Personal loan interest rates play a crucial role in deciding how much you finally repay to the lender. Even a small difference in interest rate can significantly impact your monthly EMI and total loan cost. In this guide, we explain personal loan interest rates in India, compare banks vs NBFCs, and help you choose the best option.
What Is Personal Loan Interest Rate?
A personal loan interest rate is the percentage charged by the lender on the loan amount. It determines your EMI and total repayment amount. Most personal loans in India come with a fixed interest rate, meaning your EMI remains the same throughout the loan tenure.
Personal Loan Interest Rates in India (Overview)
Interest rates depend on multiple factors such as credit score, income, lender type, and loan tenure.
| Lender Type | Interest Rate Range (p.a.) |
|---|---|
| Public & Private Banks | 10.5% – 18% |
| NBFCs | 12% – 24% |
| Digital Loan Apps | 18% – 36% |
Borrowers with strong credit profiles get the lowest rates.
| Redeem Code | Amount |
|---|---|
| E5V8TDZ3T1MY0R2R | ₹10 |
| 1B6HL6RHED8SH2PE | ₹10 |
| 3PA9M1WVAK3414EJ | ₹10 |
| FH6U0DAZKWAFPFA5 | ₹10 |
| GZREJVD78KEY8TVB | ₹10 |
Bank vs NBFC: Which Has Lower Interest Rates?
Personal Loan Interest Rates from Banks
Banks usually offer lower interest rates to borrowers with:
| Redeem Code | Amount |
|---|---|
| 9E7D0CG90YC41USB | ₹10 |
| FNET1D1JGHKPTV1Z | ₹10 |
| 9Z7YAWWCJCNNN91J | ₹10 |
| G6EM66LFZ7KCY0R8 | ₹10 |
| 1JWJL6NY2ZG5LJ0V | ₹10 |
- High credit score (750+)
- Stable salaried income
- Employment with reputed organizations
Pros of bank personal loans:
- Lower interest rates
- Transparent charges
- Longer loan tenure
| Redeem Code | Amount |
|---|---|
| JXJ9PG98E9Y5X832 | ₹10 |
| 4GTGDETXSZEK9T6R | ₹10 |
| 0LK4V22D0RXKZX9C | ₹10 |
| 0CVM9FA98K2XEHXV | ₹10 |
| 3X4BN3PGTWS1B2WM | ₹10 |
Cons:
- Stricter eligibility criteria
- Slower approval compared to apps
Personal Loan Interest Rates from NBFCs
NBFCs are more flexible compared to banks and serve a wider range of customers.
| Redeem Code | Amount |
|---|---|
| JWAZAF5DFE3YCX8U | ₹10 |
| 1BZ5L0JGWCVR6CJ1 | ₹10 |
| 25X1FUXMS1ARZ5HZ | ₹10 |
| KH3LRDHZM3FLP1E5 | ₹10 |
| 6W0TRY3UDN5WUAJF | ₹10 |
Pros of NBFC personal loans:
- Easier approval
- Faster processing
- Suitable for self-employed individuals
Cons:
- Higher interest rates
- Additional processing fees
| Redeem Code | Amount |
|---|---|
| 4ZXH106KU5LPL5GY | ₹10 |
| 8SRJPPNLLR4GA7MZ | ₹10 |
| DB3B8EV2J3RC7UG5 | ₹10 |
| BZRZ87NV51HGAUTY | ₹10 |
| 6W8GUXJ1CDLRP87J | ₹10 |
Factors Affecting Personal Loan Interest Rates
1. Credit Score (CIBIL)
- 750+ score: Lowest interest rates
- 700–749: Moderate rates
- Below 700: Higher interest rates
2. Income & Employment
Higher income and stable employment reduce lending risk and interest rate.
| Redeem Code | Amount |
|---|---|
| 33F8M5A6XJ8EABF7 | ₹10 |
| 3KR40242LTA17JKB | ₹10 |
| 7K2YBNSC330DKUZT | ₹10 |
| 4UPFGR60X6XHNFAP | ₹10 |
| HCCNHP3088SKJC5H | ₹10 |
3. Loan Amount & Tenure
Shorter tenure usually means lower interest burden.
4. Existing Loans
Higher existing EMIs may lead to an increased interest rate or rejection.
| Redeem Code | Amount |
|---|---|
| 4MCYRL9CFJE5UV14 | ₹10 |
| K61DER186JM7SLC4 | ₹10 |
| 89VZ3640XAMFT4L2 | ₹10 |
| JFVG3SJ43FHLUHCM | ₹10 |
| 908XRYF6AARCE14C | ₹10 |
How to Get a Personal Loan at the Lowest Interest Rate
- Maintain a high credit score
- Compare offers from multiple lenders
- Avoid multiple loan applications
- Choose shorter loan tenure
- Apply with a co-applicant if required
Fixed vs Floating Interest Rate
Most personal loans in India are offered at fixed interest rates, which ensures predictable EMIs. Floating rates are rare in personal loans and may change with market conditions.
| Redeem Code | Amount |
|---|---|
| KSN40NRK0T8TUJ2H | ₹10 |
| 4HJG6J3Y5BWPX14E | ₹10 |
| 5PK067MBLXCEGMGL | ₹10 |
| 20BKRCUPKJHZWLSR | ₹10 |
| AL0ZZ6FN9S1PCTJH | ₹10 |
Frequently Asked Questions (FAQs)
What is the lowest personal loan interest rate in India?
The lowest personal loan interest rate generally starts from around 10.5% per annum for eligible borrowers.
Do NBFCs charge higher interest than banks?
Yes, NBFCs usually charge higher interest rates due to flexible eligibility criteria.
Can interest rate change after loan approval?
For fixed-rate personal loans, the interest rate remains unchanged throughout the tenure.
Does checking interest rates affect credit score?
No, checking personal loan interest rates online does not affect your credit score.
Disclaimer
EarnPG.com does not offer loans directly. Interest rates mentioned are indicative and may vary based on lender policies and applicant profile.
