Personal Loan Interest Rates

Personal Loan Interest Rates charged by most banks range from 10.25% to 24% 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 2021

Interest Rate Starting @ 10.25%
Check Best Offers
Processing FeeUp to 1.5%
Loan Tenure1 to 5 years
Lowest EMI Per Lakh2,144 for 5 years
Prepayment ChargesNil
  • Compare current Personal Loan Interest Rates starting @ 10.25%
  • Choose the best loan provider from the list of our 100+ banking partners, including HDFC Bank, IDFC First Bank, Bajaj Finserv, and ICICI Bank for Instant Personal Loan.
  • 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 Banks 2021

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% - 21%Up to 2.50%
ICICI Bank10.50% - 19%Up to 2.25%
IDFC First Bank10.49% - 18%Up to 2%
SBI9.60% - 15.65%Up to 1.50%
Yes Bank10% - 24%Up to 2.50%
Kotak Mahindra Bank10.25% - 24%Up to 2% + GST
Bajaj Finserv13%Up to 4.13% + GST
HSBC Bank9.99% - 14%Up to 1%
Axis Bank10.49% - 24%1.50% to 2% + GST
PNB Bank8.45% - 14%Up to 1% + GST
Federal Bank10.49% - 17%Up to 3%
Bank of Baroda 10% - 15.60%Up to 2%
Canara Bank11.25% - 13.90%Up to 0.50%
IndusInd Bank11% onwardsUp to 2.50%
Central Bank of India 8.85% - 10.20%Up to Rs. 500
Indian Bank 9.05% - 14.65%As communicated by corporate office
UCO Bank10.30% - 10.55%Up to 1%
Bank of India10.35% - 12.35%Up to 2%
South Indian Bank11.55% - 14.40%2% + GST
IDBI9.50% - 14%Up to 1% + taxes
Karur Vysya12% - 19%Up to 1%
Dhanlaxmi Bank11.90% - 15.70%Up to 2.5%

Lowest Interest Rate on Personal Loan

Compare current Personal Loan Interest Rates on MyMoneyMantra.com and save lakhs on your Personal Loan EMI by getting the best rates. Current lowest personal loan interest rate starts from as low as 10.25% 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. Most of the time, people are conscious while opting for a Personal Loan. 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.

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.

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.

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.

4 Tips To Avail An Instant Personal Loan

  1. Identify your need & check eligibility
  2. Calculate EMI with our EMI Calculator
  3. Apply online through MyMoneyMantra
  4. Provide required details & get quick approval

Check Eligibility

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.

Interest Rates for Different Kind of Applicants

→Personal Loan Interest Rates For Salaried

Current personal loan interest rates in banks for salaried individuals working in reputed organizations are usually more affordable than that for self-employed individuals. That is because the risk associated with them is lower than self-employed.

 

→Personal Loan Interest Rates For Self-employed

Personal loan interest rates are higher for self-employed individuals. The main reason for that is the risk associated with their profession. Their income is more fluctuating than salaried applicants.

 

→Personal Loan Interest Rates For Government Employees

Many banks have special schemes and best personal interest rates for government employees and pensioners. That is because government employees have fixed and secure income. Their job is also secure; hence the risk in lending money to them is low.

 

→Personal Loan Interest Rates for Women

Most banks offer concessions (usually 0.50 bps on applicable rates) on personal loan interest rates for women to support women empowerment and provide financial support in need.

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 your 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. 

Kotak Personal Loan Festival Offer 

Ahead of festival season, Kotak Mahindra Bank has announced Rs 999 flat processing fee offer on Personal Loans. Customers can avail of instant approvals on personal loan applications up to Rs. 20 Lakhs at lowest interest rate starting at 10.25% p.a for maximum of 5 years. 

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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 the lowest interest rate for personal loan?

Looking at the current personal loan interest rates, at present, the Punjab National Bank offers the lowest personal loan interest rates starting from as low as 8.45% p.a. 

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

You can avail a maximum personal loan amount of Rs. 50 Lakhs. 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 10.25% 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.