Personal Loan Interest Rate
Last Updated : March 1, 2023, 3:06 p.m.
The key to a hassle-free personal loan journey is to choose the lender that offers you the lowest interest rates. After all, the rate determines the cost of your borrowing. Lower the rate lesser will be the interest outgo and vice-versa. We have made it easy for you to choose the best interest rate deal by showcasing the personal loan interest rates of different lenders. All you need is to compare the rates and choose the best one for you.
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All Banks Personal Loan Interest Rates April 2024
| List of Banks/Lenders | Personal Loan Interest Rates | Loan Amount | Processing Fee | Turnaround Time |
|---|---|---|---|---|
| Allahabad Bank | 10.00% - 15.00% |
| 1.22% of loan Amount, Minimum INR 1,228 | Depends on the internal policy of the bank |
| Andhra Bank | 11.80% - 15.50% |
| As Applicable | Depends on the internal policy of the bank |
| Axis Bank | 10.49% - 21.00% | Up to 40 Lakh | 1% of the loan amount + GST | |
| Bajaj Finserv | 11.00% Onwards | Upto INR 25,00,000 | 1%-1.5% of loan amount + GST | Within 24 hours |
| Bank of Baroda | 10.90% - 18.25% |
| 2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000, respectively. The fee will also include applicable GST | Depends on the internal policy of the bank |
| Bank of India | 10.35% - 14.85% | Upto INR 5,00,000 - INR 10,00,000 | 2% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| Bank of Maharashtra | 9.50% - 12.80% | Upto INR 5,00,000 - INR 10,00,000 | 1% of the loan amount plus GST, subject to a minimum of INR 1,000 | Depends on the internal policy of the bank |
| Canara Bank | 11.75% - 16.25% | Six months gross salary or INR 3,00,000, whichever is less | 0.50% of the loan amount, subject to a minimum and maximum of INR 1,000 and INR 5,000 respectively |
|
| Central Bank of India | 12.30% | 20 times of gross salary, subject to a maximum of INR 10,00,000. The minimum net take home income must not fall below 40% of the gross salary after deductions, including the proposed EMI | INR 500 + applicable GST | Depends on the internal policy of the bank |
| Citibank | 10.49% Onwards | Upto INR 30,00,000 | Upto 3% of the loan amount | Within 48 hours |
| Corporation Bank | 11.80% - 15.50% | Upto INR 3,50,000 | 1.50% of the loan amount, subject to a minimum of INR 500 | Depends on the internal policy of the bank |
| Dena Bank | 10.90% - 18.25% |
| 2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000, respectively. The fee will also include applicable GST | Depends on the internal policy of the bank |
| DCB Bank | 13.00% - 25.00% | Upto INR 5 lakh | 2% of the loan amount | Within 3-4 working days |
| Federal Bank | 10.49% - 17.99% | Upto INR 10 lakh | 0.50% of the loan amount | Depends on the internal policy of the bank |
| HDFC Bank | 10.75% - 14.50% | up to 50 Lakh | INR 3500(>=10 Lac) or 2% of the loan amount | Within 3-4 working days |
| HSBC | 9.75% - 16.00% | Upto INR 30 lakh | Upto 1% of the loan amount | Within 15 days post the receipt of the application form |
| ICICI Bank | 10.75% - 19.00% | Upto INR 50 lakh | INR 4999(>=10 Lac) or 2% of the loan amount + GST | Within 72 hours of the submission of documents |
| IDBI Bank | 10.50% - 13.25% | Upto INR 10 lakh | As applicable | Depends on the internal policy of the bank |
| IndusInd Bank | 10.25% - 26.00% | Upto INR 25 lakh | Up to 3% + GST | Within 4-7 working days post receipt of the documents |
| Jammu & Kashmir Bank | 12.20% - 13.20% | Upto 36 months gross salary | NIL | Depends on the internal policy of the bank |
| Karnataka Bank | 13.49% | Upto INR 5 lakh | 0.50% of the loan amount | Depends on the internal policy of the bank |
| Karur Vysya Bank | 12.20% - 13.20% | Upto INR 10 lakh | 1% of the loan amount | In-principle sanction - 15 minutes |
