Compare rates from SBI, HDFC, ICICI, Axis, Kotak and Bajaj Finserv to find the best offer for your profile.
The lowest personal loan interest rate in India starts from 10.30% p.a. at SBI for eligible borrowers. Most top banks offer starting rates of 10.30–11.00% for applicants with a CIBIL score of 750+. Your actual rate depends on your income, employer profile, and credit history.
A personal loan is an unsecured loan — meaning you don't need to pledge any asset as collateral. Lenders rely entirely on your creditworthiness, income, and repayment history to decide the rate and amount. Because it's unsecured, your CIBIL credit score is the single most important factor in determining the interest rate you receive.
Personal loans can be used for any purpose — medical emergencies, weddings, travel, education, home renovation, or debt consolidation. Loan amounts range from ₹50,000 to ₹40 lakh with tenures between 12 and 60 months.
The following table compares the starting interest rates from major banks and NBFCs. Actual rates vary based on your CIBIL score, income, and loan amount.
| Lender | Interest Rate (p.a.) | Max Tenure | Best For |
|---|---|---|---|
| SBI | 10.30% – 15.30% | Up to 6 years | Govt / PSU employees |
| HDFC Bank | 10.50% – 21% | Up to 5 years | High-income salaried |
| ICICI Bank | 10.65% – 19% | Up to 5 years | Corporate professionals |
| Axis Bank | 10.75% – 22% | Up to 5 years | Salaried professionals |
| Kotak Mahindra | 10.99%+ | Up to 5 years | Digital-first borrowers |
| Bajaj Finserv | 11% – 24% | Up to 5 years | Flexible eligibility |
Rates are indicative as of 2026. Always check the lender's official website for current offers.
Banks offer lower rates (10.30–16%) for applicants with a high CIBIL score and stable employment. Stricter eligibility criteria but much cheaper over the long term.
NBFCs like Bajaj Finserv offer faster approval and accept lower CIBIL scores, but rates are slightly higher (11–26%). Best for borrowers who don't qualify at banks.
750+ — Lowest rates available
650–749 — Moderate rates
Below 650 — High risk, limited options
Government employees and MNC employees get preferential rates. Higher salary = better negotiating power with lenders.
Shorter tenures (12–24 months) often attract lower interest rates. Longer tenures have more repayment risk for lenders.
Keep total monthly EMIs below 40% of your net income (FOIR). High existing debt increases the rate offered to you.
Pay all EMIs and credit card bills on time. Keep credit utilisation below 30%. Check your CIBIL report for errors and dispute them.
Opting for a 2–3 year tenure instead of 5 years can get you a lower interest rate and save significantly on total interest paid.
A low FOIR (Fixed Obligation to Income Ratio) signals repayment capacity and helps you negotiate better rates with lenders.
Even a 0.5% rate difference on a ₹5 lakh loan over 5 years adds up to ₹15,000+. Always compare before committing.
NamasteRupee compares offers from 15+ banks and NBFCs for your profile, helping you find the lowest available rate without multiple enquiries.
For a loan of ₹5,00,000 at 11% per annum for 36 months, your approximate EMI would be ₹16,400 per month. Total interest paid over 36 months would be approximately ₹90,400. Use our EMI Calculator for precise figures for your loan amount and rate.
Go to the Personal Loan section and use the free eligibility checker tool.
Provide income, employer details, required loan amount, and preferred tenure.
View personalised rate offers from multiple banks and NBFCs side by side.
Upload PAN, Aadhaar, salary slips, and bank statements online — no branch visit needed.
Upon approval, funds are credited directly to your bank account. Our experts assist you at every step.
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