Updated on - 15 May 2024
A personal loan is an unsecured loan offered by a bank or other financial organization. Personal loan interest rates depend on a variety of factors including your creditworthiness. It is super easy to get a personal loan if you have a strong credit history and all of your paperwork is in order.
Funds from a personal loan can be used for a variety of purposes like medical bills, weddings, or travel funds.
Before you take out a personal loan, you should check the interest rate of various banks and opt for the most affordable option. Here is a list of top banks in India and their interest rates as well as processing fees -
| Leading Banks | Rate of Interest (p.a.) | Processing fee |
|---|---|---|
|
HDFC Bank |
10.75% to 24.00% |
Up to Rs.4,999 + GST |
|
Kotak Mahindra Bank |
10.99% onwards |
Up to 3.00% of the loan amount + Taxes |
|
ICICI Bank |
10.80% to 16.15% |
Up to 2.00% of the loan amount |
|
Axis Bank |
10.99% onwards |
Up to 2.00% of the loan amount + GST |
|
Yes Bank |
10.99% to 20.00% |
Up to 2.50% of the loan amount |
|
Citibank |
9.99%-16.49% |
Up to 3% |
|
IDBI Bank |
10.50% onwards |
1.00% of the loan amount, minimum Rs.2,500/- + Taxes |
|
UCO Bank |
10.95% onwards |
1.00% of the loan amount, minimum Rs.750 |
|
RBL Bank |
18.00% |
2.00% of the loan amount |
|
IDFC First Bank |
10.75% - 36.00% |
Up to 3.50% of the loan amount |
|
IndusInd Bank |
10.25% - 28.00% |
Up to 3.50% of the loan amount |
|
HSBC Bank |
9.99% - 16.00% |
Up to 2.00% of the loan amount |
|
Karur Vyasa Bank |
11.25% - 14.25% |
Up to 3.00% of the loan amount |
|
Federal Bank |
11.49% - 14.49% |
Up to 3.00% of the loan amount |
|
State Bank of India |
11.15% - 14.30% |
Up to 1.50% of the loan amount, minimum Rs.1,000 and maximum Rs.15,000 + GST |
|
Bank of Maharashtra |
10.00% onwards |
1.00% of the loan amount, minimum Rs.1,000 and maximum Rs.10,000 |
|
Bank of India |
10.85% onwards |
2.00% of the loan amount, minimum Rs.1,000 and maximum Rs.10,000 |
|
Union Bank of India |
13.35% - 15.45% |
1.00% of the loan amount, minimum Rs.500 and maximum Rs.7,500 |
|
Central Bank of India |
12.00% - 12.75% |
1.00% of the loan amount |
|
Punjab National Bank |
12.40% onwards |
0.35% of the loan amount, minimum Rs.2,500 and maximum Rs.15,000 |
|
Bank of Baroda |
11.05% - 18.10% |
1.00% - 2.00% of the loan amount + GST, minimum Rs.1,000+GST and maximum Rs.10,000+GST |
|
Indian Bank |
12.40% - 15.00% |
Please get in touch with Indian Bank for more information |
NBFCs or Non-Banking Finance Companies have become increasingly popular with people for personal loans and other products. Here are some top NBFCs in the country and their interest rates and processing fees -
| Banks, NBFCs, and Online Lenders | Rate of Interest (p.a.) | Processing fee |
|---|---|---|
|
Moneyview |
10.00% onwards |
Starting from 2.00% of the loan amount |
|
KreditBee |
16.00% to 29.95% |
Rs.150 - Rs.13,750 |
|
Dhani Loans |
13.99% onwards |
3.00% onwards + Taxes |
|
Bajaj Finserv |
11.00% - 38.00% |
Up to 3.93% |
|
Muthoot Finance |
14.00% - 22.00% |
Please get in touch with Muthoot Finance for more information |
|
MoneyTap |
13.00% - 24.03% |
2.00% + GST |
|
SMFG India Credit |
11.99% onwards |
Up to 6.00% of the loan amount |
|
Tata Capital |
10.99% onwards |
Up to 5.50% of the loan amount + GST |
|
TurboLoan by Chola |
Please get in touch with TurboLoan for more information |
|
|
Aditya Birla Finance |
13.00% - 28.00% |
3.00% + Taxes |
|
Standard Chartered Bank |
11.49% onwards |
Up to 2.25% of the loan amount |
|
PaySense |
16.00% - 36.00% |
Up to 2.25% of the loan amount + GST |
|
CASHe |
Up to 30.00% |
Rs.500 - Rs.1,200 |
|
Early Salary |
16.00% onwards |
Starting from 2.00% of the loan amount + GST |
|
StashFin |
Please get in touch with StashFin for more information |
|
If your present lender charges a high-interest rate, you can switch lenders without ending the transaction by using the personal loan balance transfer service.
