Personal loans have grown in popularity as a financial instrument for many people looking to finance a range of expenses, such as debt consolidation, weddings, home improvements, and medical crises. One of the top public sector banks in the nation, the Central Bank of India, provides personal loans with varying terms and conditions. But before choosing a choice, it's important to know what influences the interest rates on these loans.
Central Bank of India Personal Loan Interest Rate Details 2024
The Central Bank of India is now offering personal loans with interest rates as low as 12.00% p.a. to 12.75% p.a. per year for terms up to seven years and loan amounts up to Rs 15 lakh. Pensioners can apply for personal loans from the Central Bank of India under the "Cent Pensioners" plan at a rate of 10.95% per year.
| Particulars | Details |
|---|---|
| Interest Rate | 12.00% - 12.75% |
| Loan Amount | Up to INR 15 Lakhs |
| Tenure | Up to 7 years |
| CIBIL Score | 750 and Above |
Advantages of Central Bank of India Personal Loan
The Central Bank of India provides various benefits along with affordable interest rates for personal loans. The following are some main advantages:
- Competitive Interest Rates - Borrowers can afford personal loans because of the Central Bank of India's competitive interest rates. Reduced monthly EMIs and total interest expenses result from reduced interest rates.
- Flexible Loan Amounts and Tenure - Depending on their preferences and financial circumstances, borrowers can select between fixed and fluctuating interest rates. While floating rates may be advantageous to borrowers in the event that market rates decline, fixed rates provide EMIs with predictability.
- Prepayment and Foreclosure Options - The bank provides numerous choices for foreclosure and prepayment, enabling consumers to pay back their loans early and maybe avoid paying large fines. This could result in interest savings.
- Transparent Policies - Better financial planning is facilitated by the bank's open rules on interest rates, which guarantee there are no unanticipated adjustments or hidden fees.
Factors Affecting Central Bank of India Personal Loan Interest Rate
For every salaried and self-employed individual who has been granted approval to apply for a Central Bank India personal loan, the interest rates stay the same. In the field of finance, interest rates are a highly debated topic. Numerous factors could impact the approval process, such as:
- Credit score: The majority of lenders in the market use a person's credit score to determine their creditworthiness. Competitive interest rates are available for loans to borrowers with good credit scores.
- Income level: People with larger and more consistent incomes are likely to get better interest rates. Due to a larger default risk, those with lower incomes may pay higher interest rates.
- Loan Tenure: Shorter-term loans could have marginally lower interest rates. Since the bank is exposed to more risk, longer loan terms may have higher interest rates.
- Negotiation skills: Banks frequently provide promotional programs with lower interest rates. Lower rates could be advantageous to borrowers at these times.
Calculating EMIs on Central Bank of India Personal Loans at Different Interest Rates
To quickly and simply calculate your EMIs for a personal loan from the Central Bank of India, use the Wishfin online Central Bank of India Personal Loan EMI Calculator.
You can simply put the following details -
- Loan Amount
- Tenure
- Interest Rate
The equal monthly payments (EMIs) for a ₹5,00,000 personal loan with interest rates ranging from 12.00% to 12.75% per annum for terms of one to five years are shown in the table below. To better meet your needs, you can modify the loan amount and other information.
|
Tenure (In Years) |
EMI (at 12.00% interest rate) |
EMI (at 12.75% interest rate) |
|---|---|---|
|
1 |
₹44,424.39 |
₹44,612.73 |
|
2 |
₹23,537.74 |
₹23,724.97 |
|
3 |
₹16,607.15 |
₹16,799.85 |
|
4 |
₹13,167.92 |
₹13,364.17 |
|
5 |
₹11,122.22 |
₹11,325.41 |
What Should You Do to Fetch the Lowest Interest Rate from the Central Bank of India?
Before applying for a personal loan, you should think about the following crucial factors:
-
Maintain a Good Financial Profile:
-
Stable Income: Lower interest rates can be obtained with a consistent and substantial income.
-
Employment Stability: Maintaining a longer relationship with your present employer or having a stable business increases your trustworthiness.
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Saves and Investments: A healthy portfolio of saves and investments demonstrates stability and financial discipline.
