Personal Loan Interest Rates March 2024 @[assoc_pl_low_ir_sc]*

Personal Loan Interest Rate

Highlights

  • Personal loan interest rates starting at 10.75%* per annum
  • Enjoy lowest personal loan interest rates to reduce your loan burden

The key to a hassle-free personal loan journey is to choose the lender that offers you the lowest interest rates. After all, the rate determines the cost of your borrowing. Lower the rate lesser will be the interest outgo and vice-versa. We have made it easy for you to choose the best interest rate deal by showcasing the personal loan interest rates of different lenders. All you need is to compare the rates and choose the best one for you.

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All Banks Personal Loan Interest Rates March 2024

List of Banks/LendersPersonal Loan Interest RatesLoan AmountProcessing FeeTurnaround Time
Allahabad Bank10.00% - 15.00%
  • Minimum Loan Amount - INR 50,000
  • Maximum Loan Amount - 12 times of gross monthly salary for employees having a monthly remuneration of INR 15,000 - INR 20,000
  • 24 times the gross monthly salary for individuals earning above INR 20,000. The maximum loan amount, however, won't exceed INR 7.50 lakh
1.22% of loan Amount, Minimum INR 1,228Depends on the internal policy of the bank
Andhra Bank11.80% - 15.50%
  • Salaried - The loan amount is set in a way that the take home income is not less than 40% of the gross salary after all the deductions, including the proposed EMI
  • Non-salaried - 2 times the average annual income for the past 3 years as per the Income Tax Return (ITR)
As ApplicableDepends on the internal policy of the bank
Axis Bank10.49% - 21.00%Up to 40 Lakh1% of the loan amount + GST
Bajaj Finserv11.00% OnwardsUpto INR 25,00,0001%-1.5% of loan amount + GSTWithin 24 hours
Bank of Baroda10.90% - 18.25%
  • Up to INR 10,00,000 for people residing in metros and urban areas
  • Up to INR 5,00,000 for people living in semi-urban and rural areas


