A personal loan can be useful when you need funds for medical expenses, a wedding, travel, education, home renovation, debt consolidation, or another urgent financial requirement. Since personal loans are generally unsecured, borrowers usually do not need to pledge property, gold, or another asset as collateral.
However, the interest rate on a personal loan can significantly affect your monthly EMI and total repayment amount. Even a difference of 1%–2% in the annual interest rate can make a noticeable difference over a three-to-five-year loan tenure.
In this guide, we compare some of the best personal loan interest rates in India in 2026, along with eligibility requirements, processing fees, documents, EMI examples, and the online application process.
Important: Personal loan interest rates are not the same for every borrower. The final rate offered by a bank depends on your credit score, monthly income, employer, existing loans, repayment history, loan amount, tenure and the bank’s internal credit policy. Always verify the latest rate and charges on the lender’s official website before applying.
Best Personal Loan Interest Rates in India 2026
Below is a comparison of indicative personal loan rates advertised by major banks and lenders.
| Bank/Lender | Personal Loan Interest Rate | Processing Fee | Typical Tenure |
|---|---|---|---|
| Axis Bank | Starting from 9.99% p.a. | Up to 2% + GST | Up to 84 months |
| IDFC FIRST Bank | Starting from 9.99% p.a. | Around 2% | Up to 60 months |
| ICICI Bank | Around 10.60%–16.50% p.a.* | Up to 2% + taxes | Depends on offer |
| Kotak Mahindra Bank | Starting from around 10.99% p.a.* | As applicable | Depends on borrower |
| SBI | Rate depends on applicable personal-loan scheme and borrower profile | Depends on scheme | Depends on scheme |
*Rates can be revised. Check the latest offer directly with the lender before submitting an application.
Axis Bank currently advertises personal loans starting from 9.99% p.a., with loan amounts of up to ₹40 lakh and tenure of up to 84 months for eligible borrowers.
IDFC FIRST Bank advertises FIRSTmoney personal-loan rates starting from 9.99% p.a., while its published rate information notes that actual pricing can vary depending on eligibility and credit profile.
ICICI Bank’s published personal-loan rate information has shown rates beginning around 10.60% p.a., with the final rate depending on the borrower and the bank’s prevailing pricing.
Kotak Mahindra Bank states that personal-loan rates for eligible applicants can start from approximately 10.99% p.a.
1. Axis Bank Personal Loan
Axis Bank is one of the major private-sector banks offering unsecured personal loans in India.
Key Features
- Interest rate starting from around 9.99% per annum
- Loan amount of up to ₹40 lakh
- Repayment tenure of up to 84 months
- No collateral required
- Online application available
- Processing fee up to approximately 2% of the loan amount plus GST
Axis Bank states that the effective personal-loan interest rate can vary considerably depending on the customer’s profile.
Official External Link: Axis Bank Personal Loan
2. IDFC FIRST Bank Personal Loan
IDFC FIRST Bank’s FIRSTmoney personal loan can be attractive to borrowers looking for a digital loan application process.
Key Features
- Interest rates starting from around 9.99% p.a.
- Digital application process
- Loan amount of up to ₹10 lakh under FIRSTmoney
- Tenure generally available up to 60 months
- Processing fee around 2%
- Zero foreclosure charges are advertised for eligible FIRSTmoney loans
According to IDFC FIRST Bank, personal-loan pricing depends on factors including the applicant’s credit profile and eligibility.
Official External Link: IDFC FIRST Bank Personal Loan
3. ICICI Bank Personal Loan
ICICI Bank offers personal loans for expenses such as weddings, medical emergencies, travel, home renovation and other personal requirements.
Key Features
- Published rates starting around 10.60% p.a.
- Rates may extend substantially higher depending on eligibility
- Processing charges can be up to 2% of the loan amount plus applicable taxes
- Online application facility
- Loans generally do not require collateral
ICICI Bank’s published pricing indicates that the final interest rate offered to a borrower depends on multiple credit and eligibility factors.
Official External Link: ICICI Bank Personal Loan Interest Rates
4. Kotak Mahindra Bank Personal Loan
Kotak Mahindra Bank provides unsecured personal loans to eligible salaried applicants.
Key Features
- Interest rates starting from approximately 10.99% p.a. for eligible borrowers
- Flexible repayment options
- Digital application facility
- No collateral generally required
- Loan eligibility depends on salary, employment, credit history and existing liabilities
Kotak notes that the final rate offered depends on the applicant’s eligibility and credit assessment.
Official External Link: Kotak Mahindra Bank Personal Loan
5. SBI Personal Loan
State Bank of India provides several personal-loan products for eligible customers, including salaried employees and pensioners.
The exact interest rate depends on the particular SBI loan scheme and the borrower’s eligibility. SBI’s personal-loan terms state that rates can be revised and that pricing varies according to the applicable loan product.
Key Features
- Personal loans for eligible salaried customers and other qualifying applicants
- Different loan schemes are available
- Interest charged on the outstanding loan balance according to the applicable terms
- Repayment through EMIs
- Eligibility and charges depend on the selected loan scheme
Official External Link: State Bank of India
Which Bank Has the Lowest Personal Loan Interest Rate in 2026?