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Stay Informed About Policy Changes: The repo rate of the Reserve Bank of India (RBI) affects central bank interest rates. Keep abreast of the RBI's pronouncements regarding favorable conditions.
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Check your Credit Score or CIBIL Score: Before making a personal loan application always check your credit or CIBIL Score. Your loan application may be denied if you have a low credit score.
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Evaluate the Cost: Always consider the loan's entire cost which includes, processing fees and several other charges that apply to the personal loan application.
Documents Required for Central Bank of India Personal Loan
Here are the documents required to apply for the personal loan under Central Bank of India-
- Identity Documents: Driver's license, passport, PAN card, voter ID card, and Aadhaar Card.
- Address Proof: It includes a sale deed or property purchase agreement (if owned properties), a bank account statement, a passport, a driving license, an electricity bill, a telephone bill, and an Aadhaar card.
- Income Proof: It includes bank account statements, salary slips, an ITR, a Form 16, etc.
Other Charges of Central Bank of India Personal Loan
The following are extra costs that apply when applying for a Central Bank of India personal loan:
|
Processing Fee |
Up to 1% of the loan amount Defence Personnel - NIL |
|
Documentation Charges |
Up to Rs.2 lakh- Rs.270/- + GST Above Rs.2 lakh- Rs.450/- + GST For Defence Personnel: NIL |
Central Bank of India Personal Loan Balance Transfer Interest Rates
Go for a personal loan balance transfer and enjoy the lower interest rates offered by the Central Bank of India. Yes, by transferring your existing loan to the Central Bank of India Personal Loan, you would be able to reduce your EMI and Interest outgo burden in a hassle-free manner. Want to see the benefits of a balance transfer? Well, you can see the same through an example.
Example –If you have a personal loan of INR 10 lakh for 5 years at an interest rate of 14.99% per annum. After 3 years, you feel the need to reduce your obligations and want to switch your outstanding balance to Central Bank of India at 10.60%, you can do so and save interest of around INR 22,000. Check the table to know how you will have such savings.
| Particulars | Details |
|---|---|
| Loan Amount | INR 10,00,000 |
| Interest Rate | 14.99% |
| Tenure | 5 years |
| EMI for 14.99% | INR 23,785 |
| Total Interest Payment for 14.99% | INR 4,27,081 |
| Paid Interest | INR 3,46,838 |
| Outstanding Balance | NR 4,90,588 |
| EMI @10.60% for the Remaining 2 Years | INR 22,774 |
| Interest @10.60% Over 2 Years | INR 55,994 |
| Paid Interest + Interest Payment @10.60% | INR 4,02,832 |
| Savings on EMI | INR 1,011 |
| Total Interest saved | INR 24,249 (4,27,081-4,02,832) |
Compare Personal Loan Interest Rates from Different Banks
Below is a table showing the personal loan interest rates from various banks for 2024 to help you make the best choice.
FREQUENTLY ASKED QUESTIONS
1. What is the interest rate of a personal loan in the Central Bank of India?
The interest rate of the Central Bank of India for the personal loan is 12.00% p.a. - 12.75% p.a.
2. What is the minimum credit score for a personal loan from the Central Bank of India?
The minimum credit score required for applicants seeking personal loans has not been set by the Central Bank of India. On the other hand, candidates who have credit scores of 750 or higher typically stand a better chance of obtaining a personal loan at a reduced interest rate.
3. Can I choose between fixed and floating rates of interest?
You can choose between floating and fixed rates of Interest. Also, it is possible to switch from floating to fixed, and vice versa. However, certain charges may be applicable.
4. Can I take a personal loan from the Central Bank of India even if I have other existing loans?
Yes. Even if you already have other debts, you can apply for a personal loan from the Central Bank of India. However, your net take-home pay must equal at least 40% of your gross take-home pay after you have paid all monthly installments, including the loan for which you have requested.
5. How to get the lowest interest rate on a personal loan?
Here are some factors that can help you get a low interest rate on your personal loan:
- Improve your credit score
- Avoid missing repayments
- Low debt-to-income ratio
- Consistent income
- Negotiate with the bank
- Special schemes and offers