MyMudra Salary Loan

Best Loan For Your Everyday Needs

Easy application and minimum qualifications make this the most widely used loan. Apply today for all your unavoidable daily expenses. 

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Salary Loan

 

Interest Rates & Charges


 

Lowest rate amongst all lenders

Our processing fee and interest rate for Salary Loans are the best among all the loan providers. Hidden charges always hurt applicants and My Mudra loan processing system ensures we never indulge in such practices.

While repaying the loan amount you will have to pay as per the interest rate which varies between 11% to 22%.

Salary Loan

Here is the list of interest rates offered by some of the top banks:

 

Banks

Interest Rates

Kotak Mahindra bank

10.99 - 19.65%

Standard Chartered bank

10.99 - 14.49%

HDFC bank

11.29 - 19.50%

ICICI bank

11.70 – 18.85%

Bajaj Finserv

11.99% onwards

IndusInd bank

12.99 - 20.00%

SBI bank

12.90 - 16.55%

Citibank

11.49%

 

Types of Salary Loan Interest Rate

There are two kinds of Salary Loan interest rates: fixed and floating.

Fixed Interest Rate

Here, the rate of interest charged on the Salary Loan amount will remain constant throughout the loan repayment period. You know your Salary Loan EMI obligation at the start of the tenor, allowing you to plan your monthly budget accordingly.

Salary Loan
Salary Loan

Floating Interest Rate

Here, Salary Loan interest rates could change depending on changes to the Marginal Cost of Lending Rate (MCLR), which is the base rate set for banks by the RBI. With changes in MCLR, the interest rate on loans also gets revised. With a lower interest rate, the repayment amount also reduces. On the other hand, if the interest rates increase, your EMI obligation will also increase. A floating Salary Loan interest rate makes it difficult for you to ascertain your monthly financial obligation.

Salary Loan Interest Calculation Method

There are two methods to calculate interest: flat rate method and the reducing balance method.

In the flat interest rate method, the interest rate is based on the complete loan amount you pay during the repayment period. In case of reducing the balance method, the rate of interest on the Salary Loan will be considered and calculated on the basis of the outstanding loan amount.

Flat Interest Rate Calculation

EMI = (principal + total interest payable) / loan tenure in months i.e. total interest payable = P x r x n/100

Where, ‘P’ is the principal loan amount, ‘r’ is the rate of interest, and ‘n’ is the loan tenure in months.

Floating Interest Rate Calculation

EMI = [P x r x (1 + r) ^n] / [(1 + r) ^(n-1)]

Where, ‘P’ is the principal loan amount, ‘r’ is the rate of interest, and ‘n’ is the loan tenure in months.

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