
The principal way by which banks earn income is through loans. Loans are typically for fixed terms at fixed rates. Loans are secured with real property or assets. Prepayment penalties are charged if the loan is cleared ahead of tenure. Part of a loan process includes evaluation of the borrowers using credit card history checks. So where do banks set their interest rates from?
Bank Deposits
Another source of funds for banks are Deposits. It is the money that account holders entrust to the bank for safekeeping.
These same funds are used by borrowers in future transactions.
Interest Rates
The rate at which money is lent to the borrower is usually higher than the rate of interest at which the bank has borrowed it. Banks charge a high interest rate because they have employees to pay, offices to maintain and a business to run. Banks basically make money by lending at higher rates than the cost of money.
Banks collect interest at on loans and interest payments from the debt securities they own and pay interest on deposits and short term borrowings.
Interest rates at various banks in India:
To get a general idea as to how interest rates vary from bank to bank, we can look at the table below:
Name of Bank | *Interest Rates |
HDFC Bank | 11.49% – 20.00% |
State Bank of India | 13.00% – 17.65% |
ICICI Bank | 11.49% – 22.00% |
Axis Bank | 15.50% – 24.00% |
Citibank | 11.75% – 15.75% |
Bajaj Finserv | 14.25% – 16.75% |
Standard Chartered Bank | 11.99% – 15.50% |
Fullerton India | 17.25% – 35.00% |
Capital First | 16.00% – 24.00% |
Andhra Bank | 13.95% – 16.00% |
Bank of Maharashtra | 14.20% – 15.15% |
Canara Bank | 13.65% – 13.65% |
Dena Bank | 13.00 % – 14.00% |
Union Bank of India | 11.65% – 14.40% |
Vijaya Bank | 12.70% – 13.70% |
Tata Capital | 13.50% – 17.50% |
Allahabad Bank | 13.55% – 13.55% |
Federal Bank | 13.44% – 15.24% |
IndusInd Bank | 11.49% – 22.00% |
Yes Bank | 12.50% – 16.00% |
Bank of Baroda | 14.15% – 14.15% |
Corporation Bank | 13.50% – 14.50% |
IDBI Bank | 13.20% – 13.75% |
Indian Bank | 14.50% – 17.00% |
Indian Overseas Bank | 12.70% – 15.25% |
Punjab National Bank | 12.45% – 15.45% |
Karur Vyasa Bank | 13.90% – 16.40% |
Syndicate Bank | 14.30% – 14.30% |
Kotak Bank | 11.50% – 24.00% |
*The rates are as of 28th September 2016
Loan Singh delivers the best interest rates because...
Loan Singh’s Digital Lending Platform introduces lenders and borrowers to each other. Credit-worthy, salaried individuals are selected with the help of our ‘Seynse Score’ (no CIBIL score required). Their profiles are shared with Lenders who then decide who they would like to lend to. The entire process takes less than 48 hours and requires just one document.
What are you waiting for? Log on to www.loansingh.com and sign up for a loan right away.
If you have any questions call us on 18008435353 or drop us an email to hello@loansingh.com. You can also leave your comments below.
Daman Diu Daman Daman
Very good article.Really looking forward to read more.
Fantastic article post.Thanks Again. Really Cool.
What is the interest rate for personal loan for 4 lacs
I wish i could write that great of a post, my name is ronald spinabella and I am an seo guru and internet marketer
perfect post, you couldn’t have explained it better im gonna add it to my website leagle.com
I love this blog post, i’m going to tweet it on my leagle account
Hi blogger, i must say you have very interesting articles here.
Your page should go viral. You need initial traffic
only. How to get it? Search for; Mertiso’s tips go viral
Awesome post, i’m going to share this with my followers on instagram @leagle
Wow, wonderful blog layout! How long have you been blogging for? you make blogging look easy. The overall look of your site is wonderful, as well as the content!
Very neat article.Much thanks again. Great.
Intresting, will come back here more often.
Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point. You obviously know what youre talking about, why throw away your intelligence on just posting videos to your weblog when you could be giving us something informative to read?
After research a couple of of the blog posts in your web site now, and I really like your way of blogging. I bookmarked it to my bookmark web site record and will be checking back soon. Pls check out my website online as properly and let me know what you think.
Howdy! I just wish to give an enormous thumbs up for the great information you’ve here on this post. I will be coming back to your blog for more soon.