Let’s take an example: Assume you owe Rs.5 Lakh on a personal loan with a three-year repayment period and a 15% interest rate. Your monthly EMI will be Rs.17,333 in that situation, with a total interest payment of Rs.1.24 Lakh.
If you transfer to lender B, who offers a 12% interest rate, your monthly EMI on the outstanding balance of Rs.5 Lakh would be Rs.16,607 per month. Consider the following table to gain a better understanding of the situation:
| Existing loan amount | Balance to transfer | |
|---|---|---|
|
Outstanding amount |
Rs.5 Lakh |
Rs.5 Lakh |
|
Rate of interest |
15.00% |
12.00% |
|
Remaining term |
3 years |
3 years |
|
EMI |
Rs.17,333 |
Rs.16,607 |
|
Total interest to pay |
Rs.1,23,976 |
Rs.97,858 |
|
Total amount to pay |
Rs.6,23,976 |
Rs.5,97,858 |
|
SAVINGS |
Rs.26,118 |
Thus, moving your personal loan from lender A to lender B can save you up to Rs.726 on your monthly EMI. Furthermore, moving the debt will save you Rs.26,118 in total interest payments. If you need more money, you can get a personal loan top-up when you transfer your balance.
The interest rate is not the only charge that you have to pay on a personal loan. There are other charges associated as well, which are mentioned below -
Personal loans are subject to processing fees in addition to interest rates. A processing fee on a personal loan is a one-time non-refundable charge added to the loan amount to cover the cost of processing the application.
Prepayment and foreclosure fees must be paid if you want to pay off or closeshut your personal loan account before the end of the predetermined loan term. These fees might range anywhere from 0% to 6% of the outstanding balance.
If you pay your personal loan EMI late, you will be charged a fee by the lender.
Other fees levied by the bank on personal loan clients after disbursement include check bounce fees, duplicate statement fees, and loan changeover fees. These fees are not payable by all clients and are only applied when the event occurs.
The following table lists the most common fees associated with personal loans in some top banks -
| Banks | Processing Fee | Prepayment / Foreclosure Charges | Penalty on overdue EMI | Post Loan Disbursement Charges |
|---|---|---|---|---|
|
ICICI Bank |
Up to 2.00% of the loan amount |
3.00% on principal outstanding amount. Nil after 12 EMIs paid. |
5.00% p.a. on the overdue EMI until repayment |
Cheque Bounce Charges - Rs.500 Loan Cancellation Charges - Rs.2,500 Other Charges - Rs.500 + GST |
|
Kotak Mahindra Bank |
Up to 3.00% of the loan amount + Taxes |
2.00% - 4.00% + Taxes on the outstanding principal |
8.00% p.a. on the overdue amount + Taxes |
EMI Dishonour / Bounce Charges - Rs.750 + Taxes per instance |
|
HDFC Bank |
Up to Rs.4,999 + GST |
2.00% - 4.00% of the outstanding loan amount |
18.00% p.a + Taxes on the overdue instalment amount |
Payment Return Charges - Rs.450 per instance Repayment Mode Change Charges - Rs.500 |
|
IndusInd Bank |
Up to 3.50% of the loan amount |
4.00% of the principal outstanding after repayment of 12 EMIs + GST |
2.00% + GST on the total overdue (Principal + Interest) or Rs.100 + GST, whichever is higher |
Payment Dishonour Charges - Rs 450/- per instance + GST Loan Cancellation Charges - Rs 1,000/- per instance + GST |
|
Federal Bank |
Up to 3.00% of the loan amount |
Nil |
2.00% p.m. of the overdue amount |
Charges for Switching Loan from Fixed to Floating Rates and Vice Versa - 0.25% of the balance outstanding / Drawing power whichever is higher |
|
Axis Bank |
Up to 2.00% of the loan amount + GST |
2.00% - 3.00% of the principal outstanding amount |
8.00% above the applicable interest rate on the overdue amount, not exceeding 24.00% per instance |
Repayment Mode Change Charges - Rs.500 Payment Return Charges - Rs.399+GST per instance |
|
IDFC First Bank |
Up to 3.50% of the loan amount |
Upto 5.00% of the outstanding amount after payment of 6 or more EMIs or 6 months, whichever is later |
Upto 2.00% of the unpaid EMI or up to Rs.300, whichever is higher |
EMI Return Charges - Upto Rs.500 per EMI bounce |
|
Yes Bank |
Up to 2.50% of the loan amount |
Please get in touch with Yes Bank for more information |
