Interest Rate
Who is the Best Bank Loan Consultants to get Loans at Low Bank Interest Rate?. S & P Bank Loan Services offer All in All financial facilities at Low Rate of Interest in Chennai, Tamil Nadu, India.
How to calculate Bank Interest Rate?
Interest Rate is the percentage that a bank or financial institution charges for amount lend or pays for the amount deposited. Likewise, Bank charges a higher rate of interest on loans comparatively it pays for depositors to earn a profit. In fact, All banks compete with each other by offering a competitive interest for borrowers and depositors. Due to competition, banks charge interest within a narrow range of each other by all means.
Will the rate of interest differ from other Banks?
Like any other industry, some businesses prefer high volume and low profits firstly. Other businesses prefer low volume but high profits. In a similar manner, some banks prefer customers who do not care more about the rate of interest. Thus, they have few customers but a higher profit margin. While a few other banks prefer a larger customer base, so they offset profit margin and offer a lower rate of interest on deposits.
High interest on deposits
Well established large scale banks raise funds through issuing bonds/shares, thus they may not interested to raise funds from deposits. Moreover, Those banks offer a high interest on deposits. While smaller banks depend on depositors for funds, thus they charge low Interest for depositors. In other words, The bank charges interest based on its objectives in the banking business.
EMI Calculator:
The interest on loans always plays a major role in the EMI of the loan.
Equated Monthly Instalment abbreviated as EMI, refers to monthly installments paid towards the loan. It includes both principal and interest. Nowadays EMI calculator, a very famous one among borrowers. Let’s look into the benefits of the EMI calculator.
- You can decide your EMI amount before applying for a loan. This helps to make the exact monthly finance budget.
- EMI Calculator provides a complete repayment schedule. This helps you to plan the financial budget for the full tenure of the loan.
- The EMI calculator is calculated online. It’s error-free and accurate.
- You have the option to change the loan tenure, amount, and interest to check your eligibility for higher loans and lower EMI.
- During the takeover of the loan, you can do a comparative analysis of EMI with the proposed bank and existing bank.
How can we reduce the interest rate burden by closing high-interest?
Review your loan sanction and check whether the loan is under a fixed-rate or floating rate. In flat-rate loans, the loan is fixed throughout the tenure. Thus, monthly EMI is fixed for entire loan tenure.
Loans with floating-rate of interest
In floating rate loans, interest percent changes when there is a change in banks’ base rate. The bank base rate is fixed based on RBI guidelines. You have to decide when you have to opt for fixed-rate or floating rate loans. When the floating rates interest shoots up, it results in higher EMI in the same fashion. But if floating interest comes down, it results in lower EMI.
Loans with a fixed interest Percentage
On the other hand, a fixed interest percentage protects from rate fluctuation and gives you a sense of security and certainty of cash flow. In the same token, making a choice between fixed and floating rates depends on economic factors and outlook. We at S & P finance consultants help you to decide on fixed or floating rates based on market situation and loan type.
Few tips for low-interest rate:
- Good CIBIL score
- The low credit utilization ratio
- Low Fixed Obligation Ratio
- Don’t apply for loans with multiple lenders.
- Relationship with the existing lender
- The loan availed with collateral security
- Women applicants get a concession on
Loan Duration vs Percentage of Interest
Generally, there is a direct relationship between long duration and Percentage of interest. Higher the long duration, the higher the Rate of Interest. Lower the loan duration, lower the rate of interest. Meanwhile, It may not true for all types of loans. But banks also consider lending risk while charging a percentage of interest for loans. Lending risk includes security, experience in work/business, and other factors. Going for a longer tenure of the loan may give you lower EMI at the cost of higher interest. You need to take a decision
Fixed Deposit Rates:
Saving the money in fixed deposits is one of the best investments from olden days. Let’s look at the fixed deposit rates of few banks below:
Comparison of Fixed deposit rates of Major Banks:
| Name of the Bank | FD Interest Rates | Senior Citizen FD interest rates |
| SBI | 2.90% -5.40% | 3.40% -6.20% |
| HDFC | 3.00% -5.75% | 3.50% -6.50% |
| ICICI | 3.25% -5.75% | 3.75%-6.25% |
| RBL | 5.00% -7.50% | 5.50%-8.00% |
| South Indian Bank | 4.00%-6.30% | 4.50%-6.80% |
| Karur Vysya Bank | 4.15%-6.05% | 4.15%-6.55% |
| Indian Bank | 3.75%-5.75% | 4.25%-6.25% |
Contact Top Bank Loan Consultants for the Best Interest rate
Call or WhatsApp the below-given number to Contact Top Bank Loan Consultants to avail all Loans with the Best Interest Rate.