Personal Loan Interest Rates

A good interest rate for a personal loan typically ranges from 10% to 12%.

The interest for 5 Lakhs loan in HDFC bank will depend on the loan tenure and the rate of interest. For instance, if the interest rate is 11% and the loan tenure is 3 years, then the total interest payable would be Rs. 89,297.96.

Credit history - Before a personal loan is approved, the bank or lender will evaluate your credit score to understand your creditworthiness. A credit score is a 3-digit number that showcases an individual’s credit history based on their repayment track record and other credit usage factors. The higher the credit score the better the chances of a lower interest rate on a personal loan.