Personal Loan Interest Rates

A personal loan, which is a popular form of unsecured loan, is sanctioned to the borrower after reviewing a person’s income level, credit history and the repayment options. As this loan can be used for multipurpose uses, and is flexible, it is usually borrowed for fulfilling ones personal requirements like, wedding, home renovation, higher education or planning a holiday. The loans are usually passed by banks and other financial credit companies (NBFCs).

Before applying for loan borrowers can use personal loan EMI calculator, to check lowest interest rates for personal loan in India and equated monthly instalment to be paid, and then compare personal loan interest rates of public and private sector banks have to offer.

For example SBI personal loan interest rates, HDFC personal loan interest rates, etc. After comparing banks personal loan interest rates on loanbaba.com, the person can take an informed decision as to which financial institute offer is the best.

Particulars of Interest Rate Personal Loan

Interest Rate and Other Charges Applicable

Interest Rate

10.99% onwards

Type of Interest Rate

Floating or fixed

Processing Fees

Zero to 5% of the loan amount

Loan Amount

Rs. 1 lakh to Rs. 50 lakhs

Loan Tenure

1 year to 5 years

Preferable Credit Score

750 and above

Personal Loan Interest Rates from Top Indian Banks

Following are the interest rate in personal loan by leading banks and NBFCs in India.

Bank Loan Amount Personal Loan Interest Rates* Lowest EMI per lakh for Max Tenure


SBI Bank Personal Loans Interest Rates

Rs. 50 Lakhs Max 10.99% - 15.99% Rs. 2,174 for 60 months


HDFC Bank Personal Loans Interest Rates

Rs. 40 Lakhs Max 10.99% - 20.75% Rs. 2,174 for 60 months


ICICI Bank Personal Loans Interest Rates

Rs. 20 Lakhs Max 10.99% - 22.00% Rs. 2,174 for 60 months


Axis Bank Personal Loans Interest Rates

Rs. 50 Lakhs Max 15.50% - 24.00% Rs. 2,405 for 60 months


RBL Bank Personal Loans Interest Rates

Rs. 20 Lakhs Max 14.50% - 23.00% Rs. 2,353 for 60 months


Kotak Bank Personal Loans Interest Rates

Rs. 50 Lakhs Max 10.99% - 24.00% Rs. 2,174 for 60 months


Capital First Personal Loans Interest Rates

Rs. 15 Lakhs Max 12% - 18% Rs. 2,224 for 60 months


Tata Capital Personal Loans Interest Rates

Rs. 20 Lakhs Max 10.99% - 19.00% Rs. 2,174 for 60 months


Fullerton India Personal Loans Interest Rates

Rs. 20 Lakhs Max 11.99% - 23.99% Rs. 2,224 for 60 months

Factors Affecting Personal Loan Interest Rates

Let us review the factors, influencing personal loan interest rates in India. The processing of a personal loan is not time taking. Creditors do not usually query the reasons behind a loan application. The lender will sanction the loan, within the earliest possible hour. It is vital to be aware of the interest rate levied on personal loan, as its range varies from 10.99% to 25%. For other loans such as car loans, real estate loans, a flat rate of interest is charged.

Factors that influence personal loan bank interest rates are:

  • Reviewing if You Are Credit Defaulter

A person’s credit history and records plays a vital role in determining rate of interest for personal loan. If you are not a credit defaulter, and have cleared all your loan repayments on time CIBIL score will be high. For a loan to be sanctioned it is necessary to have a decent credit score and a reasonable interest rate will be charged by the loan lender. In India the CIBIL rate ranges from 300 to 900. A good credit score is higher than 750 and the lowest limit is 300. Those with high credit score can negotiate for lowest interest rate for personal loan.

  • Level of Income

Applicants who draw a high salary or own a company, which has a decent turnover, then the financial institute, can lay a greater trust on the person’s repayment capacity. Lenders usually look for the applicants who are not defaulter and possess good monthly salary to offer lowest personal loan interest rate in India. Submission of income proof like salary slips, bank statements etc are required at the time of loan application.

  • Relationship with the Financial Institute

While borrowing, always approach a bank or financial company that has already granted you loan previously. Being a reliable customer proves beneficial for both the lender and the borrower. Also approaching a Bank, where you have savings bank account, could be beneficial. A good rapport with the bank officials could prove helpful. It will help in securing lowest bank personal loan interest rates.

  • The Status of Current Employer

It is mandatory that your financer reviews the credibility of your company. If you are working for a reputed firm or company, automatically the bank offers you the lowest interest rates for personal loan.  In case you are working for some new establishment, the lender will be unsure about the financial status of the establishment and the bank might not settle for low rate of interest.  In such a case, the borrower needs to give assurance to the bank regarding timely repayment.

  • Bargaining and Negotiation Skills

In case you have a good credit score and history you can use it to negotiate with your financer to be rewarded with an impressive level of discount in the processing fees and interest rate. Some financial institutes can offer low interest rates personal loans if you are able to prove that you will get a good hike in monthly income soon, or add a security or asset and convert the unsecured loan as a secured one.

