Muthoot Finance Personal Loan Interest Rate

4.5

Muthoot Finance Private Limited offers personal loans up to Rs 25 lakh and are available at competitive rates, ranging from 13.5% to 24%. It provides you with crucial cash assistance when you need it. Muthoot Finance offers personal loans ranging from Rs. 50,000 to Rs. 15 lakhs. The loan can be repaid in 12 to 60-month instalments. What more! Utilise Muthoot Finance's Personal Loan with easy and hassle-free documentation, doorstep service, and speedy disbursement.

  • Personal Loan offer for You

  • 16.37%

    Interest Rate (p.a.)
  • ₹50K - ₹10L

    Tenure(1 - 5 Years)
  • ₹2,452

    EMI Per Lakh
  • 16.37%

    Interest Rate (p.a.)
  • ₹50K - ₹10L

    Tenure(1 - 5 Years)
  • Up to 2% of the loan amount

    Processing Fee

Compare Muthoot Finance Personal Loan Interest Rates with Other Banks

  • Starting Interest Rate (p.a)
  • Processing Fee
  • Rating
  • Min. Loan Amount
  • CASHe PL Interest Rate

  • 27%

  • We offer a 2.50% interest rate per month (Equivalent to reducing the balance interest rate to 3.71% per EMI) on the loan amount.

  • 4.5

  • ₹1K - ₹4L

    Tenure(7 - 45 Years)

  • Prefr PL Interest Rate

  • 15% - 36%

  • 3-5% with Minimum Proc. Fee of INR 1500 + GST

  • 4.5

  • ₹50K - ₹5L

    Tenure(1 - 4 Years)

  • 50 K
  • 1 Cr
Years
  • 1
  • 5
%
  • 8
  • 25

Monthly Loan EMI

Payment Breakdown:

Principal Amount

₹10,00,000

Interest Payable

Total Amount Payable

Muthoot Finance Limited's personal loan interest rates range from 14% to 22%, offering competitive rates to its customers. However, the interest rate is determined based on the individual's credit score and loan repayment capacity.

Features and Benefits of Muthoot Finance Personal Loan

Muthoot Finance Ltd. Personal Loan is an effective financial solution for individuals looking to fulfil their personal needs or financial goals. Here are more details on the features and benefits of this personal loan. 

  1. Loan Amount: The maximum loan amount from Muthoot Finance Ltd. Personal Loan is INR 10 lakhs. This amount can meet various personal needs, including home renovation, medical expenses, marriage expenses, travel, etc.
  2. Competitive Interest Rates: Muthoot Finance Ltd. offers personal loans at competitive interest rates, making it an affordable option for borrowers. This is particularly useful for people looking for a loan with low-interest rates, and it can help reduce the overall cost of the loan.
  3. Swift Documentation: The documentation process for Muthoot Finance Ltd. Personal Loan is quick and hassle-free. This ensures you get the loan approved and disbursed quickly without spending much time on paperwork.
  4. No Collateral: Muthoot Finance Ltd. Personal Loan is an unsecured loan, meaning you don't have to put up any collateral. This is a significant advantage for people who need assets that can be used as collateral.
  5. Flexible Repayment Tenure: The repayment tenure for Muthoot Finance Ltd. Personal Loan is flexible, and you can choose a tenure that best suits your financial needs. The maximum repayment tenure is 60 months, which gives you ample time to repay the loan comfortably.
  6. Quick Disbursal: Quick disbursal is one of the most significant advantages of Muthoot Finance Ltd.'s Personal Loan. Once you have completed the documentation process and approved your loan, you can expect the funds to be disbursed within five working days. This is particularly useful for people who need money in a hurry.

Factors Affecting Muthoot Finance Personal Loan 

Several factors can affect the approval and terms of a Muthoot Finance Ltd. Personal Loan, including. 

  1. Credit Score: Your credit score is one of the essential factors in determining your eligibility for a personal loan. A good credit score can help you get better terms and a lower interest rate.
  2. Income: Income is another important factor affecting your loan eligibility. Lenders want to ensure that you have a steady income to repay the loan, so they will look at your salary and other sources of income before approving the loan.
  3. Employment: Your employment status can also affect your loan application. For example, if you are self-employed, you may have to provide additional documentation to prove your income and financial stability.
  4. Debt-to-Income Ratio: Your debt-to-income ratio (DTI) is another important factor that lenders consider. This ratio is calculated by dividing your total monthly debt obligations by your gross monthly income. A high DTI can make getting approved for a loan difficult, as it indicates that you already have a significant amount of debt.
  5. Age: Some lenders have age restrictions for personal loan applicants. For example, you may need to be at least 21 years old to apply for a loan, and you may need to retire before the loan's maturity date if you are approaching retirement age.
  6. Loan Tenure: The loan tenure you choose can also affect the terms of your loan. A longer loan tenure may result in a lower monthly payment, but it can also result in a higher overall cost of the loan due to the interest charged.