| Kotak Mahindra Bank | 10.99% Onwards | Upto INR 20 lakh | 0.99%-2.50% of the loan amount plus applicable GST | Within 10 working days |
| Lakshmi Vilas Bank | 11.55% | Upto INR 20 lakh | 0.25% of the loan amount, subject to a minimum of INR 2,500 plus applicable GST | Depends on the internal policy of the bank |
| Nainital Bank | 12.50% Onwards |
| 0.50%-1.00% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| Oriental Bank of Commerce | 11.40% - 16.95% | 15 times of gross salary, subject to a maximum of INR 10 lakh | 0.50% of the loan amount, subject to a minimum of INR 500, plus applicable GST | Depends on the internal policy of the bank |
| Punjab & Sind Bank | 11.15% - 12.75% | Upto 18 times of net monthly salary or INR 3 lakh, whichever is less | 1% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| RBL Bank | 14.00% - 23.00% | Upto INR 20 lakh | 2%-2.50% of the loan amount | Depends on the internal policy of the bank |
| Punjab National Bank (PNB) | 11.40% - 16.95% | 20 times of net monthly salary or INR 4 lakh, whichever is lower | 1.80% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| State Bank of India (SBI) | 11.00% - 14.00% | Upto INR 20 lakh | 1% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| Standard Chartered Bank | 11.49% Onwards | Upto INR 50 lakh | 1% of the loan amount plus applicable GST | Within 4-7 working days post receipt of the documents |
| Syndicate Bank | 11.75% - 16.25% |
| 0.50% of the loan amount, subject to a minimum of INR 500 plus applicable GST | Depends on the internal policy of the bank |
| UCO Bank | 12.80% | 10 times of gross monthly salary, subject to a maximum of INR 10 lakh | 1% of the loan amount, subject to a minimum of INR 750, plus applicable GST | Depends on the internal policy of the bank |
| United Bank of India | 11.40% - 16.95% | 10 months gross salary or INR 2 lakh, whichever is less | 1% of the loan amount plus applicable GST | Depends on the internal policy of the bank |
| Vijaya Bank | 10.90% - 18.25% |
| 2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000 respectively. The fee will also include applicable GST | Depends on the internal policy of the bank |
| YES BANK | 11.05% - 20.25% | Upto INR 40 lakh | 1% of the loan amount + GST | Within 5 days from the receipt of the application |
| Tata Capital | 10.50% - 24.00% | Up to INR 25 lakh | 1% of the loan amount + GST | Within 72 hours from the receipt of the application |
| SMFG India Credit | 11.99% Onwards | Upto INR 25 lakh | 2% - 6% of loan amount+ GST | Within 30 minutes of loan approval |
Top Banks Personal Loan Interest Rates in India April 2024
Below are the details of some of the best personal loan banks in India. With the help of these details, a borrower can choose which bank gives the lowest interest rate for a personal loan .
Personal Loan Interest Rate HDFC
HDFC Personal Loan is easy to get and has less documentation. HDFC Personal Loan Interest Rate is one of the lowest interest rates available in the market with the range of 10.75% - 14.50% per annum. The bank charges a minimal processing fee and offers flexible repayment options. The personal loan scheme of HDFC bank also offers life protection cover of up to INR 8 lakhs for accidental hospitalization and up to INR 1 lakh for death or permanent disability of the loan borrower.
Personal Loan Interest Rate ICICI
The personal loan of ICICI bank can be availed by any individual who has a good source of income. The loan amount that a person can get is dependent on the repayment capacity and the income profile of the bank. ICICI Personal Loan Interest Rates are fixed rate of interest which is on a monthly reducing basis. The interest rates on a personal loan ranges from 10.75% - 19.00% per annum. There is a simple payment option through ECS, AD or PDC for the customer to choose the payment mode as per their convenience.