2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000, respectively. The fee will also include applicable GST Depends on the internal policy of the bank
Bank of India10.35% - 14.85%Upto INR 5,00,000 - INR 10,00,0002% of the loan amount plus applicable GSTDepends on the internal policy of the bank
Bank of Maharashtra9.50% - 12.80%Upto INR 5,00,000 - INR 10,00,0001% of the loan amount plus GST, subject to a minimum of INR 1,000Depends on the internal policy of the bank
Canara Bank11.75% - 16.25%Six months gross salary or INR 3,00,000, whichever is less0.50% of the loan amount, subject to a minimum and maximum of INR 1,000 and INR 5,000 respectively
  • Sanctions at Branch/RAH - 7 Days
  • Sanctions at Circle - 15 Days
  • Sanctions at HO - 2-3 weeks
Central Bank of India12.30%20 times of gross salary, subject to a maximum of INR 10,00,000. The minimum net take home income must not fall below 40% of the gross salary after deductions, including the proposed EMIINR 500 + applicable GSTDepends on the internal policy of the bank
Citibank10.49% OnwardsUpto INR 30,00,000Upto 3% of the loan amountWithin 48 hours
Corporation Bank11.80% - 15.50%Upto INR 3,50,0001.50% of the loan amount, subject to a minimum of INR 500Depends on the internal policy of the bank
Dena Bank10.90% - 18.25%
  • Up to INR 10,00,000 for people residing in metros and urban areas
  • Up to INR 5,00,000 for people living in semi-urban and rural areas
2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000, respectively. The fee will also include applicable GSTDepends on the internal policy of the bank
DCB Bank13.00% - 25.00%Upto INR 5 lakh2% of the loan amountWithin 3-4 working days
Federal Bank10.49% - 17.99%Upto INR 10 lakh0.50% of the loan amountDepends on the internal policy of the bank
HDFC Bank10.75% - 14.50%up to 50 LakhINR 3500(>=10 Lac) or 2% of the loan amountWithin 3-4 working days
HSBC9.75% - 16.00%Upto INR 30 lakhUpto 1% of the loan amountWithin 15 days post the receipt of the application form
ICICI Bank10.75% - 19.00%Upto INR 50 lakhINR 4999(>=10 Lac) or 2% of the loan amount + GSTWithin 72 hours of the submission of documents
IDBI Bank10.50% - 13.25%Upto INR 10 lakhAs applicableDepends on the internal policy of the bank
IndusInd Bank10.25% - 26.00%Upto INR 25 lakhUp to 3% + GSTWithin 4-7 working days post receipt of the documents
Jammu & Kashmir Bank12.20% - 13.20%Upto 36 months gross salaryNILDepends on the internal policy of the bank
Karnataka Bank13.49%Upto INR 5 lakh0.50% of the loan amountDepends on the internal policy of the bank
Karur Vysya Bank12.20% - 13.20%Upto INR 10 lakh1% of the loan amountIn-principle sanction - 15 minutes
Kotak Mahindra Bank10.99% OnwardsUpto INR 20 lakh0.99%-2.50% of the loan amount plus applicable GSTWithin 10 working days
Lakshmi Vilas Bank11.55%Upto INR 20 lakh0.25% of the loan amount, subject to a minimum of INR 2,500 plus applicable GSTDepends on the internal policy of the bank
Nainital Bank12.50% Onwards
  • 15 times of net take home salary, subject to a maximum of INR 3-5 lakh
  • 2 times of average annual income of last 2 years, subject to a maximum of INR 2 lakh for self-employed
0.50%-1.00% of the loan amount plus applicable GSTDepends on the internal policy of the bank
Oriental Bank of Commerce11.40% - 16.95%15 times of gross salary, subject to a maximum of INR 10 lakh0.50% of the loan amount, subject to a minimum of INR 500, plus applicable GSTDepends on the internal policy of the bank
Punjab & Sind Bank11.15% - 12.75%Upto 18 times of net monthly salary or INR 3 lakh, whichever is less1% of the loan amount plus applicable GSTDepends on the internal policy of the bank
RBL Bank14.00% - 23.00%Upto INR 20 lakh2%-2.50% of the loan amountDepends on the internal policy of the bank
Punjab National Bank (PNB)11.40% - 16.95%20 times of net monthly salary or INR 4 lakh, whichever is lower1.80% of the loan amount plus applicable GSTDepends on the internal policy of the bank
State Bank of India (SBI)11.00% - 14.00%Upto INR 20 lakh1% of the loan amount plus applicable GSTDepends on the internal policy of the bank
Standard Chartered Bank11.49% OnwardsUpto INR 50 lakh1% of the loan amount plus applicable GSTWithin 4-7 working days post receipt of the documents
Syndicate Bank11.75% - 16.25%
  • Salaried - 12 months gross salary, subject to a maximum of INR 4-5 lakh
  • Self-employed - Upto INR 5 lakh
    0.50% of the loan amount, subject to a minimum of INR 500 plus applicable GSTDepends on the internal policy of the bank
    UCO Bank12.80%10 times of gross monthly salary, subject to a maximum of INR 10 lakh1% of the loan amount, subject to a minimum of INR 750, plus applicable GSTDepends on the internal policy of the bank
    United Bank of India11.40% - 16.95%10 months gross salary or INR 2 lakh, whichever is less1% of the loan amount plus applicable GSTDepends on the internal policy of the bank
    Vijaya Bank10.90% - 18.25%
    • Up to INR 10,00,000 for people residing in metros and urban areas
    • Up to INR 5,00,000 for people living in semi-urban and rural areas
    2% of the loan amount, subject to a minimum and maximum limit of INR 1,000 and INR 10,000 respectively. The fee will also include applicable GST Depends on the internal policy of the bank
    YES BANK11.05% - 20.25%Upto INR 40 lakh1% of the loan amount + GSTWithin 5 days from the receipt of the application
    Tata Capital10.50% - 24.00%Up to INR 25 lakh1% of the loan amount + GSTWithin 72 hours from the receipt of the application
    SMFG India Credit11.99% OnwardsUpto INR 25 lakh2% - 6% of loan amount+ GSTWithin 30 minutes of loan approval

    Top Banks Personal Loan Interest Rates in India March 2024

    Below are the details of some of the best personal loan banks in India. With the help of these details, a borrower can choose which bank gives the lowest interest rate for a personal loan.

