Personal Loan Interest Rates 2026
Compare personal loan rates, processing fees and foreclosure charges of 8 major banks, check how much you can borrow on your income, and understand the RBI rules on Key Facts Statements, cooling-off periods, prepayment and digital lending before you sign.
RBI repo rate 5.25% · Lender rates checked 27 September 2026Personal Loan interest rates — 8 lenders compared
Published starting and maximum rates for each lender. The RBI repo rate is 5.25% after cuts totalling 1.25 percentage points in 2025, so floating-rate loans linked to the repo rate are cheaper than a year ago. The rate you are offered depends on your credit score, income, employer and loan details.
| Lender | Interest rate (p.a.) | Processing fee | Tenure | EMI per ₹1 lakh* | Rates as of |
|---|---|---|---|---|---|
| Axis Bank Personal LoanPrivate sector bank | 9.99% – 21.55% | Up to 2% of loan + GST | 12 – 84 months | ₹2,124 | Sep 2026 |
| HDFC Bank Personal LoanPrivate sector bank | 9.99% – 24.00% | Up to ₹6,500 + GST | 12 – 60 months (up to 72–84 months for select segments) | ₹2,124 | Sep 2026 (aggregator) |
| ICICI Bank Personal LoanPrivate sector bank | 9.99% – 16.50% | Up to 2% of loan + GST | — | ₹2,124 | Apr – Jun 2026 quarter |
| IDFC FIRST Bank Personal Loan (FIRSTmoney)Private sector bank | 9.99% onwards | 0% – 3.5% of loan (incl. GST); zero on select amounts | 9 – 60 months | ₹2,124 | Sep 2026 |
| SBI Personal Loan (Xpress Credit)Public sector bank | 10.00% – 15.00% | 1.50% of loan (min ₹1,000, max ₹15,000) + GST | 6 – 84 months | ₹2,125 | Jun – Sep 2026 |
| Bank of Baroda Personal LoanPublic sector bank | 10.15% – 17.50% | Nil for government employees with BoB salary account; others 1% – 2% + GST (min ₹1,000, max ₹10,000) | Up to 84 months (salaried); 48 – 60 months (non-salaried) | ₹2,132 | BRLLR 7.90% (6 Dec 2025); rates Sep 2026 |
| YES Bank Personal LoanPrivate sector bank | 10.85% – 21.00% | Up to 2.5% of loan | 12 – 72 months | ₹2,167 | 2026 (aggregator, no exact date) |
| Kotak Mahindra Bank Personal LoanPrivate sector bank | 10.99% onwards | Up to 5% of loan + GST | 12 – 72 months | ₹2,174 | Sep 2026 (Paisabazaar, 21 Sep 2026) |
* At the lowest rate for 5 years. Starting rates go to borrowers with strong credit scores and income; your rate depends on your profile. Sources and dates on each lender page — confirm with the lender before applying.
EMI calculator
More: EMI calculator · Eligibility calculator · Affordability calculator · Prepayment calculator · Balance transfer calculator
How the interest rate changes your cost
| Rate | EMI | Total interest | Extra vs lowest rate |
|---|---|---|---|
| 10.00% | ₹10,624 | ₹1,37,411 | ₹0 |
| 12.00% | ₹11,122 | ₹1,67,333 | ₹29,922 |
| 14.00% | ₹11,634 | ₹1,98,048 | ₹60,636 |
| 16.00% | ₹12,159 | ₹2,29,542 | ₹92,130 |
| 18.00% | ₹12,697 | ₹2,61,803 | ₹1,24,391 |
₹5,00,000 for 5 years.
How tenure changes EMI and total interest
| Tenure | EMI | Total interest | Total repaid |
|---|---|---|---|
| 1 year | ₹44,191 | ₹30,290 | ₹5,30,290 |
| 2 years | ₹23,304 | ₹59,294 | ₹5,59,294 |
| 3 years | ₹16,369 | ₹89,297 | ₹5,89,297 |
| 4 years | ₹12,923 | ₹1,20,293 | ₹6,20,293 |
| 5 years | ₹10,871 | ₹1,52,273 | ₹6,52,273 |
₹5,00,000 at 11.00%.
