The Central Bank personal loans help you secure financial assistance up to INR 20 lakhs for up to 7 years. The interest rates of personal loans from the Central Bank start from 12% p.a to 12.75% p.a. You may qualify for a loan even with a CIBIL score of 650, which sets CBI loans apart from other banks that have stricter requirements. You have to pay a processing fee of 1% of the loan amount + GST.
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Central Bank Personal Loan Interest Rate
Central Bank of India personal loan interest rates depend on various factors. These include the loan scheme, loan amount, repayment tenure, and credit history, determining the exact interest rates applicable to your loan.
The bank offers personal loans under two different schemes. One is to meet domestic expenses under the Cent Personal Loan Scheme. The other is for pensioners to meet their expenses under the Cent Pensioners Personal Loan Scheme. Both schemes offer competitive and attractive interest rates.
| Loan Scheme | Details | Interest Rate |
| Cent Personal Loan | – Loan up to INR 20 lakhs- Loan tenure is 7 years- Minimum salary should be INR 15,000 per month | 12% p.a to 12.75% p.a(RBLR + CRP) |
| Cent Pensioner Loan | – Loan up to INR 10 lakhs- Loan tenure is 5 years- No processing is fee required | 9.85% p.a onwards |
Also Read: Want to take an education loan? Know all about student loan interest rates, calculations, and factors affecting.
Cent Personal Loan Interest Rates
As per the bank’s official website, the personal loan interest rate on this scheme starts from 12% p.a. The present interest rate is 12.75% p.a, which is calculated as the sum of RBLR and CRP.
RBLR refers to the Repo-rate Based Lending Rate, which is set by the Reserve Bank of India. Central Bank of India’s RBLR is 9.35%. CRP refers to Credit Risk Premium which is an additional interest rate charged. It covers any additional risk for the lender in case of failure to repay the loans. CRP ranges from 2.65% to 3.40%.
Thus, Central of India Personal Loan interest rate = RBLR + CRP (9.35% + 2.65%/ 3.40%) = 12% to 12.75% p.a.
Cent Pensioner Personal Loan Interest Rates
The interest rates on the Central Bank of India’s personal loan scheme for pensioners are comparatively low. They start from 9.85% p.a onwards.
Also Read: Check out the key highlights of Central Bank education loan to study abroad. Know the eligibility criteria, documentation, and application process.
Factors Affecting Personal Loan Interest Rates
Different loan schemes have different interest rates. However, other factors like loan amount, repayment tenure, and credit history also influence the interest rates on personal loans from the Central Bank of India.
- A higher loan amount means high risk for the lender and a lower loan amount means less risk. Thus, interest rates are directly related to the amount of loan you wish to borrow.
- Similarly, if the loan is borrowed for more number of years, the risk factor is high. Such cases usually have higher interest rates than personal loans borrowed for fewer years.
- A higher credit score indicates a positive repayment history. Such applicants are entitled to lower interest rates on CBI personal loans. A personal loan with a low CIBIL score will have higher interest rates.
Make sure to also consider other factors like monthly income and relationship with the lender. A higher income and positive terms with the lender make you eligible for interest concession. It is also important to compare the interest rates on personal loans from other banks.
FAQs
The Central Bank personal loan interest rates start from 9.85% p.a for the Pensioner loan scheme. Interest rates range from 10% to 12.75% p.a for the Cent Personal loan scheme.
The Central Bank personal loan interest rates are calculated as the sum of RBLR and CRP. RBLR (Repo-rate Based Lending Rate) is set at 9.35% and CRP which is the Credit Risk Premium ranges from 2.65% to 3.40%.
Factors like loan amount, repayment tenure, and credit history influence the interest rates on personal loans. Other factors like monthly income and relationship with the bank also determine the exact ROI on loans.
The maximum loan that can be availed under the Cent Personal Loan scheme is up to INR 20 lakhs for 7 years. Pensioners can take a personal loan of up to INR 10 lakhs for 5 years.
Interest rates on personal loans up to INR 2 lakhs usually start from 10% p.a. It is different for different lenders.
