Personal Loan Interest Rates
Personal loan interest rates start from 10.50% 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 or above can get you the best personal loan interest rates. The interest rate on your loan affects the EMI to be paid. A higher interest rate means a higher EMI amount.
Current Personal Loan Interest Rates 2024
| Interest Rate | Starting @ 10.50% |
|---|---|
| Processing Fee | 2% |
| Loan Tenure | 1 to 5 years |
| Lowest EMI Per Lakh | 2149/- for 5 years |
| Prepayment Charges | Nil |
- Compare current interest rates on personal loans starting @ 10.50%
- 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 loans. You can check below personal loan interest rate below at all banks.
- Apply for a personal loan online instantly with the chosen lender and get a quick decision on your application.
Compare Best Personal Loan Interest Rates of All Banks - 2024
Here is a comparison between personal loan offers from top banks in India, based on interest rates and processing fees. These two charges make up 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.
| Banks | Interest Rates | Processing Fees |
|---|---|---|
| HDFC Bank | 10.75% | Upto Rs. 4999/- |
| Yes Bank | 10.99% | Up to 2.50% |
| Kotak Mahindra Bank | 10.99% | Up to 3% of loan amount + Applicable Taxes |
| Bajaj Finserv | 14.50% | Up to 4.13% + GST |
| IDFC First Bank | 10.99% | Up to 2% |
| TATA Capital | 11.75% | Up to 3% of the loan amount + GST |
| IndusInd Bank | 10.49% | Up to 2.50% |
| ICICI Bank | 10.80% | Up to 2.25% |
| Navi | 9.9% | 3.99% to 6% |
| SBI | 11.35% | Up to 1.50% |
| HSBC Bank | 10.5% | Up to 1% |
| PNB | 11.40% | Up to 1% + GST |
| Federal Bank | 11.49% | Up to 3% |
| Bank of Baroda | 11.10% | Up to 2% |
| Canara Bank | 10.95% | Up to 0.50% |
| Aditya Birla | Min. 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 Bank | 10.95% | Up to 1% |
| Bank of India | 10.85% | Up to 2% |
| South Indian Bank | 13.10% | 2% + GST |
| IDBI | 11% | Up to 1% + taxes |
| Dhanlaxmi Bank | 12.90% | Up to 2.5% |
Which Bank & NBFC is Best for a Personal Loan with Low Interest?
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.
(A). 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.
1. HDFC Bank
Established banks 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
(B). 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.
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
10. 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.
11. Stashfin
Provides personal loans with rates starting around 14% p.a. They cater to individuals with varying credit scores and offer flexible repayment options.
12. 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.
Lowest Interest Rate on Personal Loan
Personal loan with low interest rates is offered by Kotak, IndusInd Bank, and ICICI Bank which start 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 emergencies, 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 the Lowest Interest Rate on a 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 consider your existing or past repayment history 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 an auto-debit facility if you're forgetful.
- Keep Checking Offers: Many personal loan providers usually launch special schemes with low interest rates and processing fee waivers 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 the 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 the case of long-term loans, such as home loans, loans against property, etc., fixed interest rates switch to floating interest rates after the initial few years, depending on the lender's policy.
- Fixed interest rates will not give you the benefit of a reduced interest rate when the base rate becomes lower.
- Fixed interest rates will not increase due to an increase in the base rate.
- Credit Score is also a major factor.
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 a 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 a 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 |
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, and 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 will 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.
FAQs
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 regularly.
Looking at the current personal loan interest rates, at present, Kotak, IndusInd Bank, and ICICI Bank offer personal loans with low interest rates starting from as low as 10.50% p.a.
You can avail a maximum personal loan amount of Rs.1 Crore. Every bank has its own personal loan limit.
One chooses an ideal repayment tenure for a Personal Loan based on many factors such as monthly budget calculation, interest rate, future financial planning and prospects, existing liabilities, career goals, and so on.
The personal loan rates are determined based on factors like the amount being borrowed, monthly income, credit history, age of the borrower, and so on. Most of the time lenders prefer applicants who have a good credit score and who timely pay their EMIs.
Compare interest rates, processing fees, foreclosure charges, ease of applying for the loan, and benefits of each lender before selecting the bank and choosing the one that offers the best deal.
The higher the credit score, the higher the chances of getting 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.
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.
Yes, if you fail to pay the loan on time then it will have repercussions on the co-applicant as well. The default in the loan will adversely affect their CIBIL rating and score.
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.