What is the interest rate on a personal loan?

interest rate on a personal loan

Interest rates are the most important factor when it comes to loans. Having said that, the rate you get on your loan depends on many factors that are subject to change from loan to loan. Now, what is the interest rate on a personal loan? Lenders take into account the following factors when it comes to offering a personal loan and these factors are- age, savings, monthly income, monthly expenses, the category of the employer, job stability, relationship with the bank, and credit history. However, the borrower who is working in a reputed firm gets good in-hand salary and has a healthy credit score is most likely to get lower rates on a personal loan.

Once you have decided to take a personal loan, you will start looking for the best offers but have some preferences also. However, to choose the best offer for yourself, you will have to look for all the options. So, here are some of the top banks in India that offer personal loans:

List of Banks/LendersPersonal Loan Interest Rates
Allahabad Bank10.00% - 15.00%
Andhra Bank11.80% - 15.50%
Axis Bank10.49% - 21.00%
Bajaj Finserv11.00% Onwards
Bank of Baroda10.90% - 18.25%
Bank of India10.35% - 14.85%
Bank of Maharashtra9.50% - 12.80%
Canara Bank11.75% - 16.25%
Central Bank of India12.30%
Citibank10.49% Onwards
Corporation Bank11.80% - 15.50%
Dena Bank10.90% - 18.25%
DCB Bank13.00% - 25.00%
Federal Bank10.49% - 17.99%
HDFC Bank10.75% - 14.50%
HSBC9.75% - 16.00%
ICICI Bank10.75% - 19.00%
IDBI Bank10.50% - 13.25%
IndusInd Bank10.25% - 26.00%
Jammu & Kashmir Bank12.20% - 13.20%
Karnataka Bank13.49%
Karur Vysya Bank12.20% - 13.20%
Kotak Mahindra Bank10.99% Onwards
Lakshmi Vilas Bank11.55%
Nainital Bank12.50% Onwards
Oriental Bank of Commerce11.40% - 16.95%
Punjab & Sind Bank11.15% - 12.75%
RBL Bank14.00% - 23.00%
Punjab National Bank (PNB)11.40% - 16.95%
State Bank of India (SBI)11.00% - 14.00%
Standard Chartered Bank11.49% Onwards
Syndicate Bank11.75% - 16.25%
UCO Bank12.80%
United Bank of India11.40% - 16.95%
Vijaya Bank10.90% - 18.25%
YES BANK11.05% - 20.25%
Tata Capital10.50% - 24.00%
Fullerton India11.99% Onwards
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In addition to the above details, here is the detailed description of the personal loan schemes in top banks in India:

SBI Personal Loan Interest Rates – Now, what is the interest rate on a personal loan at State Bank of India? The bank offers personal loans in with different schemes: Xpress Credit Personal Loan and SBI Pension Loan, The interest rates are as follows:

Interest Rate11.00% - 14.00%
TenureUp to 5 years
Loan AmountUp to INR 15 lakh
Processing Fees0.25%-1 % of the loan amount plus service tax

HDFC Personal Loan Interest Rates – HDFC Bank offers personal loans to salaried individuals and also provides Personal Accidental Cover up to 8 lakhs along with a Critical illness cover of 1 lakh.

Particulars Details
Interest Rate10.75% - 14.50%
TenureUp to 5 years
Processing FeesUp to 2.50% of the loan amount subject to a minimum of INR 1,000 & maximum of INR 25,000

Personal Loan Interest Rates Axis Bank – On personal loans, Axis Bank offers attractive interest rates to individuals who have a minimum monthly income of INR 15,000 and are above 21 years of age.

Particulars Details
Interest Rate10.49% - 21.00%
TenureUp to 5 years
Loan AmountUp to INR 15 lakh
Processing Fees1.50% to 2.00% of the loan amount plus service tax as applicable

Personal Loan Interest Rates ICICI Bank – If you want to know what is the interest rate on a personal loan at ICICI bank, you will be happy to hear that the bank offers one of the lowest personal loan interest rates. Here are the details of ICICI Bank personal loan:

Kotak Mahindra Bank Personal Loan Rates – The personal loan scheme facilitated by Kotak Bank is one of the best offers in the market as the bank offers attractive interest rates on a personal loan and higher loan amount. Kotak Bank gives personal loans with the following details:

Particulars Details
Interest Rate10.99% Onwards
TenureUp to 5 years
Loan AmountUp to INR 15 lakh
Processing FeesUp to 2.5% of the loan amount plus service tax

Personal Loan EMI Calculator – A personal loan EMI calculator is an online tool that is used to calculate the monthly installment of the loan. It allows you to know the exact calculations of your EMIs in the most hassle-free manner. The loan calculator takes into account the following data:

  • Loan amount
  • Tenure
  • Interest rate

The calculator is easy to use and gives accurate results unlike the manual calculation of the EMIs. Other than this advantage, an EMI calculator also shows the amortization table.

For your reference, below is the table showing the calculations of EMIs, interest outgo and total amount payable, while taking a loan of say INR 2 Lakh at an interest rate of 11% for a tenure of 4 years.

Table Showing EMI, Interest Outgo, and Total Repayment Amount

Loan AmountInterest RateTenureMonthly InstalmentTotal Interest AmountTotal Amount
₹ 2,00,00011%1₹ 17,676₹ 12,116₹ 2,12,116
₹ 2,00,00011%2₹ 9322₹ 23,718₹ 2,23,718
₹ 2,00,00011%3₹ 6548₹ 35,719₹ 2,35,719
₹ 2,00,00011%4₹ 5169₹ 48,117₹ 2,48,117

Now that you have got the idea about what is the interest rate on a personal loan at different banks, selecting the best one for yourself would be smoother.

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  • Personal Loan Interest Rates September 2023
    Fullerton India12.00% - 24.00%
    HDFC Bank10.75% - 14.50%
    ICICI Bank10.75% - 19.00%
    IndusInd Bank10.25% - 26.00%
    Kotak Bank10.99%
    RBL14.00% - 23.00%
    Standard Chartered Bank11.49%
    Tata Capital10.50% - 24.00%
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