What is Interest Rates?
The interest rates on a certain loan are expressed as a percent. This is the key factor that determines the amount of your monthly repayment. In real life, this figure represents how much you have to pay over a certain period of time. On the other hand, in the financial world, the figure expressed as the interest rate is actually a symbol for calculating the risk that one is taking by taking the loan and the associated interest charged over a certain period of time.
As one can see, interest rates are a complex concept based on various types of factors, including the type of loans involved, the terms and conditions imposed by the lending party, the borrower’s current financial circumstances, and other external factors. In India, rates are usually offered by all the three major credit card issuers Visa, MasterCard, and Discovery. But, as mentioned earlier, they also offer different types of interest rates charted out by them according to the borrower’s loan tenure.
In this post, we will share all the latest Fixed deposit interest rates, Gold loan interest rates & other loans interest rates.
Fixed deposit interest rates – All Banks 2021 September
Fixed deposit interest rates are one of the many variables that can be used to make investments. They come in a wide range of values and can be used by many different people. Some people use them for their retirement fund investments. Others may want to use them for education, mortgages, or other large expenses. No matter what you plan on using these interest rates for, you are going to find that they are a valuable way to make money.
Below are some interest rates charts:
| Bank Name | Fixed Deposit Interest Rate |
| Abhyudaya Bank | 5.75% |
| Allahabad Bank | 6.75% |
| Andhra Bank | 5.25% |
| Andhra Pradesh Grameena Vikas Bank | 5.75% |
| Andhra Pragathi Grameena Bank | 5.35% |
| Arunachal Pradesh Rural Bank | 6.50% |
| Aryavart Bank | 6.00% |
| Assam Gramvikash Bank | 6.25% |
| Au Small Finance Bank | 5.85% |
| Axis Bank | 5.10% |
| Bandhan Bank | 5.75% |
| Bangiya Gramvikash Bank | 6.00% |
| Bank Of Baroda | 4.90% |
| Bank Of India | 5.00% |
| Bank Of Maharashtra | 6.25% |
| Baroda Gujarat Grambank | 5.15% |
| Baroda Rajasthan Kshetriya Grambank | 5.10% |
| Baroda Up Bank | 5.30% |
| Bharat Bank | 5.25% |
| Canara Bank | 5.20% |
| Central Bank Of India | 4.90% |
| Citibank | 3.50% |
| City Union Bank | 5.00% |
| Corporation Bank | 4.25% |
| Dbs Bank | 4.25% |
| Dcb Bank | 4.00% |
| Equitas Bank | 6.35% |
| Federal Bank | 5.10% |
| Fincare Bank | 4.50% |
| HDFC Bank | 4.90% |
| IDBI Bank | 3.25% |
| IDFC Bank | 5.25% |
| Bandhan Bank | 5.75% |
| ICICI Bank | 4.90% |
| Union Bank Of India | 5.00% |
| Indian Bank | 5.00% |
| Indian Overseas Bank (IOB) | 5.15% |
| Indusind Bank | 6% |
| J&K Bank | 5.10% |
| Jana Bank | 6.00% |
| Karnataka Bank | 5.20% |
| Karur Vysya Bank | 5.25% |
| Kotak Mahindra Bank | 4.75% |
| Lakshmi Vilas Bank | 3.50% |
| PNB Bank | 5.00% |
| Post Office | 5.50% |
| Punjab And Sind Bank | 5.15% |
| Repco Bank | 6.25% |
| State Bank Of India | 2.75% |
| Ujjivan Small Finance Bank | 6.00% |
| Union Bank | 5.00% |
| Yes Bank | 5.75% |
More About Interest Rates
Loans are made based on the principle that the loan amount will be returned with interest by the end of the term. In such cases, when the interest rate charged is considerably lower than the prevailing rate, borrowers generally opt for it because of its attractive nature. It generally helps in reducing their monthly repayment load and allows them to pay back in a shorter time span. This means that the monthly payments become affordable and easier to meet even when the borrower faces a sudden unexpected crisis. It is, therefore, an important factor to consider while planning to take a loan. You can also check PM Kisan samman nidhi yojana online apply.
In India, the interest rate on an unsecured loan can either go higher or lower, depending on the details negotiated with the lender. For example, if a person opts for a lower interest rate and a fixed rate over a period of five years, the monthly payment may go high, but when the same person takes a secured loan of a similar nature and a higher interest rate, then the monthly payment may go low. The choice between the two depends on the borrower’s repaying capacity and financial position.
Interest rates for home buyers
Homebuyers can benefit by availing of the zero-down payment scheme offered by some lending institutions. A borrower can buy his dream home without paying any down payment. However, in this case, the base rate will be slightly higher than the prevailing interest rate. If you make timely payments, the base rate will depreciate over time and your monthly installments will reduce. This makes the effective interest rate lower.
There is a provision of giving a certain amount of interest to the principal loan amount through another type of arrangement known as an “over-the-counter” agreement. If you have a property that you want to sell for a lump sum amount, you can take a home equity loan that will help you raise the money. However, if you have a variable interest rate in your loan, the amount of monthly payment may go up if the interest rate moves downward. With this, your monthly payment may reduce, but the interest rate may increase. So it all depends upon your current financial position.
The cost of your home loan may change if you apply for a new home loan or switch the existing one. However, the rate will remain the same for at least three years as it is decided by the Federal Reserve. You may also want to get a pre-qualification letter from the lender to make sure that you can afford the new interest rate. If you are able to do so, you will be able to take advantage of the new interest rate.