Muthoot Finance Personal Loan Interest Rates

Last Updated : Aug. 27, 2024, 12:51 p.m.

Want to raise funds for your personal needs but not find an ideal solution for it? Worry not, because, with the help of a personal loan from Muthoot Finance, you can manage all your financial problems. Muthoot Finance offers a competitive interest-rate personal loan facility with flexible repayment options.

Muthoot Finance Personal Loan Interest Rates August 2024

The interest rate on their personal loan is one of the biggest factors that set them apart from others in the current financial market. You can look at the various details of the Muthoot Finance Personal Loan Facility in the table given below.

Advantages of Muthoot Finance Personal Loan

Here are some of the advantages of Muthoot Finance Personal Loan that could be beneficial for you while availing of the personal loan -

• Affordable interest rates - Muthoot Finance offers competitive and affordable interest rates on personal loans , which makes borrowing less expensive for the customer. Lower interest rates mean smaller monthly installments and reduced overall loan costs, allowing borrowers to manage their finances more effectively.

• Quick Processing - Muthoot Finance is known for its swift loan approval and disbursal process. This quick processing can be extremely advantageous for borrowers who need funds in emergencies or urgent needs.

• Flexible Repayment Options - The repayment flexibility allows customers to choose how they would like to repay their loans. Muthoot Finance offers a variety of repayment plans, including structured EMIs and the option to repay early without hefty penalties. This flexibility is essential for individuals who may face varying financial situations and need the ability to adjust their payment schedules accordingly.

• Long Tenure - The availability of a long repayment tenure, up to 60 months (5 years), offers significant advantages. With a longer tenure, borrowers can opt for smaller monthly installments, which could easily be repaid each month.

Factors Affecting Muthoot Finance Personal Loan Interest Rates

Before applying for a personal loan online, it's essential to understand the various criteria that can affect your loan eligibility. Some key factors include:

• Repaying Capacity: If you're already repaying other debts, it may impact your ability to take on a new loan. Having outstanding credit obligations could reduce your chances of getting approved or limit the amount you can borrow.

• Income: Your income plays a crucial role in determining your loan eligibility. Higher-income typically means a greater capacity to repay, which could increase the loan amount you're qualified for. Your income level directly affects your borrowing power.

• Current Employer: The organization you work for is another important factor in loan eligibility. Being employed by a reputable and well-established company signals financial stability to lenders, making you a more attractive borrower.

• Credit History and Credit Score: Perhaps the most influential factor in your personal loan eligibility is your credit history and credit score. Lenders will assess your past borrowing behavior to determine the interest rate, loan tenure, and loan amount you qualify for. A strong credit history and high credit score can significantly enhance your loan options.
  
• Age of the borrower: Many lenders have eligibility criteria related to the applicant's age, which can also affect the interest rate offered on a personal loan. Borrowers nearing retirement typically have a limited earning period, while younger individuals at the start of their careers may lack a solid credit history and financial stability. As a result, both groups are often subject to higher interest rates due to the perceived higher risk by lenders.

What Should You Do to Fetch the Lowest Interest Rate from the Muthoot Finance?

Those who follow the guidelines below can obtain a Muthoot Finance personal loan with a lower interest rate:-

• Maintain Your Credit Score - Maintaining a high credit score or CIBIL of 750 or above is crucial to securing lower interest rates on personal loans. A good credit score reflects your financial responsibility and repayment history, making you a low-risk borrower in the eyes of lenders.

• Keep Yourself Updated - Staying updated on Muthoot Finance's latest offers and market trends can help you apply for a loan during lower interest rate periods or promotions, reducing borrowing costs and charges, and allowing for more strategic decisions.

• Maintain a Low Debt-to-Income Ratio: Keep your existing debt low relative to your income. A lower debt-to-income ratio indicates good financial health and lowers the lender's risk, which eventually improves your chances of receiving lower interest rates.
  
• Use Your Salary Account - Using your salary account for loan repayments can help you get a lower interest rate. Muthoot Finance may consider this a sign of stability and reliability, especially if your salary account has a consistent inflow of funds. Additionally, having your loan repayments linked to a salary account may lead to preferential rates, as it reduces the risk of missed payments .

Documents Required for Muthoot Finance Personal Loan

The following documents must be submitted to apply for a personal loan from Muthoot Finance Personal Loan:

• Identity proof (Aadhaar card, voter ID card, driver's license).
• Address proof (Aadhaar card, passport, utility bills, voter identification card)
• Bank statement of the last three months (passbook of the previous six months).
• Three recent salary slips (Mandatory)

List of documents required for Salaried Applicants

Along with the other documents, you must provide extra documents as part of your personal loan documentation. A personal loan requires the following documents:

• Salary slips from the last three months.
• Income Tax Returns, or Form 16

List of Documents Required for Self-Employed Applicants

If you are self-employed, you must submit business-related paperwork. Here's a list of documents needed for a personal loan:

• Photo proof Identity
• Proof of Address
• Proof of Residence Ownership
• Proof of Office Address and Ownership
• Proof of Business Existence and Income

Other Charges of Muthoot Finance Personal Loan

These are some additional fees and charges that apply to your personal loan charges -

How Rate of Interest on your Personal Loan affects your EMI amount?

The interest rate is the most important thing to look for while taking a personal loan as it can have an impact on your EMI amount. The EMI amount that you pay every month, consists of a part of your principal amount and a part of interest. So the lower the interest rate will be, lower will be your monthly repayment installments.

The interest rate on your personal loan depends on a lot of factors such as your age, employment type, gross annual income, and most importantly your credit score. The bank will decide the interest rate on your loan facility after assessing these factors.

How can you apply for Muthoot Finance Personal Loan?

To manage any type of your financial needs, you can apply for a Muthoot Finance Personal Loan easily by visiting the official website of Muthoot Finance. There, by filling the few details such as your name, age, address, mobile number etc, you can apply it in a hassle-free manner. Apart from the online method, you can also apply it via the offline method by visiting the nearest branch of Muthoot Finance.

Muthoot Finance Personal Loan Customer Care Number

On having any queries about the Muthoot Finance Personal Loan, you can call the executives of Muthoot Finance customer care service. You just have to dial 1800-121-1210 or +91-8000-451-451 or +91-3051-3051 from your landline or mobile. The customer care executives are available 24*7 and they will help you resolve any kind of queries, so if you have the slightest of doubts about anything, you can get in touch with them right away!

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.