Processing fees & foreclosure charges by lender
| Lender | Processing fee | Prepayment / foreclosure |
|---|---|---|
| Axis Bank Personal Loan | Up to 2% of loan + GST | Foreclosure 5% + GST; part-payment 3% or 2% depending on tenure (BankBazaar) |
| HDFC Bank Personal Loan | Up to ₹6,500 + GST | Foreclosure: 4% of principal outstanding up to 24 EMIs, 3% from 25 to 36 EMIs, 2% after 36 EMIs (+ GST) |
| ICICI Bank Personal Loan | Up to 2% of loan + GST | Foreclosure and part-payment: 3% of principal outstanding if the loan is up to 24 months old; nil after 24 EMIs |
| IDFC FIRST Bank Personal Loan (FIRSTmoney) | 0% – 3.5% of loan (incl. GST); zero on select amounts | Zero foreclosure charges |
| SBI Personal Loan (Xpress Credit) | 1.50% of loan (min ₹1,000, max ₹15,000) + GST | SBI’s RTXC page lists no prepayment penalty, but aggregators report 3% of the amount prepaid on fixed-rate Xpress Credit — confirm in your KFS |
| Bank of Baroda Personal Loan | Nil for government employees with BoB salary account; others 1% – 2% + GST (min ₹1,000, max ₹10,000) | Zero prepayment charges (ClearTax); the official page is silent. On the floating-rate option RBI rules bar prepayment charges anyway |
| YES Bank Personal Loan | Up to 2.5% of loan | Foreclosure up to 4% of outstanding principal; part-prepayment allowed after 12 EMIs |
| Kotak Mahindra Bank Personal Loan | Up to 5% of loan + GST | Foreclosure 5% of outstanding principal + GST (BankBazaar) |
What a processing fee does to your real cost (APR)
Fees are deducted from the amount you receive, but you still pay EMIs on the full loan. That raises your real cost — the Annual Percentage Rate (APR) that the Key Facts Statement must show.
| Processing fee | Fee incl. 18% GST | Amount credited | Approx. APR |
|---|---|---|---|
| No fee | ₹0 | ₹5,00,000 | 11.00% |
| 1% + GST | ₹5,900 | ₹4,94,100 | 11.52% |
| 1.5% + GST | ₹8,850 | ₹4,91,150 | 11.78% |
| 2% + GST | ₹11,800 | ₹4,88,200 | 12.05% |
| 3.5% + GST | ₹20,650 | ₹4,79,350 | 12.86% |
| 5% + GST | ₹29,500 | ₹4,70,500 | 13.69% |
₹5,00,000 at 11.00% for 5 years (EMI ₹10,871). APR here is the annualised internal rate on fee and interest only; the KFS may also include insurance or other third-party charges.
Eligibility by borrower profile
| Profile | What lenders look at | Examples from lenders tracked |
|---|---|---|
| Government / PSU / defence employee | Salary account with the lending bank helps most | BoB: 10.15% – 10.65% and nil fee with BoB salary account; SBI Xpress Credit: min ₹20,000 net monthly income |
| Salaried — large private company / MNC | Employer category, net income, credit score 710 – 750+ | SBI ₹25,000 (corporate); Kotak ₹25,000; Axis ₹15,000 (Axis customers) / ₹25,000 |
| Salaried — smaller company | Higher income bar and rate; longer job history | Kotak ₹30,000 (non-corporate); expect rates towards the upper band |
| Self-employed professional / business owner | 2 – 3 years’ ITRs, business vintage, bank-statement cash flow | BoB: 1 year in business, tenure 48 – 60 months; IDFC FIRST: no stated minimum income |
| Pensioner | Pension credited to the bank | SBI Pension Loan: tenure up to 7 years, fee 1% (max ₹10,000) |
| New to credit (no score) | Income proof and employer; smaller first loan | Pre-approved offers from your salary bank are the easiest route |
Income and score thresholds are from lender pages and aggregators (Sep 2026). Meeting them does not guarantee approval.
