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Rates updated as on 23 June 2025.
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Rates updated as on 23 June 2025.
Lenders offer loans to applicants whose total EMI is within 50-60% of their total monthly income. This also includes their existing EMI and the EMIs for new loans. As a result, applicants exceeding this income limit have less chances of availing personal loans. However, consumers can easily reduce their EMI/NMI ratio and improve their eligibility for availing other loans by prepaying their existing personal loans.
Consumers availing personal loans can also save on their interest costs by prepaying the loan amount that they would have otherwise incurred during the loan tenure. For instance, if you availed a personal loan of Rs 10 lakh at 13% p.a. And repayment tenure of 5 years, then the EMI would be Rs 22,753 and total interest would be Rs 3.65 lakh. However, consumers can easily save on the cost of up to Rs 2.44 lakh if they repay the outstanding personal loan after a year.
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Many borrowers exhaust their existing investments to prepay their personal loans, which in turn, affects their emergency funds that they save for various emergency situations. Exhausting the existing investments can force the borrowers to avail personal loan at higher interest rates to meet their financial needs or emergencies. In that case, consumers should consider reducing their prepayment burden and cost of interest by using the personal loan balance transfer facility and transfer their existing loan to lenders offering lower personal loan interest rates.
IndusInd Bank charges a prepayment fee of up to 4% after the payment of 12 EMIs plus applicable taxes. Borrowers who want to pre-close their personal loan accounts can do so by paying the prepayment charges, which will however, reduce their interest cost savings. For that reason, consumers who want to prepay their personal loans should consider opting for it only if their net savings are significant enough after accounting the prepayment charges.
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Paisabazaar is a loan aggregator and is authorized to provide services on behalf of its partners.
The APR (Annual Percentage Rate) of a personal loan is its annualised cost of borrowing, which includes the interest rate as well as the processing fees, documentation fees and other fees charged during the loan origination. The APR is expressed in the form of a percentage and thus, allows personal loan applicants to detect personal loan schemes offered at lower interest rates but with higher processing fees and/or other charges.
The APR of personal loans usually ranges between 11.29% to 35%. For example, assume that you have availed a personal loan of Rs. 5 lakhs @ 10.50% p.a. with a repayment tenure of 5 years. The processing fee charged for this loan is 1.5% of the loan amount, which amounts to Rs 7,500. Therefore, the total borrowing cost of your personal loan will be Rs 1,52,317 and its APR will be 11.16%.
Address: Paisabazaar Marketing & Consulting Pvt. Ltd. 135 P, Sector 44, Gurugram (HR) 122001
Get up to ₹50 Lakhs starting at 9.98%*
Get up to ₹50 Lakhs starting at 9.98%*

Get up to ₹50 Lakhs starting at 9.98%