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Best Personal Loan Interest Rates

The best Personal Loan Interest Rates range from 8.65% to 24% p.a. currently. The interest rate you get depends on several factors including your annual income, CIBIL score, debt to income ratio, relationship with the bank, and so on. It is important to Compare the Personal Loan Interest Rates of all lenders before choosing the best suitable one for you.  

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How to Get Best Personal Loan Interest Rates?

Here are some useful tips to avail of the best personal loan interest rates in India:

  • Improve your CIBIL score: Having a high credit score shows your creditworthiness. Banks, NBFCs (non-banking financial companies), and financial institutions offer the lowest personal loan interest rates to those applicants who have a high credit score. Always check your CIBIL score before applying for the loan. If you have a credit score of below 750, you should improve it. Applicants with a credit score of 750 or more have higher chances of getting a personal loan at a low-interest rate.
  • Don’t miss repayments: Missing a loan or credit card repayment will adversely affect your credit score. Banks and other loan providers take your repayment history into consideration before deciding the rate on your personal loan. If you have paid your past EMIs and credit card bills timely, you will be charged a lower interest rate.
  • Keep checking for offers: Many lenders introduce offers in the form of special interest rates and processing fee waivers for a limited period of time during festive seasons. Applying for a personal loan during such a festive period can get you the best deal on the interest rate.
  • Compare rates of interest: Before applying for a personal loan, you must compare the interest rates charged by various banks and NBFCs on personal loans. Ding this will help you get the best personal loan interest rate.
  • Negotiate for the best deal with the lender: If you are already a customer of the lending bank, you can bargain for the lowest interest rate. Many lenders consider good banking relationships when deciding the interest rate.

Best Private Sector Banks Personal Loan Interest Rates

Following are the latest best personal loan interest rates in India for private sector banks along with the EMI (for Rs. 1 Lakh loan amount and 5 years tenure):

BankInterest RateEMIProcessing Fee
Axis Bank Ltd.10.49% - 24%Rs. 2,137 - Rs. 2,8771.5% to 2% of the loan amount + GST
Bandhan Bank Ltd.10.50% - 18%Rs. 2,149 - Rs. 2,5391% of loan amount + GST
Catholic Syrian Bank Ltd.12.50% - 24%Rs. 2,250 - Rs. 2,8771% of the loan amount, minimum Rs. 250
Dhanlaxmi Bank Ltd.11.90% - 15.70%Rs. 2,219 - Rs. 2,416Up to 2.5% of the loan amount, minimum Rs. 1,250
Federal Bank Ltd.10.49% - 17.99%Rs. 2,149 - Rs. 2,539Up to 3%
HDFC Bank Ltd11% - 15.25%Rs. 2,149 - Rs. 2,705Up to 2.50% of the loan amount, maximum Rs. 25,000
ICICI Bank Ltd.10.50% - 19%Rs. 2,137 - Rs. 2,594Up to 2.5% of loan amount + GST
IndusInd Bank Ltd10.49% onwardsRs. 2,149Up to 3% of loan amount
IDFC First Bank10.49% - 24%Rs. 2,149 - Rs. 2,539Up to 3.5% of loan amount + GST, minimum Rs. 6,999
Karnataka Bank Ltd.12.68%Rs. 2,2470.50% of loan amount, minimum Rs. 250
Karur Vysya Bank Ltd.12% - 19%Rs. 2,224 - Rs. 2,594Up to 1% of loan amount
Kotak Mahindra Bank Ltd10.99% - 24%Rs. 2,147 - Rs. 2,877Up to 2.50% of loan amount + GST & other charges
RBL Bank Ltd.14% - 23%Rs. 2,327 - Rs. 2,819Up to 3.5% of loan amount + GST
South Indian Bank Ltd.11% - 18.5%Rs. 2,154 - Rs. 2,5452% of loan amount + GST
Tamilnad Mercantile Bank Ltd.14.15%Rs. 2,3291% of loan amount + GST

Best Public Sector Banks Personal Loan Interest Rates

Following are the best personal loan interest rates 2022 of best public sector banks along with the EMI (for Rs. 1 Lakh loan amount and 5 years tenure):

