Muthoot Finance Personal Loan Interest Rates

The interest rates for Muthoot Finance Personal Loans range between 14% and 22% p.a. Muthoot Finance has not specified offering differential personal loan interest rates based on the monthly income, occupation profile, existing EMIs from ongoing debt obligations (if any), work experience, employer’s profile, etc. for its personal loan applicants, most banks and NBFCs consider these factors while deciding their personal loan interest rates.

Credit Scores

Muthoot Finance decides its personal loan interest rates based on the credit scores of loan applicants as the lender offers lower interest rates to applicants with higher credit scores. However, the lender has not disclosed its personal loan interest rate matrix based on the loan applicants’ credit scores.

Personal loan applicants can maintain/improve their credit scores by following healthy credit practices like repaying their EMIs on time, maintaining an optimum credit mix, avoiding multiple loan/credit card applications within short durations, etc. Doing so can help loan applicants maintain higher credit scores and thereby, improve their personal loan eligibility. Personal loan applicants should review their credit reports regularly to identify any error and notify their lender/credit bureaus for rectification. Error(s) in a credit report can reduce the credit scores and thereby, adversely affect the personal loan applicant’s eligibility. Lower credit scores also reduce the loan applicants’ chance of availing lower Muthoot Finance Personal Loan interest rates.

Income

Muthoot Finance has not disclosed offering differential personal loan interest rates based on the income of its loan applicants. However, many lenders provide lower interest rates on personal loans for applicants having higher monthly/annual incomes. This is because personal loan borrowers with higher incomes usually have higher repayment capacity that helps to reduce the credit risk for their lenders, who can then pass on this benefit to their borrowers in the form of lower interest rates.

Occupation Profile

Muthoot Finance provides personal loans to the following categories of loan applicants:

• Salaried individuals working in public sector units and reputed organisations
• Self-employed individuals having a regular verifiable source of income

While Muthoot Finance has not specified providing distinctive personal loan interest rates based on their employer profile, many banks/NBFCs consider its loan applicants’ employer profile while finalising the interest rate on their personal loans. Lenders usually offer lower interest rates on personal loans for salaried as compared to personal loans for self-employed. Within salaried personal loan applicants, those working for PSUs or the government are usually offered lower interest rates as their job and income security are usually higher compared to other salaried individuals. Lenders also provide personal loans at lower interest rates to loan applicants working in MNCs or reputed private sector companies because of their enhanced capacity of withstanding economic downturns compared to other private sector organisations.

Existing Relationship with Muthoot Finance

Even though Muthoot Finance has not disclosed offering lower personal loan interest rates to its existing customers, several lenders offer lower interest rates on personal loans to loan applicants already having deposit or lending accounts with them. Hence, individuals planning to avail Muthoot Finance Personal Loans should first get in touch with lenders with whom they have existing banking/lending relationships and then, compare the interest rates offered by those lenders with the interest rates on Muthoot Finance Personal Loans.