Muthoot Finance Personal Loan Interest Rate

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Muthoot Finance Personal Loan Interest Rates 24th November 2020

Factors That Influence Interest Rate Details
Loan Amount Rs.50,000 to Rs. 15 lakhs
Loan Tenure 12 months to 60 months
Interest Rate 14.00% to 24%
Processing Fee 2.5 - 3.5% on the borrowed principal

Muthoot Finance Personal Loan Interest rate starts at 14%. The lowest EMI per lakh is Rs. 2,327. You can use the loan amount for any financial requirement. Many use the funds for medical emergencies, debt consolidations, travels, weddings, home renovations, educational expenses of children, etc. The personal loan facility is collateral-free. Disbursal of funds is in as less as 2 days. You get the funds right into your bank account. At Loanbaba, you can apply for personal loan Muthoot Finance. Apply online and get a quick lending decision within no time.

Features of Muthoot Finance Personal Loan

Here are some of the features of this borrowing facility:

  • Employees of large companies, banks, and government sector can avail special discounts and schemes.
  • Low income group people can also apply for the loan.
  • This loan is also offered to defence and armed forces and government employees
  • Competitive interest rate. The rate of interest rate varies for defence personnel, government employee, and private salaried employee.
  • Flexible repayment options and minimal documentation.
  • This financial institution offers doorstep service.

Muthoot Personal Loan Interest Rate

The rate of interest on personal loan by Muthoot Finance is between 14% and 24% per annum. To get the best rate, the financial institution will assess your income, existing EMIs, work experience, loan amount, loan tenure, and other factors. Below-given are some of the factors that determine your interest rate for the loan:

Factors That Influence Interest Rate Details
Loan Amount
  • You can borrow between Rs. 50,000 and Rs. 15 lakhs.
  • A lower rate could be charges for high loan amounts.
Income
  • Your salary or yearly turnover speaks about your repayment capacity.
  • If you belong to a higher income bracket, then a lower rate could be offered.
  • The interest rate may vary with your net income.
Loan Tenure
  • A personal loan carries short tenure between 12 months and 60 months.
  • Shorter the tenure, lower will be the total interest payout and vice-versa.
  • The applicable rate could be lower for longer tenures.
Employer Category
  • Muthoot Finance has an internal list of firms that fall into categories.
  • These companies are ranked from high to low based on the firm’s reputation, size, existing relationship with the institution, etc.
  • If you work with a company that has a higher rank in the internal list prepared, then attract rates could be offered.
Repayment Capacity
  • Not just your net income, but disposable income too matters when deciding the rate of interest.
  • If you have lower or no financial responsibilities, then your repayment capacity sees a boost.
  • In turn, you could be offered a lower rate of interest, and vice-versa.
  • You should also have a good CIBIL score to get the best rate.
Relationship with the Financial Institution
  • Muthoot Finance may offer special rates, charges, and offers to existing customers.
  • These customers should have a good and proven track record with the financial institution.

Muthoot Finance Personal Loan Charges

Apart from the rate of interest, the financial institution has several other charges that could apply on your personal loan:

  • Processing Fee: The fee is between 2.5% and 3.5% of the loan amount. The payment of tax is separate. This fee is non-refundable and applied at the time of taking the loan.
  • Part Payment Charges: Part Prepayment is not allowed.
  • Pre-closure Charges: You cannot pre-close the loan.
  • Other Charges: Once your loan is sanctioned, the financial institution will send you a statement of other charges applicable on the loan account. The charges may differ depending on the terms and conditions of the loan agreement. Some of these charges include: late payment fee, loan cancellation charge, EMI cheque bounce charge, etc.

Muthoot Finance Personal Loan EMI Calculation

Here is an illustration of the Muthoot personal loan cost.

  • Maximum Annual Percentage APR: 14% to 24%
  • Principal Amount Borrowed: Rs. 1 lakh
  • Tenure: 12 months to 60 months
  • Processing Fee: Up to Rs. 2,000
  • Fee to Loanbaba: No Fee
  • EMI for 60 months at 14%: Rs. 2,327
  • EMI for 12 months at 24%: Rs. 9,456
  • Total Cost over the Tenure: For 12 months it is Rs. 15,472. For 60 months it is Rs. 41, 620

On Loanbaba, you can use a free-of-cost EMI Calculator to understand the exact monthly outgo towards the repayment. The tool provides you the following benefits:

  • It is accessible 24 x 7. You have to feed in details such as the loan amount, tenure (in year or months), and interest rate
  • It provides accurate calculations for the total interest payout over a specified tenure
  • It also shows part-by-part monthly instalment through the tenure
  • You can even access the amortization schedule till the end of tenure
  • The calculator also informs about the total payout including the interest charged over the tenure and the borrowed principal

Eligibility Criteria for Muthoot Personal Loan

Here are the eligibility norms to apply for this service:

Eligibility Criteria Details
Who Can Apply? Proprietors, salaried individuals, self-employed individuals, and partnership firm employees
Age
  • Salaried applicants should be 26 years to 58 years (till the loan’s maturity)
  • Self-employed applicants should be 24 years to 65 years (till the loan’s maturity)
Work Experience
  • Salaried individuals should have a minimum work experience of 2 years
  • Self-employed applicants should have a minimum work experience of 3 years
Net Monthly Income
  • The minimum net monthly income for salaried folks should be Rs. 15,000
  • The net annual income for self-employed people must be at least Rs. 1 lakh
Personal Loan Top Up
  • Muthoot Finance offers a top up on personal loan. This facility is for those who want to take an additional loan on the currently running loan.
  • Top up is also offered on balance transfer to Muthoot Finance. To be eligible for a personal loan top-up, you must have a regular repayment track record on the existing loan.
  • Interest rate (starting at 14%) is the same as the old loan scheme.

