Personal loans are one of the easiest ways to raise cash for emergencies and other miscellaneous expenses. It's readily available to both salaried and self-employed individuals. In India, almost all commercial banks, NBFCs (Non-Banking Financial Corporations), and even digital lenders offer personal loans. However, there are considerable variations in terms of interest rates from one lender to another. Hence, it's crucial to compare the interest rates offered by different banks before you apply for a personal loan.

To simplify the task, here in this guide, we list out the interest rates for personal loans from leading banks and other NBFCs. You can use this list to evaluate lenders and pick the right one who offers you the better deal. 

Compare Personal Loan Interest Rates of Banks for 2020 

Here is a list of the interest rates offered by leading banks for personal loans. However, note that the actual interest rate provided to you may be slightly higher or lower, depending on your creditworthiness and other factors.

Name of the Bank Personal Loan Interest Rate
Andhra Bank 11.55% - 13.05%
Axis Bank 12% - 24%
Bank of Baroda 10.50% - 12.50%
Bank of Maharashtra 10.85% - 11.85%
Canara Bank 11.65% to 13.70%
Citibank Starts from 9.99%
Corporation Bank 10.75% - 12.25%
Federal Bank 11.49% - 17.99%
HDFC Bank 10.75% - 21.30%
ICICI Bank 11.25% - 22%
IDBI Bank 9.20% - 11.25%
Indian Overseas Bank Starts from 9.6%
IndusInd Bank 11% - 31.50%
Karur Vysya Bank 15% - 19%
Kotak Bank Starts from 10.75%
Punjab National Bank 9.95% - 14.40%
RBL Bank 14% - 23%
SBI Bank 10.85% - 12.85%
Standard Chartered Bank 10.99% - 19.99%
Tamilnad Mercantile Bank 14.70%
Union Bank of India 12.30% - 13.40%



Compare Personal Loan Interest Rates of NBFCs/Digital Lenders for 2020 

Name of the Lender Personal Loan Interest Rate
Aditya Birla Capital Limited 14% - 26%
Bajaj Finserv Starts from 13%
Cashbean Up to 33%
Cashkumar 18% to 24%
Cashe Up to 3% per month
Credy 1 to 1.5% of Loan Amount Per Month
Earlysalary 24% - 30%
Flexsalary Up to 36%
Faircent Up to 30%
Fullerton India 12.99% - 36%
IIFL Starts from 13.50%
Indiabulls Dhani Starts from 13.99%
Indifi Starts at 1.5% per month
Kreditbee 10.99% - 18%
Lazypay Starts from 18%
Loantap Starts from 18%
Lendbox 11.49% - 36%
MI Credit Starts at 1.35% per month
MoneyTap 13% to 18%
Money View Starts from 1.33% per month
Paysense 1.4% - 2.3% per month
Qbera 11.99% - 35.99%
Realme PaySa 11% - 24%
RedCarpet 2% - 3% per month
Shubh Loans 18 – 30%
Shriram City Union Finance Depends on the schemes selected by the borrower
Smart coin 20 – 36% APR
Stashfin 11.99% - 59.99% APR
Tata Capital Starts from 10.99%


*Note that these rates are subject to change at the discretion of the lender. So, make sure to check with your preferred lender for the latest rate applicable to you. 

Personal Loan Interest Rate Types

The interest rate for personal loans can either be:

  • A fixed-rate of interest

With fixed rates, the rate of interest remains the same for the entire tenure of the loan. As a result, the EMI remains the same for the whole loan repayment period. This helps borrowers plan the regular monthly expenditure for the duration of the loan term.

  • Floating rate of interest 

With floating rates, the interest rate of the loan fluctuates depending on prevailing market conditions. Consequently, your EMI increases or decreases during the loan tenure.

Factors that affect Personal Loan Interest Rates

While lenders publish their interest rates, the actual interest rates offered to borrowers depend on several other factors like:

  • The credit score and history of the borrower 

The credit history and credit score determine the creditworthiness of the borrower. Generally, lenders prefer borrowers with high credit scores. Higher your credit score, better are the chances of loan approval and lower are the interest rates charged. 

  • The income of the borrower

Lenders prefer borrowers with higher incomes, as it indicates higher repayment capacity. Generally, lenders with high revenues can avail personal loans with lower interest rates.

  • Debt to income ratio 

Ideally, the debt to income ratio of the borrower should not exceed 30%. Lenders prefer borrowers with lower DTI ratio as it indicates higher repayment capability. The lower your DTI lower will be the interest rate charged.

  • Multiple loan applications 

When borrowers apply for personal loans with multiple lenders, lenders consider them as credit hungry. Additionally, when various lenders request your credit score simultaneously, it harms your credit score. So, while applying for a personal loan, do your research, compare interest rates of lenders, and then apply only with your preferred lender.

  • A pre-existing relationship with the lender

Lenders give preference for borrowers who are existing customers. For instance, if you have a fixed deposit or savings bank account with the lender, you can avail personal loans at lower interest rates compared to the interest rates charged to non-customers. 

Tips to secure Personal Loans at Lower Interest Rates

  • Try to maintain a good credit score. Higher your credit score, lower is the interest charged. 

  • Reduce your debt-to-income ratio. Lower the DTI, lower is the interest rates. 

  • Compare loan eligibility and interest rates offered by different lenders and choose lenders who provide the best deal.

  • While selecting lenders, approach your regular banker, as you’re likely to avail better interest rates, due to your existing relationship with the bank. 

  • Additionally, lenders offer special interests for specific categories of borrowers like women, pensioners, first-time applicants, etc. Check if you qualify for any of these categories to apply for personal loans at reduced interest rates.


Compare Interest Rates before applying for a Personal Loan 

Personal loans come in quite handy in various situations. Though they are readily available, the interest rates can overburden you. So, make sure to shop around, do your homework, and compare the interest rates offered by different lenders before you sign the deal.