Personal Loan InterestRates Today
Find the best personal loan interest rate as of 5 Sept 2026, starting from 9.99% p.a. Compare rates across 30+ lenders and secure the best offer online through FinCrif.
Indicative Rates
- •Salaried: ~10.99%–24% p.a.
- •Self-employed: ~12.99%–28% p.a.
- •Flexi facility: +0.5%–2.0% over PL
Key Rate Drivers
- •Credit score, income & FOIR impact
- •Processing fee: 1%–3% + GST
- •Prepayment & foreclosure rules apply
Get Personal Loan upto ₹25 Lakh
Millions Trusted. Thousands Growing.
We're building India's most reliable digital lending experience — one user at a time.
Quick approvals: Complete files can see same-day decisions.
Unsecured: No collateral; credit profile drives pricing.
EMI clarity: Compare total cost, fees, and prepayment rules before signing.
Personal Loan Interest Rates: A Comprehensive Guide
Personal loan interest rates are the cost you pay to a lender for borrowing money. They directly impact your EMI and the total cost of your loan.
What is a Personal Loan Interest Rate?
It's the annual percentage a lender charges on the borrowed amount. Example: ₹1,00,000 at 12% p.a. → yearly interest ₹12,000 (before considering monthly reductions).
Quick math: At 12% p.a., the first month's notional interest ≈ 12%/12 × outstanding principal. As principal reduces, interest each month drops.
Current Range in India (indicative)
| Profile | Typical Range (p.a.) |
|---|---|
| Salaried (good profile) | 10.50% – 24% |
| Pre-approved (existing customer) | Starting ~10.25% (sometimes lower) |
Ranges vary by lender, profile, amount, and tenure.
Compare Personal Loan Interest Rates
| Bank/Provider | Interest Rate | Processing Fee | Max Loan Amount | Loan Tenure |
|---|---|---|---|---|
| IDFC First Bank | 10.49% p.a. | 1% - 2% | ₹1 crore | 6 months - 5 years |
| Bajaj Finserv | 11% p.a. | 3.93% | ₹35 lakhs | 1 - 7 years |
| Axis Bank | 10.49% p.a. | 1.5% - 2% | ₹15 lakhs | 1 - 5 years |
| Tata Capital | 10.99% p.a. | 5.5% | ₹35 lakhs | Up to 6 years |
| Fullerton India | 11.99% p.a. | 6% | ₹25 lakhs | 1 - 5 years |
| HDFC Bank | 10.75% p.a. | 2.50% | ₹40 lakhs | 1 - 5 years |
| Kotak Bank | 10.99% p.a. | 3% | ₹25 lakhs | 1 - 5 years |
| ICICI Bank | 10.85% p.a. | 2% | ₹25 lakhs | 1 - 6 years |
| Yes Bank | 10.99% p.a. | 2% | ₹40 lakhs | 1 - 5 years |
| Bank of Maharashtra | 10.00% p.a. | 1% | ₹20 lakhs | 0 - 7 years |
| Federal Bank | 11.49% p.a. | 2.50% | ₹50 lacs | 1 to 5 years |
| Syndicate Bank | 12% p.a. | 0.50% | ₹5 lacs | 1 to 5 years |
| Bank of Baroda | 11.40% p.a. | 2% | ₹15 Lacs | 1 to 7 years |
| PNB | 10.95% p.a. | 1% | upto 20 lacs | 1 to 6 years |
| Aditya Birla Capital | 10.99% p.a. | 3% | ₹50 Lacs | 0 to 7 years |
| Paysense | 16.80% p.a. | 2.5% | ₹15 Lacs | 3 Months to 5 years |
| Moneyview | 15.96% p.a. | 2% | ₹10 Lacs | 3 Months to 5 years |
| MoneyTap | 13% p.a. | 2% | upto ₹5 lacs | 2 months to 3 years |
Note: Additional GST charges may apply on the processing fee.
Benefits
- 1Fast DisbursalOften within 24–48 hours for strong profiles.
- 2Minimal DocumentationEspecially if you're an existing customer with KYC/income already on file.
- 3Competitive PricingRisk-based pricing can be lower than fresh loans if your profile is strong.
- 4Predictable EMIs (Fixed)Stable budgeting when rate stays constant.
