Low Personal Loan Interest Rate

7 Tips To Get Personal Loan at Low Interest Rate

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7 Tips To Get Personal Loan at Low Interest Rate

Written by CreditLine

Personal loan at low-interest rates

Personal loan interest rates have faced a drastic fall due to the pandemic. The economy of the whole world has suffered so much and India has met the same fate. The instant personal loan interest rates that used to be anywhere in the range of 12% to 24% before the pandemic hit the world, have now touched the ground as low as 6%.

But what caused such a dramatic fall in instant personal loan interest rates? And what are the ways to get low personal loan interest rates?

Stick to this article to find all the possible answers to such big queries. To apply instant personal loan, click on apply now.

Low Personal Loan Interest Rate


Table of content:

  1. Lower Repo Rate
  2. To Revive The Demand
  3. Floating Rate for Shorter Terms
  4. Maintain a Low FOIR
  5. Pre-approved Personal Loans
  6. Opt For A Shorter Tenure
  7. Compare The Lenders


Lower Repo Rate

The repo rate is the rate at which the lenders borrow funds from the Reserve Bank of India(RBI). To deal with the unavoidable financial crisis, the Reserve Bank of India reduced the repo rate and the present rate which is currently at 4% is comparatively lower than ever before.

Eventually, banks have reduced the personal loan interest rates to make the loans available to the borrowers at a low interest rate.

To Revive The Demand of Personal Loan

Low personal loan interest rates make a personal loan more approachable and convenient for borrowers. And that initiates the revival of various personal finance products to promote the cash flow in the economy.

So low-interest-rate also helps to deal with the cash crunch in the overall economy.

To avail of a low personal loan interest rate, the following tips can help you.

Floating Rate for Shorter Terms

Taking a personal loan at a fixed rate of interest (flat rate method) can be hassle-free and convenient as the rate of interest stays constant throughout the tenure.

You have to consider there are many types of interest calculation on personal loan application. If it is a personal loan balance transfer, then consider the outstanding principal, entire loan amount, interest rates(fixed interest rates / variable interest rate), personal loan emi.

Floating interest rate personal loan may change throughout the tenure but that can be effective if you’re borrowing funds for the short term.

Initially, the lender will charge lower personal loan interest rates. Later personal loan interest rates will change as per the available rates in the market.

When you opt for a shorter tenure, you can repay the amount before getting the rate of interest too high and thus can avail of the benefits of a low personal loan interest rate.

Maintain a Low FOIR

Your FOIR (Fixed Obligation to Income Ratio) can reflect your risk factors as a borrower of personal loans. The monthly EMIs that you pay out of your net monthly income shall below show that you are left with enough funds to bear another personal loan burden.

A higher FOIR reduces the chances of getting a low personal loan interest rates. Some lenders might provide you with a high FOIR, but the rate of interest won’t be up to your expectation of a low-interest rate.

To know more about FOIR, Check 6 Factors To Ensure Personal Loan Approval In India

Pre-approved Personal Loans

The bank you’re a customer of or the lender from whom you’ve already borrowed previously may offer you pre-approved or seasonal personal loans.

Try to grab that deal to get best personal loan rates, as the lender might have designed the particular personal loan criteria based on your relationship with the lender, your credibility, credit history, credit score, etc. And that particular personal loan offer may be at a lower interest rate.

Opt For A Short Tenure Personal Loan

Your lender seeks complete assurance from your end about the repayment of the loan amount. So longer the personal loan EMI tenure, the more chances to not get a preferential interest rate.

On the contrary, shorter tenure personal loans make them feel safe about the early revival of the loan amount. So they charge a comparatively lower rate of interest.

Compare The Personal Loan Lenders

Available personal loan interest rates will depend on the factors like personal loan quantum, repayment tenure, credibility, etc. And if everything remains constant, then comparing the personal loan lenders can get you to lower personal loan interest rates for your desired personal loan quantum.

Top banks and NBFCs available in the market come up with different personal loan offers, eligibility criteria, and conditions. So, comparing such lenders will be one of the best options to get a low-interest rate.

At Roopya, you can compare personal loans from different lenders.


Which bank offers the lowest personal loan interest rates?

State Bank of India (SBI) lends a personal loan of up to 20 lakh with a low personal loan interest rates of 9.60% for a tenure of 6 months to 6 years.

Which bank is best for a personal loan?

SBI has the lowest rate available in the market, but your required loan quantum and tenure will decide the most convenient personal loan lending bank or financial institutions for you.

However, it depends heavily on the personal loan application, credit history, personal loan charges, prepayment charges & financial institutions.

How can I get a low interest on my personal loan?

Multiple ways can help you to get an affordable interest rate. Look for the pre-approved loan offers, opt for a floating rate of interest, shorter tenure, etc. can help you.

What is the SBI personal loan interest rate?

SBI personal loan interest rates start from 6.70% p.a. Generally it varies upon personal credit profile (credit history- a good credit score), personal loan application(salaried/self employed applicants).

What can be the EMI for an Rs. 10 lakhs personal loan?

On average interest rate of 9.60% p.a. personal loan your total EMI will be 45,961/- in 2 years and 32,080/- in 3 years.

How is interest calculated on a personal loan?

You can use a personal loan EMI calculator to calculate your personal loan interest.

It is a tool to provide you with calculated data on your personal loan interest calculation, outstanding principal, prepayment charges, interest costs, reducing balance method or not and tenure.

Bottom Line

Opting for a low personal loan interest rate is not a hassle anymore as Roopya is there to help you. Keep these facts in your mind before selecting a lender. And let us know how helpful this content is. We offer personal loans at competitive interest rates.


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