How much can you borrow on your salary?
| Net monthly income | Max EMI at 50% FOIR | Loan at 11%, 3 yrs | Loan at 11%, 5 yrs | 5 yrs with ₹10,000 existing EMI |
|---|---|---|---|---|
| ₹25,000 | ₹12,500 | ₹3,81,811 | ₹5,74,913 | ₹1,14,983 |
| ₹40,000 | ₹20,000 | ₹6,10,897 | ₹9,19,861 | ₹4,59,930 |
| ₹50,000 | ₹25,000 | ₹7,63,622 | ₹11,49,826 | ₹6,89,896 |
| ₹75,000 | ₹37,500 | ₹11,45,433 | ₹17,24,739 | ₹12,64,808 |
| ₹1,00,000 | ₹50,000 | ₹15,27,244 | ₹22,99,652 | ₹18,39,721 |
| ₹1,50,000 | ₹75,000 | ₹22,90,866 | ₹34,49,478 | ₹29,89,547 |
Estimate only. Lenders also cap the loan (e.g. SBI up to 30× net monthly income; product maximums of ₹15 lakh – ₹50 lakh) and adjust FOIR by income level and employer.
Credit score bands and what they mean
| Score | Band | What to expect |
|---|---|---|
| 750 – 900 | Good to excellent | Best chance of approval and the lowest rates in a lender’s band |
| 700 – 749 | Fair to good | Usually approved; rate may be higher. IDFC FIRST asks for 710+, HDFC Bank about 720+ |
| 650 – 699 | Weak | Fewer options, higher rates, lower amounts; many banks decline |
| 300 – 649 | Poor | Likely rejection; fix defaults and card utilisation first |
| NH / –1 | No history | Not a bad score — rely on salary-bank or pre-approved offers |
- India has four credit bureaus — TransUnion CIBIL, Experian, Equifax and CRIF High Mark. Scores range from 300 to 900.
- Since 1 January 2025 RBI requires lenders to report and bureaus to update credit data at least every fortnight, so repayments show up faster.
- You are entitled to one free full credit report a year from each bureau.
- Many applications in a short time create multiple hard enquiries that lower your score — compare offers first, then apply.
Personal loan vs gold loan, loan against FD, credit card EMI and top-up home loan
| Option | Typical cost | Security | Speed | Tenure | Best for |
|---|---|---|---|---|---|
| Personal loan | About 10% – 24% (9.99% – 24% among banks tracked) | None | Minutes (pre-approved) to a few days | Up to 5 – 7 years | Planned expenses with no asset to pledge |
| Gold loan | From about 8.5% at public-sector banks; up to 27% on some NBFC schemes | Gold jewellery (LTV capped at 75% – 85%) | Same day | Up to about 3 years; bullet or EMI | Short-term needs when you own gold |
| Loan / overdraft against FD | Usually 1% – 2% above your FD rate | Your fixed deposit | Same day, often online | Up to the FD’s maturity | Cheapest option if you have FDs you don’t want to break |
| Credit card EMI | Varies by card and offer; usually cheaper than revolving card interest but often above personal-loan rates | None (uses card limit) | Instant | 3 – 24 months typical | Small purchases; check fee and GST even on “no-cost” EMI |
| Top-up home loan | Close to your home-loan rate — typically well below personal loans | Your mortgaged house | Days to weeks | Up to the home loan’s remaining term | Large amounts for existing home-loan borrowers; interest may be deductible if used for renovation |
Gold loan figures are from our gold loan tracker; others are indicative ranges — compare the APR in each lender’s KFS.
