Personal Loan Interest Rates

Personal Loan Interest Rates starts from 10.49% p.a. If you meet all the eligibility criteria of the lender, getting low interest Personal Loans can become easier for you. Apply for a Personal Loan today and get instant disbursal on approval. Having a credit score of 750 of above can get you best personal loan interest rates. The interest rate on your loan affects the EMI to be paid. Higher interest rate means higher EMI amount.


Current Personal Loan Interest Rates 2023

Interest RateStarting @ 10.49% 
Check Best Offers
Processing FeeUpto 3.5% of Loan Amount
Loan Tenure1 to 5 years
Lowest EMI Per Lakh2,149/- for 5 years
Prepayment ChargesNil
  • Compare Current Interest Rates on Personal Loan starting @ 10.49%
  • Choose the best loan provider from the list of our 100+ banking & nbfc partners, including HDFC Bank, IDFC First Bank, Navi, Bajaj Finserv, and ICICI Bank for Instant Personal Loan. You can check below personal loan interest rate all bank.
  • Apply for a Personal Loan online instantly with the chosen lender and get quick decision on your application.

Compare Best Personal Loan Interest Rates of All Bank - 2023

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.

BanksInterest RatesProcessing Fees
HDFC Bank10.50%Up to 2.50%
Yes Bank10.99%Up to 2.50%
Kotak Mahindra Bank10.50%Up to 3% of loan amount + Applicable Taxes
Bajaj Finserv11%Up to 4.13% + GST
IDFC First Bank10.75%Up to 2%
TATA Capital10.99%Up to 3% of the loan amount + GST
IndusInd Bank10.5%Up to 2.50%
ICICI Bank10.50%Up to 2.25%
Navi9.9%3.99% to 6%
SBI10.55%Up to 1.50%
HSBC Bank9.99%Up to 1%
PNB11.40%Up to 1% + GST
Federal Bank11.99%Up to 3%
Bank of Baroda10.10%Up to 2%
Canara Bank10.65%Up to 0.50%
Aditya Birla Personal LoanMin. APR- 13% p.a.
Max. APR- 28% p.a.
Up to 3% of the loan amount
Central Bank of India 12%Up to Rs. 500
Indian Bank 10%As communicated by corporate office
UCO Bank11.70%Up to 1%
Bank of India10.25%Up to 2%
South Indian Bank13.10%2% + GST
IDBI11%Up to 1% + taxes
Dhanlaxmi Bank12.90%Up to 2.5%

Which Bank is Best for Personal Loan with Low Interest?

When you are going for a Personal Loan then the most important thing that keeps running through your mind is whether you will get a decent interest or how much the EMI for a 5 year term is going to be. To answer this question, let's take a look at some of the banks who are offering personal loans at very low interest rates.

Yes Bank Personal Loan Interest Rates

If you believe in instant solutions to your personal finance problems then Yes bank Personal Loan is for you. With interest rates starting from 10.99%(if your credit score is 750+) that can go upto a full blown 24%(if your credit score is really in bad shape), Yes bank offers a credible way out to sort out your financial requirement. For a period of 5 yrs, a Rs 1 lakh loan can give you an EMI of Rs 2174   

Kotak Mahindra Bank Personal Loan Interest Rates

If you are looking for a quick loan approval with 100% digitized process then Kotak Mahindra Personal Loan can be the right fit for you. With interest rates starting from 10.50%(if your CIBIL score is 750+) that can go upto a full blown 24%(if your credit score is really in bad shape), Kotak Mahindra bank offers a credible way out to sort out your financial requirement. For a period of 5 yrs, a Rs 1 lakh loan can give you an EMI of Rs 2149

ICICI Bank Personal Loan Interest Rates

Ever heard about 3 second loan approvals! Well, it’s here…With ICICI you have this luxury of availing an instant personal loan with much ease. With interest rates starting from 10.50%(if your credit score is 750+) that can go upto a full blown 24%(if your credit score is really in bad shape), ICICI bank offers a credible way out to sort out your financial requirement. For a period of 5 yrs, a Rs 1 lakh loan can give you an EMI of Rs 2149.

Lowest Interest Rate on Personal Loan

Lowest personal loan interest rate is offered by IDFC First Bank, which starts from 10.49% 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. Check credit score before applying for the loan and improve it if it is below 750. Having a credit score over 750 increases your chances of getting a personal loan at a low interest.
  • 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.

Which Type of Rate is Best for your Personal Loan?

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.

Factors affecting Personal Loan Interest Rates

It all boils down to these factors that have the potential to influence your personal loan interest rate. Check below how -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.

