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

Key Takeaways
 

• Utkarsh Bank Personal Loan interest rates range from 14% to 23% yearly.
   
• Loan amounts available are ₹1,50,000 to ₹20,00,000.
   
• Your credit score directly affects your Utkarsh Bank Personal Loan interest rate.

 Are you looking for an affordable personal loan option? Utkarsh Small Finance Bank provides competitive interest rates for salaried individuals. The Utkarsh Bank Personal Loan offers flexible repayment terms and features. 

Understanding the interest rates helps you make informed financial decisions. This guide covers everything you need to know about rates. Let's explore the current interest rates and loan features available.

Utkarsh Small Finance Bank offers personal loans to salaried individuals. The bank serves government, private, and public sector employees. You must meet their eligibility criteria to qualify.

The Utkarsh Bank Personal Loan ranges from ₹1,50,000 to ₹20,00,000. The repayment tenure is between 12 months to 84 months. The bank offers these loans at affordable interest rates.

You need a minimum net income of ₹20,000 monthly. The rate of interest ranges from 14% onwards yearly. The maximum rate can go up to 23% per annum.

The Utkarsh Bank Personal Loan provides flexible repayment options for customers.

Types of Utkarsh Bank Personal Loan Schemes

Generally, Utkarsh bank offers the following types of personal loan schemes: 

• Personal Use Loan: For education, travel, medical, or urgent personal expenses.
• Business Use Loan: For working capital, capital expenses, or consolidating business debt.
• NRI Personal Loan: NRIs can apply with a resident co-applicant for domestic family needs.
• Debt Consolidation Loan: Combines multiple loans into one, reducing EMI stress.
• Fresher Loan: Offered to newly employed individuals working in reputed organisations.
• Marriage / Wedding Loan: A variant aimed at financing weddings, often with flexible terms.
• Balance Transfer Loan: For customers who already have a personal loan from another bank / NBFC and want to switch to Utkarsh Bank for a better rate.

These schemes help customers choose loans based on their purpose and eligibility.
Choosing the right scheme helps in better fund usage and timely repayment.

Key Features of the Utkarsh Bank Personal Loan

The Utkarsh Bank Personal Loan offers these important features:

• You can borrow between ₹1,50,000 and ₹20,00,000.
• Choose a repayment period from 12 to 84 months.
• You repay through easy Equated Monthly Instalments (EMI).
• You can foreclose your loan during the tenure.
• NACH or Standing Instructions are allowed for repayment.
• The bank offers simple and hassle-free processing.
• You need a minimum net income of ₹20,000 monthly.
• The bank offers attractive rates for balance transfers.
• Credit card takeover is also included in this facility.

These features make the Utkarsh Bank Personal Loan flexible and convenient.

Factors Affecting the Utkarsh Bank Personal Loan Interest Rate

Several key factors determine your Utkarsh Bank Personal Loan interest rate:
 

If you understand these factors, it helps you prepare for your Utkarsh Bank Personal Loan application.

Utkarsh Bank Personal Loan Interest Rate Calculation

If you understand how Utkarsh Bank calculates your personal loan interest, it helps you plan better.

Formula: 

EMI = [P × R × (1+R)^N] / [(1+R)^N-1]

Where:

• P = Principal loan amount
• R = Monthly interest rate (annual rate ÷ 12)
• N = Loan tenure in months

Example

Let's calculate a Utkarsh Bank Personal Loan EMI:

• Loan amount: ₹2,00,000
• Annual interest rate: 12%
• Tenure: 24 months
• Monthly rate: 12% ÷ 12 = 1% (or 0.01)

Calculation:

EMI = [2,00,000 × 0.01 × (1.01)^24] / [(1.01)^24-1]

EMI = [2,00,000 × 0.01 × 1.2697] / [1.2697-1]

EMI = [2,539.40] / [0.2697]

EMI = ₹9,415 (approximately)

This formula helps you estimate your monthly payments. Use an online calculator for quick results on your Utkarsh Bank Personal Loan.

Tips to Get Lower Interest Rates for Utkarsh Bank

Follow these simple steps to reduce your Utkarsh Bank Personal Loan interest rates:

• Boost Your Credit Score: Your credit score directly affects your interest rate.
• Pay bills on time: Make all loan and card payments on time.
• Reduce debt: Keep credit usage below 30% of your limit.
• Correct credit report errors: Check your report for mistakes. Dispute any errors with credit bureaus.
• Limit new applications: Do not apply for multiple loans at once. This can lower your score.
• Build a Banking Relationship: Banks reward loyal customers with better rates. A strong relationship with Utkarsh Bank helps you get lower rates.
• Compare Loan Offers: Research other lenders besides Utkarsh Bank. A competing offer helps you negotiate better terms.
• Negotiate Confidently: Know current market rates before you apply. Show your strong credit profile to the bank. Utkarsh Bank charges a fee for renegotiating rates. This means negotiation is possible for your Utkarsh Bank Personal Loan.

These steps will help you secure the best possible rate.

Bonus Tip: Do you know? Mary Kom and Sunil Chhetri are the brand ambassadors of the Utkarsh Small Finance Bank.

Conclusion

The Utkarsh Bank Personal Loan offers competitive rates for salaried individuals. You can borrow up to ₹20,00,000 with flexible tenure. Maintain a good credit score to secure better rates. 

Compare offers and negotiate confidently for the best deal. The Utkarsh Bank Personal Loan provides hassle-free processing and convenient features.

FAQs

Q1: Does Utkarsh Bank offer lower personal loan interest rates to customers with a long microfinance or small-loan history?

Yes, borrowers with a strong repayment record on previous Utkarsh microfinance or small loans may get better rates.

Q2: Does maintaining higher balances in an Utkarsh savings account help reduce my personal loan interest rate?

Yes, strong account activity and consistent balances can improve your risk profile and loan pricing.

Q3: Can Utkarsh Bank reduce my interest rate if I take a joint personal loan with a co-applicant?

Yes, adding a co-applicant with stable income can lower the interest rate by reducing overall lending risk.

Q4: What is the minimum income required for Utkarsh Bank Personal Loan?

You need a minimum monthly income of ₹20,000 to qualify.

Apply for Loans Fast and Hassle-Free

Apply Now

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.