RBL Bank Personal Loan Interest Rate

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RBL Bank Personal Loan Interest Rate 29th November 2020

Interest Rate 13.99% to 18.00%
Loan Tenure 12 months to 60 months
Loan Amount Rs. 1 lakh to Rs. 20 lakhs
Processing Fee Up to 2% of loan amount + taxes
Part Prepayment Charges No part prepayment allowed
Preclosure Chargese You can foreclose after 12 EMIs
No Charges if you preclose with own funds

RBL Bank Personal Loan Interest Rate starts from 13.99%. The lowest EMI for Rs. 1 lakh is Rs. 2,326 when borrowed on the lowest rate and for 60 months tenure. The loan amount is between Rs. 1 lakh and Rs. 20 lakhs. You can apply for this loan if you are salaried or a self-employed professional. People from the age group of 25 years to 60 years can avail the funds. The processing fee is up to 2% of the loan amount + taxes. You are not allowed to make part prepayment, but allowed to preclose the loan.

In the post below we will discuss about RBL Bank Personal Loan features, other charges, factors that influence the rate of interest, illustration of loan’s total cost, interest calculation, EMI calculation, and frequently asked questions.

Features of RBL Bank Personal Loan Rate

Here are the features:

  • You can take a personal loan for expenses such as child’s education, debt consolidation, home repair, medical emergency, travel, big-ticket purchase, and a lot more.
  • The interest rate applicable is between 13.99% and 18.00%.
  • The processing fee is up to 2% of the loan amount + taxes.
  • You can avail discounted offers and lower rates of interest if working for a bank, reputed company, or government body.
  • You can take a top-up loan on existing loan at 13.99% onward.
  • You cannot make part prepayment, but foreclose the loan after 12 EMIs.

RBL Bank Personal Loan Fees and Charges

You need to know about the other fees and charges apart from the interest rate. This will help you calculate the total cost of the loan. It will also help you take an informed decision on the borrowing.

  • Processing Fee: This is a non-refundable fee that the bank charges for all the legal procedures. RBL Bank charges up to 2% of the principal borrowing amount along with taxes. This fee is added to the first EMI or subtracted from the disbursal amount.
  • Foreclosure Charges: You can preclose the loan before the tenure. This way, you can save a good amount on the interest payout. With this bank, you can preclose the loan after paying the first 12 EMIs. There are no charges for foreclosure if you pay through own funds.
  • Part Payment Charges: You can partly pay the loan before the end of tenure. This will reduce the interest outgo. There are no part payment charges by the bank.
  • Other Charges: After the bank sanctions the loan, it will provide you a statement of charges and fees. These charges could be circumstantial. For instance, you may have to pay additional charges on EMI cheque bounce, late payment, loan cancellation, etc.

Factors that Influence RBL Bank Personal Loan Interest Rate

The bank will assess your financial liabilities, loan amount, tenure, employment information, monthly income, credit history, and other factors to determine a rate of interest. Here are a few factors that the lender will consider:

  • Loan Amount: You can borrow between Rs. 1 lakh and Rs. 20 lakhs. The bank may offer a lower interest on a higher loan amount, and vice-versa.
  • Salary: If you belong to a higher salary bracket, then the bank may provide a lower rate and higher loan amount. The lending institution will analyse your current financial liabilities and monthly income to understand your ability to repay the loan.
  • Loan Tenure: The interest rate depends on the tenure as well. You can choose tenure between 12 months and 60 months. A shorter tenure will attract a lower interest outgo, and vice-versa. So, if possible, opt for the shortest tenure possible as per your ability to pay the EMI.
  • Repayment Capacity: To check your EMI affordability, the bank will review your repayment capacity. For this, it will check your CIBIL score and report. The credit report and score will give the lender a clear idea about your previous repayment track record such as payment for credit card bills and EMIs. A higher CIBIL score will help you negotiate for a lower interest rate.
  • Employer Category: The bank may prepare an internal list of companies rated from high to low. This rating is based on the organization’s size, reputation, and relationship with the bank. If you work for a firm with a higher rating, then the bank may apply a better rate of interest.
  • Relationship with the Bank: Best rates are offered to borrowers who have an existing account with the bank or a proven good track record for loan repayments. The loyal customers may even receive pre-approved offers and discounted charges.

