Wednesday, February 8, 2023

Muthoot Finance Personal Loan Apply: Interest Rate @ 14% p.a.

If you need an urgent loan to meet your financial needs, Muthoot Finance Personal Loan is available at attractive interest rates, flexible tenors, and minimal documentation. Understanding your needs, Muthoot Finance offers the facility to apply for an instant personal loan online.

Muthoot Personal Loan starts from 50,000 at an available minimum interest rate of 14% per annum with flexible tenure of up to 5 years. You can use this money to buy a car, home renovation, higher education for children, etc.

Here, I will explain the features, benefits, and charges of a Muthoot Finance Personal Loan in this article.

Muthoot Finance Personal Loan Details

Personal Loan Interest RateCompetitive interest rate starting from 14% p.a.
Loan AmountRs 50,000 Onwards
TenureUp to 60 months
Employment TypeSalaried and Self-Employed
Processing fee2% to 4% on the loan amount + tax
Basic Documents RequirePAN, Aadhar Card, Latest Salary Slip, etc.
Muthoot Finance Personal Loan Customer Care NumberNorth, East & West India: 1800 313 1212
South India: 99469 01212
Muthoot Finance Personal Loan

Muthoot Finance Personal Loan Interest Rate

Muthoot Finance Personal loan interest rate is available starting from 14% per annum. Personal loan interest rates are generally higher than types of loans, as individual loans do not require collateral in return for which the money is lent to the borrower.

The personal loan interest rate offered to an individual is determined based on credit score, debt-Income-ratio, Income, age, etc.

Factors Affecting Muthoot Finance Personal Loan Interest Rates

Credit Score: CIBIL is a three-digit rank code given by the company according to the loan and credit card repayments already availed by the applicants. If you pay all your bills on time, your credit score will be good, and you will be charged a low-interest rate on the personal loan. A score above 750 is considered a good credit score.

Nature of Income: The personal loan interest rate offered to an individual is determined based on the nature of the income. If the applicant works in a good organization, then the chances of getting a personal loan at a low-interest rate increase because the risk ratio is less in the case of a salaried individual.

Geographic Location: If the applicant lives in a rural area, the interest rate on personal loans is higher than in urban areas.

Age of Applicant: The age of the applicants can also affect the personal loan interest rate offered by the lenders. Individuals nearing retirement have less earning potential. Individuals with less work experience and individuals who have just started their careers need proof of financial stability and credit history. Such persons are generally charged higher interest.

Income Level: The individual income assures the lenders that the applicant is qualified to repay the loan EMIs, which helps the lenders calculate the personal loan interest rate for the individual.

Debt to Income Ratio: Lenders scrutinize applicants’ existing loans and liabilities before offering them personal loan amounts and interest rates. You may be charged a higher interest rate if you are already paying off some loan EMIs. The high debt-to-income ratio can significantly impact an individual’s repayment capacity.

Steady Income: A steady Income source also speaks well for their ability to repay the loan on time. That is why individuals who can show proof of regular sources of income, including their salary, pension, rent, interest income, etc., may be offered lower personal loan interest rates.

Loan Tenure: In most cases, the applicant chooses the loan repayment tenure. The option is in the hands of the applicant as to when he will repay the loan. The longer the tenure of the personal loan, the higher the interest.

How to Get a Lower Interest Rate on A Personal Loan?

Maintain a healthy credit score: The higher your credit score, the higher your loan eligibility. Generally, a credit score of 750 and above is considered healthy by any of the credit bureaus. The bank sees you as a good customer and may offer you a competitive interest rate.

Don’t default on EMIs or delay your credit card payments: If you have existing loans, make sure to pay EMIs on time. The total EMI of your existing loan should not exceed 40% of your take-home salary.

Comparison of Personal Loan Interest Rates of Top Banks/NBFCs

Name of the LenderRate of Interest (p.a.)
IIFL Finance Personal Loan12.75% to 33.75%
Home Credit12% to 36%
Bajaj Finance13% to 26%
Axis Bank10.99% to 21%
Bank of Baroda10.70 to 14.20%
EarlySalary App12% to 30%
IDFC First Bank10.49% to 24%
IndusInd Bank10.49% to 26.50%
Kotak Mahindra Bank10.99% to 19.20%
IVL Finance Limited Personal Loan13.99% p.a. Onwards
Tata Capital10.99% to 21%
L&T Finance11% to 19%

Eligibility Criteria for Muthoot Finance Personal Loan

Muthoot Finance personal loans are provided to both salaried and self-employed applicants. However, the NBFC has not disclosed the exact eligibility criteria like age, credit score, minimum income, employer/business profile, etc. However, most lenders consider these factors for evaluating the personal loan eligibility of their loan applicants.

  • The age of the applicant should be between 23 to 60 years.
  • The applicants must have a monthly income source.
  • Applicant must have citizenship of India.
  • Selfie

Documents Required for Muthoot Finance Personal Loan

However, most banks and NBFCs require the following documents from their loan applicants. The Documents required for availing the personal loan from Muthoot Finance Personal Loan for both salaried and self-employed loan applicants are mentioned below:

  • Identity Proof: PAN (Permanent Account Number) Card, Passport, Voter’s ID, Driving license
  • Address Proof: Aadhar Card, Driving License, Ration card, Passport, Electricity bill, Maintenance bill
  • The mobile number must be linked with an Aadhaar card.
  • Last 3 months’ salary slips
  • Statement of account for last 6-12 months of Bank.
  • For income proof: Salary slips (Last 3 months) for salaried personal loan applicants, Audited balance sheet, and Profit & Loss account for self-employed loan applicants.