Digital lending safety — RBI 2025 rules
| Rule | What it means for you |
|---|---|
| Who can lend | Only RBI-regulated banks and NBFCs, directly or through their disclosed lending service providers (LSPs) and apps. RBI publishes a directory of lenders’ digital lending apps. |
| Money flow | Disbursal and repayment must go directly between your bank account and the lender’s — never through an agent’s or app’s pool account. |
| Key Facts Statement | Must be given before you sign, with APR and all charges. |
| Cooling-off period | At least 1 day for every digital loan: exit by repaying principal + proportionate APR, with no penalty (a disclosed one-time processing fee may be retained). |
| Multiple offers | Apps that tie up with several lenders must show all matching offers with APR and KFS, unbiased (from 1 Nov 2025). |
| Your data | Apps may collect only what is needed, with your explicit consent; they must not access your contacts, photos or call logs. |
| Complaints | Every lender and app must name a grievance officer; if unresolved in 30 days, go to the RBI Integrated Ombudsman at cms.rbi.org.in. |
Red flags: loans with no KYC or credit check, “processing” or “insurance” fees paid upfront to an individual, pressure to decide instantly, threats or calls to your contacts. Report cyber fraud at cybercrime.gov.in or call 1930.
Personal Loan eligibility
- Age typically 21 – 60 years for salaried borrowers (loan must end before retirement at many banks)
- Minimum net monthly income of about ₹15,000 – ₹30,000 depending on lender and employer category
- Credit score of about 710 – 750 or higher for the best rates
- At least 1 year of continuous employment or business (e.g. Bank of Baroda)
- Total EMIs, including the new loan, usually within 40% – 55% of net income (FOIR)
Documents required
- Identity proof: PAN (mandatory) plus Aadhaar, passport, voter ID or driving licence
- Address proof if different from ID
- Salaried: last 3 months’ salary slips, 3 – 6 months’ salary-account statement, Form 16 or latest ITR
- Self-employed: last 2 – 3 years’ ITR with computation of income, audited financials where applicable, 6 – 12 months’ bank statements, business registration (GST, Udyam, shop licence)
- Passport-size photograph (branch applications)
- Existing lenders’ sanction letters or statements if you are consolidating or transferring a loan
How to apply
- Check your credit reportDownload your free report, fix errors and see what rate band you fall in.
- Compare offersCompare APR in the Key Facts Statement, fees and foreclosure terms — not just the headline rate.
- Apply on the lender’s own app, website or branchUse the bank’s official channels or its listed lending partners; never pay anyone a fee to “get the loan approved”.
- KYC and verificationAadhaar/PAN-based e-KYC or video KYC; income is verified from payslips, bank statements or account aggregator data.
- Sign KFS and agreementCheck APR, EMI schedule, foreclosure charge, penal charges and cooling-off period before e-signing.
- DisbursalMoney is credited directly to your bank account by the lender — never through a third party’s account.
RBI rules that protect you
| Protection | What it means for you |
|---|---|
| Key Facts Statement (KFS) | Mandatory for all retail and MSME term loans since 1 Oct 2024; shows the all-inclusive Annual Percentage Rate (APR), EMI schedule and every fee |
| Charges not in KFS | Cannot be levied without your explicit consent |
| Validity | At least 3 working days for loans of 7 days or more — time to compare offers |
| Floating-rate reset (RBI, Aug 2023) | At a rate reset you can choose a higher EMI, a longer tenure (without negative amortisation), switch to fixed rate, or prepay; you get quarterly statements |
Prepayment & foreclosure
| Situation | Rule |
|---|---|
| Floating-rate loans to individuals (non-business) | No prepayment / foreclosure charge — any lender, part or full, from any source of funds |
| Loans sanctioned or renewed from 1 Jan 2026 | RBI (Pre-payment Charges on Loans) Directions, 2025 also bar charges on floating-rate business loans to individuals and MSEs at most banks and large NBFCs; no minimum lock-in |
| Fixed-rate loans | Lender may charge as per the sanction letter and Key Facts Statement |
| Disclosure | Any charge must be shown in the sanction letter, loan agreement and KFS; waived charges cannot be levied later |
Personal Loan guides, calculators & lenders
Rates & lenders
Compare rates, fees and how rates are quoted
Calculators
EMI, eligibility, affordability, prepayment and balance transfer
Eligibility & applying
Eligibility, documents, credit score, FOIR and rejections
By profile & purpose
Salaried, self-employed, instant and pre-approved loans, debt consolidation and medical needs
Repayment & closure
EMIs, part-prepayment, foreclosure and balance transfer
Rules & safety
RBI prepayment rules, cooling-off and fraud protection
Frequently asked questions
Which bank has the lowest personal loan interest rate?
