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What are the Interest Rates for Various Loans in India?

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Highlights

  • Want to know about the rate of interest on different kinds of loans?
  • Read this post that tells you the rate of interest that is levied on a personal loan, home loan, gold loan, etc.

What do you do when you need funds for your several needs? You ask your parents or friends or relatives to borrow the required money. But there is not any surety that you will get whatever required funds from them. That’s exactly where you need a loan. Whether you need funds to purchase your dream house, your child’s education or want to buy the car you always wanted, a loan can always help you in fulfilling any of your financial needs. You can get any kind of loan you want, according to your need, from banks and financial institutions.

Loans can be divided into mainly two types – Secured and Unsecured. Some of the loans are Personal Loans, Home Loans, Loan Against Property, Car Loan, Gold Loan, etc. The most crucial factor associated with any loan is the interest rates charged by the lender. You can opt for either Fixed or Floating rate of interest on your loan facility. The interest rates for loans in India tend to change from one lender to another, one borrower to another, and from one loan type to another. Interest rates will directly affect your repayment amount. Higher the interest rates would be, higher will be your repayment amount and vice versa.

In this article, we will be telling you about the interest rates for various loans in India that you can opt for. So, if you want to know about the interest rates of various loans in India, this article could help you know of the same. Keep reading!

What are the Various Kinds of Loans in India?

As we told in the introduction that loans are basically of two types – Secured and Unsecured Loans. As evident from the name, secured loans are those kinds of loans for which you have to pledge security or collateral. Some of the secured loans are Home Loans, Loan Against Fixed Deposit, Gold Loan, Loan Against Property, etc. The interest rates on these types of loans are a bit lower as compared to unsecured loans.

On the other hand, unsecured loans are those loans against which you don’t have to submit any security against it. Some of them are Personal loans, Car Loans, etc. Lenders usually check your creditworthiness before sanctioning your loan as they don’t have any security to fall back on. That’s why the interest rates of unsecured loans are a bit higher than secured loans. In the next section, we will be telling you about the interest rates of all top loans in India.

Interest Rates of Personal Loans in India

The first kind of loan we would want to talk about is the Personal Loan. With the help of a personal loan, an individual can get the required loan amount to fulfill his/her various financial needs such as buying the phone or funding your child’s marriage or anything else. You are free to use the loan amount in any way you want. The best thing about a personal loan is that you don’t have to provide any kind of security or collateral. The maximum tenure you can get for a personal loan is fixed at 60 months (5 years ).

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Personal loan interest rates generally range from 11% to 20% per annum. But the most important thing that you need to remember is that interest rates depend mainly on the credit score of an individual because of the unsecured nature of the personal loan. According to this, interest rates may vary from one lender to another. Apart from this factor, lenders check your age, employment type, job history, and monthly income (to check your repayment capacity). The final rate of interest will be decided by the lender accordingly. Higher your interest rates would be, higher would be the repayment amount.

We are providing personal loan interest rates of some of the top lenders in the below table. Don’t forget to have a look!

Personal Loan LenderRate of Interest (in per annum)
State Bank of India (SBI)9.60% - 13.60%
HDFC Bank10.75% - 21.30%
ICICI Bank10.75% - 18.49%
IndusInd Bank11.00% Onwards
Standard Chartered Bank11.00% - 15.00%
Tata Capital10.99% - 18.00%
Kotak Mahindra Bank10.75% - 17.99%
Bank of Baroda10.25% - 15.60%
Punjab National Bank (PNB)8.80% - 11.65%
Central Bank of India9.85% - 10.20%

Interest Rates of Home Loans in India

Having your own home is the number one priority of a common individual living in India. But due to the soaring real estate prices, not many can afford to pay the full amount in one go and purchase their own houses. That’s where a home loan comes handy. An individual can opt for the home loan from top banks and housing finance companies in India and repay the loan amount in easy monthly installments within the chosen tenure.

Talking about the interest rates, everyone wants to opt for lower rates so that they can repay the loan amount without any trouble. Home Loan Interest Rate generally ranges from 7% to 9% per annum on average and tends to vary from one lender to another. There are a few factors on which your home loan interest rates depend on – Your Loan Amount, Property Location, Property Value, existing obligations and Monthly Income. Before finalizing the rate of interest, lenders check these factors. So, the interest rates on your home loan may differ from someone else. It would be beneficial for you if you manage to get lower interest rates on your home loan facility. Choose the one that suits your requirements and repayment capacity.

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In the below table, you can look at home loan interest rates of some of the top lenders.

Home Loan LenderRate of Interest (in per annum)
State Bank of India (SBI)6.95% - 7.60%
Axis Bank7.75% - 8.55%
ICICI Bank6.95% - 8.05%
Citibank8.20% Onwards
LIC Housing Finance (LIC HFL)6.90% - 7.90%
Tata Capital9.25% Onwards
Indiabulls Housing Finance8.99% Onwards
Bank of India6.85% - 7.75%
PNB Housing Finance (PNBHFL)8.60% - 9.45%
Piramal Capital & Housing Finance (PCHF)Starting from 9.65%

Interest Rates of Loan Against Property in India

One of the most popular secured loans among the common individuals is the Loan against property. With the help of this loan facility, both salaried and self-employed individuals can opt for the required loan amount against the property they have. This will ensure that lenders don’t have to bear less credit risk while giving you the loan amount. And this will ensure that you get the loan at lower interest rates.

