Personal Loan Interest Rates

Here is a comparison between personal loan offers from top banks in India, based on interest rates and processing fees. These two charges make the most of the overall cost of personal loans. This table can help you with deciding which is the most affordable personal loan available right now.

In the present scenario, a need for Personal Loans can be fulfilled with both banks and NBFCs. The onus lies on the urgency and tenure of the loan which helps in finalizing which loan offer should you take.

Banks For Personal Loan

You can get personal loan from banks for a higher tenure which means if you want your EMI to be low, you can go with any of these options.

HDFC Bank
Established bank offering personal loans starting at 10.50% p.a. They are known for their fast processing, minimal processing fees, and superfast disbursals, making them a popular choice for many borrowers.

IDFC FIRST Bank
Provides personal loans with rates starting at 10.75% p.a. They offer a unique benefit of transferring existing loans at a 0.5% lower interest rate, potentially saving you money on your existing debt.

Kotak Mahindra Bank
Offers personal loans starting at 10.99% p.a. Existing Kotak Mahindra customers may be eligible for pre-approved loan options, simplifying the application process and offering faster approvals.

Yes Bank
Known for its user-friendly online application process, Yes Bank offers personal loans at 10.45% p.a. onwards. This, combined with their digital focus, makes them an attractive option for tech-savvy borrowers.

IndusInd Bank
Offers personal loans starting at 10.49% p.a. They are known for their flexible repayment options and minimal documentation requirements, catering to borrowers who may not have extensive paperwork readily available.

ICICI Bank
A leading name in personal loans, ICICI Bank offers rates starting at 10.50% p.a. They provide various loan schemes catering to different needs and credit profiles, allowing you to find a loan that aligns with your specific circumstances.

Bajaj Finserv
A renowned financial services company, Bajaj Finserv offers personal loan rates starting at 12.99% p.a. They are known for their quick approval process and wide branch network, making them a convenient option for borrowers seeking fast access to funds.

NBFCs (Non-Banking Financial Companies) For Personal Loan:

While NBFCs can offer competitive rates, they typically have higher interest rates compared to traditional banks. It's crucial to carefully consider the interest rate and all associated fees before finalizing a loan from an NBFC. Also, you can get personal loans for lower tenures and amounts as well.

Tata Capital
Offers personal loans starting at 11.75% p.a. They provide various loan options, including secured and unsecured loans, giving you flexibility in choosing the loan structure that best suits your requirements.

Paysense
Offers personal loans at competitive rates, typically starting around 16% p.a. They cater to individuals with varying credit scores, making them a potential option for borrowers who may not qualify for traditional bank loans.

Kreditbee
Provides personal loans with rates starting at 15% p.a. They cater to individuals with varying credit scores, similar to Paysense, offering an alternative for those who may face challenges securing a loan from traditional lenders.

L&T Finance
Offers personal loan rates at 13.00% p.a. They offer various loan options, including those specifically designed for salaried individuals, potentially providing tailored solutions for this specific borrower segment.

Moneyview
Offers personal loans at competitive rates, typically starting around 16% p.a. They are known for their quick and easy online application process and flexible repayment options.

Prefr 
Provides personal loans with rates starting at 15% p.a. They focus on offering credit solutions to individuals with limited credit history, making them a potential option for first-time borrowers.

Cashe
Offers personal loans with rates starting around 16% p.a. They cater to individuals across diverse credit profiles and are known for their focus on financial inclusion.

Fibe
Provides personal loans with rates starting at 11.99% p.a. They offer instant loan approvals and disbursals, making them a suitable option for borrowers needing quick access to funds.

FlexSalary
Specializes in salary advance loans for salaried individuals. Interest rates are typically calculated as a monthly processing fee, making direct comparison with traditional personal loan rates challenging.

Moneytap
Offers personal loans with rates starting around 15% p.a. They are known for their user-friendly app and focus on providing a convenient loan experience.

Stashfin
Provides personal loans with rates starting around 14% p.a. They cater to individuals with varying credit scores and offer flexible repayment options.

SmartCoin( Now Olyv)
Offers personal loans with rates starting around 15% p.a. They focus on providing financial solutions to individuals who may not have access to traditional banking services.

Personal Loan with low interest rates is offered by Kotak, Indusind Bank and ICICI Bank which starts from 10.50% p.a. A Personal Loan is an unsecured loan for which you are not required to submit any collateral or security. Personal Loans can be used for almost any purpose, such as medical emergency, travel, wedding, purchase of a new gadget, etc. MyMoneyMantra presents to you a complete analysis of all the best Personal Loan interest rates from major banks, which will help you analyse and understand the best loan options available to suit your requirements. 

How to Get Lowest Interest Rate on Personal Loan?

Following are some tips to get low personal loan interest rates in India: 

• Improve Your Credit Score: Having a high credit score makes you a creditworthy borrower in the eyes of lenders. Lenders offer low personal loan rates to applicants with a high credit score. 
• Don’t Miss or Default Repayments: Missing or defaulting your loan EMI or credit card bill can adversely affect your credit score. Banks and NBFCs usually take your existing or past repayment history into consideration before deciding the interest rate of a new personal loan. Repay your EMIs and credit card bills (if any) on time. You can also opt for auto-debit facility if you re forgetful.
• Keep Checking Offers: Many personal loan providers usually launch special schemes with low interest rate and processing fee waiver during festive occasions. Check for the running offer before applying for a loan to get a lower loan interest.
• Compare Interest Rates: Compare the personal loan interest rates of various banks and NBFCs before applying to a particular lender for a personal loan. This will help you get a personal loan at a competitive rate of interest.
• Use Your Negotiation Skills: If you have an existing relationship with the lender, you can negotiate for a cheapest personal loan interest rate. No bank will want to lose an old reputed customer.

There are mainly 2 types of interest rates that you can consider before going for a personal loan - Fixed and Floating.

Types of Personal Loan Interest Rates

There are two most common types of interest rates on loans that are followed by all lenders, i.e. fixed interest rate and floating interest rate.

• Floating Interest Rates       
  These rates of interest are revised every quarter. The interest levied on your loan will be linked to the base rate determined by the Reserve Bank of India (RBI). With any changes in the base rates, the interest rate on the loan will also be changed.
• Fixed Interest Rates       
  In this interest rates model, the lending rates on your loan will remain unchanged for the entire term of the loan. These rates are not affected by any change in the economic factors.

When you consider taking a personal loan, it's always helpful to understand how much it will cost you. You must assess the annual percentage rate (APR) on a personal loan when calculating the entire cost. APR represents the annualized cost of loan repayment based on the interest rate, processing fees. The APR and loan tenure can help you determine how much you will pay in interest total over the term of the loan.

For example: 

Let's say you get a personal loan of Rs. 5,00,000 with an APR of 9% for a repayment tenure of 5 years. Considering these aspects and using our Personal Loan EMI Calculator, your equated monthly payment or EMI would be Rs. 10,379 and the total interest to be paid over the tenure of the loan would be Rs. 1,22,751.

Now assume you borrow the same loan amount but with a different tenure of 3 years, and your interest rate is 8% instead of 9%. Now your EMI will be Rs. 15,668 and your total interest paid would be Rs. 64,055, which is higher than the previous example.

You must compare the numbers this way to get the lowest EMI possible. Using an online personal loan calculator can help you with determining what kind of loan amount and rate of interest are the best fit for your budget.