Are there any discounts or promotional offers on interest rates for personal loans?

Interest rates and promotional offers on personal loans varies from lender to lender and market conditions.However, if you want to look for pre-approved offers for personal loan application process, click here.

Can I change my interest rate during the loan's term from fixed to variable or vice versa?

Yes, you can switch between variable and fixed interest rates or vice versa. However, it's important to note that most lenders typically impose a nominal conversion fee for this service.

Can I make use of any special deals or offers on personal loan interest rates?

Yes, it is possible to use special deals or offers on personal loan interest rates. Lenders occasionally provide promotional offers or discounts on interest rates.

Can I convert my floating interest rate personal loan to a fixed interest rate loan?

Yes, you can convert your floating personal loan interest rate to a fixed personal loan interest rate by paying a nominal conversion fee for this service.

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Personal Loan Rates & Charges

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What is the Interest Rate on a Personal Loan?

Your personal loan interest rate determines your regular EMI payments towards the loan repayment. At Tata Capital, we offer personal loans at low interest rates, along with a flexible repayment tenure.

Moreover, interest rates can vary for different borrowers depending on key eligibility factors like your monthly income, CIBIL score, loan amount, loan tenure, repayment capacity, employment nature, debt-to-income ratio, financial history, and more. So, the lower the interest rate on your personal loan, lower is the EMI that you need to pay, and more convenient your loan repayment becomes.

With Tata Capital, enjoy an affordable personal loan at lowest interest rates in the industry, starting at just 10.99%!

What is the current Personal Loan interest rate?

The interest rates on a personal loan can typically vary anywhere between 10.99% and 29.99% p.a. based on the eligibility calculation and how you fulfil the personal loan eligibility requirements of the financial institution.

Why are Interest Rates on Personal Loans so Important?

Personal loan interest rates are a significant factor to be taken into consideration because it determines the total cost of servicing the loan. Let us see how.

Every loan EMI comprises of two components viz; the principal and the interest. If your total interest amount is high, it will directly increase your total sum payable.

That’s because the personal loan EMI you need to pay, for repaying your principal amount over the decided loan tenure is governed by the latest personal loan rates applicable. Here, a lower personal loan interest rate will reduce your overall interest payout, thereby requiring you to pay lower EMIs to the lender over the loan tenure.

How is Interest Rate on Personal Loan calculated?

The personal loan interest is calculated using - flat rate and reducing balance method.

In the flat rate method, the interest paid remains fixed. The total interest payable is calculated on the loan amount borrowed throughout the loan tenure. Hence, the personal loan rates stay constant and don’t lessen even when the principal amount reduces as you pay your monthly instalments.

Contrarily, in the reducing balance method, the interest rate is calculated on the outstanding balance amount, which decreases every time you pay an EMI.

The mathematical formulae for interest on personal loan interest calculation are as follows:

Personal Loan charges

Processing Fee

The processing fee is a non-refundable fee levied by lenders while processing your personal loan application. You are charged this one-time fee even if the loan does not get sanctioned. At Tata Capital, you are charged up to 3.5% of the loan amount + GST.

Penal Interest/Additional Interest

Penal interest is the rate of interest lenders charge on a delayed EMI payment. You are then required to pay the outstanding instalment inclusive of the additional interest on a personal loan. The penal interest at Tata Capital is levied at 3% per month on the overdue amount.

The following miscellaneous charges are also involved under personal loans -

Interest rate table

*Final ROI may vary based on credit checks and other parameters

Getting a low interest personal loan is preferable for reducing your interest outgo and overall costs. Availability of loans can depend on numerous factors; make sure to consider them before applying. You can also use a personal loan EMI calculator to understand to calculate your principal EMIs and interest payable and plan your repayment.

Customer Profile	Loan Slab	Interest Rate%*
Salaried	Any amount	10.99%* onwards

Miscellaneous charges

Bounce Charges

These are those charges that are levied in case of an EMI bounce per instance. In other words, these charges are levied when you miss a personal loan EMI payment due to inadequate funds in your bank account. At Tata Capital, you’ll be required to pay Rs. 600 for every Cheque/Payment Instrument Dishonour.

Mandate Rejection Service Charge

Charges will be levied if new mandate form is not registered within 30 days from the date of rejection of previous mandate form by Borrower’s bank for any reason whatsoever. Tata Capital charges a nominal amount of Rs. 450 + GST.

CCOD Annual Maintenance Charges

CCOD Annual maintenance charges are the charges levied on those who have chosen a flexible funding option such as PL Overdraft. It is charged for the maintenance of the Overdraft limit. At Tata Capital, 0.25% of reduced assigned limit OR Rs.1000/- (whichever is higher) shall be payable at the end of the 13th month.