The interest rate on a Loan Against Property ranges from 8% to 13% per annum on average. But, the final rate of interest would depend on your loan amount, property value, your age, monthly income, and a lot of other factors. So, it may change from one lender to another. There is one more thing that you need to remember that your loan amount will depend mainly on your property value against which you want the loan. Lenders can give a maximum of 90% of the overall property value as the loan amount. This is known as the loan-to-value (LTV) ratio and it differs from one bank to another.

So, it’s important to choose the lender according to your repayment capacity and requirement so that you can repay the amount on time. Lower interest rates certainly help you in easing your repayment burden.

In the below table, you can look at the Interest rates of some of the top banks and financial institutions that provide a Loan Against Property.

Loan Against Property LendersRate of Interest (in per annum)
Axis Bank10.50% - 11.00%
HDFC Ltd.8.95% - 10.40%
ICICI Bank8.90% - 9.10%
Union Bank of India8.40% - 10.65%
Bank of India8.85% - 9.35%
State Bank of India (SBI)7.00% - 7.70%
United Bank of India8.55% - 9.65%
Standard Chartered Bank9.45% - 9.65%
Punjab & Sind Bank9.35% - 9.70%
Bank of Baroda8.20% - 13.35%

Interest Rates of Gold Loan in India

Are you in urgent need of funds to meet some financial needs? Do you have any idea about this fact that your gold jewellery sitting idle in your home locker can get you the required funds? Well, yes, you can get the required loan amount via a Gold Loan at affordable interest rates. There are several banks (both public and private) and financial institutions that can provide you a gold loan in a hassle-free manner. You just need to submit your gold ornaments and bank-minted gold coins to the bank and the lender will sanction you the loan amount based on overall gold value. You can get a maximum of 90% of the overall value of the gold.

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One of the most prominent highlights of a gold loan is the low-interest rates that you get because of its secured nature. Overall, Gold Loan interest rates range from 9% to 20% per annum, but if we have to take this on an average basis, it would be around 10% to 16% per annum. Apart from this, if you have an existing good relationship with the lender, you can get much lower interest rates. So, this changes from one lender to another. It is important to choose the one with lower interest rates according to your repayment capacity and requirements.

If you want to have a look at Gold Loan interest rates of some of the top lenders, you can check the below table.

Gold Loan LendersInterest Rates (In Per Annum)
Muthoot Finance12.00% - 27.00%
ICICI Bank11.00% Onwards
HDFC Bank10.05% - 17.95%
State Bank of India (SBI)7.50%
Manappuram Finance12.00% - 29.00%
Union Bank of India7.00% - 10.10%
Axis Bank15.00%
YES BANK9.40% - 15.40%
Canara Bank7.65%

Interest Rates of Car Loan in India

Many of us dream of having our own car but because of the higher prices of cars, some of us cannot afford to buy the same. To empower such individuals, there are several banks and financial institutions that provide the facility of a car loan at an interest rate that people can afford. With this car loan facility, you can opt for a loan amount to buy both new and pre-used cars without any hassle. Lenders give a maximum of 85% to 90% of the on-road price of the car as the loan amount. So, if the price of your car is INR 5 lakh then you can get maximum INR 4.5 lakh as the loan amount.

You can get a maximum tenure of 7 years to repay the loan amount via easy monthly installments. And Car Loan Interest rates play a huge role in determining your EMI amount. Higher the interest rates would be, the higher the EMI amount. Car Loan Interest rates generally range between 7% per annum to 14% per annum. On choosing a lender with low-interest rates, you will automatically have to pay a lower EMI amount.

Your credit score will also play a crucial role in determining your car loan interest rates. Individuals with a high Credit score have high chances of getting low-interest rates on their car loans. Some of the top lenders car loan interest rates are given below. Have a look!

Car Loan LenderInterest Rate (in per annum)
State Bank of India (SBI)7.75% - 8.45%
Bank of Baroda7.50% - 10.30%
Punjab National Bank7.40% - 7.65%
ICICI Bank9.30% - 12.85%
HDFC Bank7.70% - 13.55%
Bank of India7.35% - 7.95%
IDBI Bank8.10% - 8.70%
Jammu and Kashmir Bank7.95%
Union Bank of India7.80% - 7.90%
Central Bank of India7.25% - 7.45%

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Personal Loan Interest Rates August 2020
Fullerton India14.00% - 33.00%
HDFC Bank10.75% - 21.45%
ICICI Bank10.75% - 18.49%
IndusInd Bank11.25%
Kotak Bank10.99% - 20.99%
RBL17.50% - 24.00%
Standard Chartered Bank11.00% - 15.00%
Tata Capital10.99% - 18.00%
Home Loan Interest Rates August 2020
Axis Bank7.75% - 8.55%
Bank of Baroda7.00% - 8.40%
Citibank8.20%
HDFC6.95% - 8.00%
ICICI Bank6.95% - 8.05%
Indiabulls Housing Finance Limited8.80% - 11.05%
Kotak Bank7.20% - 9.30%
LIC Housing6.90% - 7.90%
Piramal Capital & Housing Finance9.00% - 9.10%
PNB Housing Finance8.60% - 9.45%
Reliance Home Finance8.75% - 14.00%
State Bank of India/SBI6.95% - 7.60%
Tata Capital9.20% - 9.35%