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Indian Bank Personal Loan Interest Rate 2022

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Take out a personal loan from Indian Bank with interest rates starting at 9.20 percent and up to a 7 years term. The bank charges a processing fee that starts at 0.51 percent of the loan amount.

Indian Bank Personal Loan Interest Rate

Indian Bank provides a variety of personal loans with varying interest rates. The interest rates for all loan types are summarised in the table below.

Personal Loan Type


Interest Rate (p.a.)

For Women

For General Public

Indian Bank Clean Loan (for salaried individuals)

For employees of Government

organizations / PSUs & Central / State

Government and for Salaried individuals of

reputed Private Sector / other reputed

organizations approved by respective Zonal

Office (tenure upto 60 months) 

Where Check-off facility & undertaking by the employer is available.

9.05% onwards

9.20% onwards

Where Check-off facility & undertaking by the employer are not available, but salary is credited with Indian Bank.

9.65% onwards

9.80% onwards

For Housing Loan Borrowers (Salaried


Where salary is credited with our Bank

9.05% onwards

9.20% onwards

For tenure of more than 60 months up to 84 months

13.50% onwards

13.65% onwards

Indian Bank Pension Loan (for pensioners)

Repayment tenure of 12 months.

10.60% onwards 

10.75% onwards

Repayment tenure above 1 year but up to 36 months.

11.35% onwards

11.50% onwards

Repayment period above 36 months but up to 10 years.

11.60% onwards

11.75% onwards

Calculating Interest at a Flat Rate vs. Reducing a Bank's Balance in India

The following are two important methods for calculating personal loan interest:

  • Flat Rate System: In this method, interest is measured on the entire loan sum lent at the outset, without taking into account the fact that monthly EMIs are gradually reducing the principal. As a consequence, when this form of interest calculation is used, the overall interest payout is higher.
  • Reducing Balance Process: Interest is based on the remaining loan amount only, not the total loan amount originally lent. It's important to remember that an EMI contains both interest and principal components. As a result, the remaining principal decreases with each EMI bill, resulting in a slightly lower interest payout when this form of interest calculation is used.

The “Reducing Balance” method of interest calculation is used by Indian Bank, which means that interest is calculated only on the outstanding loan amount.

Indian Bank Personal Loan Interest Rate Calculation

The amount of interest paid on a personal loan is calculated by the loan amount, interest rate, and term. In the table below, we can see how the compensation changes as these parameters change.

Loan Amount (Rs.)

Tenure (years)

Total Interest Payout (Rs.)

Total Amount Repaid (Rs.)

Proportion of Interest in Total Amount Repaid

10 lakhs @ 15%





5 lakhs @ 12%





2 lakhs @ 11%







Indian Bank

Axis Bank



Bajaj Finserv

Interest Rate

9.05% onwards

10.49% onwards

9.60% onwards

10.50% onwards

11.49% onwards


Up to 84 months

12 to 60 months

Up to 72 months

12 to 60 months

12 to 60 months

Loan amount

As per applicant’s profile

Up to Rs. 15 lakhs

Up to Rs. 20 lakhs

Up to Rs. 25 lakhs

Up to Rs. 25 lakhs

Processing Fee*

Up to 1% of the loan amount

Up to 2% of the loan amount

Up to 1.50% of the loan amount

Up to 2.25% of loan amount

Up to 4.13% of the loan amount

How to Get a Low-Interest Personal Loan from an Indian Bank?

To get a low-interest rate on an Indian Bank personal loan, follow the steps below:

  • Hold your credit score in good condition. The higher your credit score, the more likely you are to be accepted for a loan with a lower interest rate.
  • Maintain a credit utilization ratio of less than 30%. Make sure you're not in too much debt. A lower FOIR means greater repayment capacity, allowing you to receive a personal loan at a lower interest rate.
  • Apply for a personal loan with a bank with which you already have a strong relationship.
  • Submitting several loan applications at the same time is not a good idea. This can offer the impression that you are credit-hungry. Furthermore, doing so will result in several hard inquiries into your credit report, lowering your credit score.

Factors Influencing Personal Loan Interest Rates

The following is a list of the major factors that influence a personal loan's interest rate.

  • Credit Score: This is a three-digit number based on your loan and credit card repayment history. It has a scale of 300 to 900. A high credit score suggests that the borrower is creditworthy and therefore presents a lower risk to the lender. It may not only make getting a personal loan easier, but it may also help you get one with a lower interest rate. 
  • Age: The interest rate charged on personal loans frequently rises with the applicant's age and vice versa. The reason for this is that as you get closer to retirement age, your chances of increasing your income level decrease.
  • Previous Bank Relationship: If you already have a savings account or a fixed deposit with the lender, you may be able to get a personal loan at a lower interest rate.
  • Income: The interest rate charged by the lender is also affected by your income level. Applicants with higher annual incomes are often thought to have a better repayment capacity, which reduces the lender's risk, and, as a result, they are offered a lower interest rate on their personal loans.
  • Employer: Working for a reputable organization or having a stable job and employment history may help you get a lower interest rate on your personal loan.

➤ FAQs

Ques. What is the annual interest rate on an Indian Bank personal loan?

The interest rate on an Indian Bank personal loan for salaried individuals who do not have access to a check-off facility or an employer's undertaking, but whose salary is credited to Indian Bank, starts at 9.65 percent per annum.

Ques. What will the interest rate be after the GST is implemented?

The rate of interest on personal loans is unaffected by GST, so it will remain the same as stated in your loan agreement. Processing fees, balance transfer fees, and other charges, on the other hand, are subject to GST.

Ques. What is the interest rate on a personal loan from Indian Bank for an existing customer?

Existing Indian Bank customers may qualify for a personal loan with a lower interest rate; however, this is entirely dependent on your profile and the discretion of the bank.

Ques. What method does Indian Bank use to measure interest?

For personal loans, Indian Bank uses the reducing balance method of interest calculation.

Ques. Does Indian Bank provide personal loans to retirees?

Yeah, if you meet the eligibility requirements, you can get a personal loan from Indian Bank.

Ques. What is Indian Bank's customer service phone number?

Indian Bank's toll-free customer support numbers are available 24 hours a day, 7 days a week: +1800 4250-0000 1800-425-4422 is a toll-free number.

Ques. How long does it take to repay an Indian Bank personal loan?

You have up to 84 months to repay your personal loan from Indian Bank.

Ques. How do I equate the interest rates provided by different personal loan companies?

On the Afinoz website, you can compare various loan deals, including their interest rates and approval chances. It not only saves you the time and effort of visiting each bank's website, but it also has no effect on your credit score.

Ques. How can I keep my credit score high?

Your credit score is a direct indicator of how well you've paid back your debts. As a result, you can keep your credit score high by paying your loan EMIs and credit card bills on time. Furthermore, keeping your debt low and having a credit utilization score of less than 30% will help you maintain a high credit score.

Ques. What are the processing fees for a personal loan from Indian Bank if you are a salaried applicant?

The processing fee for a personal loan from Indian Bank to salaried employees is 1% of the loan amount.