Personal Loan Interest Rates 2026: Compare All Banks & NBFCs

The table below shows the latest personal loan interest rates and processing fees offered by leading banks and NBFCs. Compare these key features to choose the lender that best suits your borrowing requirements:

Personal Loan Rates from Top Private Sector Banks

Personal Loan Rates from Top Public Sector Banks

Personal Loan Rates from Top NBFCs

Note: Rates are indicative and subject to change. Final rate offered depends on your credit profile.

Last updated: 21th Sep 2026

Evaluating loan offers becomes much easier once you understand the basic mechanics of a personal loan. The breakdown below shows the important information - including interest brackets, total loan amounts, repayment windows, and more- to help you make an informed decision.

When you borrow funds through a personal loan, lenders charge a specific percentage on top of the principal amount. Calculated annually (per annum, p.a.), this personal loan interest rate directly dictates your overall borrowing cost. Simply put, a lower interest rate translates to lower Equated Monthly Installments (EMIs) and less interest paid over time, whereas a higher rate results in higher EMIs and overall borrowing cost.

Lenders do not offer a uniform rate to every applicant. The rate offered to you depends on several factors, including your CIBIL score, monthly income, employment category, existing debt-to-income ratio, and the lender’s internal risk assessment policies. Because of this variation, comparing multiple loan offers before applying becomes essential to secure the right personal loan for your financial capability.

The lowest personal loan interest rate is typically offered to consumers who have an excellent credit profile and often come with stringent criteria. Some public sector banks may offer relatively lower rates under special schemes to select applicants fulfilling their strict eligibility criteria.

At Paisabazaar, you can compare loan offers from multiple lenders and avail a personal loan at an interest rate starting from 9.99% p.a., from Kotak Mahindra Bank, IDFC FIRST Bank, HDFC Bank, Axis Bank, and ICICI Bank.

You should also consider that the interest rates vary from one borrower to another. This is because it is decided based on multiple factors like CIBIL score, monthly salary, employment type, and repayment capacity, along with the bank’s internal policies. It is advisable to compare interest rates of personal loans offered by various banks and NBFCs and apply for the best loan offer as per your eligibility and requirements.

Paisabazaar’s Personal Loan interest rate calculator helps you to find out your monthly EMI, interest to be paid, and total amount of repayment for your loan. The calculator does a quick EMI calculation based on the loan amount, interest rate, and loan tenure.

How Interest Rates Affect Your Loan Tenure and EMI

Personal loan tenures usually range from 1 to 5 years, with some banks and NBFCs offering longer tenures of 6, 7 or 8 years. The choice of loan tenure directly affects the borrower’s EMIs and total interest cost.

Opting for a longer tenure lowers loan EMIs, making repayment easier for borrowers having limited repayment capacity. However, this convenience comes at the cost of incurring higher interest costs.Borrowers who choose longer tenures can reduce their total interest cost by making prepayments whenever they have surplus funds. Personal loan applicants should opt for shorter tenures only when they have adequate repayment capacity for the EMIs.

Example - Rs. 5 Lakh Loan EMI Across Tenures

The table below compares a Rs. 5 lakh personal loan with different tenures but at the same interest rate:

If you have adequate cash flow, you can opt for shorter tenures to save on overall interest cost. But if you are not able to manage higher EMIs or have limited repayment capacity, you can opt for longer tenures and consider prepaying your loan when you have adequate funds, keeping aside emergency funds.

Personal loan interest rates vary across banks and NBFCs based on their lending policies and your eligibility. Below are the starting interest rates offered by some of the leading lenders. Click on the respective pages to check the latest interest rates, eligibility criteria, fees & charges, and other loan details.

SBI Personal Loan Interest Rate

State Bank of India offers personal loans starting at 10.00% p.a., along with a processing charge of up to 1.50% of the total loan amount. The final rate offered to you is determined by your credit history and eligibility metrics. For a detailed breakdown of applicable charges, eligibility conditions, and tenure options, visit our dedicated  SBI personal loan interest rate page.

HDFC Bank Personal Loan Interest Rate

With starting interest rates at 9.99% p.a., HDFC Bank processes personal loans with a processing fee capped at Rs. 6,500. The final rate you secure depends on your repayment history and credit score. Explore the complete details regarding features, fees, and eligibility on our detailed HDFC Bank personal loan interest rate page.

