Central Bank of India personal loan interest rates depends the borrower’s on income, borrower’s credit history, the RBI rates, inflation etc. Central Bank of India personal loan interest ratefor the year 2015 varies from 13.15 percent to 14.4 percent. The interest rates is offered to a borrower in such a way that he is not burdened with the EMI payment.
Central Bank of India Personal Loan Interest Rates 2018
| Particulars | Salaried |
| Interest rate | MCLR (12 months) + 3.00% = 11.50% p.a. |
| Loan Amount | 20 times the gross salary subject to maximum of Rs.10 lakh |
| Loan Tenure | Maximum: 48 Months |
| Lowest EMI | – |
| Processing Fee | Rs.500.00 + GST |
| Age | – |
| Prepayment/Foreclosure Charges | – |
How to calculate interest or EMI on Central Bank of India Personal Loan?
EMI or Equated Monthly Instalment is the amount that the borrower has to pay each month to the bank until the loan amount is fully paid off. The EMI amount consists of interest as well as the principal amount that is to be repaid. The principal amount and interest is divided by the tenure in which the loan has to be repaid. The formula to calculate the EMI is:
EMI= Principal X Rate of interest on a monthly basis X (1+rate of interest on a monthly basis) to the power of the loan tenure divided by [(1+rate of interest on a monthly basis) to the power of the loan tenure – 1]
Factors affecting Central Bank of India Personal Loan interest rates
Central Bank of India personal loan interest rate varies for every applicant due to various factors. Some major factors affecting the interest rates are as follows:
- Loan tenure:Shorter term loans may have a higher rate of interest when compared to loans with a longer tenure.
- Repayment capacity:Central Bank of India checks a person’s repayment capacity before offering him a loan and before deciding the interest rate. The bank looks into the borrower’s income, his assets and his creditworthiness before finalising on an interest rate. The banks don’t wish to burden the borrower and therefore make sure that the EMI amount is not more than 40 percent of his net salary. The bank also checks the applicant’s CIBIL report as it gives detailed information about his repayment capacity. It also holds all the details of the previous loans he had taken and repaid and it also gives information on how he is paying off his credit card bills.
- Borrowing class:The borrower’s age also plays a crucial role in deciding the interest rate. Young applicant’s will not be so stable at their job and would be shifting jobs till they find one that works best for them, so banks may be sceptical about them having a regular flow of income. Central Bank of India offers personal loan to non-corporate employees, to pensioners, for teachers, salaried corporate employees and employees of railways, government institutions, schools, hospitals etc.
- Relationship with the bank:Banks usually offer special offers, interest rates and charges to those who have been having a long term relationship with the bank. You may even get a discount on the processing charges or the bank might reduce your interest rate if you have managed to show commitment to making payments on time in the past.
Key things about Central Bank of India Personal Loan interest rates
Before applying for Central Bank of India Personal Loan, you must know the following factors:
- If a fixed interest rate is set on the personal loan then you will be required to pay a fixed amount of interest throughout the tenure.
- Floating interest rate will change as per the change in the bank’s base lending rate. In this case the EMI will keep changing with the changing rate.
- To avail Central Bank of India Personal Loan, you will have to have a guarantor or provide security.
- When the repo rate goes up, your interest rate will also go up.
- Central Bank of India offer personal loans to non-corporate employees, to pensioners, for teachers, salaried corporate employees and employees of railways, government institutions, schools, hospitals etc.