Documents Required for Muthoot Personal Loan

You have to submit the below-given documents when applying for Muthoot personal loan.

  • If applying online on Loanbaba. Just provide your personal details as asked in the application form. Our customer care team will contact you with further information.
  • Identity proof such as Aadhaar Card, Driving Licence, Voter ID Card, Passport, etc
  • Address proof such as Aadhaar Card, Ration CARD, Birth Certificate, Voter ID Card, Passport, Secondary School Certificate, Life Insurance Premium Receipt, etc
  • Recent passport-sized photograph
  • Form 16 or ITR proof
  • PAN Card
  • Proof of employment such as salary account statement or an appointment letter
  • Income proof such as salary receipt or bank statement of the last 3 months to 6 months
  • Audited financial reports of the last 2 years if you are a self-employed person

Frequently Asked Questions about Muthoot Personal Loan Rate

Here are the FAQs on personal loan Muthoot Finance and interest rate:

  • 1. Why take personal loans from Muthoot Finance?
    The financial institution offers customer-oriented facilities right from the loan offer to the services given. Competitive rates are offered to all applicants who have a good repayment capacity. The lowest EMI per Rs. 1 lakh is only Rs. 2,327. Other benefits of taking the loan are mentioned below:
    • Repayment schedule and tenure as per your payment capacity.
    • Best loan amount as per your affordability.
    • Tenure is chalked as per the EMAIL you can afford.
    • Lowest interest rate that suits your pockets.
  • 2. How much time does it take for a lending decision?
    If your documentation is in place and you fit the eligibility criteria, then you can expect an approval within a day or two. Sometimes, the lending decision can be taken within a few hours as well.
    • For a faster approval, make sure you provide accurate details in the loan application.
    • You should request for a loan amount as per your repayment ability.
    • You should not be a frequent loan defaulter.
    • You should not have too many outstanding dues.
  • 3. Do you need security to apply for the loan?
    A personal loan is offered without collateral by Muthoot Finance. You do not have to provide any asset or guarantee to avail of the funds.
    • As the loan is unsecured in nature, there is no risk to your assets in case of a loan default.
    • However, it is not advisable to default on the loan or it will lower your credit score.
    • Defaults also attract penalties and increase the total loan cost.
  • 4. How does loan tenure influence the interest payout?
    A shorter tenure will save you on the interest payout. This is because you will be paying the interest for a lesser time. But, the EMIs would be larger. A longer tenure will entail lower EMIs, but the total interest payout would be larger. Depending on your repayment capacity, you must check your EMI affordability, and select tenure accordingly.
    • To lower the cost of loan, choose the shortest tenure.
    • To meet the larger EMIs, you can cut down on expenses that you can avoid.
    • If you still prefer a longer tenure, then ensure timely repayment so that the cost does not increase further.
  • 5. How does the loan amount influence the personal loan rate?
    The borrowing limit is between Rs. 50,000 and Rs. 15 lakhs. The total cost of the loan not only depends on the tenure, but the principal borrowed as well. Lower the loan amount, lower could be the total interest payout, depending on the applied rate and tenure. To lower your liabilities, you must borrow only the fund amount that you need. The amount sanctioned will depend on your age, credit score, repayment capacity, income, and other factors.
    • Loan amount is also directly proportional to your repayment capacity. If you can convince the lender of repaying in time, then you may get the desired loan amount.
    • Taking the lowest possible loan amount will take the financial burden of larger EMIs off your shoulder.
  • 6. How to lower the rate of interest in your loan?
    If you can close your existing loans and boost your repayment capacity, then the financial institution may offer you a better rate. Similarly, if your income increases that may also improve your chances of securing a lower rate of interest.
    • Boost your possibilities by offering collateral. However, the personal loan offered by Muthoot is security-free. Instead, you can choose collateral loans such as a gold loan.
    • Opt for debt consolidation with personal loans to close existing loans. But do so only if you save significantly on the interest payout. The remaining amount can be used for your financial need.
  • 7. What is a processing fee?
    A processing fee is a fee charged by the financial institution to conduct the verification, documentation, loan agreement, and other legal requirements. For this purpose, the processing fee charged by Muthoot Finance is between 2.5% and 3.5% of the principal loan amount. If any taxes are applicable that is charged separately.
    • Mostly, the financial institution may deduct the fee from the principal borrowed, and then disburse the remaining amount.
    • Processing fee is a one-time payment and non-refundable
    • It is charged at the very start of the loan.
  • 8. What is the importance of credit score in a personal loan offer?
    To apply for a personal loan, CIBIL Score of 750+ is preferred. A good credit score depicts that you are creditworthy. A lower credit score increases the risk to loan rejections. A good credit score can also secure you a lower rate on the loan.
    • To maintain a good credit score, you must make timely payments on all the running loans
    • Avoid defaulting on your new personal loan, to keep your credit score stable
    • An excellent credit score will ensure easier access to future loans

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