BankInterest RateEMIProcessing Fee
Bank of Baroda9.20% - 16.55%Rs. 2,059 - Rs. 2,4322% of the loan amount (minimum Rs. 1,000 & maximum Rs. 10,000) + GST
Bank of India11.25% - 13.25%Rs. 2,162 - Rs. 2,2630.50% of the loan amount, minimum Rs. 500 & Maximum Rs. 2,500
Bank of Maharashtra10.35% - 13.70%Rs. 2,117 - Rs. 2,2861% of the loan amount + GST
Canara Bank11.65% - 14.30%Rs. 2,207 - Rs. 2,3420.50% of the loan amount + GST, minimum Rs. 1,000 & maximum Rs. 5,000
Central Bank of India9.85% - 10.05%Rs. 2,117 - Rs. 2,1271% of the loan amount, Nil for defence personnel
IDBI Bank Limited9.50% - 14%Rs. 2,100 - Rs. 2,3271% of the loan amount, minimum Rs. 2,500
Indian Bank9.40% - 9.90%Rs. 2,071 - Rs. 2,0951% of the loan amount
Indian Overseas Bank10.90% - 11.90%Rs. 2,144 - Rs. 2,1940.40% to 0.75% of loan amount
Punjab & Sind Bank1040% - 12.40%Rs. 2,120 - Rs. 2,2190.50% to 1% of the loan amount + GST
Punjab National Bank9.80% - 14.65%Rs. 2,090 - Rs. 2,3351% of the loan amount, Nil for defence personnel
State Bank of India9.80% - 12.30%Rs. 2,115 - Rs. 2,240Up to 1.50% of the loan amount + GST
UCO Bank10.65% - 10.90%Rs. 2,147 - Rs. 2,159Up to 1% of loan amount, minimum Rs. 750
Union Bank of India9.30% - 13.40%Rs. 2,090 - Rs. 2,296Up to 0.50% of the loan amount (minimum Rs. 500) + GST

Best Personal Loan Interest Rates for Salaried Employees

Personal loan interest rates for salaried applicants are usually lower than that for self-employed because the former have regular source of income. The rates may vary from lender to lender based on the borrower’s creditworthiness. Below is the table for different banks with best personal loan interest rates for salaried employees:

BankRate of Interest
Bank of Baroda9.20% - 16.55%
Bank of India11.25% - 13.25%
Bank of Maharashtra10.35% - 13.70%
Canara Bank11.65% - 14.30%
Central Bank of India9.85% - 10.05%
IDBI Bank Limited9.50% - 14%
Indian Bank9.40% - 9.90%
Indian Overseas Bank10.90% - 11.90%
Punjab & Sind Bank10.40% - 12.40%
Punjab National Bank9.80% - 14.65%
State Bank of India9.80% - 12.30%
UCO Bank10.65% - 10.90%
Union Bank of India9.30% - 13.40%
Axis Bank Ltd.10.49% - 24%
Bandhan Bank Ltd.10.50% - 18%
Catholic Syrian Bank Ltd.12.50% - 24%
Dhanlaxmi Bank Ltd.11.90% - 15.70%
Federal Bank Ltd.10.49% - 17.99%
HDFC Bank Ltd11% - 15.25%
ICICI Bank Ltd.10.50% - 19%
IndusInd Bank Ltd10.49% onwards
IDFC First Bank10.49% - 24%
Karnataka Bank Ltd.12.68%
Karur Vysya Bank Ltd.12% - 19%
Kotak Mahindra Bank Ltd10.99% - 24%
RBL Bank Ltd.14% - 23%
South Indian Bank Ltd.11% - 18.5%
Tamilnad Mercantile Bank Ltd.14.15%

Additional Info: Check Personal Loan for Salaried employees.

Best Personal Loan Interest Rates for Self-employed

Personal loan interest rates for self-employed applicants vary from lender to lender. The rates may differ for different borrowers based on their credit score, income, banking relationship, and other eligibility factors. Below is the table for best bank personal loan interest rates for self-employed applicants offered by different banks:

BankRate of Interest
Bank of Baroda9.20% - 16.55%
Bank of India11.25% - 13.25%
Bank of Maharashtra10.35% - 13.70%
Canara Bank11.65% - 14.30%
Central Bank of India9.85% - 10.05%
IDBI Bank Limited9.50% - 14%
Indian Bank9.40% - 9.90%
Indian Overseas Bank10.90% - 11.90%
Punjab & Sind Bank10.40% - 12.40%
Punjab National Bank9.30% - 14.15%
State Bank of India9.80% - 12.30%
UCO Bank10.65% - 10.90%
Union Bank of India9.30% - 13.40%
Axis Bank Ltd.10.49% - 24%
Bandhan Bank Ltd.10.50% - 18%
Catholic Syrian Bank Ltd.12.50% - 24%
Dhanlaxmi Bank Ltd.11.90% - 15.70%
Federal Bank Ltd.10.49% - 17.99%
HDFC Bank Ltd11% - 15.25%
ICICI Bank Ltd.10.50% - 19%
IndusInd Bank Ltd10.49% onwards
IDFC First Bank10.49% - 24%
Karnataka Bank Ltd.12.68%
Karur Vysya Bank Ltd.12% - 19%
Kotak Mahindra Bank Ltd10.99% - 24%
RBL Bank Ltd.14% - 23%
South Indian Bank Ltd.11% - 18.5%
Tamilnad Mercantile Bank Ltd.14.15%

Additional info: Check Personal Loan for Self employed person.

