11 June, 2025 | 11:01 IST
Personal loans can be super helpful when you need money in a hurry. You can get one from pretty much any bank or lender, but the most important thing to watch out for is the interest rate. A high personal loan interest rate means you will end up paying more in the long run, which can increase your overall debt burden.
Lenders, including banks and NBFCs, offer different personal loan rates in India. So, it’s advisable to choose the one that gives you the best deal. A moderate interest rate means lower EMIs (that is your monthly payment). Factors like credit score, how much you are borrowing and your income all play a role in what rate you will get.
Table of Contents
1. HDFC Bank: The interest rate starts at 10.90% p.a. and can go up to 21% p.a.
2. ICICI Bank: The interest rate ranges between 10.85% p.a. and 16.65% p.a.
3. Kotak Mahindra Bank: The interest rate starts at 10.99% p.a. with a loan processing fee of up to 5% plus GST.
4. Axis Bank: The interest starts from 11.25% p.a. and goes up to 22% p.a.
5. State Bank of India: The interest rate ranges between 10.30% p.a. and 15.30% p.a.
6. IndusInd Bank: The interest rate starts at 10.49% p.a. with a processing fee of up to 3.5% on the loan amount.
Need quick funds? Moneycontrol, in collaboration with eight trusted lenders, offers personal loans of up to Rs 50 lakhs with a fully digital application process. Simply select an EMI plan that fits your needs, provide your details and complete the online KYC, all from the comfort of your home. Enjoy attractive interest rates starting at just 10.5% per annum.
There are multiple factors that determine the personal loan interest rate. One of the most crucial parts that the lending institution often checks before giving a loan is the credit score.
The credit score gives an assurance to the lender that their money will be repaid on time without any default. So, the higher the score, the higher your chances of receiving a loan, and the lower the interest rate. Typically, above 750 is considered as a good credit score.
Your income also plays an important role in deciding the interest rate. The lower the income, the higher the chance of receiving a loan at a low interest rate. A higher income level shows a greater repayment capacity.
Apart from this, the loan amount and tenure also affect the overall cost of borrowing. Most lending institutions offer flexible repayment tenures, allowing you to choose a loan duration that best suits your financial situation. So, if you have a larger loan amount and you choose a shorter tenure, then you might attract a lower interest rate.
When applying for a loan, go through the platforms of different lending institutions offering personal loans and compare their rates. Use trusted platforms or aggregator websites to check interest rates, processing fees, loan tenures and eligibility criteria. Carefully compare all options and choose the one that best suits your financial needs and repayment capacity.
Get instant personal loans of up to Rs 50 lakhs through Moneycontrol's digital lending platform. Moneycontrol has partnered with eight reliable lenders. The process is 100% digital with minimal paperwork. Just pick an EMI plan that fits your budget, fill in your personal details and complete your KYC online. Enjoy attractive interest rates starting from just 10.5% per annum.
Selecting the appropriate personal loan can have a big impact on your financial health. With the advent of technology, loans can now be availed quickly and conveniently, without the need to stand in long queues or go through a lengthy documentation process. While easy access is a plus, securing a loan at the most competitive interest rate is even more important.
A lower interest rate reduces your overall repayment burden and ensures better financial stability in the long run. Always compare loan offers from multiple lending institutions before deciding to take a loan.
In addition to checking interest rates, there are other factors as well, like processing fees, loan tenure, and eligibility requirements. A good credit score, stable income, and appropriate loan amount can help you negotiate better terms.
Share it in your circle
Table of Contents
Explore Top Lenders for Instant Loan upto
Get Instant Loan up to ₹50 Lakhs with Zero Paperwork from Top Lenders
100% Digital
Quick Disbursal
Low Interest Rates
