RBL Bank Personal Loan Interest Rate 4th March 2021
||14% to 23.00%
||12 months to 60 months
||Rs. 1 lakh to Rs. 20 lakhs
||Up to 2% of loan amount + taxes
|Part Prepayment Charges
Allowed after a year from first EMI|
Up to 5% of the outstanding principal
No Charges after 12 regular EMIs, if with own funds
You can foreclose after 12 EMIs|
Up to 5% of the outstanding principal
No Charges if you preclose with own funds
RBL Bank Personal Loan Interest Rate starts from 14%. 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 can choose part-payment or foreclose 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 14.00% and 23.00%.
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 14.00% onward.
No charges for foreclosure and part-payment if done with own funds after the first 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 ends. This way, you can save a good amount on the interest payout. Charges are up to 5% of outstanding principal if done between 13 months and 18 months. Charges are up to 5% of the outstanding principal, if done after 18 months. With this bank, you can make part-payment without charges, after paying the first 12 EMIs.
- 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. Charges are up to 5% of outstanding principal if done between 13 months and 18 months. Charges are up to 5% of the outstanding principal, if done after 18 months. With this bank, you can make part-payment after paying the first 12 EMIs at no charges.
- 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, opt for the shortest tenure possible as 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
||14.00% to 23.00%
|Total Cost: Principal + Interest + Fees and Charges
||Here is an example:
Principal Borrowed: Rs. 1 lakh
Interest Rate: 14.00% to 23.00%
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 14.00% 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 14% over different tenures:
|Personal Loan RBL Bank Interest Amount
|Borrowed amount Rs. 1 lakh at 14.00%
|Principal + Interest = Total Amount to Pay
||Rs. 1.40 Lakh
||Rs. 1.23 Lakh
||Rs. 1.15 Lakh
|Interest Amount Over the Tenure
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.
||5 Years loan
||3 Years loan
||1 Year Loan
|Rs. 5 Lakh
|Rs. 10 Lakh
Here is another illustration of monthly instalments for different loan tenures and borrowing amounts at 14% rate:
|Rs. 3 Lakh
|Rs. 5 Lakh
|Rs. 10 Lakh
The EMI comprises of both principal and interest components. 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 14% 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 Interest Rate
Here are the RBL Bank personal loan FAQs:
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.
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.
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.
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.
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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