Features of Personal Loan and Its Interest Rates at Loanbaba.com

  • Loans for multitude of purposes
  • Fixed interest rates not affected by market fluctuations
  • Personal loan Interest rates in India charged on monthly-reducing basis so that your loan EMIs are easily affordable
  • No collateral or security required for availing loans
  • Loans can be repaid easily in smaller installments
  • Repayments through PDC/ECS/Auto-credit

Types of Interest Rates for Personal Loan

Personal loan interest rates India offered by the banks and the financial companies are of two types. Fixed rates of interest remain the same throughout the loan repayment period and are not affected by the fluctuation of the financial market. Whereas variable rates of interest increase and decrease every day depending on the daily share market value. For example if the rate of interest falls or increase  in the market, then automatically your rate of interest will also come down or elevate.

  • Flat or Non-variable Interest Rate on Personal Loan

Under this system the interest rate remain static and does not even vary once during the full loan tenure. This rate is usually fixed by the creditor based on his or her market study and assumptions, before settling in for, the average discount rate, to be offered over the total loan repayment period. The lender through a computation process arrives at a general conclusion and fixes a personal loan capital value rate and on the basis of this rate, it decides the fixed future interest rate.

  • Floating Rate of Interest on Personal Loan

A variable interest rate goes up and down on a regular basis, therefore a borrower who has accepted a personal loan with floating interest rate, has to pay interest on the basis of the market price.  When the market interest rate goes down, the borrower has to pay less interest which is very beneficial to the borrower. If a borrower, can anticipate that the rate of interest in the market will go down for a particular time period, then he or she can go for a personal loan keeping in mind that the interest rate might fluctuate later and he has to pay accordingly. A variable rate of interest is also termed as adjustable interest rate.

How to Get Better Interest Rates on Personal Loans?

Here are some of the ways you can get lowest interest rate personal loans for yourself.

  • Maintain a Clean Record on Repayments

A long term track record proving timely payments will convince the lender to offer best personal loan rates. If your recent record (say few years) is free of default, you stand a better chance in securing good personal loan rates.

  • Take Benefit of Seasonal Offers

Compare personal loan interest rates India during festivals. Financial institutes offer lucrative rates during festival season so as to attract customers. During seasonal offers, it is wise to clench the competitive offers.

  • Know If Your Employer Has Tie-up with Banks

If you work for a reputed company, there are chances that it has a tie-up with more than one financial institute. In such cases, the financial institute offers special and discounted personal loan rates for the employees of the company. Find out if the firm you work for has such benefits.

Personal Loan Interest Rates Tips

Here are some personal loan rates tips to help you get a suitable offer:

  • Maintain a Good Credit Score

Financial institutes preferably provide personal loan to those with credit score of more than 700. It is a good idea to maintain a CIBIL score from 700 to 900 to get personal loan quickly. A high credit score gives you a chance of negotiating for rates.

  • Understand the Calculation Method

Choose a personal loan scheme based on the calculation method used. Some banks may not calculate the rate including gradual repayment of interest and principal amount. Other financial institutes can provide flat rate, which would cost you greater than a diminishing interest rate.

Benefits of Availing Personal loan at Loanbaba.com

  • Fast processing
  • Lowest interest rate for personal loan that does not change throughout the loan repayment time period
  • Simple and fast documentation with no or minimal paperwork
  • Fund transfer for directly crediting the loan amount to your bank account
  • Simple and range of repayment options including PDC, AD and ECS
  • Loan repayments tenure ranging from 12 months to a maximum of 60 months

Customizing your Personal Loan

Loanbaba.com fully customizes your personal loan application and grant process. You can know your loan eligibility in a few minutes by using your online loan eligibility calculator. The tool fully finalizes your order even before you apply online for your loan. The loan amount varies with the monthly income potential of loan applicants.

Frequently Asked Questions about Personal Loan Interest Rate

Following are the FAQs on personal loan rate of interest in India:

  • Should I always choose the loan based on lowest rate?

No, you should also review other charges involved for personal loan, such as processing fee, administrative cost, penalty charges, prepayment charges etc before selecting a personal loan offer, irrespective of the rate quoted by the financial institute.

  • What is the starting rate for personal loan?

At loanbaba.com, the starting rate of interest is 10.99% for personal loan. However, the rate will change as per the borrower’s profile. Thus, the person can expect a lower or higher interest rate when applying for the loan.

  • Do public sector banks offer lower rates than private sector banks?

Government banks may charge lower rates for special customers such as agriculturists, women, economically weaker sections etc. However, as the market is quite competitive, both private sector banks and public sector banks offer similar rate of interests.

  • What if I am a loan defaulter, what rate of interest I can expect?

If you have been a frequent loan defaulter, then you can expect a higher rate of interest than standard rates for other customers. However, you can still try negotiate the offer by using points such as your good relation with the financing institute, high income etc.

  • Can fixed rate of interest loan be changed to floating rate later?

If a personal loan is provided at fixed rate, you may not be able to change the loan plan to a floating interest rate. However, you can still have a word with the financial institute regarding shift in the interest rate type, and see if they agree or not.

How to Apply for a Personal Loan?

Applying for a Personal Loan at Loanbaba.com is simple, just follow the below mentioned steps.

Step 1: Apply for personal loan at:  https://www.loanbaba.com/personal-loan/

The application is sent electronically to Loanbaba team. The customer service representative gets in touch with the applicant directly.

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