Please get in touch with Yes Bank for more information |
Repayment mode swap charges - Rs 750/- per transaction Loan cancellation / Re-booking charges - Rs.1,000 |
|
Tata Capital |
Up to 5.50% of the loan amount + GST |
4.50% of the principal outstanding amount, 2.00% extra of the principal outstanding amount if closed within 12 months |
3.00% p.m. on the overdue amount + Taxes |
Cheque Bounce Charges - Rs.600 Loan Cancellation Charges - 2.00% of the loan amount or Rs.5,750, whichever is higher |
Personal loans are the best choice for financial emergencies or to fulfill dreams. Apart from the interest rate levied by your lender, there are other charges that also need to be taken into consideration before you choose a bank or NBFC. You can compare personal loan interest rates across all banks to find the best rates for your situation.
The chances of getting the best personal loan rates increase if you have a high CIBIL score and a clear track record. Generally, you need a credit score of 750 or above to qualify for any credit product.
However, with Moneyview, you can get a personal loan with a credit score of just 650. What’s more is that you can get the loan amount in your bank account within 24 hours of submitting the loan agreement.
Medha is a writer passionate about untangling money matters. She breaks down complex financial topics into clear and actionable advice, helping you make informed decisions for a secure future. Navigate the financial world with her!
Your earnings indicate your ability to repay a debt. A larger income indicates that you have more financial flexibility to pay back the loan on time. This indicates that your risk is low. Lenders prefer low-risk borrowers and may thus offer you a cheaper interest rate.
A strong credit score demonstrates that you are financially responsible. This lowers your risk level. If your credit score is 750 or higher, you will almost certainly be given preferred pricing.
Working with reputable companies increases your chances of having a steady job and income. Your job history also demonstrates work steadiness. This has an impact on your loan rate.
Lenders will consider your present debt load when assessing your loan application. They may not issue you a personal loan if you spend the majority of your current income repaying existing loans. Even if they do, you will be charged a high-interest rate.
Yes, you might be able to receive a cheaper interest rate than the lender advertises. Negotiation is crucial in this situation. You might be able to receive a good rate if you can haggle properly with the lender.
Another option to acquire a low-interest rate is to put up collateral. Collateral minimizes your risk greatly because it acts as a guarantee against non-payment. Keep in mind, however, that if you do not repay the loan on time, the lender may seize your assets.
If you have a credit score of at least 750 and are in good standing with the lender, you may qualify for preferred pricing. Working for a reputable company and having a strong credit history might also help you get better rates.
Yes, a personal loan with a poor credit score may be possible. You might try to acquire a better rate by applying with a co-applicant who has good credit. Another option is to secure a guarantor with strong credit.
It is always advantageous to have an existing relationship with a bank or lender. You're more likely to acquire better loan terms if you have a good relationship with your current banker. For example, you might be able to receive a better interest rate than the majority of people.
Only if your lender waives the fee or doesn't charge you for making prepayments may you avoid paying it.
Processing fees vary depending on the lender. This is either a percentage of the loan amount you ask for or a predetermined fee determined by the lender.
If you don't pay your EMI on time, your lender will charge you a late payment fee. This charge will be specified in your loan agreement. Aside from that, your credit score may also get affected if you miss your EMI payments frequently.
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