Each time you stare at an urgent financial need, one of the most feasible alternatives that you can explore is to raise a personal loan. It is an unsecured loan offered by a bank or an NBFC for an unspecified purpose, typically at a higher interest rate, and payable in a time period that could range between one to five years.
Typically, borrowers procure personal loan for a variety of purposes, which include wedding, home renovation, vacation or an unanticipated emergency.
Here we share more details on personal loan interest rate charged by Federal Bank:
PF/ Admin fee | Up to 3% |
Prepayment: | Floating Rate Schemes – Nil |
Fixed Rate schemes- (Excluding Byom Loans) 3% |
Documentation charges:
Upto ₹2 Lakhs | Nil |
₹2 lakh - ₹10 L | 500 |
₹10 lakh - ₹30 L | 1,000 |
₹30 lakh - ₹50 lakhs | 2,500 |
₹50 lakhs - ₹1 Crore | 5,000 |
More than ₹1 Crore | 10,000 |
(Source: federalbank.co.in; rates as on Sept 6, 2024)
₹
%
Months
Bank | Interest rates |
---|---|
ICICI Bank | 10.80% p.a. - 16.15% p.a. |
Kotak Mahindra Bank | 10.99% and above |
Axis Bank | 10.99% p.a.- 22% p.a. |
IndusInd Bank | 10.25% p.a. - 34.05% p.a. |
HSBC Bank | 9.99% p.a. - 15.00% p.a. |
IDFC First Bank | 10.90% p.a. - 36% p.a. |
State Bank of India | 11.15% p.a. - 14.30% p.a. |
Bank of Baroda | 11.10% p.a. - 18.15% p.a. |
Yes Bank | 10.99% - 20% p.a. |
Bank of India | 10.85% onwards |
IDBI Bank | 11.00% p.a. - 15.50% p.a. |
Punjab National Bank | 11.40% p.a. to 17.95% p.a. |
Personal loans are granted to salaried individuals with a minimum monthly salary of Rs.25,000. To apply for a personal loan, one can contact a bank branch or submit an enquiry form.
Personal loans have a maximum tenure of 60 months
Repayment of personal loans are to be made in Equated Monthly Installments (EMI).
EMI stands for Equated Monthly Instalment. It includes repayment of the principal amount and payment of the interest on the outstanding amount of your personal loan.
A. Principal: The principal is the loan amount that you avail from the Bank. Lower principal will lower your EMI and vice versa. B. Rate of Interest: The rate of interest is the rate at which Bank offers you the car loan. It is also directly proportional to your car loan EMI. C. Tenure: The tenure or the period is the time within which you repay your loan. It is inversely proportional to EMI. It means longer tenure makes EMIs cheaper and vice versa.
Fixed rate of interest means interest rate remains constant during the entire tenure of the loan.
Floating rate of interest means interest rate fluctuates based on the changes in RBI’s Repo Rate.
Repo rate is the rate at which the Reserve Bank of India lends money to commercial banks in the event of any shortfall of funds. It is used by the banking regulator to control inflation.
One can calculate car loan EMI using our Personal Loan EMI calculator by entering principal amount, tenure and rate of interest.
Amortisation is a tabular schedule with details of interest payment and periodic principal of a loan along with the amount outstanding after each payment.
Yes, you can make your prepayment in either part or full but there could be some prepayment charges involved.