Although both interest rate types have their own merits and demerits, there are a few things you should consider while deciding which interest type you should opt for:

  • Any changes in the floating interest rate will not affect your EMIs. Instead the loan tenure will vary.
  • As per the RBI rules, lenders cannot levy any prepayment charges on floating interest rate loans.
  • Fixed interest rates are 1% to 2% higher than prevailing floating interest rates.
  • Fixed interest rate provides a sense of security because you know the EMIs and tenure beforehand.
  • In case of long-term loans, such as home loan, loan against property, etc., fixed interest rate switches to floating interest rate after the initial few years, depending on the lender's policy.
  • Fixed interest rates will not give you the benefit of reduced interest rate when the base rate will become lower.
  • Fixed interest rates will not increase due to increase in the base rate.
  • Credit Score is also a major factor.

Factors affecting Personal Loan Interest Rate

Personal Loan Balance Transfer

Personal Loan balance transfer is a facility offered by lenders where a personal loan customer can transfer their total outstanding personal loan balance from their existing lender to another. Many customers opt for this facility to get lower interest rates, better terms, and other benefits.

How does Personal Loan Balance Transfer work?

Let us assume that you have an existing Personal Loan with an outstanding of Rs.4 lakh at an interest rate of 16%. The repayment tenure is 5 years, which brings the EMI to Rs.9727. If you get any better deal from another lender, let's just say at 12.5%, then you can save close to Rs.44,000 through the balance transfer option. Look at the below illustration

 ExistingPost Balance Transfer
Total OutstandingRs.4 lakhs
Repayment tenure5 years
Interest Rate16%12.50%
Monthly EMIRs.9727Rs.8999
Total Interest on outstanding amount Rs.1,83,633Rs.1,39,951
Total Amount RepaidRs.5,83,633 Rs.5,39,951
Savings through balance transfer-Rs.43,682

Illustration on Personal Loan

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.

Apply Best Personal Loans offer starting from 10.49%

Now get IDFC First Bank personal loan of Rs. 20000 to Rs. 1 Crore at lowest interest rate starting from just 10.49% per annum and the processing fee is 3.5% of the sanctioned limit + GST.

Personal Loan Interest Rates FAQs

✅ How to get low interest rates on Personal Loans?


Many factors are involved in getting a Personal Loan with lower interest rates. Some of the factors include repayment of the debt on time, checking and rectifying the credit report, maintaining a good credit score, and repaying existing loan EMIs on a regular basis.

✅ Which bank has lowest interest rate on personal loan?


Looking at the current personal loan interest rates, at present, the IDFC Bank offers the lowest personal loan interest rates starting from as low as 10.49% p.a. 

✅ What is the maximum amount of loan I can get?


You can avail a maximum personal loan amount of Rs. 1 Crore. Every bank has its own personal loan limit.

✅ What are the charges for personal loan?


Personal loan processing charges may vary between 0.50% and 2% of the sanctioned loan amount. In addition to processing fees, there are various other charges associated with personal loans that may vary from lender to lender.

✅ What is the current interest rate for personal loans?


At present, personal loan interest rates start from 10.49% p.a. Rate of interest is determined by different banks depending on the borrower's credit score, income, loan amount, and other factors.

✅ How to ensure that one has selected the perfect repayment tenure for the Personal Loan?


One chooses an ideal repayment tenure for a Personal Loan on the basis of many factors such as monthly budget calculation, interest rate, future financial planning and prospects, the existing liabilities, career goals, and so on.

✅ How is Personal Loan interest rate calculated?


The personal loan rates are determined based on factors like the amount being borrowed, monthly income, the credit history, age of the borrower, and so on. Most of the time lenders prefer applicants who have the good credit score and who timely pay their EMIs.

✅ How do I decide which is the best bank to take Personal Loan from?


Compare interest rates, processing fees, foreclosure charges, ease of applying for the loan and benefits of each lender before selecting the bank and choose the one that offers the best deal.

✅ What is the importance of CIBIL score for the Personal Loan?


Higher the credit score, higher are the chances to get a loan application approved and vice versa. CIBIL score ranges from 300 to 900. A score of 700 and above is considered to be a good score to get a Personal Loan sanctioned.

✅ Can I take a joint Personal Loan with my spouse?


Yes, you can apply jointly with a co-applicant (spouse or parents). This will help you to increase the eligibility and you can also get the loan of a higher amount as the income of your co-applicant will also get clubbed while calculating the eligible loan amount.

✅ If I default on my Personal Loan, will it have an impact on my co-applicant?


Yes, if you fail to pay the loan on time then it will have the repercussions on the co-applicant as well. The default in the loan will adversely affect their CIBIL rating and score.

✅ Is a bank account required to service a Personal Loan?


Yes, you need to have at least one functional bank account in your name. It is better to have an account with the same bank you are applying for the loan.