Personal loan interest rates decide how much you pay for borrowing money and how much your monthly EMI will be. The rate can differ from one lender to another based on factors such as your credit score, loan amount, income, repayment ability, and the lender’s policies.
Since banks and NBFCs offer personal loans at different interest rates, comparing them can help you understand the available options before applying. You can check the rates offered by different lenders below and choose a personal loan that suits your needs and repayment capacity.
Personal Loan Interest Rates by Banks & NBFCs
The interest rate is one of the main things to compare when choosing a personal loan. Even a small difference in the rate can affect your EMI and the total interest you pay over the loan tenure.
Below are the personal loan interest rates offered by different banks and NBFCs.
Personal Loan Interest Rates by Banks
| Banks | Interest Rate |
| HDFC Bank | 9.99% onwards |
| State Bank of India | 10% onwards |
| ICICI Bank | 9.99% onwards |
| Axis Bank | 9.99% onwards |
| IndusInd Bank | 10.49% onwards |
| Bank of Baroda | 10.15% onwards |
| IDFC First bank | 9.99% onwards |
| Punjab National Bank | 8.95% onwards |
| Yes Bank | 10.85% onwards |
| Union Bank of India | 8.9% onwards |
| Central Bank of India | 9.85% onwards |
| Canara Bank | 14.25% onwards |
| Indian Overseas Bank | 10.25% onwards |
| Bandhan Bank | 8.86% onwards |
| IDBI Bank | 11% onwards |
| Bank of India | 10.85% onwards |
| Federal Bank | 12% onwards |
| UCO Bank | 9.95% onwards |
| Indian Bank | 9% onwards |
| RBL Bank | 14% onwards |
| Ujjivan Small Finance Bank | 11.49% onwards |
Note: Interest rates are dynamic and may change based on your credit history and creditworthiness.
Personal Loan Interest Rates by NBFCs
Non-Banking Financial Companies or NBFCs also offer personal loans. Their interest rates and eligibility rules may differ from those of traditional banks.
| NBFCs | Interest Rate |
| Aditya Birla Capital | 10.99% onwards |
| Money Tap | 13% onwards |
| Kredit Bee | 12% onwards |
| Poonawalla Fincorp | 9.99% onwards |
| Bajaj Finserv | 10% onwards |
| Tata Capital | 10.99% onwards |
| Incred | 11.49% onwards |
| Muthoot Finance | 13.5% onwards |
| L&T Finance | 11% onwards |
| PaySense | 14% onwards |
| moneyview | 14% onwards |
| NIRA | 24% onwards |
| IIFL | 12% onwards |
| Dhani | 13.99% onwards |
| Faircent | 12% onwards |
| Cashe | 27% onwards |
| Fibe | 12% onwards |
| Lendingkart | 12% onwards |
| Mcapital | 24% onwards |
| Mpokket | 22% onwards |
| Phocket Loan | 24% onwards |
| Pocketly Loan | 12% onwards |
| Upwards | 18% onwards |
| Zype | 18% onwards |
| HDB Personal loan | 10% onwards |
| LoanTap | 15% onwards |
| Loanbaba | 11% onwards |
Note: Interest rates are dynamic and may change based on your credit history and creditworthiness.
How to Get the Lowest Interest Rate on a Personal Loan
Getting a lower personal loan interest rate can reduce your EMI and the total amount of interest you pay during the loan tenure.
Along with checking documentation requirements, it is useful to compare interest rates and loan terms before choosing a lender.
Here is a quick overview:
| Particulars | Details |
| Interest Rate | 9.99%* p.a. Onwards |
| Loan Amount | Up to ₹35 lakhs |
| Tenure | Up to 7 years |
Note: Interest rates are dynamic and may change based on your credit history and creditworthiness.
Tips to Get a Personal Loan at a Low Interest Rate
There are a few steps you can take to improve your chances of getting a personal loan at a lower interest rate:
- Maintain a Strong Credit Score: A good credit score can help you qualify for a lower interest rate. Pay your bills and EMIs on time, reduce existing debt, and avoid making too many credit applications within a short period.
- Compare Lenders: Do not accept the first loan offer without comparing it with others. Check interest rates and terms from different lenders before deciding.
- Choose the Loan Tenure Carefully: Shorter loan tenures may come with lower interest rates. However, the monthly EMI can be higher even though the total interest cost may be lower.
- Negotiate With the Lender: If you have a strong credit history and stable income, you can ask the lender whether a better interest rate or loan terms are available.
- Set Up Automatic Payments: Some lenders may offer rate benefits for automatic payments. Auto-debit can also help ensure that your EMIs are paid on time.
