Personal Loan Interest Rates charged by most banks range from 9.9% 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.
| Interest Rate | Starting @ 9.99% Check Best Offers |
|---|---|
| Processing Fee | Up to 1.5% |
| Loan Tenure | 1 to 5 years |
| Lowest EMI Per Lakh | 2,144 for 5 years |
| Prepayment Charges | Nil |
| Banks | Interest Rates | Processing Fees |
|---|---|---|
| HDFC Bank | 10.25% – 21% | Up to 2.50% |
| ICICI Bank | 10.50% – 19% | Up to 2.25% |
| IDFC First Bank | 10.49% – 24% | Up to 2% |
| Navi | 9.9% | 3.99% to 6% |
| SBI | 10.30% – 12.30% | Up to 1.50% |
| Yes Bank | 10% – 24% | Up to 2.50% |
| Kotak Mahindra Bank | 11.49% – 19.25% | Up to 2% + GST |
| Bajaj Finserv | 13% | Up to 4.13% + GST |
| HSBC Bank | 9.99% – 14% | Up to 1% |
| Axis Bank | 10.49% – 24% | 1.50% to 2% + GST |
| PNB | 9.80% – 14.65% | Up to 1% + GST |
| Federal Bank | 10.49% – 17.99% | Up to 3% |
| Bank of Baroda | 9.20% – 16.55% | Up to 2% |
| Canara Bank | 11.65% – 14.30% | Up to 0.50% |
| IndusInd Bank | 10.49% onwards | Up to 2.50% |
| Central Bank of India | 9.85% – 10.05% | Up to Rs. 500 |
| Indian Bank | 9.40% – 9.90% | As communicated by corporate office |
| UCO Bank | 10.65% – 10.90% | Up to 1% |
| Bank of India | 11.25% – 13.25% | Up to 2% |
| South Indian Bank | 11% – 18.5% | 2% + GST |
| IDBI | 9.50% – 14% | Up to 1% + taxes |
| Dhanlaxmi Bank | 11.90% – 15.70% | Up to 2.5% |
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.
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 
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 10.75%(if your credit 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 2162
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
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 9.99% 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.
There are mainly 2 types of interest rates that you can consider before going for a personal loan – Fixed and Floating.
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.
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:
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:
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.
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
| Existing | Post Balance Transfer | |
| Total Outstanding | Rs.4 lakhs | |
| Repayment tenure | 5 years | |
| Interest Rate | 16% | 12.50% |
| Monthly EMI | Rs.9727 | Rs.8999 |
| Total Interest on outstanding amount | Rs.1,83,633 | Rs.1,39,951 |
| Total Amount Repaid | Rs.5,83,633 | Rs.5,39,951 |
| Savings through balance transfer | – | Rs.43,682 |
When you take out a loan on an urgent basis, chances are that you would not have thought about a high interest rate. The interest obligations can be quite higher in this case as compared to availing a loan at a lower interest rate. What if there is a way to cut your total outgo of money? If you save from your routine and prepay the loan before its original tenure, you will see that you can actually save a good amount. Let’s see with a small illustration below –
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 Summary | Amount |
| Interest Payable on INR 5 lakh @ 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) |
There will be some prepayment fee that you will have to pay but even after factoring all kinds of costs, it would be safe to say that you will save around Rs 50,000 in this type of prepayment.
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.
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.
Also Check Personal Loan For Salaried Employee
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.
Also Check Personal Loan for Self Employed
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.
Check Personal Loan For Government Employees in detail.
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.
Following are some tips to get low personal loan interest rates in India:
Additional Reading: Check Cibil Score for Personal Loan
