Federal Bank Personal Loan Interest Rates

Federal Bank Personal Loan interest rates start from 12.75% per annum, while the tenure can extend up to 48 months. Multiple factors like your credit score, income, and employment type affect the interest rate offered. Thus, it is essential to understand the interest rate of your loan and the factors that affect them. You can also use this information to compare the offer from Federal Bank with other lenders on Bajaj Markets to check which option suits your preferences and needs.

Here are the interest rates and other details of a Federal Bank Personal Loan:

The associated charges of a Federal Bank Personal Loan are as follows:

Here are some common factors which may have a major impact on your personal loan interest rate:

• Having a high credit score demonstrates your creditworthiness. It enables you to get a low interest rate on your personal loan.

• A higher income reassures the lender of your repayment capacity. This usually makes the loan provider more willing to provide a lower interest rate.

• If you have a stable job, the lender is assured of timely and regular payments. This increases their willingness to provide you with affordable interest rates.

• The interest rate may differ, depending on whether you are self-employed or salaried

• Your personal loan interest rates may be impacted by inflation or changes in government policies

• How much of your monthly income goes toward paying off debt is shown by your debt-to-income ratio. The lender assesses your ability to repay after fulfilling your current obligations via this ratio. Thus, if you have a low DTI ratio, the interest rate offered is low.

Let’s assume you took a personal loan of ₹10,000 from Federal Bank at an interest rate of 12.75% p.a. The tenure of this loan is set at 12 months. You can calculate the instalment amount payable by using these three details and substituting them in the following formula:

EMI = P x R x (1+R) ^N / [(1+R) ^N-1]

Here,

• R = 1.06% (the monthly interest rate)

• P = ₹10,000 (the borrowed loan amount)

• N = 12 (tenure in months)

The EMI amount in this case is ₹892. However, calculating the instalment amount manually can be quite time-consuming and difficult. Instead, you can utilise the personal loan EMI calculator available on Bajaj Markets. This calculator helps you do the required calculations within seconds for free. The accurate results and addition information provided in the form of amortisation schedules are some major benefits of using this calculator.