Outstation Collection Charges

If the cheque, you have issued for payment has been made to a non-local branch, Tata Capital will levy an outstation collection charge for the collection of such cheques. Tata Capital charges Rs. 100 + GST per repayment instrument.

Statement of Accounts

Lenders charge a certain amount to issue your Statement of Account - a statement having a list of all transactions made in your loan account during a given period. At Tata Capital, you will be charged only if you ask for a hard copy in case of branch walk-in at Rs. 250 + GST. Downloading a statement of account on the portal is free of cost.

Loan Cancellation Charges

If you wish to cancel your personal loan immediately following the process of loan disbursement, then you are charged a loan cancellation charge. Tata Capital levies 2% of the Loan Amount/ Facility amount OR Rs. 5750/- (whichever is higher)

Payment Instrument Swapping Charges

If you wish to exchange or swap your eMandate or post-dated cheques from another account for EMI repayment purpose you will be charged Rs. 550 + GST per instance.

Duplicate Repayment Schedule

Tata Capital will share a welcome letter with Repayment Schedule post availing of Personal Loan. In case you need a duplicate statement of the Repayment Schedule you will be charged Rs. 550 + GST per instance.

Duplicate NOC

If you need to apply for a duplicate No Objection Certificate (NOC) due to any reason, Tata Capital will issue a new one in your name for a charge of Rs. 550 along with the GST charge.

Part-payment charges

Part Payment Charges

Part Prepayment is allowed once per year and the minimum gap between two-part prepayments to be six months.
A maximum of 50% of the principal outstanding is allowed by way of part prepayment during a single year.
A part prepayment charges of 2.5% shall be applicable on amount over and above 25% of principal outstanding and up to maximum 50% of principal outstanding
No part payment is allowed during the first 12 months (Lock-in period).
Minimum Part prepayment amount to be greater than or equal to 2 months EMI.

Foreclosure Charges

Lock-in Period: 12 months from the date of first disbursement.
4.5% of the principal outstanding at the time of foreclosure.
2% extra of the principal outstanding to be levied if closed within lock-in period

Foreclosure Charges for Top-Up

2.50% on the future principal outstanding on existing loan.
Foreclosure charges shall be levied only if new rate is lower than existing rate.
Lock-in Period: 12 months from the date of first disbursement. 2% extra of the principal outstanding to be levied if closed within lock-in period.

Foreclosure Charges in CCOD Cases

Lock-in Period: 12 months from the date of first disbursement.
4.5% on the Dropped down limit amount.
Any prepayment/ foreclosure made during the Lock-in Period will attract additional 2% over and above the prepayment/foreclosure charges mentioned above on the Dropped down limit.

Foreclosure Letter Charges

Soft Copy – Nil
Branch Walk-In – Rs. 199 + GST

What are the factors affecting Personal Loan interest rates?

The following factors can impact your latest personal loan interest rates.

What are the types of Personal Loan Interest Rates?

Fixed interest rate

In fixed rate loans, lenders charge you a constant personal loan rate throughout the tenure. Here, your total interest payable and EMIs remain fixed.

Floating Interest Rate

Floating or variable personal loan interest rates in India are susceptible to fluctuating economic conditions. Here, you can get low interest personal loans initially, but the lender can revise the rates as per the repo rate. Hence, your interest payable can vary throughout the tenure.

Fixed and floating rates both offer a different set of advantages. While fixed rates keep your EMIs constant, you may pay significantly lower instalments with floating-rate loans. But, if current personal loan interest rates increase suddenly, you run the risk of paying bigger EMIs in the future.

Tips to avail Personal Loan at affordable interest rates

Here are a few different ways to get lower interest rates when applying for a personal loan:

Build and maintain a high credit score, preferably 750 or above. This will boost your creditworthiness and increase your approval rate.
Check for pre-approved offers from NBFCs, Small Finance Banks (SFBs), and Micro Finance Institutions (MFIs)
Enquire with NBFCs with whom you already have an existing loan account
Track personal loan rate concessions offered by lenders during festive seasons
Research and compare personal loan offers from various lenders

Why choose Tata Capital Personal Loan?

At Tata Capital, we offer multi-purpose personal finance tailored to meet your unique desires and financial requirements. Get quick access to collateral-free funds at competitive personal loan rates, starting at just 10.99%. With us, you can plan your repayment as per your convenience and ability to repay. Opt for a loan amount, EMI plan, and tenure that suit you.

With years of experience under our belt, we understand your needs. We extend a hassle-free online application process, minimal paperwork requirements, and relaxed eligibility criteria to ensure a comfortable borrowing experience for you.