Among the 8 banks we track, ICICI Bank, HDFC Bank, Axis Bank and IDFC FIRST Bank start at 9.99% p.a., SBI at 10.00% and Bank of Baroda at 10.15%. Starting rates go to borrowers with high credit scores, good employers and steady income; most people are offered a rate above the minimum.
Can I close my personal loan early without a charge?
It depends on the rate type. RBI bars prepayment and foreclosure charges on floating-rate loans to individuals, but most personal loans are fixed-rate, so the lender’s charge applies — typically 2% – 5% of the outstanding principal plus GST. IDFC FIRST Bank advertises zero foreclosure charges, ICICI charges nothing after 24 EMIs, and Bank of Baroda offers a floating-rate option.
What credit score do I need for a personal loan?
Scores run from 300 to 900 and 750+ is considered good. Lender guidance we found: IDFC FIRST 710+, HDFC Bank about 720+, Kotak about 750+. Bank of Baroda sets your rate by CIBIL band. Below about 700, expect higher rates or rejection.
How much personal loan can I get on my salary?
Lenders keep all your EMIs within roughly 40% – 55% of net monthly income (FOIR). At 50% FOIR, 11% and 5 years, a ₹50,000 monthly income with no other EMIs supports about ₹11.5 lakh. SBI also caps loans at 30 times net monthly income.
What is the Key Facts Statement (KFS)?
Since 1 October 2024 every lender must give you a KFS before you sign. It shows the Annual Percentage Rate (APR) — the all-in cost including processing and third-party fees — plus the EMI schedule and every charge. A fee not in the KFS cannot be charged without your explicit consent.
Can I cancel a personal loan after it is disbursed?
Yes. Under RBI’s Digital Lending Directions, 2025 every digital loan has a cooling-off (look-up) period of at least 1 day. You can exit by repaying the principal and proportionate APR for the days used, without penalty; only a disclosed one-time processing fee may be kept. Many banks allow cancellation on branch loans too — ICICI charges ₹2,500 after the cooling-off period.
Is personal loan interest tax deductible?
Not in general. If the money is used to buy, build or renovate a house, the interest may be claimed under the home-loan interest provisions (section 24(b) of the 1961 Act, carried into the Income-tax Act, 2025) with proof of use; if used for business, interest can be a business expense. Keep bills and bank trails.
How do I know a loan app is genuine?
Borrow only from RBI-regulated banks and NBFCs or the apps they list. RBI publishes a directory of digital lending apps of regulated entities, the lender must disburse directly into your account, and a genuine lender never asks for an upfront “processing” or “insurance” fee to be paid to an individual. Report fraud at cybercrime.gov.in or call 1930.
Does a personal loan have a fixed EMI?
Usually yes — most personal loans are fixed-rate, so the EMI does not change. On floating-rate loans (such as Bank of Baroda’s option) the EMI or tenure changes when the benchmark rate changes; RBI’s 2023 reset rules let you choose a higher EMI, longer tenure, a switch to fixed rate or prepayment.
Rates compiled from lenders’ published rate pages and reputable aggregators (dates on each lender page) for comparison only. FinancePortal is not a lender or financial adviser; confirm terms and read the Key Facts Statement before borrowing.