Personal Loan Interest Rates

Personal Loan Interest Rates


 

Looking for a personal loan that combines affordability with convenience? At Federal Bank, we understand that financial needs can arise anytime—whether it’s for a wedding, higher education, home renovation, travel, or any other personal requirement. That’s why we offer competitive personal loan interest rates designed to make your borrowing experience simple, transparent, and stress-free. Our loans come with flexible repayment options, minimal documentation, and quick approvals, ensuring you get the funds you need without unnecessary delays. With attractive interest rates and customer-friendly terms, we make it easier for you to achieve your goals without straining your budget. Whether you prefer applying online or visiting a branch, our hassle-free process ensures a smooth experience from start to finish. Explore our latest personal loan interest rates today and choose a plan that perfectly fits your financial needs. At Federal Bank, we are committed to helping you turn your aspirations into reality with affordable and reliable financial solutions.
 
 

Latest Personal Loan Interest Rates

Description of loan scheme/ product

Interest Rate (% p.a)*

Personal Loan

11.99 to 18.99

 

Personal Loan Charges

Federal Bank ensures complete transparency when it comes to personal loan charges. Always review the KFS for a detailed breakup of applicable fees and charges before availing the loan.
 
Service charges related to Personal Loans are provided below.
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.

 

01
 
Credit Score
Your credit score is one of the most important determinants of interest rates. A higher score indicates good creditworthiness, which usually results in lower interest rates.
02
 
Income and Employment Stability
Lenders assess your income level and job stability to gauge repayment capacity. A steady income and long-term employment in a reputed organization often attract better rates.
03
 
Loan Amount and Tenure
The amount you borrow and the repayment period influence the interest rate. Generally, shorter tenures may have lower rates, while longer tenures can lead to slightly higher rates due to increased risk.
04
 
Relationship with the Bank
Existing customers with a good track record often enjoy preferential rates and special benefits. Having a salary account or previous loans with timely repayment can truly work in your favor.
05
 
Existing Debt and Obligations
If you already have multiple active loans or high credit card balances, lenders may see you as a higher-risk borrower. Keeping your debt-to-income ratio low and paying dues promptly can help you secure better rates.
06
 
Market Conditions and RBI Policies
Economic factors like inflation, repo rate changes, and overall market liquidity also significantly impact personal loan interest rates, as banks frequently adjust rates based on these evolving conditions.
 

Personal Loan EMI Calculator

Use our EMI (Equated Monthly Installment) calculator to calculate the amount you need to pay per month towards your loan repayment of your Personal Loan, based on the Principal Loan Amount, Interest Rate and Loan Term

Principal Loan Amount
Interest Rate (Max 100%)
Loan Term (Max 40 Years)
Enter additional monthly payment
Please Enter Some Values or Drag / Touch the Slider

Drag / Touch the slider and Click on "Calculate" to get the result.

Disclaimer:

The calculation performed by calculator is based on the information you provided and is for illustrative purposes only. This calculation reflects amounts in Indian Rupee and estimated monthly payments do not include any processing or other possible fees. All loan figures are subject to credit approval from the bank. Your actual payment information may vary. Kindly contact or visit your nearest branch for exact details.

Equated Monthly Installment (EMI)

Rs.

Total Interest Payable

Rs.

Total Payment (Principal + Interest)

Rs.

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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Personal Loans Vs Education Loans - Which one is right for you ?

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What is the Minimum CIBIL Score for Personal Loan?

Before applying for a Personal Loan, it's crucial to understand the importance of CIBIL score. This article dives deep into the minimum CIBIL score for Personal Loan and shares valuable insights to help one secure the best deal.

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