To get a personal loan from ICICI bank, there is no security required and hence the loan approval is easy with less documentation included.
Personal Loan Interest Rate SBI
State Bank of India has several personal loan schemes keeping in mind people from all strata of society. SBI Personal Loan Interest Rates are one of the lowest personal loan interest rates and variable as per the requirement of the customer. The personal loan schemes of SBI along with their details are as follows:
Xpress Credit Personal Loan: This personal loan SBI scheme is available to fulfill all kinds of financial needs be it a personal one or a professional one. Any salaried employee working in a reputed organization can avail this loan facility. The interest rates offered under this scheme starts from 11.00% - 14.00% p.a.
Xpress ELITE Scheme : This scheme is offered by the lender to those who are either having a salary account in SBI or another bank. The rates offered by SBI under this scheme range between 10.00% – 11.75% per annum, based on the credit score of the applicant.
SBI Pension Loan : All-Central or State Government or Defence pensioner can avail this loan facility offered by the SBI. The maximum age of the loan applicant is 76 years and the rates offered is 10.95% – 11.45% per annum.
SBI Xpress Credit for Non-permanent Employees
Non-permanent employees (NPEs) of Central and State Government, Quasi-government, State & Central PSUs, defense personnel and educational institutions of national repute can get the loan at 11.90%-14.00% per annum.
Xpress Credit Insta Top-Up
If you want to avail a top-up loan over the existing loan, you can get the same at 11.10% per annum.
Pre-approved Personal Loan
You can get a pre-approved personal loan based on your existing relationship with SBI, be it in the form of savings/fixed deposit account or a credit card. The rate of interest stands at 13% per annum.
Personal Loan Interest Rate Axis Bank
Be it any personal or professional need, Personal loan Axis Bank can be taken for any unforeseen financial need. Axis Bank personal loan interest rates range between 10.49% - 21.00% per annum. The loan can be taken by any salaried individual with a wide range of loan amount option facility. The simple loan application procedure and easy documentation make Axis Bank personal loan an attractive one.
Which Bank is Best for Personal Loan
When it comes to availing a personal loan, usually a question, i.e. which bank is the best for personal loan comes in the mind of many. However, in order to keep you away from this dilemma, we are here to help by letting you know about the top lenders, offering you the best personal loans deal. All you need to do is just read the page above, compare different lenders and then decide which one is offering you a lucrative deal.
However, if you are finding it difficult to find out, i.e. which bank gives the lowest interest rate for a personal loan, don’t worry as we are here to help. Don’t forget to choose a lender after comparing many banks not only on the interest rates parameter but on other factors as well. Yes, apart from rates, keep in mind- tenure, fee, charges, loan amount, EMI etc. for grabbing the best deal. However, for your better understanding, on this page, we have explained everything so that it would be a hassle-free journey for you to know the updated personal loan interest rates.
Which Type of Personal Loan Interest Rate Should You Go for?
Lenders provide personal loans at interest rates either on a flat or reducing balance basis. In the flat rate, the interest will be charged on the total principal amount irrespective of the payment you do via Equated Monthly Installments (EMIs). Whereas, with a reducing balance, the interest rate will apply on different amounts based on the EMIs you pay. There are commonly two types of reducing balance rates that lenders have for you – annual and monthly reducing balance.
In the annual reducing balance system, the interest rate will apply on the principal outstanding at the end of every year. Whereas, in a monthly reducing balance method, the interest rate will apply to the outstanding balance left after each EMI payment. Mathematically speaking, the reducing balance method is better than the flat rate if you want to reduce interest obligations. Within the reducing balance. If you have a choice to make, go for a monthly reducing balance to save more interest.