    Personal Loan Interest Rate HDFC

    HDFC Personal Loan is easy to get and has less documentation. HDFC Personal Loan Interest Rate is one of the lowest interest rates available in the market with the range of 10.75% - 14.50% per annum. The bank charges a minimal processing fee and offers flexible repayment options. The personal loan scheme of HDFC bank also offers life protection cover of up to INR 8 lakhs for accidental hospitalization and up to INR 1 lakh for death or permanent disability of the loan borrower.

    Personal Loan Interest Rate ICICI

    The personal loan of ICICI bank can be availed by any individual who has a good source of income. The loan amount that a person can get is dependent on the repayment capacity and the income profile of the bank. ICICI Personal Loan Interest Rates are fixed rate of interest which is on a monthly reducing basis. The interest rates on a personal loan ranges from 10.75% - 19.00% per annum. There is a simple payment option through ECS, AD or PDC for the customer to choose the payment mode as per their convenience.

    To get a personal loan from ICICI bank, there is no security required and hence the loan approval is easy with less documentation included.

    Personal Loan Interest Rate SBI

    State Bank of India has several personal loan schemes keeping in mind people from all strata of society. SBI Personal Loan Interest Rates are one of the lowest personal loan interest rates and variable as per the requirement of the customer. The personal loan schemes of SBI along with their details are as follows:

    Xpress Credit Personal Loan: This personal loan SBI scheme is available to fulfill all kinds of financial needs be it a personal one or a professional one. Any salaried employee working in a reputed organization can avail this loan facility. The interest rates offered under this scheme starts from 11.00% - 14.00% p.a.

    Xpress ELITE Scheme: This scheme is offered by the lender to those who are either having a salary account in SBI or another bank. The rates offered by SBI under this scheme range between 10.00% – 11.75% per annum, based on the credit score of the applicant.

    SBI Pension Loan: All-Central or State Government or Defence pensioner can avail this loan facility offered by the SBI. The maximum age of the loan applicant is 76 years and the rates offered is 10.95% – 11.45% per annum.

    SBI Xpress Credit for Non-permanent Employees

    Non-permanent employees (NPEs) of Central and State Government, Quasi-government, State & Central PSUs, defense personnel and educational institutions of national repute can get the loan at 11.90%-14.00% per annum.

    Xpress Credit Insta Top-Up

    If you want to avail a top-up loan over the existing loan, you can get the same at 11.10% per annum.

    Pre-approved Personal Loan

    You can get a pre-approved personal loan based on your existing relationship with SBI, be it in the form of savings/fixed deposit account or a credit card. The rate of interest stands at 13% per annum.

    Personal Loan Interest Rate Axis Bank

    Be it any personal or professional need, Personal loan Axis Bank can be taken for any unforeseen financial need. Axis Bank personal loan interest rates range between 10.49% - 21.00% per annum. The loan can be taken by any salaried individual with a wide range of loan amount option facility. The simple loan application procedure and easy documentation make Axis Bank personal loan an attractive one.

    Which Bank is Best for Personal Loan

    When it comes to availing a personal loan, usually a question, i.e. which bank is the best for personal loan comes in the mind of many. However, in order to keep you away from this dilemma, we are here to help by letting you know about the top lenders, offering you the best personal loans deal. All you need to do is just read the page above, compare different lenders and then decide which one is offering you a lucrative deal.

    However, if you are finding it difficult to find out, i.e. which bank gives the lowest interest rate for a personal loan, don’t worry as we are here to help. Don’t forget to choose a lender after comparing many banks not only on the interest rates parameter but on other factors as well. Yes, apart from rates, keep in mind- tenure, fee, charges, loan amount, EMI etc. for grabbing the best deal. However, for your better understanding, on this page, we have explained everything so that it would be a hassle-free journey for you to know the updated personal loan interest rates.

    Which Type of Personal Loan Interest Rate Should You Go for?

    Lenders provide personal loans at interest rates either on a flat or reducing balance basis. In the flat rate, the interest will be charged on the total principal amount irrespective of the payment you do via Equated Monthly Installments (EMIs). Whereas, with a reducing balance, the interest rate will apply on different amounts based on the EMIs you pay. There are commonly two types of reducing balance rates that lenders have for you – annual and monthly reducing balance.