- 5Rate Benefits (Floating)Potential savings when benchmark rates fall.
How to Get the Lowest Personal Loan Interest Rate?
To secure the best personal loan interest rate, follow these steps:
- Improve Your Credit Score: A score above 750 increases the chances of getting a lower personal loan interest rate.
- Timely Repayments: Maintain a good repayment history to avoid higher interest rates.
- Look for Special Offers: Keep an eye out for festive offers where banks offer lower interest rates.
- Compare Personal Loan Interest Rates: Use FinCrif's comparison tool to evaluate different lenders and their rates.
- Negotiate with Lenders: If you have an existing relationship with a lender, request a better rate.
Fixed vs. Floating Personal Loan Interest Rates
When choosing between a fixed interest rate and a floating interest rate, it's important to understand the differences:
| Fixed Interest Rate | Floating Interest Rate |
|---|---|
| The rate stays constant | The rate fluctuates with the market |
| EMI remains consistent | EMI can change during the loan period |
| Prepayment fees may apply | Usually, no prepayment fees |
Fixed interest rates are best for borrowers who prefer stability and predictable payments. On the other hand, floating interest rates benefit those who are comfortable with fluctuating EMIs and want to take advantage of lower rates when available.
What is Meant by Reducing Interest Rate with Regard to Personal Loans?
A reducing interest rate means that the interest is calculated only on the outstanding loan amount. As you make monthly repayments, the interest for the remainder of the loan tenure is recalculated based on the reduced principal. This contrasts with a flat interest rate, where interest is calculated on the entire loan amount for the whole loan period.
Things to Consider When Choosing a Loan with a Low Interest Rate:
- Processing Fee: Compare the processing fees across lenders as they can add to the total loan cost.
- Pre-Closure Charges: Check for any penalties in case you wish to prepay your loan before the tenure ends.
- Customer Service: Opt for lenders with good customer support to ensure a smooth borrowing experience.
- Eligibility Criteria: Verify that you meet the income, age, and other eligibility criteria set by the lender.
- Loan Disbursal Time: In emergencies, consider lenders known for quick loan disbursals.
- Other Charges: Compare other fees like pre-payment, default, cancellation, and bounce charges before applying.
- Discounts: Look out for offers on interest rates during festive seasons or for existing customers.
Factors That Influence Your Personal Loan Interest Rate:
- Credit Score: A higher credit score usually results in a lower interest rate.
- Income: A stable and high income reduces the risk for lenders, allowing for lower rates.
- Employer Reputation: Working for a reputable organization may help you secure a better interest rate.
- Loan Amount & Tenure: Shorter loan tenures may attract lower interest rates.
EMI Calculator
FinCrif's Personal Loan EMI Calculator helps you calculate your monthly EMIs with ease. Simply enter your loan amount, tenure, and interest rate to estimate your repayment.
The formula to calculate your EMI is:
Where:
- Pis the loan amount,
- Ris the monthly interest rate, and
- Nis the number of EMIs.
Tips for Choosing the Best Personal Loan
- Processing Fees: Always check the processing fees, as they can increase the overall cost of the loan.
- Prepayment Options: Look for lenders that allow prepayment without hefty penalties.
- Customer Service: Choose a lender with a reputation for responsive customer support.
- Loan Disbursal Time: If you need a loan urgently, check the lender's disbursal time.
Calculate Your EMI Instantly
A Multi-Purpose Loan EMI Calculator helps you estimate your monthly repayment amount before applying for a loan.
₹ 10,019/ month
Principal
₹ 5,00,000
Interest
₹ 1,01,138
Total Payable
₹ 6,01,138
Eligibility Criteria
Age
21–60 years (some lenders allow up to 65 years at loan maturity).
Income
Usually ₹15,000–₹25,000+ monthly (depends on city and lender).
Employment (Salaried)
2–3 years of total experience with at least 1 year in the current organization.
Employment (Self-Employed)
2–5 years of business continuity with consistent income records.
Credit Score (CIBIL)
700+ is preferred; higher scores help you secure a lower personal loan interest rate.
Existing EMIs (DTI)
Maintain a healthy DTI ratio (preferably under 40%-50%) for better approval rates.