Factors influencing personal loan interest rates in India

Interest rates on personal loans in India vary by bank and are crucial for borrowers. These rates are a percentage of the total amount borrowed and impact the overall cost of the loan. Several factors influence personal loan interest rates. Key factors include credit history, stable income, relationship with the lender, employment type, and loan default history. A higher credit score and consistent income can lead to lower rates. Borrowers with a good relationship with their bank may negotiate better terms. Government employees often receive lower rates due to job stability, while those with a history of loan defaults may face higher rates or loan denials.