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. The interest rates offered by Muthoot Finance for their personal loan schemes are as follows:
|Schemes||Interest rates (p.a.)|
|Muthoot Finance Personal Loan to Landlords||18% to 19%|
|Muthoot Finance Personal Loans||14% to 22%|
Note: Interest rates as on 21st September 2023
Comparison of Personal Loan Interest Rates offered by Various Banks/NBFCs
|Axis Bank||10.49% onwards||Apply Now|
|IndusInd Bank||10.49% onwards||Apply Now|
|IDFC First Bank||10.49% onwards||Apply Now|
|HDFC Bank||10.50% onwards||Apply Now|
|ICICI Bank||10.50% onwards||Apply Now|
|Kotak Mahindra Bank||10.99% onwards||Apply Now|
|Tata Capital||10.99% onwards||Apply Now|
|Bajaj Finserv||11.00% onwards||Apply Now|
|Federal Bank||11.49% onwards||Apply Now|
|DMI Finance||12.00% - 40.00%||Apply Now|
|L&T Finance||12.00% onwards||Apply Now|
|Kreditbee||12.25% - 30.00%||Apply Now|
|MoneyTap||12.96% onwards||Apply Now|
|Piramal Finance||12.99% onwards||Apply Now|
|Aditya Birla||13.00% onwards||Apply Now|
|MoneyView||15.96% onwards||Apply Now|
|Cashe||27.00% onwards||Apply Now|
Factors influencing Muthoot Finance Personal Loan Interest Rates
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 loan applicants’ chance of availing lower Muthoot Finance Personal Loan interest rates.
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.
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 government are usually offered lower interest rates as their job and income security is 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.
Tips to avail Personal Loans at Low Interest Rates
- Maintain credit scores of 750 or above.
- Find out if any lender(s) is offering pre-approved personal loans and check each offer thoroughly.
- Keep yourself updated on the personal loan interest rates of top banks/NBFCs especially during festive seasons.
- Check if your existing lender(s), with whom you share a banking/lending relationship, can offer concessions on personal loan interest rates.
- Visit one or more online financial marketplaces to check and compare Muthoot Finance’s Personal Loan interest rates with the interest rates offered by other lenders.