Finnable Personal Loan Interest Rates

If you are looking for a quick and reliable financial solution, a Finnable Personal Loan is an excellent option. With low interest rates starting at 15.95% p.a. and flexible terms offered with the loan, you can address your financial needs efficiently. However, it is also important to check for additional fees, if any, which may increase the overall cost of your borrowing. Let’s understand these rates and charges in detail before you apply for a loan.

Provided below are the Finnable Personal Loan interest rates and other associated charges you should know about before applying:

The following factors may influence the interest rate of your Finnable Personal Loan:

CIBIL Score

A CIBIL score reflects your financial reliability and ranges from 300 to 900. A higher credit score (typically, 750 or more) indicates responsible financial behaviour. This reassures lenders about your creditworthiness, making them more likely to offer loans at lower interest rates. Borrowers with poor credit scores may face higher rates as lenders perceive them as higher-risk applicants. To improve your credit score, ensure you pay EMIs and credit card bills on time. Also, avoid excessive credit utilisation, and regularly monitor your credit report for any discrepancies.

Income Level

Lenders consider a stable and high income as an indicator of financial security, which lowers their risk. This often results in more favourable interest rates being offered to you. Conversely, irregular or low income can lead to higher rates as it increases the risk of default for the lender. To improve your chances of securing lower rates, ensure you provide accurate income documentation, such as salary slips or tax returns. Additionally, include any extra income sources you may have when applying.

Debt-to-Income (DTI) Ratio

The DTI ratio measures the proportion of your income used for the repayment of debt each month. A low DTI ratio signals financial stability, indicating that you have sufficient income to manage new debt comfortably. This reassures lenders and may help you secure better loan terms, including lower interest rates. Conversely, a high DTI ratio reflects financial strain, which could lead to higher rates. To keep your DTI ratio low, focus on repaying existing debts before applying for a new loan.

Employment Status

Lenders usually favour salaried individuals with stable jobs in reputed organisations, as this indicates a consistent income flow. Self-employed individuals or those with irregular income might face higher interest rates due to perceived financial instability. To improve your standing, demonstrate a steady work history or, if self-employed, provide financial records like bank statements or tax filings to validate income stability and repayment capability.

Loan Amount and Tenure

If the loan amount is high, you may face higher rates due to the increased risk. Shorter loan tenures often result in lower interest rates and higher EMIs. On the other hand, longer tenures often come with lower EMIs but higher interest costs. Choose a combination of loan amount and tenure that aligns with your financial capacity, ensuring manageable EMIs without incurring excessive interest.

Factors like the loan amount, interest rate, and repayment tenure are used by lenders to determine the EMI and interest charges on your personal loan. Therefore, it is crucial to understand how these factors can decide the EMI. 

To get a clear idea, let’s view an example of how your debt is cleared over the course of the repayment tenure. Let’s say you get a loan of ₹5 Lakhs for a duration of 5 years at a Finnable Personal Loan interest rate of 14% per annum, your EMI would come to about ₹11,634. 

*Note: These are approximate values and are meant only for illustration. For actual EMI values, reach out to your lender.

As you change the interest rate, loan amount, or tenure, you can see the EMIs changing accordingly. You can try out different scenarios and finalise the option suitable for you with the help of the EMI calculator available on Bajaj Markets. 

However, as you rearrange the factors, the total interest cost on your personal loan might increase or decrease. Still, it is always better to compare the EMIs of different options available to identify a loan which best suits your needs.