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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:

Personal Loan Interest Rates Apr 2020
Allahabad Bank9.25% - 12.65%
UCO Bank9.85% - 12.85%
Punjab National Bank9.95% - 14.50%
IDBI10.10% - 12.85%
Syndicate Bank10.20% - 13.40%
Central Bank of India10.25% - 12.20%
State Bank of India/SBI10.35% - 14.75%
Bank of Baroda10.50% - 15.50%
Citibank10.50% - 18.99%
HDFC Bank10.75% - 21.45%
IDFC Bank10.75% - 18.99%
HSBC Bank10.75% - 17.84%
Bajaj Finserv10.99% - 16.00%
Kotak Bank10.99% - 20.99%
ICICI Bank10.99% - 18.40%
Tata Capital10.99% - 18.00%
Standard Chartered Bank10.99% - 18.00%
IndusInd Bank10.99% - 16.00%
Yes Bank10.99% - 16.99%
Andhra Bank11.10% - 13.75%
Karur Vysya Bank11.15% - 17.75%
Oriental Bank of Commerce11.20% - 12.95%
Punjab and Sind Bank11.25% - 14.00%
Nainital Bank11.45% - 14.75%
Bank of India11.50% - 13.50%
Lakshmi Vilas Bank11.55%
Dena Bank11.55% - 16.55%
Vijaya Bank11.55% - 16.55%
Federal Bank11.99% - 18.00%
DCB Bank12.00%
Jammu and Kashmir Bank12.20% - 14.20%
Bank of Maharastra12.35% - 12.60%
Corporation Bank12.85% - 13.85%
RBL13.00% - 18.00%
Canara Bank13.00% - 14.00%
Karnataka Bank13.15% - 14.60%
United Bank of India13.50%
Fullerton India14.00% - 33.00%
Bandhan Bank15.00% - 16.18%
Axis Bank16.00% - 24.00%
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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 Rate10.35% - 14.75%
TenureUp to 5 years
Loan AmountUp to ₹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% - 21.45%
TenureUp to 5 years
Processing FeesUp to 2.50% of the loan amount subject to a minimum of ₹1,000 & maximum of ₹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 ₹15,000 and are above 21 years of age. 

Particulars Details
Interest Rate12.00% - 24.00%
TenureUp to 5 years
Loan AmountUp to ₹15 lakh
Processing Fees1.50% to 2.00% of the loan amount plus service tax as applicable

  • Personal Loan 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:

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Particulars Details
Interest Rate10.99% - 18.49%
TenureUp to 5 years
Loan Amount₹20 lakh for salaried
₹30 lakh for self-employed
₹40 lakh for Doctors
Processing FeesUp to 2.2.5% of the loan amount plus service tax

  • Kotak Mahindra Bank Personal Loan- 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% - 20.99%
TenureUp to 5 years
Loan AmountUp to ₹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 ₹ 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 April 2020
    Bajaj Finserv10.99% - 16.00%
    Fullerton India14.00% - 33.00%
    HDFC Bank10.75% - 21.45%
    ICICI Bank10.99% - 18.40%
    IndusInd Bank10.99% - 16.00%
    Kotak Bank10.99% - 20.99%
    RBL13.00% - 18.00%
    Standard Chartered Bank10.99% - 18.00%
    Tata Capital10.99% - 18.00%