers or through digital channels for better deals
4. How are the Personal Loan interest rates calculated?
The Personal Loan EMI, which includes interest, is calculated using the formula:
EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]
Where:
P = Principal loan amount
R = Monthly interest rate (annual rate ÷ 12 ÷ 100)
N = Number of monthly installments
While the rate itself is set by the bank (based on internal/external benchmarks), this formula helps compute your monthly outflow.
5. What is the difference between part payment, prepayment and pre-closure?
- Part Payment: Paying an extra amount (beyond EMI) to reduce principal, without closing the loan.
- Prepayment: Paying a significant portion or full amount before tenure ends.
- Pre-closure: Paying the entire outstanding amount in one go, closing the loan early
6. What are foreclosure charges?
Foreclosure charges are the fees a bank or lender charges when you repay your entire outstanding loan amount before the agreed tenure ends. This is also called loan pre-closure.
7. What is a good rate of interest for a personal loan?
A good rate of interest for a personal loan is typically considered to be in the range of 10% to 12% per annum in India. Rates in this range are competitive and usually offered to borrowers with strong credit profiles, stable income, and a good repayment history. If your rate is significantly higher, it may indicate higher perceived risk by the lender or lack of negotiation. Always compare offers from multiple banks and check for any hidden charges before finalizing.
8. Do banks do 0% interest loans?
No traditional personal loans come with 0% interest. However:
- Some lenders offer introductory 0% APR promotions for short periods (6–18 months).
- Certain employers or nonprofit programs may provide zero-interest loans for emergencies. These are rare and usually come with strict conditions or hidden fees
Personal Loan Blogs

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