What Are the Common Interest Rates for Loans?

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Interest rates for loans vary based on the type of loan, the borrower’s credit profile, the lending institution, and repayment tenure. Here's a general overview of the average interest rates for different types of loans in India:

Loan Type Typical Interest Rate (p.a.)
Personal Loan 10.25% – 24%
Home Loan 8.40% – 10.50%
Car Loan 8.75% – 13%
Education Loan 9% – 13.5%
Gold Loan 7.5% – 14%
Payday Loan 24% – 60%

Keep in mind that these rates can change depending on your credit score, income, repayment history, and the bank or lender's policies. It's essential to compare multiple offers and read all loan terms before applying.

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