When planning to borrow, one of the most important aspects to understand is the personal loan interest percentage. Interest rates determine how much extra you will pay on top of the principal borrowed. In India, these rates usually range from 10% to 24% per annum, depending on the borrower’s profile and the lender’s policies. Platforms like Olyv make it easier to compare loan offers so you can choose the most suitable option.
What is Personal Loan Interest Percentage?
A personal loan percentage represents the annual cost of borrowing expressed as a rate. It directly impacts the monthly installment (EMI) you need to pay.
Example:
- Loan Amount: ₹2,00,000
- Interest Rate: 12% per annum
- Tenure: 24 months
In this case, the monthly EMI will be significantly lower compared to the same loan at 20% interest. This shows why understanding personal loan rates is critical before applying.
Factors Affecting Personal Loan Percentage
Several elements influence the percentage you are offered by lenders:
- Credit Score – A score above 750 often results in lower rates.
- Monthly Income – Higher income improves eligibility for better interest.
- Repayment Capacity – Lenders analyze existing debt obligations.
- Loan Amount & Tenure – Shorter tenures sometimes attract lower rates.
- Lender Policies – NBFCs and fintech platforms like Olyv may vary rates based on their risk models.
Personal Loan Rates through Olyv
With Olyv, borrowers can access personal loans with rates starting around 1.5% per month. The final personal loan percentage is calculated after considering the applicant’s income, profile, and tenure selection. What sets Olyv apart is that it allows you to view different offers and compare rates before finalizing, making the process transparent.
Table: Comparing Loan Costs at Different Interest Rates
| Loan Amount | Interest Rate | Tenure | Approx. EMI | Total Payable |
| ₹1,00,000 | 12% p.a. | 12 mo | ₹8,885 | ₹1,06,620 |
| ₹1,00,000 | 18% p.a. | 12 mo | ₹9,168 | ₹1,10,016 |
| ₹1,00,000 | 24% p.a. | 12 mo | ₹9,498 | ₹1,13,976 |
This comparison shows how even a few percentage points difference can lead to thousands of rupees in savings.
Long-Term Loan Interest through Olyv
If you prefer longer repayment terms, Olyv facilitates tenures ranging from two to eighteen months. While long-term loans reduce monthly EMI, the overall cost may increase due to higher interest paid over time. Therefore, balancing tenure with affordability is key.
Is a Higher Personal Loan Percentage Always Bad?
Not always. Sometimes, borrowers with urgent needs accept a slightly higher rate to access funds quickly. The real question is whether the EMI fits comfortably within your budget. For example, even with a higher rate, consolidating credit card debt (which often exceeds 30–36% annually) with a personal loan can save money in the long run.
FAQs on Personal Loan Percentage
Why do lenders charge different personal loan percentages?
Because each lender evaluates risk differently. Olyv partners with multiple NBFCs, allowing borrowers to compare rates and choose the most suitable offer.
How can I reduce the interest percentage on my personal loan?
Maintain a high credit score, reduce existing debts, and opt for shorter tenures. Applying through Olyv also helps as it provides access to multiple offers.
What is the difference between a flat interest rate and the reducing balance method?
Flat rate calculates interest on the entire principal throughout the loan. Reducing balance calculates interest on the outstanding principal, which lowers the cost over time.
Can I pre-close a loan if the interest rate feels high?
Yes. By repaying the outstanding balance early and covering applicable foreclosure charges, you can save significantly on interest payments.
Is it possible to get a personal loan with a low or no credit score on Olyv?
Yes. While higher scores fetch lower personal loan percentages, Olyv also considers income and repayment capacity, making it possible for first-time borrowers to qualify.
Conclusion
The personal loan percentage you receive directly influences affordability and overall repayment. By comparing offers through Olyv, borrowers can find competitive interest rates, choose between short and long-term tenures, and make smarter financial decisions. Understanding how rates work ensures that a personal loan becomes a helpful financial tool rather than a burden.