How to Calculate Muthoot Finance Ltd Personal Loan Interest and EMIs?

You can calculate the interest and EMI (Equated Monthly Instalment) of a Muthoot Finance Ltd. Personal Loan using an online personal loan EMI calculator. Here's an example of how you can do it. 

Suppose you want to borrow INR 5 lakhs from Muthoot Finance Ltd. for 36 months. The interest rate is 14%.

Step 1: To calculate the EMI, you can use the following formula:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where: 

P = Loan amount (INR 5 lakhs) 

R = Monthly interest rate (14/12 = 0.011667) 

N = Loan tenure in months (36 months)

Step 2: Plug in the values in the formula to calculate the EMI:

EMI = [5,00,000 x 0.011667 x (1 + 0.011667)^36] / [(1 + 0.011667)^36 - 1]

EMI = [5,00,000 x 0.011667 x 1.400291] / [1.400291 - 1] EMI = [5,83,014.5] / [0.400291] = 14,575.19

So, the EMI for a loan of INR 5 lakhs at 14% interest rate for 36 months will be approximately INR 14,575.19 per month.

Step 3: To calculate the interest, you can use the following formula:

Interest = (EMI x N) - P

Where: 

EMI = INR 14,575.19 (as calculated above) 

N = Loan tenure in months (36 months) 

P = Loan amount (INR 5 lakhs)

Step 4: Plug in the values in the formula to calculate the interest:

Interest = (14,575.19 x 36) - 5,00,000 = 525,071.08 - 5,00,000 = 25,071.08

So, the total interest payable on a loan of INR 5 lakhs at a 14% interest rate for 36 months will be approximately INR 25,071.08.

How to Get Low-Interest Rates on Muthoot Finance Personal Loan?

One of the most important factors that can determine the cost of your loan is the interest rate. Here are some strategies to help you secure a low-interest rate on your Muthoot Finance Personal Loan. 

  • Improve Your Credit Score: A good credit score can help you get better terms and a lower interest rate on your loan. If your credit score is low, consider improving it, such as paying bills on time, reducing debt, and disputing errors on your credit report.
  • Shop Around: Don't settle for the first offer you get from Muthoot Finance. Instead, compare offers from different lenders to find the best deal. You can use an online loan comparison tool to compare offers from other lenders in minutes.
  • Consider a Co-Applicant: Adding a co-applicant with a good credit score and income can improve your chances of getting a lower interest rate. The co-applicants credit score and income will also be considered when the lender evaluates your loan application.
  • Provide Collateral: Offering collateral, such as a house or a car, can increase your chances of getting a lower interest rate. This is because the lender has security in the form of collateral in case you cannot repay the loan.
  • Negotiate: Avoid negotiating with the lender to get a lower interest rate. You can use the offers from other lenders as leverage to negotiate a better deal with Muthoot Finance.

Muthoot Finance Personal Loan: Fees

The table below showcases Muthoot Finance Ltd's Personal Loan fees and additional charges. 

Processing Fee* 2% - 4% on the loan amount
Loan Tenure 12 months – 60 months

Personal Loan by Other Banks

FAQs About Muthoot Finance Personal Loan Interest

What is the current interest rate of Muthoot Finance Ltd personal loan?

The current interest rate of Muthoot Finance Ltd.’s personal loan is 14% p.a. to 22% p.a.

How can I reduce my interest in Muthoot Finance Ltd's personal loan?

To reduce your interest in Muthoot Finance Ltd’s personal loan, you can consider paying off a more significant portion of the principal each month, as this will reduce the overall interest you have to pay on loan. You can also consider negotiating a lower interest rate with the lender or exploring other loan options.

Is Muthoot Finance Ltd's personal loan a floating- or fixed-rate loan?

Muthoot Finance Ltd personal loans are generally offered at a floating interest rate, which means the interest rate can fluctuate over time based on market conditions.

Does Muthoot Finance Ltd demand collateral or security for personal loans?

Yes, Muthoot Finance Ltd typically requires collateral or security for personal loans. The type of collateral required will depend on the loan amount and your credit history.

Can individuals pay off their Muthoot Finance Ltd loans EMI early?

Yes, individuals can pay off their Muthoot Finance Ltd loans EMI early, although a prepayment penalty may be involved. It’s best to check with the lender directly for their specific policies and any potential penalties associated with early repayment.

What is the EMI for a 1 lakh personal loan?

For a 1 lakh personal loan with a tenure of 20 years (240 months) at an interest rate of 14%, the EMI would be ₹1,218.

What is the EMI for a ten lakhs personal loan?

For a 10 lakh personal loan with a tenure of 20 years (240 months) at an interest rate of 14%, the EMI would be ₹12,180.

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