Disclaimer

The fees/charges indicated above are subject to revision at Tata Capital’s discretion from time to time.
Customers who have taken a loan before 15th April 2019 need to refer to the loan agreement and schedule of charges for applicable rates.
For the definitions of the above charges, please refer to the Master Terms & Conditions sheet.
Soft copies of documents mentioned in the table above will be provided free of cost. For hard copies, please refer to the above table for the applicable fees & charges.*

Popular FAQs

Personal loan interest rates are of two types

#1. Fixed interest rate: Here, lenders charge you a constant personal loan rate throughout the tenure. Here, your total interest payable and EMIs remains fixed.

#2. Variable interest rates: Variable or floating interest rates are subjected to economic fluctuations. Initially, you can get low-interest personal loans, but the lender can adjust the rates based on the repo rate. So, the interest amount varies during the loan tenure.

You can negotiate your personal loan’s interest rate based on the following factors-

#1. Your financial profile: Build and maintain a high credit score, preferably 750 or above.

#2. Your repayment history: Lenders will be more willing to offer you a better interest rate if you have a good repayment history.

#3. Your relationship with the lender: You may be able to secure a personal loan at a lower interest rate and better terms if you have a good relationship with the lender.

When you apply for a personal loan at Tata Capital, there is a processing fee of 3.5% of the loan amount. It is a one-time, non-refundable fee charged for processing the application form. Additionally, you will need to pay the applicable GST charges on the processing fee.

The factors that can affect personal loan interest rates are:

#1. CIBIL score

You can get more attractive interest rates with a CIBIL score of 750 and above.

#2. Repayment history

A clean credit history with no EMI defaults and disciplined payments is preferred.

#3. Income

Your income significantly determines your personal loan interest rates. The lender extends more competitive interest rates if you belong to the high-income bracket.

#4. Employer’s reputation

If you work with a credible organisation, the lender considers you less likely to default on EMIs and offers more attractive rates.

#5. Debt-to-income ratio

If you are servicing multiple loans and credit cards, and your debt burden eats up a significant portion of your monthly income, the lender can consider you a high-risk borrower.

Charges on personal loans are as follows-

#1. Processing fee

This is a non-refundable and one-time processing fee. It’s charged even if the loan is not approved. We charge a nominal processing fee which is up to 3.5% of the loan amount + GST.

#2. Penal interest/additional interest

Penal interest is the rate of interest lenders charge on a delayed EMI payment. The penal interest at Tata Capital is levied at 3% per month on the overdue amount.

Charge	Amount
Bounce charge	Rs. 600
Mandate rejection service	Rs. 450 + GST
CCOD annual maintenance	0.25% of reduced assigned limit OR Rs. 1000/- (whichever is higher)
Outstation collection	Rs. 100 + GST
Statement of accounts	If you ask for a hard copy in case of branch walk-in at Rs. 250 + GST. Downloading a statement of account on the portal is free of cost.
Loan cancellation	2% of Loan Amount/ Facility amount OR Rs. 5750/- (whichever is higher)
Payment instrument swapping	Rs. 550 + GST
Duplicate repayment schedule	Rs. 550 + GST
Duplicate NOC	Rs. 550 + GST

Yes, you can request a statement or summary of the interest and charges paid on your personal loan from your lender. We provide a statement showing all the transactions made in your loan account during a given period. You can download a statement of account on the Tata Capital website for free.

Personal loan interest rates depend on your credit score, monthly income, job stability, loan amount, and tenure. If you have a high credit score, a good repayment record, and a high monthly salary, you will easily qualify for a loan and get low-interest rates.

Your CIBIL score shows how good you are at repaying loans, and it's essential if you want to get a personal loan at a low-interest rate. You can get even better personal loan interest rates if you have an excellent CIBIL score. A high credit score is considered to be 750 or higher.

At Tata Capital, we offer personal loans starting at 10.99%, which is the best and lowest in the industry. We offer personal loans specifically curated for people in different professions. So, if you are a doctor, a government employee, or a woman looking for personal loans at affordable interest rates, we have got you covered.

Floating or variable personal loan interest rates can change based on economic conditions. Initially, you may get a low-interest rate on your personal loan. However, because the repo rate influences floating rates, the lender can adjust the rates according to changes in the repo rate. As a result, the amount of interest you have to pay can vary during the entire loan repayment period.

On the other hand, with fixed-rate loans, lenders charge you a consistent interest rate for the entire loan duration. This means your total interest payment and EMIs remain the same throughout the loan tenure. Therefore, the repo rate does not have any impact on the interest rate of fixed-rate loans.

More Personal Loan products for you

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What our customers say about us

Very fast loan process. They understood my current situation and helped me at the time.

