KreditBee Personal Loan: Interest Rates

KreditBee Personal Loan Interest Rate

KreditBee provides personal loans up to Rs. 4 Lakhs with monthly interest rates starting from 15%. However, the KreditBee interest rate on a personal loan varies depending on the applicant's profile, including their credit score, the loan amount and tenure wanted, the personal loan variant chosen, and so on.

KreditBee Flat Rate Versus Reducing Balance Interest Calculation

The flat rate technique of calculating interest requires calculating interest on the total loan sum value during the loan term without utilizing the amount of principal that has already been paid. It doesn’t consider that EMIs are written off, the outstanding loan principal amount gradually reduces.

When the declining balance technique is utilised, however, interest is only calculated on the outstanding loan principal per month. As a result, if you use the declining balance technique, the amount of interest you pay each month falls as the outstanding loan amount decreases. While lowering balance interest rates are normally slightly higher than flat interest rates, they may allow you to save money on your loan's total interest payment. KreditBee uses the declining balance approach to calculate the interest payable on its personal loans.

EMI Calculation Using Reducing Interest Rate

An example using personal loan EMI calculator, which takes into account various loan amounts, tenures, and interest rates:

EMI Calculation Using Flat Interest Rate

An example utilising a flat interest rate for various loan amounts, terms, and interest rates:

KreditBee Personal Loan Interest Calculation

For various loan amounts, tenures, and interest rates, a sample of total interest payout, the total amount repaid, and the proportion of interest in the total amount repaid is shown below.

Things to Consider for Low KreditBee Interest Rates

Following are the pointers that may help you get a reduced interest rate on your KreditBee personal loan:

• Boost your credit score and keep it there.

• Reduce your current debt.

• Payment of your EMIs and credit card bills on time.

• Have a solid relationship with the lender already.

• Maintain a consistent work history.

Factors Affecting KreditBee Interest Rates

The following are some major elements that influence the interest rate on a KreditBee personal loan:

Age of the Applicant

The amount of interest charged by the lender usually rises in tandem with the applicant's age. This is because the likelihood of a rise in the applicant's income level lowers as he or she approaches retirement.

Credit Rating

A credit score is a summary of a person's credit history that lenders use to determine whether or not an applicant is creditworthy. An excellent credit score (often 750 or higher) boosts your chances of getting a personal loan and may also allow you to get a reduced interest rate.

Desired Loan Amount and Tenure

Typically, as the loan amount and tenure grow, so does the interest rate charged by the lender, and vice versa.

Employment Specifics

Personal loans may be granted at a cheaper rate of interest to applicants who have a steady job, a long history of employment, or who work for reputable organisations. This is due to the fact that it signals more personal and financial stability, as well as a steady flow of income to repay the debt.

Amount of Money

Lenders consider applicants with greater yearly incomes to have a better repayment capacity and, as a result, charge lower interest rates on personal loans than those with lower annual incomes.