Question 1

What is the interest rate on personal loans in India?

Accepted Answer

Personal loan interest rates in India range from 10.5% to 24% depending on your credit score, income, and the lender. Banks like SBI and HDFC offer rates from 10.5-14%, while NBFCs may charge 15-24%.

Question 2

What is the maximum tenure for a personal loan?

Accepted Answer

Personal loans typically have a tenure of 1 to 5 years (12 to 60 months). Some banks offer up to 7 years for high-value loans. Shorter tenures mean higher EMI but lower total interest.

Question 3

Should I take a personal loan or use a credit card?

Accepted Answer

Personal loans charge 10-18% interest, while credit cards charge 24-42% on revolving balance. For amounts above ₹50,000, a personal loan is almost always cheaper than carrying a credit card balance.

Question 4

Can I prepay a personal loan?

Accepted Answer

Yes. RBI mandates no prepayment charges on floating-rate loans. For fixed-rate personal loans, banks may charge 2-5% foreclosure fee. Always check with your lender before prepaying.

Personal Loan EMI Calculator

Frequently Asked Questions

Personal Loan EMI Calculator

Frequently Asked Questions