AU Bank Personal Loan Interest Rate: Rates, Fees & Eligibility Guide

Key Takeaways
 

• AU Bank offers personal loans for various needs with competitive rates.
   
• Good credit scores and stable income help secure lower AU Bank Personal loan interest rates.
   
• Compare lenders and negotiate terms to get the best loan deals.

 AU Bank Personal Loan helps you meet various financial needs quickly. You can fund travel, education, home renovation, and wedding expenses easily. The bank offers flexible tenure options between 12-60 months for repayment. 

Competitive interest rates make borrowing affordable throughout the repayment period. AU Bank Personal Loan interest rate transforms your dreams into reality effectively. This guide covers AU Bank personal loan interest rates, loan types, and helpful tips.

AU Bank Personal Loan Interest Rates 2025

AU Small Finance Bank offers personal loans with interest rates that vary depending on your profile, such as credit score, income, loan amount, and tenure. The annual rate of AU Bank Personal loan interest rate can go up to 30% p.a. For many borrowers, the interest rate starts around 11% p.a. (for well-qualified applicants with good credit history).

The loan amount offered ranges from ₹25,000 to ₹10,00,000. The repayment tenure options are flexible. You can choose between 12 and 60 months (i.e., 1 to 5 years) depending on your needs. 

 Types of AU Bank Personal Loan Schemes

AU Bank offers various personal loan schemes for different needs. The types are:
 

AU Bank Personal Loan schemes cater to diverse financial requirements.

Key Features of the AU Bank Personal Loan

AU Bank Personal Loan offers several attractive features for borrowers:

• Quick access to funds with minimal paperwork requirements.
• Flexible repayment terms suit different financial situations perfectly.
• Fixed interest rates help you plan your monthly budgets easily.
• No collateral needed makes the application process simple.
• Competitive interest rates reduce your overall borrowing costs significantly.
• Online application saves time and offers instant approval decisions.
• Multiple loan amounts available, from small to large sums.
• Fast disbursal ensures you receive funds within a few days.
• Prepayment options allow early loan closure without heavy penalties.
• Minimal documentation speeds up the entire approval process effectively.

AU Bank Personal Loan provides convenient financing solutions for various needs.

Factors Affecting the AU Bank Personal Loan Interest Rate

Several factors influence AU Bank Personal Loan interest rates:
 

AU Bank Personal Loan interest rates depend on multiple borrower factors.

AU Bank Personal Loan Interest Rate Calculation

Understanding EMI calculations helps you plan your loan repayments effectively.

EMI Calculation Formula

EMI = P × r × (1+r)^n / [(1+r)^n - 1]

Where:

• P = Principal loan amount
• r = Monthly interest rate (annual rate ÷ 12)
• n = Number of monthly instalments

Example Calculation

Let's calculate EMI for the AU Bank Personal Loan example:

Given Details:

• Principal Amount: ₹25,000
• Annual Interest Rate: 11%
• Loan Tenure: 12 months

Step-by-Step Calculation:

• Monthly interest rate = 11% ÷ 12 = 0.92% (0.0092)
• Number of instalments = 12 months
• EMI = 25,000 × 0.0092 × (1.0092)^12 / [(1.0092)^12 - 1]
• EMI = 25,000 × 0.0092 × 1.116 / [1.116 - 1]
• EMI = 256.68 / 0.116 = ₹2,213

Total Interest Payable: ₹1,556 (₹26,556 - ₹25,000)

AU Bank Personal Loan EMI calculations help borrowers plan finances effectively.

Bonus Tip: If you are an existing customer of AU Bank, especially with a salary account in the bank, check whether you are eligible for a “pre-approved personal loan”. Existing customers often get preferential AU Bank Personal Loan interest rates and faster disbursement with minimal documentation.  

Tips to Get Lower Interest Rates from AU Bank

Follow these tips to secure better AU Bank Personal Loan interest rates:

• Improve Your Credit Score: Pay bills on time and reduce credit balances
• Compare Different Lenders: Shop around for the most competitive interest rates
• Use Loan Offers: Leverage pre-approved offers for better negotiating power
• Build Bank Relationship: Maintain savings or current accounts with AU Bank
• Offer Collateral: Secured loans typically attract lower interest rate charges
• Choose Shorter Terms: Shorter loan periods often have reduced interest rates
• Negotiate Confidently: Research market rates before discussing with bank representatives
• Consider Co-Signers: Strong co-signers can help secure lower interest rates
• Be Ready to Leave: Show willingness to explore other lender options

AU Bank Personal Loan interest rates improve with proper planning and negotiation.

Conclusion

AU Bank Personal Loan has good rates and easy payment plans. The bank helps with different money needs. Learn about AU Bank Personal loan interest rates first. Follow our simple tips too. This helps you get better loan deals from the AU Bank Personal Loan.

FAQs on AU Bank Personal Loan Interest Rate

Q1. Do salaried and self-employed people get different interest rates at AU Bank?

Yes. Salaried applicants often get slightly lower rates because their income is stable.

Q2. Will being an existing AU Bank customer help me get a better interest rate?

Yes. Customers with AU salary or savings accounts may get faster approval and better rates.

Q3. Can I still get a personal loan if my credit score is low?

You may get approval, but the interest rate will be higher than usual.

Q4. Does AU Bank charge extra fees apart from the interest rate?

Yes. Processing fees and applicable taxes are charged in addition to the interest rate.
 

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About the Author

LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.