How much is the EMI for a 10-lakh personal loan? Before you start shopping around and comparing personal loans, it’s important to know what you’re getting into. So when you’re considering personal loans, be sure to calculate the EMI (equated monthly installment) that you’ll have to pay back over the life of your loan. EMI means how much each month you need to put aside in order to pay off your loan by the end of the term; it takes into account personal loan interest rates and other fees as well as your outstanding loan balance.
Personal Loans in India
When you take out a personal loan in India, you’ll pay interest. The only exception is if you’re borrowing money from friends or family—in which case, it’s more of a gift with strings attached than an actual loan. Still, there are rules about how much people can lend to one another without charging interest; however, most Indian lenders don’t care about these limits.
Choose Where to Apply
Because there are so many lenders competing for your business, it pays to shop around. Check out interest rates at local banks and credit unions, as well as online. If you already have a relationship with one lender, it might make sense to stick with them. But if you’re looking to switch things up or get pre-approved—and then negotiate from there—it’s worth contacting at least three lenders.
What Does the Personal Loan Interest Rate Look Like?
For individuals looking to borrow between 50,000 and 70,000 rupees over five years, personal loan interest rates range from 14.99 percent to 24.75 percent. In other words, if you borrow ₹60,000 over five years you can expect your monthly repayment amount to be around ₹1,700. It’s important to remember that these are only estimates—your exact repayments will depend on your creditworthiness and salary status as well as which lender or bank you decide to go with. Many banks offer an easy way of getting an idea of how much you could save by applying for a loan online; it’s worth checking these before choosing a bank!
Finding Your Best Personal Loan Value
As you can see, there are many factors that go into determining how much your EMI will be each month. When you apply for a personal loan, your lender will provide you with an amortization schedule so that you can clearly see exactly how much your monthly payments will be and how long it will take to pay off your loan. You may have to do some extra research to find out about personal loan interest rates or check with your local banks.
Maintain Good Credit Throughout
Credit scores are directly related to how much interest you’ll pay on loans like personal and car loans. These two factors—the amount borrowed and credit score—are what banks use to determine your eligibility, rates, and overall cost of personal loans. To keep your borrowing costs low, it’s important to maintain good credit scores.
When you’re applying for personal loans in India, it’s important to be aware of your options. Whether you want to take out a small personal loan or one that exceeds Rs.10 lakhs, interest rates will vary greatly depending on your risk profile and on how much capital you’re borrowing. Moreover, whether or not you have collateral will also play a big role in determining your rate of interest. Be sure to explore all of your options and ask around before committing to anything!