Updated on - 15 May 2024

Personal Loan Interest Rates in all Banks 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.

Personal Loan Interest Rates of Major Banks

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

Personal Loan Interest Rates of NBFCs

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

Charges on Balance Transfer to Other Banks

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.

Other Charges Associated with Personal Loans

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 -

Processing Fee:

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.

Foreclosure Fee:

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.

Late Payment Fees:

If you pay your personal loan EMI late, you will be charged a fee by the lender.

Other Charges after Loan Disbursement:

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

Conclusion

Personal loans are the best choice for financial emergencies or to fulfillfulfil 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, at 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.

About the Author

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!

Personal Loan Interest Rates Related Faqs

How is my interest rate determined by my income?

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.

How does my credit score affect the amount of money I can borrow?

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.

What part does my work history and experience play in establishing the interest rate?

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.

How is my interest rate determined by my current debt level?

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.

Can I receive a lower interest rate than what the lender advertises?

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.

Will offering collateral help me receive a better interest rate?

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.

What is the best way to receive a good interest rate?

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.

Can I receive a low-interest rate despite having a negative credit score?

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.

Will taking a loan from my current lender result in a cheaper interest rate?

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.

Is it possible to avoid prepayment fees?

Only if your lender waives the fee or doesn't charge you for making prepayments may you avoid paying it.

What is the formula for calculating the processing fee?

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.

What will I have to pay if I miss an EMI payment?

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.