There may be situations when people need additional funds, for a variety of reasons, such as medical emergencies, house renovations, vacation planning etc. At times like these taking out a personal loan to meet the shortfall in funds is quick and convenient. There are many financial loan providers in India offering a slew of personal loan products. Hero FinCorp is a leading financial company in this arena granting personal loans in Bardhaman with competitive interest rates and world-class customer service. Let us discuss a few of the features of the most important aspects of a personal loan, i.e. the rate of interest.

What can affect the interest rate on a personal loan?

Income –

To be eligible to apply for a personal loan with Hero FinCorp an individual should have a monthly income of at least Rs. 15,000/-. In case the monthly income of the applicant is too low then a co-applicant can be added and the application will be evaluated on the basis of the incomes of both applicants. The income inversely affects the interest rate, the higher the income lower would be the interest rate charged and vice versa.

Credit Score/ Report –

Since there is no collateral in a personal loan, the lender has to depend on the borrower’s past credit history to gauge whether they would make the repayments on time. Having a good credit score i.e. a low debt-to-income ratio, fewer outstanding debts, timely repayments of loans etc. would help to get the borrower a lower rate of interest. In case the borrower’s credit history is poor an option would be to get a guarantor for the loan.

Employer status –

The applicant’s employer can help to reduce the interest rate on the personal loan as anyone working for a reputable multinational company or government organization usually receives timely salary payments. Thus the lender is assured that the borrower would not default on EMI payments.

Occupation Status –

Lending to a salaried individual versus a self-employed individual poses a lower risk to the lender, so that could affect the interest rate as well.

Also Read: Maximum personal loan tenure

Age –

The age of the borrower would affect the interest rate as it determines the income-earning duration of the individual. A younger person would be employed for longer, whereas older borrowers have a short income-earning time and are closer to retirement.

Relationship with the lender –

In case the borrower already has a financial relationship with the lender, they may be offered preferential rates on their new loan application. This is because the lender already knows the financial behavior of the borrower and can trust them.

Discounts –

The borrower should take advantage of discounts offered by most lenders during holidays and on festive occasions.

The highest interest rate that can be charged on a personal loan in India is 25%. the borrower should take the above factors into consideration and lower the interest rate as much as possible. They should also factor in processing fees and other charges levied by the lender. Although these are nominal they would add on to the total cost of the personal loan.


To assist the applicants in making an informed decision while applying for a personal loan in Bardhaman, Hero FinCorp has a handy EMI calculator online on their website. The applicant just needs to input the loan amount, interest rate, and duration of the loan. The estimated EMI is displayed and this helps the applicant to decide on the level of monthly debt that they would wish to incur.