Best Personal Loan Interest Rates for Women

Many lenders offer a concession of up to 50 basis points on personal loan interest rates for women applicants. The rates may differ based on the borrower’s credit score, income, banking relationship, and other eligibility factors. Below is the table for best personal loan interest rates today for women applicants offered by different banks:

BankRate of Interest
Bank of Baroda9.20% - 16.55%
Bank of India11.25% - 13.25%
Bank of Maharashtra10.35% - 13.70%
Canara Bank11.65% - 14.30%
Central Bank of India9.85% - 10.05%
IDBI Bank Limited9.50% - 14%
Indian Bank9.400% - 9.70%
Indian Overseas Bank10.90% - 11.90%
Punjab & Sind Bank1040% - 12.40%
Punjab National Bank9.80% - 14.65%
State Bank of India9.80% - 12.30%
UCO Bank10.65% - 10.90%
Union Bank of India9.30% - 13.40%
Axis Bank Ltd.10.49% - 24%
Bandhan Bank Ltd.10.50% - 18%
Catholic Syrian Bank Ltd.12.50% - 24%
Dhanlaxmi Bank Ltd.11.49% - 17.99%
Federal Bank Ltd.11.49% - 17.99%
HDFC Bank Ltd11% - 15.25%
ICICI Bank Ltd.10.25% - 19%
IndusInd Bank Ltd10.49% onwards
IDFC First Bank10.49% - 24%
Karnataka Bank Ltd.12.68%
Karur Vysya Bank Ltd.12% - 19%
Kotak Mahindra Bank Ltd10.99% - 24%
RBL Bank Ltd.14% - 23%
South Indian Bank Ltd.11% - 18.5%
Tamilnad Mercantile Bank Ltd.14.15%

Best Personal Loan Interest Rates for Govt Employees

Some lenders offer low interest rates on personal loans to government employees due to their income and job stability. Below is the table for best personal loan interest rates for government employees offered by different banks:

BankRate of Interest
Bank of Baroda9.20% - 16.55%
Bank of India11.25% - 13.25%
Bank of Maharashtra10.35% - 13.70%
Canara Bank11.65% - 14.30%
Central Bank of India9.85% - 10.05%
IDBI Bank Limited9.50% - 14%
Indian Bank9.400% - 9.70%
Indian Overseas Bank10.90% - 11.90%
Punjab & Sind Bank1040% - 12.40%
Punjab National Bank9.80% - 14.65%
State Bank of India9.80% - 12.30%
UCO Bank10.65% - 10.90%
Union Bank of India9.30% - 13.40%
Axis Bank Ltd.10.49% - 24%
Bandhan Bank Ltd.10.50% - 18%
Catholic Syrian Bank Ltd.12.50% - 24%
Dhanlaxmi Bank Ltd.11.49% - 17.99%
Federal Bank Ltd.11.49% - 17.99%
HDFC Bank Ltd11% - 15.25%
ICICI Bank Ltd.10.25% - 19%
IndusInd Bank Ltd10.49% onwards
IDFC First Bank10.49% - 24%
Karnataka Bank Ltd.12.68%
Karur Vysya Bank Ltd.12% - 19%
Kotak Mahindra Bank Ltd10.99% - 24%
RBL Bank Ltd.14% - 23%
South Indian Bank Ltd.11% - 18.5%
Tamilnad Mercantile Bank Ltd.14.15%

Additional info: Check Best Banks for Personal Loan.

Navi Personal Loan @9.99% p.a

Now get Navi personal loan of Rs. 10,000 to Rs. 20 Lakhs at lowest interest rate starting from just 9.99% per annum. Repay in easy instalments of 3 to 72 months. The processing fee ranges from 2.5% to 6% of the sanctioned limit + GST.

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Best Personal Loan Interest Rates FAQs

Which bank provides the best interest rate for a personal loan?

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Currently, Bank of Baroda provides the best personal loan interest rates, ranging from 8.65% to 16% p.a.
 

Which bank offers lowest interest rates - Public Sector Banks and Private Sector Banks?

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If you are confused about who has the best personal loan interest rates, the answer is that usually, public sector banks offer the lowest interest rates on personal loans.

What is the starting rate for a personal loan?

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The personal loan interest rate starts from 8.65% p.a. at present. The private bank loan interest rate starts from 10.24% p.a.

What is the current range of personal loan interest rates?

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The current range of personal loan interest rates varies from 8.65% to 24% p.a.