The Ratnakar Bank Limited or RBL is a renowned private bank in India which offers a range of banking and financial services such as personal loans, RBL education loans, savings accounts for students etc. RBL Bank’s personal loan interest rate is quite affordable and competitive in the market. You can apply for it at a low interest rate and can even negotiate for it if your credit score is very high. Let’s know about it in detail and find out how exactly it is determined by the bank.
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What is RBL Bank’s Personal Loan Interest Rate?
RBL Bank provides personal loan customers with a competitive interest rate of 18% per annum. The interest rate on a personal loan here may seem high but there are several factors which should be considered while applying such as approval time, CIBIL score, repayment period etc. If you have an account with RBL Bank, you can also make RBL Bank international money transfer with the amount of the loan.
The bank approves the loan within a few hours and the funds are transferred directly to your account. You can get an RBL Bank personal loan for any type of requirement such as medical emergencies, home renovations, education, travel etc while keeping the repayment obligations manageable.
Also Read: Moving abroad for higher studies? Check here all about RBL Bank Forex card and manage your expenses properly
RBL Bank Personal Loan Interest Rate Calculation
There might be a question hitting your mind about how the banks calculate interest rates and why it may differ from customer to customer. Let’s understand the process. The interest rate on any type of loan depends upon a lot of factors such as credit score, repayment history, loan amount, repayment period etc.
The bank uses EBLR (External Benchmark linked Lending Rate) and the spread to determine the effective rate of interest. It also varies based on the credit score of the applicant. Usually, a personal loan with low CIBIL score attracts a high rate of interest but if you have an excellent score, you may get a low rate of interest.
Factors Affecting RBL Bank Personal Loan Interest Rate
Several factors influence the personal loan interest rate offered by this bank. These factors help determine the borrower’s risk profile and the bank’s willingness to extend credit at a specific rate. Some of the major factors affecting this bank’s personal loan interest rate are as follows:
- A higher credit score reflects strong creditworthiness which increases the chances of securing a lower interest rate.
- The loan amount also influences the interest rate. Larger loan amounts might attract lower rates if the borrower has a strong repayment capacity.
- Applicants with a stable and high income are generally seen as low-risk borrowers, and they are more likely to receive lesser interest rates.
- Salaried individuals employed by reputable organisations may receive better interest rates compared to self-employed individuals or those in unstable professions.
- The length of the loan repayment period can also impact the interest rate. Shorter tenures may have higher rates and longer tenures may offer lower rates, depending on the borrower’s repayment capacity.
- A lower debt-to-income ratio indicates that a borrower is not overly burdened by existing debts which ultimately improve the chances of receiving a better interest rate.
Also Read: Studying abroad with an education loan? Check here all about income tax rebate on education loan.
RBL Bank offers personal loans at affordable interest rates. Check all the features of the loan before initiating the application process. Go through some of the common FAQs based on the same below.
FAQs
RBL Bank offers personal loans at a competitive interest rate of 18% per annum. This rate may vary depending on factors such as the borrower’s credit score, income, and loan amount.
Yes, you can negotiate the interest rate if you have a high credit score. Borrowers with excellent credit scores are likely to get a lower rate compared to those with a lower credit profile.
The interest rate is determined based on factors like the applicant’s credit score, loan amount, income level, and loan tenure.
Some of the major factors include the applicant’s credit score, income stability, loan amount, repayment period, and employment status.
RBL Bank offers quick approval for personal loans, usually within a few hours. Once approved, the loan amount is directly transferred to the borrower’s account.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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