Home Credit Personal Loan Interest Rates
|Personal Loan||2% per month onwards|
|Flexible Personal Loan||24% – 56.5% p.a.|
Note: Interest rates as of 4th October 2023
The final interest rates offered for Home Credit Personal Loan may vary according to the type of personal loan scheme chosen, credit score, monthly income, job profile, employer’s profile, etc. of the loan applicant.
What are the Factors Influencing Home Credit Personal Loan Interest Rate?
While Home Credit India has not disclosed its different interest rates for Home Credit Personal Loan based on the credit score, income, occupation profile, employer’s profile, etc of the loan applicant, most banks/NBFCs consider these factors when setting personal loan interest rates of their loan applicants.
Let us discuss the prime factors influencing personal loan interest rates in detail.
Many banks and NBFCs consider the credit score of their personal loan applicants while fixing their interest rates. Such lenders usually offer lowest personal loan interest rates to those having higher credit scores. Thus, consumers should try to improve their credit scores by paying your credit card bills and EMIs by their due date. They should also check their credit reports at regular intervals to ensure that your credit report is free of any errors.
Also Read: How you can build or rebuild your credit score with Step UP Credit Card co-branded with SBM Bank India Ltd.
While Home Credit India has not disclosed the different personal loan interest rates based on its applicants’ income, many lenders follow the practice of offering personal loans at preferential interest rates to loan applicants with higher monthly incomes. For such lenders, personal loan applicants with higher incomes present a lower credit risk due to their higher loan repayment capacity.
Lenders also consider the employer profile of their personal loan applicants when setting interest rates for them. Lenders offer personal loan for salaried at lower interest rates compared to personal loan for self-employed. What’s more, salaried applicants of government and PSUs are offered lower interest rates due to higher income and job security. Similarly, the employees of reputed private sector organizations and MNCs are also offered lower interest rates on personal loans for the same reason.
Relationship with the Lender
Lenders preferring personal loans at concessional interest rates to applicants having an existing lending or deposit account with them. For that reason, the best course of action is to contact banks/NBFCs with whom you already have an existing banking/lending relationship, when planning to avail personal loan.
How to Avail Personal Loans at Lower Interest Rates?
- Maintain a credit score of 750 or above.
- Regularly check for pre-approved personal loan offers from banks and NBFCs.
- Check financial marketplaces to check and compare personal loan offers from different banks.
- Keep track of personal loan interest rates offered by top banks/NBFCs, especially during festive seasons.
- Check with banks/NBFCs with whom you have deposit or loan accounts.