Fixed Interest Rate is an roi that remains fixed throughout the personal loan tenure. In other word if an individual has taken a personal loan for 5 years, the interest rate offered by the bank will remain same throughout the tenure.
Floating Personal loan interest rate is an roi that changes during the loan tenure. For this type of personal loan, there is a basic rate that is informed to the borrower while availing the loan and the interest rate keeps on fluctuating above and below this basic rate as per floating components.
Personal loan interest rate roi basicaly starts from 10.75% but is not same for everyone and if you are planning to avail a personal loan, it is important for you to understand the factors that may influence your interest rate. Depending on the following factors two individuals can get different interest rates on a personal loan from the same lender:
If you have a salary account with any bank and share a good history of repaying the past EMIs with the bank on time, the bank is most likely to offer you a personal loan with lower interest rate or processing fee. The lenders might also offer you a few more benefits.
Availing a normal personal loan is quick and easy but availing a personal loan at the lowest interest rate might be dificult if you don’t consider the following points before applying for a personal loan.