Factors Affecting Personal Loan Interest Rates
For a personal loan, banks and NBFCs have set certain criteria based on which they offer the interest rates to the loan seeker. Here are the factors on which the personal loan rates are offered.
Loan Amount – The most important thing that banks consider is the loan amount requirement of the borrower. As the loan amount is calculated based on the income and of the borrower and the category of the company they are working with. Hence, the higher the income of the applicant, the higher the loan amount he/she can take. Personal loan interest rates usually reduce with the rise in the loan quantum.
Tenure – The interest rate is directly dependent on the tenure of the loan. The longer the tenure, the lesser the offered rates will be.
Income of the Borrower – The earnings you have will greatly dictate the personal loan interest rates you will get eventually. A good earning with a regular flow of income will convince the lender that you can pay the loan EMI on time. Such an impression will ensure lower interest rates for you.
Repayment Capacity – The repayment capacity of the individual plays a vital role in determining the interest rates. If the borrower has no other financial liabilities, lenders consider that the loan repayment of the borrower is good. As he/she can easily repay the loan without any default in the future.
Credit Score – Not only does your credit score have a bearing on the loan amount. But also the interest rate you will get from the lender. So, if you have a credit score of more than 750 with no spot of default. The rate can be much lower.
The Type of Company You’re Working at:- The reputation of your workplace also decides greatly the rate of interest you will get on your loan. If you are working in a top-notch company, the lender can think of easing the interest rate. Working in such firms ensures a regular flow of income, which is important to pay the loan dues on time.
Here are some of the important features that make a personal loan a well-wisher for all kinds of financial needs.
- Personal loans are unsecured loans and easy to get
- There is less documentation in a personal loan process as there is no security needed
- The borrower is free to use the money to fulfill any financial needs (personal or professional)
- The easy repayment makes it more attractive as the borrower can choose the loan tenure as per their comfort
- A personal loan helps in the times when there is an urgent need for a huge amount of money
- Both salaried and self-employed professionals can take a personal loan
- The loan amount and interest rates are calculated on the basis of the profile of the borrower. Hence, the better the income profile of the borrower, the higher is the possibility of getting a higher loan amount.
- Low processing fee and prepayment charges
- There is a flexible tenure on a personal loan
What is the Best Personal Loan Interest Rate When Doing a Balance Transfer?
A balance transfer is a process by which you can transfer the existing personal loan to another lender at a lower rate of interest. But when will you benefit the most with a personal loan balance transfer? It will depend on getting the best interest rate. Now, the definition of the best rate can vary when you do a balance transfer. For example, a personal loan at an interest rate of 13% might sound appealing. But you need to see how much lower that 13% is compared to the existing rate. The gap should be a minimum of 4%-5%, plus the loan must have some 2-3 years left. Since the balance transfer comes with a fee, having a much lower interest rate makes sense. An example below will help you understand it better.
Example – Manoj and Shashi have been servicing a 5-year personal loan of INR 6 lakh each. They have been paying the EMI of INR 14,912 at an interest rate of 17% per annum. Both Manoj and Shashi have got balance transfer deals after paying the EMI on time for two years. But there’s a difference between these two deals in terms of the interest rate. While Manoj gets it at 12%, Shashi has a 15% offer. How will the balance transfer pan out for them should they agree to their respective deals? Let’s find out!
| Loan Aspects | Manoj | Shashi |
|---|---|---|
| EMI Paid at 17% for 2 Years | INR 14,912 | INR 14,912 |
| Interest Payable at 17% for 5 Years | INR 2,94,693 | INR 2,94,693 |
| Interest Paid at 17% for 2 Years | INR 1,76,121 | INR 1,76,121 |
| Outstanding Balance After 2 Years | INR 4,18,244 | INR 4,18,244 |
| EMI Payable on a Balance Transfer | INR 13,892 | INR 14,499 |
| Interest Payable on a Balance Transfer | INR 81,857 | INR 1,03,704 |
| Interest Paid Till 2 Years + Interest Payable on a Balance Transfer | INR 2,57,978 | INR 2,79,825 |
| Savings on a Balance Transfer | INR 36,715 (2,94,693-2,57,978) | INR 14,868 (2,94,693-2,79,825) |
In the above table, you can see reasonably high savings for Manoj. Whereas, the savings for Shashi is quite low. There will be a balance transfer fee too. If that is factored in, Shashi will save even less.
