Indian Bank Personal Loan Interest Rate

EMI for Indian Bank Personal Loan

You can use the following data to estimate the EMI for an Indian Bank personal loan at a standard interest rate of 11.90% per annum across different loan amounts and tenures.

Note: These values are indicative and may vary based on exact terms and borrower risk category. Actual EMI may vary based on the exact disbursal date, processing fees, and rounding off by the Indian Bank. These calculations assume the standard monthly reducing balance method.

Comparison of Personal Loan Interest Rates

It is a good idea to compare various personal loans based on their interest rates across banks and NBFCs, as that helps you evaluate the best options available for you. Here is a simple comparison among the best financial institutions.

Factors Affecting Indian Bank Personal Loan Interest Rate

Just like any other financial institution, there are several key parameters that determine the rate of interest a borrower receives:

1. Credit Score: Higher CIBIL scores (750 and above) can fetch lower rates.
2. Employment Type: Government and PSU employees often receive preferential terms in interest rates and repayment.
3. Existing Relationship: Salary account holders or loyal customers may access personal loans at lower interest rates.
4. Loan Amount & Tenure: Larger amounts or shorter tenures may cause different interest rates.

Being aware of these variables helps in availing and negotiating better terms.

Impact of Credit Score on Personal Loan Interest Rates

A credit score is a three-digit number that represents an applicant’s creditworthiness. This is represented between 300 and 900.

A score above 750 significantly improves a borrower’s chances of approval and reduces the interest rate.

Improving repayment history and reducing existing debt can raise scores and provide better loan terms. Most banks, including Indian Bank, require a minimum score of around 750 to prequalify you for a personal loan. However, you can still apply for loans even with lower scores.

In short, a higher score means:

• Lower interest rates
• Pre-approved loan offers
• Faster loan approval

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⁣Impact of Repo Rate Cut on Loan Interest Rate

A repo rate is the interest rate at which the RBI lends money to commercial banks.

• If the repo rate decreases, banks may reduce their lending rates.
• If the repo rate increases, banks often raise lending rates to cover higher costs.

Indian Bank adjusts personal loan rates based on the RBI’s repo rate, especially for loans linked to the RLLR (Repo Linked Lending Rate), which is most applicable to floating interest rates.

As of April 2025, the RLLR is 9.10%. Let's look at the impact of the repo rate on the interest rates of personal loans.

• A repo rate cut by the RBI would make lending more affordable for traditional banks.
• As a result, Indian banks offer personal loans at reduced interest rates.
• This influences the MCLR and RLLR at which a bank equates the total interest rate for individuals.

For example, if a bank's MCLR is 9.25%, and they add a 3.25% margin for a personal loan, your final interest rate is 9.25% + 3.25% = 12.5% p.a.

For further queries on Indian bank Interest rates & charges, you can contact the Indian Bank Personal Loan Customer Care Number.