The interest rates offered on Shriram Finance personal loan is based on the scheme selected by the borrowers where they can avail it for a period of up to 36 months.

Shriram Finance offers interest rate

  • Loan amount is applicable on your income.
  • Minimum repayment period is 1 year.
  • Maximum repayment period is 3 years.

Features and benefits of Shriram Finance Personal loan

  • Repayment tenure: The user can repay the personal loan over a period varying from 12 months to 36 months.
  • Foreclosure: Personal loan foreclosure is allowed after the lock-in period as mentioned in the agreement.
  • Target group: Personal loan is offered to both salaried and self-employed individuals for the existing customers of the Shriram City group.
  • Hassle-free processing: The personal loan is processed without hassle and the application process to medium term finance.

Fees and charges of Shriram Finance personal loan

The fees and charges are applicable for the Shriram Finance personal loans are dependent on the schemes which are selected by the applicants. However, there are certain fixed charges which are applicable for the personal loan:

Particulars Charges
Cheque bounce charges 3% of the amount or Rs.1,000 (whichever is higher) + GST
Swapping charges Rs.1,000 per swap + GST
Overdue interest 36% of the unpaid instalments or dues
Loan cancellation charges Rs.1,000 + GST


Eligibility criteria of Shriram Finance

The applicant must have the following eligibility criteria:

  • The minimum age of the applicant should be 18 years and maximum it should be 59 years.
  • The applicant must be salaried employed for at least 1 year.
  • Self-employed individuals must be employed for minimum of 2 years.
  • There is no cheques bounces in the bank statement if the applicant.
  • The borrower must be required to declare his/her existing loans.
  • The user must be residence for at least 1 year.

Documents required for personal loan application

Listed below is the major documents required for a personal loan avail from Shriram Finance:

  • Identity proof: It can be your passport, voter ID card, driving license, Aadhaar card, or PAN card.
  • Address proof: It can be your passport, driving license, ration card, and more.
  • Proof of income
  • Submit bank statement of last 6 months.
  • Post-dated cheques and electronic clearing mandates.
  • Shriram Finance required legal documents.
  • Shriram Finance required collateral security.
  • Any other documents required to submit by the Shriram Finance.

Comparing Shriram Finance with other banks

Shriram City Union Finance Axis Bank HDFC Bank Aditya Birla Capital Bajaj Finserv
Interest Rate As per the applicant’s profile. 12-24% 10.75-21.30% 14% onwards 12.99% onwards


1 year to 3 years 1 year to 5 years 1 year to 5 years 1 year to 5 years 1 year to 5 years
Loan amount Based on selected loan scheme. Rs. 50,000 to Rs. 15 lakh Maximum Rs. 40 lakh Rs. 1 lakh to 50 lakh Maximum of Rs. 25 lakh
Processing Fee As per the loan agreement. Maximum of 2% of the loan amount plus GST Maximum of 2.50% of the loan amount Maximum of 2% of the loan amount Maximum of 4.13% of the loan amount + GST


EMI calculation of Shriram Finance personal loan

For example the borrower offers Rs. 1 lakh in personal loan from Shriram Finance. The company offers interest rate of 12% p.a. for repayment of loan for 1 year.

Months Principal Interest EMI (principal + interest) Balance
Apr Rs.7,885 Rs.1,000 Rs.8,885 Rs.92,115
May Rs.7,964 Rs.921 Rs.8,885 Rs.84,151
Jun Rs.8,043 Rs.842 Rs.8,885 Rs.76,108
Jul Rs.8,124 Rs.761 Rs.8,885 Rs.67,984
Aug Rs.8,205 Rs.680 Rs.8,885 Rs.59,779
Sep Rs.8,287 Rs.598 Rs.8,885 Rs.51,492
Oct Rs.8,370 Rs.515 Rs.8,885 Rs.43,122
Nov Rs.8,454 Rs.431 Rs.8,885 Rs.34,668
Dec Rs.8,538 Rs.347 Rs.8,885 Rs.26,130
Jan Rs.8,624 Rs.261 Rs.8,885 Rs.17,507
Feb Rs.8,710 Rs.175 Rs.8,885 Rs.8,797
Mar Rs.8,797 Rs.88 Rs.8,885 Rs.0


Interest rates for personal loans are continuously fluctuating and can vary based on the eligibility conditions set by the lender for each borrower. It is therefore strongly recommended that you consider all the significant factors that can impact the interest rate of your personal loan.

Factors affecting Shriram Finance Personal Loan

  1. Your Income

The most important factor that defines the Interest rate on personal loans is your wages. It’s an obvious fact that those with high incomes are more likely than those with lower incomes to repay their loans entirely on time. A borrower’s high revenue offers a greater degree of trust in the repayment ability of the borrower.

In the lending market, it can be easily found that people with high and steady earnings appear to get away with lower interest rates on their loans. Lenders can, however, impose higher interest rates on loans provided to individuals with low incomes to safeguard themselves against potential risks.

  1. Your Credit Score

Nowadays, it is common knowledge that credit score plays a crucial role in acceptance of loans. However, the score becomes much more important for personal loans because it will not only determine the acceptance of the loan, but also affect the interest rates. In terms of previously taken loans or other credits, the credit score represents a person’s financial performance.

Every timely repayment of your loan will increase your credit score, while delinquent or defaulting payments will have adverse effects. In other words, taking an immediate loan would increase your credit score. A higher credit score conveys a higher degree of confidence in the repayment potential of the borrower, enabling them to take out loans at lower interest rates.

A score above 750 is usually considered a strong credit score.

However, for low credit scores, many digital lending platforms such as personal loan apps offer personal loans online.

  1. Status of Your Boss

Since personal loans are usually unsecured, lenders are looking for numerous factors that provide borrowers with some trust, and your employer’s credibility is one of them. The explanation behind this logic is reasonably straightforward. Borrowers working in a well-known company are deemed to be more financially secure and accountable for making prompt repayments.

Often, lenders may also have borrowers working for particular organisations with more flexible lending policies.

  1. Your debt-to-income Ratio

Suppose you are employed and earn a relatively high salary in a well-known sector, but you have a decent portion of your salary going into debt payments.

All your past debts would probably affect the interest rate on any future personal cash loan in this situation. The debt-to-income ratio is determined by dividing your total income into all your debt payments. A higher debt-to-income ratio implies more commitments on the part of the borrower, and the lender may charge the loan a higher interest rate just to be on the safe side of the loan.


A personal loan from Shriram Finance comes at an attractive interest rate with low processing charges at flexible repayment tenure. However, it is always advisable to check and understand the lender’s discretion before applying for a loan.

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