Personal Loan Interest Rates by Buddy Loan Partners
Buddy Loan works with different lending partners that offer personal loans at different interest rates.
| Our Lenders | Interest Rate (p.a) | Details |
| Paysense | 14% onwards | Apply Now |
| POCKET INFOTECH | 20% onwards | Apply Now |
| CASHe | 27% onwards | Apply Now |
| Fibe | 12% onwards | Apply Now |
| Muthoot Finance | 13.5% onwards | Apply Now |
| Axis Bank | 9.99% onwards | Apply Now |
| ICICI Bank | 9.99% onwards | Apply Now |
| Loanbaba | 11% onwards | Apply Now |
| MoneyTap | 13% onwards | Apply Now |
| NAVI | 9.9% onwards | Apply Now |
| KreditBee | 12.25% onwards | Apply Now |
| mPokket | 22% onwards | Apply Now |
| Upwards Fintech | 18% onwards | Apply Now |
| FlexSalary | 19% onwards | Apply Now |
| Money View | 14% onwards | Apply Now |
| SME Corner | 9.7% onwards | Apply Now |
| Mcapital | 24% onwards | Apply Now |
| Lendingkart | 15% onwards | Apply Now |
| Standard Chartered | 10.49% onwards | Apply Now |
| Prefr | 17.99% onwards | Apply Now |
| Incred | 11.49% onwards | Apply Now |
| L&T Finance | 11% onwards | Apply Now |
| NIRA | 24% onwards | Apply Now |
| Zype | 18% onwards | Apply Now |
Note: Interest rates are dynamic and may change based on your credit history and creditworthiness.
Personal Loan Fees & Charges
Apart from the interest rate, a personal loan can also include other fees and charges. Knowing these costs before applying can help you understand the total cost of borrowing.
Here is a general overview:
| Fee / Charge | Details |
| Interest Rate | 9.99%* p.a. onwards |
| Processing Fee | Up to 6% |
| Prepayment Charges | Up to 2% |
| Pre-closure Charges | 2% – 5% |
| Late Payment Charges | 1% – 3% |
| Stamp Duty | 4% and 6% |
| Cheque Bounce Charges | ₹200 – ₹500 |
Note: Interest rates are dynamic and may change based on your credit history and creditworthiness.
Impact of Credit Score on Personal Loan Interest Rates
Your credit score is a three-digit number that lenders use to understand how you have handled credit in the past.
It is based on your credit history, including your earlier loans, credit accounts, and repayment habits. A good credit score generally shows that you have managed credit responsibly, while a lower score may indicate a higher lending risk.
Your credit score can affect both your loan approval and the interest rate offered to you.
- A higher credit score can improve your chances of getting a personal loan.
- It may also help you get a lower interest rate.
- A lower credit score can make approval more difficult.
- If the loan is approved with a lower score, the lender may charge a higher interest rate.
Not sure of your credit score? Check your credit score for free!
Personal Loan EMI Calculator
When taking a personal loan, it is important to look at both the interest rate and the EMI.
An EMI or Equated Monthly Instalment is the fixed amount you pay every month to repay your loan. It includes both the principal amount and the interest charged on the loan.
Knowing your EMI in advance can help you plan your monthly budget.
Using a Personal Loan EMI Calculator
You can use the Personal Loan EMI calculator below to get the result instantly.
Enter:
- Loan amount
- Interest rate
- Loan tenure
The calculator will then show your estimated EMI.
Fixed Interest Rate Vs Floating Interest Rate for Personal Loan
When taking a personal loan, you may come across fixed and floating interest rates.
Both work differently, so understanding them can help you decide which one suits your repayment preference.
| Interest Rate Type | How It Works |
| Fixed Interest Rate | The interest rate remains the same throughout the loan tenure. This makes the EMI more predictable and easier to plan. However, fixed rates are generally slightly higher to account for possible rate changes. |
| Floating Interest Rate | The interest rate is linked to market rates and can change during the loan tenure. The starting rate may be lower, but your EMI can increase if market rates rise. |
The choice between fixed and floating rates depends on your financial preference and how you expect interest rates to move.
Factors That Affect Personal Loan Interest Rates
Personal loan interest rates are not the same for every borrower. Lenders consider several factors before deciding the rate to offer.
Here are the main factors that can affect your personal loan interest rate:
- Credit Score: Your credit score is one of the main factors lenders consider. A higher score usually shows that you have handled credit responsibly and may help you get a lower rate.
- Loan Amount: The amount you borrow can affect the interest rate. Smaller loan amounts may sometimes have higher rates, while larger loans may be available at lower rates.
- Loan Tenure: The repayment period can also affect the rate. Shorter loan tenures may come with lower interest rates, while longer tenures may have slightly higher rates.
- Income and Employment: A regular income and stable employment history can improve your loan profile. Lenders may offer better rates to borrowers with steady earnings.
- Debt-to-Income Ratio: Lenders check how much of your monthly income already goes towards existing debt payments. A lower debt-to-income ratio can improve your chances of getting a lower interest rate.
Can Balance Transfer Help Reduce Your Personal Loan Interest?
Yes. A balance transfer may help lower the interest cost on your personal loan.
A balance transfer means moving the outstanding balance of your existing loan from one lender to another, usually because the new lender offers a lower interest rate.
Balance transfers can be used for different types of credit, including personal loans and credit card debt.
Before transferring your loan, compare the new interest rate with processing fees, foreclosure charges, and other costs to understand whether the transfer will actually save you money.
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