How to Reduce the Effect of High Personal Loan Interest Rate with a Prepayment?
If you have taken a personal loan for emergency purposes, chances of you taking it without considering the interest rate can be high. In case the interest rate is high. The interest obligations can be significantly more compared to when you choose a lower rate. But you can minimize the interest payment. If you save from your routine and prepay the loan before its original tenure. Let’s consider an example to understand it better.
Example – You apply for a personal loan of INR 5 lakh for 5 years at an interest rate of 20% per annum. If you prepay the loan after 3 years using your savings, how will it benefit you? Let’s find out!
| Loan Aspects | Amount |
|---|---|
| Interest Payable on INR 5 lakh at 20% for 5 Years | INR 2,94,817 |
| Interest to be Paid Till 3 Years | INR 2,37,165 |
| Outstanding Loan Balance After 3 Years | INR 2,60,275 |
| Savings After Paying the Outstanding Balance of INR 2,60,275 | INR 57,652 (2,94,817-2,37,165) |
The lender will most likely charge a fee on prepayment, which can be anywhere around 2-5% of the outstanding loan balance plus applicable taxes. If it is 3% plus 18% Goods and Services Tax (GST) in your case, how much will you pay? If we calculate, the prepayment fee comes as INR 9,213.74 (approx.). we deduct it from the savings pointed out in the table above, the resultant savings come as INR 48,438.26.
Frequently Asked Questions
1. Which Bank offers the lowest personal loan interest rate?
The interest rate on personal loan application depends on the applicant’s salary, CIBIL Score, repayment capacity, and previous credit history. Moreover, if you are looking for low interest personal loans then the public sector banks offer lower rates of interest compared to private sector banks.
2. What is the Flat Interest Rate on personal loans?
The flat interest rate is when there is no change in the interest rate throughout the tenure of the loan. It is calculated on the total loan amount.
3. What is Reducing Interest Rates on Personal Loan?
When banks calculate interest rate on the outstanding loan amount every month, it is called the reducing interest rate on personal loan.
4. Does my CIBIL score impact my personal loan interest rate?
Yes, your CIBIL score plays a very important role in determining the interest rate on your personal loan application.
5. How to get a low interest rate based on my CIBIL score?
If you have a CIBIL score of 750 or above, then banks might charge a low interest rate on your personal loan application.
6. What is the difference between Fixed and Floating personal loan Interest rates?
In fixed interest rate personal loans, the rate of interest remains the same throughout the loan tenure. Whereas, in case of floating interest rate personal loans, the rate of interest changes periodically depending on the market interest rates.
7. Is it best to always choose the lowest interest rate personal loan?
No, along with the personal loan interest rate you must consider other factors such as the processing fee, prepayment & foreclosure charges, disbursal time, etc before choosing a lender for personal loan.
8. Can I get a lower interest rate on my personal loan on the basis of my personal relationship with the bank?
If you have an existing relationship with the bank and do not have any existing loans, banks might give you a preferential interest rate. However, it is completely the bank’s decision and is not mandatory to lower the interest rate on the basis of personal relationships.
9. Does employment history play a role in determining the personal loan interest rate?
Yes, if you are employed with a reputable company for a long time and have a stable source of income then banks consider you as a low risk applicant. Therefore, the bank might offer you a comparatively lower interest rate.
10. Do banks offer low interest rates on personal loans to government employees?
Yes, many leading banks in the country offer low interest rates on personal loans to government employees. This is because of the higher job stability in government sector jobs as compared to private sector employees.