ICICI Bank Personal Loan Interest Rate

Interest rates for ICICI Bank personal loans start from 9.99% per annum, alongside a processing fee that is charged at up to 2% of the entire amount of the loan. However, the exact interest rate varies depending on several factors, including your income level, credit rating, employment status, among others.  Check out our comprehensive ICICI Bank personal loan interest rate to evaluate the latest rates and processing guidelines.

Axis Bank Personal Loan Interest Rate

Axis Bank offers personal loans starting at 9.99% p.a., alongside a processing fee of up to 2% of the loan value. The bank evaluates your credit profile and financial background to finalize the applicable interest rate. You can check our dedicated Axis Bank personal loan interest rate page to review comprehensive interest details and flexible repayment options.

Kotak Mahindra Bank Personal Loan Interest Rate

Kotak Mahindra Bank stands out with a starting rate of 9.99% p.a., though its processing fee can go up to 5% of the loan quantum. Your credit background and financial eligibility play a major role in the final rate offer. You can review all associated charges and product highlights on our dedicated Kotak Mahindra Bank personal loan interest rate page.

IDFC FIRST Bank Personal Loan Interest Rate

Starting at 9.99% p.a., IDFC FIRST Bank provides personal loans with processing fees of up to 2% of the principal. The final interest rate depends on your income, credit score, and repayment history. Visit our IDFC FIRST Bank personal loan interest rate page to check the latest eligibility parameters and fee structures.

The types of interest rates that can be levied include the fixed interest rate and the floating interest rate. Whereas the majority of lenders in India’s retail lending sector provide personal loans at fixed interest rates, some lenders levy loans at floating interest rates. It is always beneficial to know about both types of interest rates and choose the best option to repay the loan.

Fixed Interest Rate

Floating Interest Rate

Fixed vs. Floating Personal Loan Interest Rate - Comparison

The table below compares fixed and floating personal loan interest rates based on some of the key parameters to help you understand their differences.

Most banks and NBFCs use the reducing-balance method, meaning the interest is levied only on the outstanding loan amount after every EMI payment. On the other hand, a few lenders might apply the flat interest rate method, where the interest is calculated on the entire initial loan amount for the whole tenure. Knowing how these calculations work helps you to compare different loan offers accurately and estimate your overall borrowing costs.

Flat Rate vs. Reducing Balance Method

The mechanics behind interest calculation typically boil down to either the flat-rate method or the reducing balance approach.

• Flat Rate Method: Calculates your interest based on the original loan amount for the entire duration, regardless of how much principal you clear.
• Reducing Balance Method: Recalculates the interest monthly based only on the outstanding principal balance.

Note: Loans processed through the reducing balance method generally come with a significantly lower borrowing cost, which makes it the preferred choice for most borrowers and lenders.

The table below shows the major differences between these two methods:

The timeline, interest rate, loan amount, and eligibility criteria on personal loan vary among public sector banks, private banks, and NBFCs. Given below is a detailed comparison table of these three types of lenders:

The interest rates charged by banks and NBFCs on your personal loan are not the same for all applicants. Several factors influence the rate of interest, and these factors allow the lenders to judge your creditworthiness. Consumers with a strong financial profile get a chance to avail low-interest-rate personal loans. Following are some of the key factors affecting your personal loan interest rate:

Credit Score

Income

Occupation Profile

Existing Relationship with the Lender

Employment History

Loan Amount & Repayment Tenure

Applicants with a strong credit score usually have higher chances of getting a personal loan at a better interest rate. If your CIBIL score is 760 or above and is supported by a steady income, you can avail personal loans at a lower interest rate.

However, the final interest rate is decided by the lender by assessing your credit profile, repayment history, employment type, and other factors. In addition to this, you should consider APR, as apart from the interest rate, other charges like processing fees, foreclosure charges, and more can increase your overall cost of borrowing.

The good interest rate would be the one that has the overall lowest APR and suits your financial needs and repayment capability.

Getting a personal loan at a lower interest rate requires a strong credit profile and repayment history. Here is how you can improve your chances of availing a personal loan at a low interest rate:

1. Keep Your CIBIL Score Above 760: Your credit score is the first filter a lender reviews. Timely debt repayment and low credit usage reflect responsible financial behavior, which can automatically qualify you for a lower interest rate.
2. Check Pre-approved Offers First: The lender with your active salary accounts or fixed deposits already understands your cash flow and is far more likely to give preferential interest rates to keep your business.
3. Stable Income and Employment: Frequently changing your job can raise red flags for lenders. They prefer applicants with steady corporate experience, as a reliable professional background guarantees a secure income stream to back the loan.
4. Compare Personal Loan Offers via Paisabazaar: Do not accept the first offer you receive. Comparing multiple banks and NBFCs on Paisabazaar gives you a clear view of the market landscape, ensuring you don't overpay on interest rates or processing fees.
5. Space Out Your Credit Inquiries: Applying for numerous credit products within a short span of time triggers consecutive hard credit checks. This has the potential to damage your credit health and reduce your ability to negotiate favorable terms.