Personal Loan RBL Bank Total Cost

Annual Percentage Rate 13.99% to 18.00%
Total Cost: Principal + Interest + Fees and Charges Here is an example:
  • Principal Borrowed: Rs. 1 lakh
  • Interest Rate: 13.99% to 18.00%
  • Tenure: 12 months to 60 months
  • Processing Fee: Up to Rs. 2,000 or up to 2% of the principal amount + tax
  • Fee to Loanbaba: No fee
  • Total Instalment: If you borrow Rs. 1 lakh at 13.99% for 60 months tenure, then the EMI is Rs. 2,326. If you borrow the same amount at 18.00% and for 12 months, then the EMI is Rs. 9,168
  • Total Cost Over Tenure: For 60 months, the interest payout is Rs. 0.42 lakh. For 12 months, the interest outgo is Rs. 12,016

RBL Bank Personal Loan Interest Calculation

Here is an illustration of interest outgo for Rs. 1 lakh at 13.99% over different tenures:

Personal Loan RBL Bank Interest Amount 5 years 3 years 2 years
Borrowed amount Rs. 1 lakh at 13.99% Rs. 2,326 Rs. 3,417 Rs. 4,801
Principal + Interest = Total Amount to Pay Rs. 1.40 Lakh Rs. 1.23 Lakh Rs. 1.15 Lakh
Interest Amount Over the Tenure Rs. 39,560 Rs. 23,012 Rs. 15,224
  • It is evident from the above illustration that the EMI is lower for a longer tenure, and vice-versa. The interest payout however is higher for a longer tenure.
  • For instance, for Rs. 1 lakh loan on 60 months tenure, the monthly instalment is Rs. 2,326. The interest payout is Rs. 39,560 for the same borrowing amount.
  • For 2 years borrowing of the same loan amount, the EMI is Rs. 4,801. The interest payout in this case is lower Rs. 15,224.

RBL Bank Personal Loan EMI Calculation

The lowest EMI per Rs. 1 lakh is Rs. 2,362 on personal loan RBL Bank. The monthly instalment depends on the tenure, loan amount, rate of interest, your monthly income, and other employment information. EMI is equated monthly instalment. You need to pay this fixed amount on a fixed date every month till end of tenure.

Loan Amount 5 Years loan 3 Years loan 1 Year Loan
Rs.1 Lakh Rs. 2,326 Rs. 3,417 Rs. 8,978
Rs. 5 Lakh Rs. 11,632 Rs. 17,086 Rs. 44,891
Rs. 10 Lakh Rs. 23,263 Rs. 34,173 Rs. 89,782

Here is another illustration of monthly instalments for different loan tenures and borrowing amounts at 13.99% rate:

Loan Amount 5 Years 3 Years 2 Years
Rs.1 Lakh Rs. 2,326 Rs. 3,417 Rs. 4,801
Rs. 3 Lakh Rs. 6,979 Rs. 10,252 Rs. 14,402
Rs. 5 Lakh Rs. 11,632 Rs. 17,086 Rs. 24,004
Rs. 10 Lakh Rs. 23,263 Rs. 34,173 Rs. 48,008
  • The EMI comprises of both principal and interest component. As you keep paying the EMIs, the interest component reduces, and the principal proportion increases.
  • It is evident from the above example that different loan amounts taken at 13.99% rate, the EMI will vary at different tenures.
  • The monthly instalment is higher on a shorter tenure, and vice-versa. But the interest payout is a lot lower when compared to that for a longer tenure.

Frequently Asked Questions About RBL Bank Personal Loan

Here are the RBL Bank personal loan FAQs:

  • 1. How to get the best RBL personal loan interest rate?
    To get a better interest rate, you should have a good repayment capacity, high credit score, great relationship with the bank if possible, and sufficient monthly income or disposable income. The bank will review all these details, and check your fulfilment of the eligibility criteria. Then it will analyse your ability to afford the EMIs, tenure, and loan amount before determining the interest rate.
  • 2. How much can you borrow?

    The amount you can borrow from RBL Bank as a personal loan is between Rs. 1 lakh and Rs. 20 lakhs. As the loan amount influences the total borrowing cost, you must borrow only the amount you need. The loan amount you are eligible for will also be decided by the bank. You can either borrow the maximum loan amount you are eligible for, or a lower amount

  • 3. How much is the processing fee?

    The processing fee is up to 2% of the loan amount. The tax is applicable separately. This is non-refundable amount. So, even if you cancel the loan later, this fee will not be refunded to you. This charge is for legal and other procedures that the bank undertakes to process your loan application. This amount is subtracted from the disbursal amount or added to the first EMI.

  • 4. How long is the tenure?

    The tenure is between 12 months to 60 months. The bank will let you know the tenure as per your repayment capacity. A shorter tenure will mean a lower interest payout but a higher EMI, and vice-versa. You save the most on the total cost of the loan if the borrowing is for a shorter tenure.

  • 5. What is the importance of CIBIL Score?

    Your CIBIL score should be greater than 750 and nearer to 900 for a personal loan. A good credit score signifies that you have a good repayment capacity. If you prove to the bank that you can afford the EMIs, then you will be offered the best possible interest rate, loan amount, tenure, and lower charges.

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