What is the interest rate on a Fuel Loan?

The interest rate on a Fuel Loan varies based on several factors:

• Financial institution Policies: Interest rates are set by individual financial institutions, and they may vary depending on the borrower’s profile and the loan tenure.
• Credit Score: A good credit score (usually 700 and above) can help you secure lower interest rates. Borrowers with lower credit scores might face slightly higher rates.
• Loan Tenure: Longer repayment tenures might come with higher interest rates, while shorter tenures could reduce the overall cost of borrowing.
• Loan Amount: Larger loan amounts may sometimes come with reduced interest rates if tied to bulk fuel purchases for businesses.

On average, interest rates for Fuel Loans in India can range from 10% to 16% annually. It’s essential to compare rates across financial institutions to get the best deal.