Whether you are applying for a new personal loan or currently managing an active debt, minimizing borrowing costs is possible only with the right strategy. Given below are some of the common ways to reduce the interest rate on your personal loan:

While the fees and charges applicable to personal loans vary from one lender to another. The table below shows the common fees & charges that are levied when you apply for a personal loan:

Processing Fees

Prepayment and Foreclosure Charges

Late Payment Penalties

Annual Percentage Rate (APR) represents the overall annual cost of a personal loan offered by any lender. Borrowers usually calculate the overall borrowing cost only considering the interest rate. But APR shows the final cost, including multiple charges, such as processing fees, documentation charges, and verification fees, along with the interest rate.

APR refers to the total annual cost of a personal loan. While an ordinary interest rate only indicates the cost associated with the borrowed money, the APR takes into account the other additional costs like processing charges, documentation charges, and verification charges.

The APR is a far more reliable factor when comparing loan offers from multiple banks or NBFCs. For example, if two lenders have the same interest rate, but the processing fee for both lenders varies, the lender with a higher processing fee will have a higher APR, which can increase your overall cost of borrowing.

Example: 

Suppose you borrow Rs. 4 lakh at a 12% p.a. interest rate for a 3-year tenure, at a 1.5% processing fee (Rs. 6,000). While the nominal interest rate sits at 12%, the addition of the processing fee will result in the final APR of approximately 13.05%.

Personal loan interest rates depend on two factors - Marginal Cost of Funds-based Lending Rate (MCLR) and RBI Repo Rate. When there is any shift in either of the factors, your interest rate also changes. Given below is what MCLR & Repo Rate are and how they affect your personal loan interest rate:

What is MCLR?

Marginal Cost of Funds-based Lending Rate (MCLR) serves as a mandatory floor rate below which commercial banks cannot offer personal loans or any credit product, except for select cases. Each lender calculates its individual MCLR by factoring in its operating costs, cost of funds, and cash reserve mandates. Consequently, if your personal loan interest rate is linked to MCLR, any change or adjustment the bank makes to its MCLR may affect your current interest rate.

Latest MCLR of Top Lenders

Banks periodically review and revise their MCLR based on changes in their cost of funds and other factors. The table below shows the latest overnight MCLR of some leading banks in India.

Note: MCLR is revised periodically by banks. The rates shown above are indicative and subject to change.

How RBI Repo Rate Changes Affect Your EMI

Repo Rate is the basic interest rate that the Reserve Bank of India charges commercial banks for lending money. When the RBI increases this rate, your lender also increases the current interest rate on your floating-rate personal loan. If the RBI lowers this rate, your current interest rate on a floating-rate personal loan will also be reduced, which can lower your overall cost of borrowing or may shorten your repayment tenure.

Scenario:

Mr. Vinay Prasad was planning to take a Rs. 5 lakh loan to fund his son’s higher studies for 5 years. He had an existing salary account with IndusInd Bank and a savings account with Federal Bank. But before accepting an offer, he came to Paisabazaar and compared offers from various lenders.

He found out that he had an existing pre-approved offer from HDFC Bank at a comparatively lower interest rate of 9.99% p.a.

Key Insights

From the above table, it is clear that even a slight difference in the interest rate can significantly increase your overall cost of borrowing. Therefore, you should always compare personal loan offers from multiple banks and NBFCs before applying to choose the right personal loan offer as per your financial capability to lower your monthly EMIs and final cost of borrowing.

Lenders may offer better personal loan interest rates to specific borrower segments, particularly government sector employees and female applicants. Because government roles offer job security and predictable monthly income, it makes these applicants highly stable and low-risk borrowers. Similarly, many banks and NBFCs introduce dedicated concessional rate schemes tailored for women from time to time.

Even so, these benefits are never guaranteed. Your final approval depends on your credit history, monthly salary, and the lender’s specific eligibility criteria. Comparing offers across multiple banks or NBFCs helps you pick a lender that offers a suitable interest rate according to your financial needs and repayment capability.