As the name suggests, a “personal loan” is offered for personal use instead of business or commercial purposes. Personal loans come in handy when we need money for repairing or renovating our home; we are going on a vacation with family or friends; we are preparing for our child’s wedding and more.
Personal loan interest rates are different for different lenders. It is basically decided on the basis of your employment type i.e. salaried or self employed, your monthly income, your CIBIL score, your existing EMI, etc. It is an unsecured loan, thus the short tenure also plays a role in deciding the interest rate.
Personal Loan Interest Rates (Oct 2018):
| Banks | Interest Rate |
| SBI Personal Loan | 12.50%-16.60% |
| Axis Bank Personal Loan | 15.50%-24% |
| ICICI Personal Loan | 10.99% to 22% |
| Tata Capital Personal Loan | 11.49% to 19% |
| Capital First Personal Loan | 12% to 18% |
| Bajaj Finserv Personal Loan | 12.99% Onwards |
| Fullerton India Personal Loan | 12.49%-33% |
| IndusInd Bank Personal Loan | 10.75% to 30.50% |
| Standard Chartered Personal Loan | 10.99% onwards |
| Citibank Personal Loan | 12.99% onwards |
| HDFC Personal Loan | 15% to 20.99% |
| Kotak Mahindra Personal Loan | 10.99% to 24% |
| HSBC Personal Loan | 10.99% to 17.5% |
Benefits of Personal Loan:
Below are Personal Loan Interest Rates details of some leading banks:
SBI Personal Loan Interest Rates
The SBI offers a variety of personal loans designed on the requirement of customers of different segments. The interest rate for each kind of loan varies accordingly. And, the State Bank of India does not charge any pre-closure fee.
| SBI Personal Loan Schemes | Rate of Interest* | |
| Xpress Credit | Full Check-off (Category I) |
340 – 390 bps above Base Rate i.e., 12.70% – 13.20% p.a. currently |
| Partial Check-off (Category II) |
440 – 490 bps above Base Rate i.e., 13.70% – 14.20% p.a. currently | |
| No Check-off (Category III) |
540 – 590 bps above Base Rate i.e., 14.70% – 15.20% p.a. currently | |
| SBI Pension Loans | 3.90% above Base Rate, currently 13.20% p.a. | |
| Jai Jawan Pension Loan | 4.75% above Base Rate, currently 14.05% p.a. | |
| SBI Saral | 8. 50% above Base Rate floating, currently 17.80% p.a. | |
| Festival Loan Scheme | 6.75% above Base Rate, currently 16.05% p.a. | |
| Clean Overdraft | 8.25% above Base Rate, currently 17.55% p.a. | |
HDFC Personal Loan Interest Rates
HDFC has special offers, interest rates and charges on HDFC personal loan for HDFC Bank account holders and for woman applicant. It has fast approval process for eligible candidate.
| Interest Rates & Charges | |
| Rack interest rate | Salaried – 15% to 20.99% |
| Loan processing charges | Up to 2.50% of the loan amount subject to a minimum of Rs. 1,000/- & Maximum of Rs. 25000/- for Salaried Customers. |
| Prepayment | Salaried – No pre-payment permitted until repayment of 12 EMIs |
| Pre-payment charges | Salaried – 13-24 Months – 4% of Principal Outstanding, 25-36 Months – 3% of Principal Outstanding >36 Months – 2% of Principal Outstanding |
Axis Bank Personal Loan Interest Rates
Axis Bank offers personal loan ranging from Rs 50,000 to Rs 15,00,000 with a repayment tenure of 12 months to 60 months. You can even transfer your on-going loans to AXIS bank with the balance transfer facility. It requires minimal documentation and has quick approval.
| Interest Rates & Charges | |
| Rate of Interest | 15.5% to 24% |
| Loan Processing Charges | 1.50% to 2.00% + Service Tax as applicable |
| Cheque Bounce Charges | Rs. 500 per cheque bounce + Service Tax as applicable |
| Cheque/ Instrument Swap charges | Rs.500 per instance + Service Tax as applicable |
| Prepayment/ Forclosure Charges | Nil |
| Default Interest Rate | @24.00% per annum i.e 2% per month on the overdue instalment |
ICICI Personal Loan Interest Rates
ICICI personal loan is a multi-purpose loan that offers fixed rate of interest and flexible tenures
| Type | Charges |
| Rate of interest | 10.99% to 22% |
| Processing Fee | Up to 2.25% per year + Service tax |
| Prepayment charges | 5% per year of the principal outstanding amount + service tax |
| Charges for loan Cancellation | Rs. 3000/- + service tax |
| Extra interest on late payment | 24% per year |
| Prepayment Charges | Rs 100/ schedule + Service tax |