    In the annual reducing balance system, the interest rate will apply on the principal outstanding at the end of every year. Whereas, in a monthly reducing balance method, the interest rate will apply to the outstanding balance left after each EMI payment. Mathematically speaking, the reducing balance method is better than the flat rate if you want to reduce interest obligations. Within the reducing balance. If you have a choice to make, go for a monthly reducing balance to save more interest.

    Factors Affecting Personal Loan Interest Rates

    For a personal loan, banks and NBFCs have set certain criteria based on which they offer the interest rates to the loan seeker. Here are the factors on which the personal loan rates are offered.

    Loan Amount – The most important thing that banks consider is the loan amount requirement of the borrower. As the loan amount is calculated based on the income and of the borrower and the category of the company they are working with. Hence, the higher the income of the applicant, the higher the loan amount he/she can take. Personal loan interest rates usually reduce with the rise in the loan quantum.

    Tenure – The interest rate is directly dependent on the tenure of the loan. The longer the tenure, the lesser the offered rates will be.

    Income of the Borrower – The earnings you have will greatly dictate the personal loan interest rates you will get eventually. A good earning with a regular flow of income will convince the lender that you can pay the loan EMI on time. Such an impression will ensure lower interest rates for you.

    Repayment Capacity – The repayment capacity of the individual plays a vital role in determining the interest rates. If the borrower has no other financial liabilities, lenders consider that the loan repayment of the borrower is good. As he/she can easily repay the loan without any default in the future.

    Credit Score – Not only does your credit score have a bearing on the loan amount. But also the interest rate you will get from the lender. So, if you have a credit score of more than 750 with no spot of default. The rate can be much lower.

    The Type of Company You’re Working at:- The reputation of your workplace also decides greatly the rate of interest you will get on your loan. If you are working in a top-notch company, the lender can think of easing the interest rate. Working in such firms ensures a regular flow of income, which is important to pay the loan dues on time.

    Here are some of the important features that make a personal loan a well-wisher for all kinds of financial needs.

    • Personal loans are unsecured loans and easy to get
    • There is less documentation in a personal loan process as there is no security needed
    • The borrower is free to use the money to fulfill any financial needs (personal or professional)
    • The easy repayment makes it more attractive as the borrower can choose the loan tenure as per their comfort
    • A personal loan helps in the times when there is an urgent need for a huge amount of money
    • Both salaried and self-employed professionals can take a personal loan
    • The loan amount and interest rates are calculated on the basis of the profile of the borrower. Hence, the better the income profile of the borrower, the higher is the possibility of getting a higher loan amount.
    • Low processing fee and prepayment charges
    • There is a flexible tenure on a personal loan

    What is the Best Personal Loan Interest Rate When Doing a Balance Transfer?

    A balance transfer is a process by which you can transfer the existing personal loan to another lender at a lower rate of interest. But when will you benefit the most with a personal loan balance transfer? It will depend on getting the best interest rate. Now, the definition of the best rate can vary when you do a balance transfer. For example, a personal loan at an interest rate of 13% might sound appealing. But you need to see how much lower that 13% is compared to the existing rate. The gap should be a minimum of 4%-5%, plus the loan must have some 2-3 years left. Since the balance transfer comes with a fee, having a much lower interest rate makes sense. An example below will help you understand it better.

    Example – Manoj and Shashi have been servicing a 5-year personal loan of INR 6 lakh each. They have been paying the EMI of INR 14,912 at an interest rate of 17% per annum. Both Manoj and Shashi have got balance transfer deals after paying the EMI on time for two years. But there’s a difference between these two deals in terms of the interest rate. While Manoj gets it at 12%, Shashi has a 15% offer. How will the balance transfer pan out for them should they agree to their respective deals? Let’s find out!