Muthoot Finance Personal Loan Fees & Charges

Interest RateCompetitive interest rate starting from 14% p.a.
Processing Fee2% to 4% on the loan amount + tax
Prepayment Charges0 to 9 months – Lock-in-period
10 to 12 months – 6% on outstanding loan amount + taxes
>12month – 5% on outstanding loan amount + taxes
Stamp Duty ChargesAs per the applicable state laws
Late Payment Charges2% of the Monthly EMI
Cheque Bounce ChargesRs 1000 + taxes
Cheque Swapping ChargesRs 750 + taxes

How to apply for Muthoot Finance Personal Loan?

Understanding your needs, Muthoot Finance offers the facility to apply for an instant personal loan online. You can apply for the loan online by following some easy steps mentioned below:

  • Go to the Muthoot website and go to the Personal Loan section.
  • Applicants have to fill in their name, email address, mobile number, and city to start the application process.
  • Submit the details, and an authorized representative of Muthoot finance will get in touch with you to discuss further loan terms and your eligibility.
  • Read the term & conditions and proceed with the application process.
  • Submit the required documents to process the application.
  • Muthoot has a doorstep service to facilitate document collection.
  • On submission of all the required documents, the loan will be processed and approved within 48 hours.
  • You will get the amount in your account within a few hours of approval.

Muthoot Finance Loan Payment

Muthoot Finance Loan Payment

Auto-debit: Enjoy the convenience of paying directly from your bank account with auto-debit facilities. If you have registered Auto-Debit (NACH), the EMI payment will be automatically debited from your account on the EMI due date.

Online: You can pay your loan EMIs online quickly. You can use NEFT, UPI, etc., and pay your EMIs online.

Mobile Apps: Paying your loan is now in your hands. Repay your monthly EMIs using Muthoot Finance’s official mobile application on your mobile phone.

Muthoot Finance Personal Loan Customer Care Number

Muthoot Finance Loan Customer Care Number

For any support, information, or assistance regarding the Muthoot Finance Personal Loan, you can reach their support team at the customer care number:

North, East & West India: 1800 313 1212

South India: 99469 01212

Or, you can raise an online request at Muthoot Finance’s official website or visit the nearest branch.

Registered Office (South)Head Office (South) Muthoot Chambers,Corporate Office (North)
Muthoot Chambers,
Opp Saritha Theatre Complex,
Banerji Road, Kochi 682 018
Tel: +91 – 484 – 2396 478 / 2394 712
Opp. Sarita Theater Complex
Banerji Road Kochi – 682018
Tel: +91 – 484 – 2396 478/ +91 – 484 – 2394 712
Fax: 91-468-2213417
The Muthoot Group,
M. G. George Muthoot Towers,
Alaknanda New Delhi – 110019
Tel: +91-11-4669 7777  

Muthoot Finance Personal Loan FAQ:

What is a Personal Loan?

A personal loan is an unsecured loan for which you do not need to deposit any security. With this loan, you can raise funds to meet your financial needs, and unlike other secured loan products, a personal loan has easy eligibility criteria & documentation. The necessary aspect that a person should consider before taking a personal loan is the EMI that they will be liable to pay.

What is an EMI?

EMI Stands for Equated Monthly Instalment. Which is the fixed amount paid for the repayment of your loan. It includes both the principal component and the interest amount. It gives you the convenience and benefit of repaying the loan in small and easy installments.

Why Personal Loan from Muthoot Finance?

Personal loans are the best means of raising funds to meet short-term financial needs. Muthoot Finance allows you to apply online for a personal loan and offers you a flexible loan amount and low-interest rates, considering your needs. Today, one can avail of Instant personal loans to fulfill their financial needs.

What are the Personal Loan interest rates in Muthoot Finance?

The personal loan interest rate offered to an individual at Muthoot Finance is determined based on credit score, debt-income ratio, cost of funds, risk assessment, cost of operations, income, age, etc., which may differ from one customer to another. Interest usually varies between 14% – 22%.

What are the minimum and maximum loan limits offered by Muthoot Finance for a personal loan?

The loan amount proposed to you as a personal loan by Muthoot Finance is decided based on your monthly income, credit score, etc. Muthoot Personal Loan starts from 50,000 at an available minimum interest rate of 14% per annum with flexible tenure of up to 5 years. You can use this money to buy a car, home renovation, higher education for children, etc.

How can I repay my EMI and other charges?

If you have registered Auto-Debit (NACH), the EMI payment will be automatically debited from your account on the EMI due date. You can also make your EMI payment through Online Banking, Muthoot Mobile App, and UPI App.

What is the EMI for a 3 lakh Muthoot Finance Personal loan?

The EMI amount will vary based on loan tenures and desired interest rates. You can use the EMI interest calculator to determine how much EMI you will need to pay for the 3 Lakhs loan by selecting the loan tenure and interest rates.

What is the loan tenure?

The loan tenure ranges between 12 to 60 months on your loan amount. The Muthoot Finance Persona Loan team will decide the final tenure time per your eligible loan amount, interest rate, and credit profile.

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