Hello there, You’ve done an incredible job. I will certainly digg it and personally suggest to my friends. I’m sure they’ll be benefited from this website.
I’m not sure exactly why but this blog is loading very slow for me. Is anyone else having this issue or is it a issue on my end? I’ll check back later and see if the problem still exists.
Good post! Thanks!
very interesting information! Thank you!
Sniffz it!
Thank you so much for the great article, it was fluent and to the point. Cheers.
I just could not depart your web site before suggesting that I actually enjoyed the standard info a person provide for your visitors? Is gonna be back often in order to check up on new posts
I really appreciate this post. I have been looking all over for this! Thank goodness I found it on Bing. You have made my day! Thanks again
Another thing I’ve really noticed is that often for many people, bad credit is the reaction to circumstances beyond their control. By way of example they may be actually saddled with illness and because of this they have substantial bills going to collections. Maybe it’s due to a occupation loss or perhaps the inability to work. Sometimes divorce or separation can really send the finances in the wrong direction. Thanks sharing your thinking on this blog.
Greetings from Colorado! I’m bored to tears at work so I decided to browse your blog on my iphone during lunch break. I love the info you present here and can’t wait to take a look when I get home. I’m surprised at how quick your blog loaded on my mobile .. I’m not even using WIFI, just 3G .. Anyhow, amazing blog!
It’s really a nice and helpful piece of information. I’m glad that you shared this helpful info with us. Please keep us up to date like this. Thanks for sharing.
Spot on with this write-up, I truly think this website wants much more consideration. I’ll most likely be again to learn rather more, thanks for that info.
What’s Happening i am new to this, I stumbled upon this I have found It absolutely useful and it has helped me out loads. I hope to contribute & help other users like its helped me. Great job.
You are a very clever individual!
F*ckin’ amazing things here. I’m very glad to see your post. Thanks a lot and i’m looking forward to contact you. Will you kindly drop me a mail?
Awsome website! I am loving it!! Will come back again. I am bookmarking your feeds also.
Hello there, You’ve done an excellent job. I will definitely digg it and personally suggest to my friends. I’m confident they’ll be benefited from this site.
We are a group of volunteers and opening a new scheme in our community. Your site provided us with valuable info to work on. You’ve done a formidable job and our entire community will be grateful to you.
We are a group of volunteers and opening a new scheme in our community. Your web site offered us with valuable info to paintings on. You’ve performed a formidable job and our whole group can be thankful to you.
A lot of whatever you assert is supprisingly appropriate and it makes me wonder why I hadn’t looked at this in this light previously. This article really did switch the light on for me as far as this particular subject goes. But at this time there is 1 factor I am not really too comfy with and whilst I make an effort to reconcile that with the actual main theme of the issue, permit me observe just what all the rest of your readers have to say.Very well done.
Yet another thing is that when evaluating a good on the internet electronics shop, look for web shops that are continuously updated, maintaining up-to-date with the hottest products, the most effective deals, and also helpful information on goods and services. This will ensure that you are dealing with a shop which stays atop the competition and offers you what you need to make knowledgeable, well-informed electronics expenditures. Thanks for the crucial tips I’ve learned through the blog.
great points altogether, you simply gained a brand new reader. What would you suggest in regards to your post that you made a few days ago? Any positive?
Hi my friend! I want to say that this post is awesome, great written and include almost all vital infos. I’d like to see more posts like this .
We’re a group of volunteers and opening a new scheme in our community. Your web site provided us with valuable info to work on. You have done an impressive job and our whole community will be grateful to you.
I’m curious to find out what blog platform you are utilizing? I’m having some small security issues with my latest site and I’d like to find something more safe. Do you have any recommendations?
Hello, you used to write great, but the last few posts have been kinda boring… I miss your tremendous writings. Past few posts are just a bit out of track! come on!
After I initially commented I clicked the -Notify me when new comments are added- checkbox and now each time a remark is added I get four emails with the identical comment. Is there any means you may take away me from that service? Thanks!
These two better settle their score now before everything ends up burnt!
Very good blog! Do you have any helpful hints for aspiring writers? I’m planning to start my own website soon but I’m a little lost on everything. Would you propose starting with a free platform like WordPress or go for a paid option? There are so many choices out there that I’m totally confused .. Any ideas? Appreciate it!
“Very good blog post.Really thank you! Awesome.”
This guy has something very important to say!