    Loan AspectsManojShashi
    EMI Paid at 17% for 2 YearsINR 14,912INR 14,912
    Interest Payable at 17% for 5 YearsINR 2,94,693INR 2,94,693
    Interest Paid at 17% for 2 YearsINR 1,76,121INR 1,76,121
    Outstanding Balance After 2 YearsINR 4,18,244INR 4,18,244
    EMI Payable on a Balance TransferINR 13,892INR 14,499
    Interest Payable on a Balance TransferINR 81,857INR 1,03,704
    Interest Paid Till 2 Years + Interest Payable on a Balance TransferINR 2,57,978INR 2,79,825
    Savings on a Balance TransferINR 36,715 (2,94,693-2,57,978)INR 14,868 (2,94,693-2,79,825)

    In the above table, you can see reasonably high savings for Manoj. Whereas, the savings for Shashi is quite low. There will be a balance transfer fee too. If that is factored in, Shashi will save even less.

    How to Reduce the Effect of High Personal Loan Interest Rate with a Prepayment?

    If you have taken a personal loan for emergency purposes, chances of you taking it without considering the interest rate can be high. In case the interest rate is high. The interest obligations can be significantly more compared to when you choose a lower rate. But you can minimize the interest payment. If you save from your routine and prepay the loan before its original tenure. Let’s consider an example to understand it better.

    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 AspectsAmount
    Interest Payable on INR 5 lakh at 20% for 5 YearsINR 2,94,817
    Interest to be Paid Till 3 YearsINR 2,37,165
    Outstanding Loan Balance After 3 YearsINR 2,60,275
    Savings After Paying the Outstanding Balance of INR 2,60,275INR 57,652 (2,94,817-2,37,165)

    The lender will most likely charge a fee on prepayment, which can be anywhere around 2-5% of the outstanding loan balance plus applicable taxes. If it is 3% plus 18% Goods and Services Tax (GST) in your case, how much will you pay? If we calculate, the prepayment fee comes as INR 9,213.74 (approx.). we deduct it from the savings pointed out in the table above, the resultant savings come as INR 48,438.26.

    Frequently Asked Questions

    1. Which Bank offers the lowest personal loan interest rate?

    The interest rate on personal loan application depends on the applicant’s salary, CIBIL Score, repayment capacity, and previous credit history. Moreover, if you are looking for low interest personal loans then the public sector banks offer lower rates of interest compared to private sector banks.

    2. What is the Flat Interest Rate on personal loans?

    The flat interest rate is when there is no change in the interest rate throughout the tenure of the loan. It is calculated on the total loan amount.

    3. What is Reducing Interest Rates on Personal Loan?

    When banks calculate interest rate on the outstanding loan amount every month, it is called the reducing interest rate on personal loan.

    4. Does my CIBIL score impact my personal loan interest rate?

    Yes, your CIBIL score plays a very important role in determining the interest rate on your personal loan application.

    5. How to get a low interest rate based on my CIBIL score?

    If you have a CIBIL score of 750 or above, then banks might charge a low interest rate on your personal loan application.

    6. What is the difference between Fixed and Floating personal loan Interest rates?

    In fixed interest rate personal loans, the rate of interest remains the same throughout the loan tenure. Whereas, in case of floating interest rate personal loans, the rate of interest changes periodically depending on the market interest rates.

    7. Is it best to always choose the lowest interest rate personal loan?

    No, along with the personal loan interest rate you must consider other factors such as the processing fee, prepayment & foreclosure charges, disbursal time, etc before choosing a lender for personal loan.

    8. Can I get a lower interest rate on my personal loan on the basis of my personal relationship with the bank?

    If you have an existing relationship with the bank and do not have any existing loans, banks might give you a preferential interest rate. However, it is completely the bank’s decision and is not mandatory to lower the interest rate on the basis of personal relationships.

    9. Does employment history play a role in determining the personal loan interest rate?

    Yes, if you are employed with a reputable company for a long time and have a stable source of income then banks consider you as a low risk applicant. Therefore, the bank might offer you a comparatively lower interest rate.

    10. Do banks offer low interest rates on personal loans to government employees?

    Yes, many leading banks in the country offer low interest rates on personal loans to government employees. This is because of the higher job stability in government sector jobs as compared to private sector employees.

  • Personal Loan Interest Rates March 2024
    HDFC Bank10.75% - 14.50%
    ICICI Bank10.75% - 19.00%
    IndusInd Bank10.25% - 26.00%
    Kotak Bank10.99%
    RBL14.00% - 23.00%
    SMFG India Credit12.00% - 24.00%
    Standard Chartered Bank11.49%
    Tata Capital10.50% - 24.00%