What is the rate of interest that will be charged on my personal loan How can I reduce it

According to present market conditions, you are looking at an interest rate charge of around 17% to 26% on your personal loan.

• This can be reduced if you apply for a personal loan with the bank you have an account with or currently deal with on a regular basis. This makes you eligible for a relationship discount offered by many banks today.
• Also, if you apply for a loan with a co-applicant, i.e., your spouse or parents who are earning, it will provide more security to the lenders, making them to consider reducing the rate of interest on the loan.
• Ideally, the EMI payments of your personal loans should not be more than 35% to 40% of your net monthly income or salary. The lower the percentage the lower will be the interest rate charged by the lender.
• For example, if your EMI payments are equal to 20% of your net monthly salary you are at a less risk of default than those whose EMI payments are at 40% of their net monthly salary. This would make you eligible for a lower interest rate on your personal loan in the first instance.