Indian Bank Personal Loan Interest Rate 2022

Take out a personal loan from Indian Bank with interest rates starting at 9.20 percent and up to a 7 years term. The bank charges a processing fee that starts at 0.51 percent of the loan amount.

Indian Bank provides a variety of personal loans with varying interest rates. The interest rates for all loan types are summarised in the table below.

Personal Loan Type	Classification		Interest Rate (p.a.)
			For Women	For General Public
Indian Bank Clean Loan (for salaried individuals)	For employees of Government organizations / PSUs & Central / State Government and for Salaried individuals of reputed Private Sector / other reputed organizations approved by respective Zonal Office (tenure upto 60 months)	Where Check-off facility & undertaking by the employer is available.	9.05% onwards	9.20% onwards
		Where Check-off facility & undertaking by the employer are not available, but salary is credited with Indian Bank.	9.65% onwards	9.80% onwards
	For Housing Loan Borrowers (Salaried Class)	Where salary is credited with our Bank	9.05% onwards	9.20% onwards
	For tenure of more than 60 months up to 84 months		13.50% onwards	13.65% onwards
Indian Bank Pension Loan (for pensioners)	Repayment tenure of 12 months.		10.60% onwards	10.75% onwards
	Repayment tenure above 1 year but up to 36 months.		11.35% onwards	11.50% onwards
	Repayment period above 36 months but up to 10 years.		11.60% onwards	11.75% onwards

The following are two important methods for calculating personal loan interest:

• Flat Rate System: In this method, interest is measured on the entire loan sum lent at the outset, without taking into account the fact that monthly EMIs are gradually reducing the principal. As a consequence, when this form of interest calculation is used, the overall interest payout is higher.
• Reducing Balance Process: Interest is based on the remaining loan amount only, not the total loan amount originally lent. It's important to remember that an EMI contains both interest and principal components. As a result, the remaining principal decreases with each EMI bill, resulting in a slightly lower interest payout when this form of interest calculation is used.

The “Reducing Balance” method of interest calculation is used by Indian Bank, which means that interest is calculated only on the outstanding loan amount.

The amount of interest paid on a personal loan is calculated by the loan amount, interest rate, and term. In the table below, we can see how the compensation changes as these parameters change.

Loan Amount (Rs.)	Tenure (years)	Total Interest Payout (Rs.)	Total Amount Repaid (Rs.)	Proportion of Interest in Total Amount Repaid
10 lakhs @ 15%	5	4,27,340	14,27,340	30%
5 lakhs @ 12%	3	97,852	5,97,852	16.4%
2 lakhs @ 11%	1	12,112	2,12,112	5.7%

 

Particulars	Indian Bank	Axis Bank	SBI	ICICI Bank	Bajaj Finserv
Interest Rate	9.05% onwards	10.49% onwards	9.60% onwards	10.50% onwards	11.49% onwards
Tenure	Up to 84 months	12 to 60 months	Up to 72 months	12 to 60 months	12 to 60 months
Loan amount	As per applicant’s profile	Up to Rs. 15 lakhs	Up to Rs. 20 lakhs	Up to Rs. 25 lakhs	Up to Rs. 25 lakhs
Processing Fee*	Up to 1% of the loan amount	Up to 2% of the loan amount	Up to 1.50% of the loan amount	Up to 2.25% of loan amount	Up to 4.13% of the loan amount

To get a low-interest rate on an Indian Bank personal loan, follow the steps below:

• Hold your credit score in good condition. The higher your credit score, the more likely you are to be accepted for a loan with a lower interest rate.
• Maintain a credit utilization ratio of less than 30%. Make sure you're not in too much debt. A lower FOIR means greater repayment capacity, allowing you to receive a personal loan at a lower interest rate.
• Apply for a personal loan with a bank with which you already have a strong relationship.
• Submitting several loan applications at the same time is not a good idea. This can offer the impression that you are credit-hungry. Furthermore, doing so will result in several hard inquiries into your credit report, lowering your credit score.

The following is a list of the major factors that influence a personal loan's interest rate.

• Credit Score: This is a three-digit number based on your loan and credit card repayment history. It has a scale of 300 to 900. A high credit score suggests that the borrower is creditworthy and therefore presents a lower risk to the lender. It may not only make getting a personal loan easier, but it may also help you get one with a lower interest rate. 
• Age: The interest rate charged on personal loans frequently rises with the applicant's age and vice versa. The reason for this is that as you get closer to retirement age, your chances of increasing your income level decrease.
• Previous Bank Relationship: If you already have a savings account or a fixed deposit with the lender, you may be able to get a personal loan at a lower interest rate.
• Income: The interest rate charged by the lender is also affected by your income level. Applicants with higher annual incomes are often thought to have a better repayment capacity, which reduces the lender's risk, and, as a result, they are offered a lower interest rate on their personal loans.
• Employer: Working for a reputable organization or having a stable job and employment history may help you get a lower interest rate on your personal loan.