KALYANASUNDARAM C

Personal Loan | 05 June, 2023

Tata Capital has provided best services across product. This company will be going so far.

CHHATLAL PRAJAPATI

Personal Loan | 04 June, 2023

Tata Capital's staff maintained good relationship with me. Very good in giving information and suggestions. Documentation through online channel is good. My entire loan process was done simply through phone itself, no need of going outside even single step.

PARA NAIDU MAMIDI

Personal Loan | 03 June, 2023

The whole process for application to disbursement was good.

YUSUF RASUL

Personal Loan | 15 June, 2023

Good services from Tata capital and I am also a big fan of Tata Group because they always concentrate on delivering the best quality services to people. Heartfelt thank you.

Adarsha Geekalli Mahadevanayaka

Personal Loan | 13 June, 2023

Tata Capital has helped me in my severe crisis. Service was excellent and very smooth. Thanks for your tremendous support. Tata Capital's executive are their best resource.

GRACE ESTHER RANI SINGHA

Personal Loan | 13 June, 2023

I am also new customer and as of now the app providing us all the details what we required very easily. Very useful app. Thank you

P RAMESH BABU

Personal Loan | 13 June, 2023

It was my first experience with Tata Capital & it was my best ever experience as compared to another financer. Thank you Tata Capital team providing the best possible service. I loved it.

SANDEEP KUMAR

Personal Loan | 12 June, 2023

Service is good I will give 5 star rating to Tata Capital. I have taken 5 loans from Tata Capital out of which 2 loans are closed and 3 are running. Very happy to take loan from Tata Capital.

ASKULA SRIDHAR

Personal Loan | 08 June, 2023

Very fast loan process. They understood my current situation and helped me at the time.

KALYANASUNDARAM C

Personal Loan | 05 June, 2023

Tata Capital has provided best services across product. This company will be going so far.

CHHATLAL PRAJAPATI

Personal Loan | 04 June, 2023

PARA NAIDU MAMIDI

Personal Loan | 03 June, 2023

The whole process for application to disbursement was good.

YUSUF RASUL

Personal Loan | 15 June, 2023

Good services from Tata capital and I am also a big fan of Tata Group because they always concentrate on delivering the best quality services to people. Heartfelt thank you.

Adarsha Geekalli Mahadevanayaka

Personal Loan | 13 June, 2023

Tata Capital has helped me in my severe crisis. Service was excellent and very smooth. Thanks for your tremendous support. Tata Capital's executive are their best resource.

GRACE ESTHER RANI SINGHA

Personal Loan | 13 June, 2023

I am also new customer and as of now the app providing us all the details what we required very easily. Very useful app. Thank you

P RAMESH BABU

Personal Loan | 13 June, 2023

It was my first experience with Tata Capital & it was my best ever experience as compared to another financer. Thank you Tata Capital team providing the best possible service. I loved it.

SANDEEP KUMAR

Personal Loan | 12 June, 2023

Service is good I will give 5 star rating to Tata Capital. I have taken 5 loans from Tata Capital out of which 2 loans are closed and 3 are running. Very happy to take loan from Tata Capital.

ASKULA SRIDHAR

Personal Loan | 08 June, 2023

Very fast loan process. They understood my current situation and helped me at the time.

KALYANASUNDARAM C

Personal Loan | 05 June, 2023

Tata Capital has provided best services across product. This company will be going so far.

CHHATLAL PRAJAPATI

Personal Loan | 04 June, 2023

PARA NAIDU MAMIDI

Personal Loan | 03 June, 2023

Read All

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Personal Loan Rates & Charges

What is the Interest Rate on a Personal Loan?

What is the current Personal Loan interest rate?

Why are Interest Rates on Personal Loans so Important?

How is Interest Rate on Personal Loan calculated?

Personal Loan charges

Processing Fee

Penal Interest/Additional Interest

Interest rate table

*Final ROI may vary based on credit checks and other parameters

Miscellaneous charges

Bounce Charges

Mandate Rejection Service Charge

CCOD Annual Maintenance Charges

Outstation Collection Charges

Statement of Accounts

Loan Cancellation Charges

Payment Instrument Swapping Charges

Duplicate Repayment Schedule

Duplicate NOC

Part-payment charges

Part Payment Charges

Foreclosure Charges

Foreclosure Charges for Top-Up

Foreclosure Charges in CCOD Cases

Foreclosure Letter Charges

What are the factors affecting Personal Loan interest rates?

What are the types of Personal Loan Interest Rates?

Fixed interest rate

Floating Interest Rate

Tips to avail Personal Loan at affordable interest rates

Why choose Tata Capital Personal Loan?

Disclaimer

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How to Apply for a Personal Loan

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Your guide to Tata Capital Personal Loan

Popular FAQs

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