Interest on a personal loan is calculated based on several factors, including:
- RBI Repo Rate: This is the rate at which the Reserve Bank of India lends money to commercial banks.
- CIBIL Score: Your credit score can impact the interest rate offered to you.
- Repayment Behavior: How you have managed repayments in the past can influence your interest rate.
- App Activity: Your activity on the lending app might also be considered.
These factors together determine the interest rate you receive on your personal loan.