There is no single bank that will necessarily offer the lowest personal-loan interest rate to every borrower.
For example, both Axis Bank and IDFC FIRST Bank advertise personal-loan rates starting around 9.99% p.a. for eligible applicants. However, receiving the advertised minimum rate is not guaranteed.
Your actual offer may be 11%, 13%, 16% or even higher depending on your financial profile.
Therefore, instead of comparing only the advertised starting rate, compare:
- Final interest rate offered to you
- Annual Percentage Rate or APR
- Processing fee
- GST and other charges
- Foreclosure charges
- Part-prepayment charges
- Late-payment charges
- Loan tenure
- Total repayment amount
Personal Loan EMI Example
Suppose you take a:
Loan Amount: ₹5,00,000
Interest Rate: 10% p.a.
Loan Tenure: 5 years
Your EMI would be approximately ₹10,624 per month.
Total repayment would be approximately:
₹10,624 × 60 = ₹6,37,440
Therefore, the approximate total interest paid over five years would be:
₹6,37,440 − ₹5,00,000 = ₹1,37,440
The actual EMI can vary slightly based on the lender’s calculation method, disbursal date and applicable charges.
How Personal Loan Interest Is Calculated
Most banks calculate personal-loan interest using the reducing-balance method.
Your EMI depends mainly on:
- Principal loan amount
- Monthly interest rate
- Number of monthly instalments
As the outstanding principal decreases with every EMI payment, the interest component also gradually decreases.
Factors That Affect Your Personal Loan Interest Rate
1. Credit Score
Your credit score is one of the most important factors considered by lenders.
A higher credit score generally indicates responsible credit behaviour and can improve your chances of receiving a competitive loan offer.
A score around 750 or above is commonly considered strong, although every bank has its own approval standards.
2. Monthly Income
Borrowers with a stable and higher monthly income may be viewed as having greater repayment capacity.
A higher income does not automatically guarantee a lower rate, but it can strengthen your overall loan application.
3. Employer Profile
People working with established private companies, multinational companies, public-sector organisations or government departments may sometimes receive more competitive offers.
4. Existing Loans and EMIs
Banks calculate how much of your current monthly income is already being used for existing EMIs.
Too many existing loans or high credit-card balances can reduce eligibility.
5. Repayment History
Paying existing loan EMIs and credit-card bills on time helps maintain a good credit history.
Late payments and defaults can result in a higher interest rate or application rejection.
6. Relationship With the Bank
Existing salary-account customers or borrowers with a long banking relationship may receive pre-approved or preferential loan offers.
7. Loan Amount and Tenure
Your selected loan amount and repayment period can also influence the interest rate and EMI.
Personal Loan Eligibility Criteria
Eligibility requirements vary across banks, but common criteria include:
Age
Most lenders require applicants to be at least 21 years old.
Maximum age at loan maturity varies from lender to lender.
Employment
Applicants may need to be:
- Salaried employees
- Government employees
- Employees of private companies
- Employees of multinational companies
- Self-employed professionals, depending on the lender
Income
Banks generally specify a minimum monthly income based on location, employer and borrower profile.
Credit Score
A strong CIBIL or other credit-bureau score can improve both approval probability and pricing.
Employment Stability
Banks may prefer applicants who have remained employed for a reasonable period and have stable income.
Documents Required for a Personal Loan
You may need the following documents:
Identity Proof
- Aadhaar Card
- PAN Card
- Passport
- Voter ID
- Driving Licence
Address Proof
- Aadhaar Card
- Passport
- Electricity bill
- Utility bill
- Rental agreement, where accepted
Income Proof
For salaried employees:
- Latest salary slips
- Bank statements
- Form 16 or Income Tax Return, if required
For self-employed applicants:
- Income Tax Returns
- Bank statements
- Business registration documents
- Financial statements
Employment Proof
You may also need:
- Employee ID
- Appointment letter
- Salary certificate
Documentation requirements differ among lenders.
How to Apply for a Personal Loan Online in 2026
Applying for a personal loan online generally involves the following steps.
Step 1: Compare Different Banks
Compare interest rates, processing charges, foreclosure conditions, tenure and maximum loan amount.
Step 2: Check Your Eligibility
Use the bank’s personal-loan eligibility calculator where available.
Step 3: Check Your Credit Score
Check your credit report before submitting several applications.
Avoid submitting applications to many banks simultaneously because multiple credit enquiries within a short period may affect your credit profile.
Step 4: Visit the Official Bank Website
Always use the official bank website or authorised mobile app.
Avoid unknown websites promising guaranteed personal loans.
Step 5: Enter Personal Details
Provide information such as:
- Name
- Mobile number
- PAN
- Date of birth
- Monthly income
- Employer details
- Required loan amount
Step 6: Upload Documents
Submit the required identity, address and income documents.
Step 7: Complete KYC
Depending on the lender, KYC may be completed online through Aadhaar verification or video KYC.
Step 8: Review the Loan Offer
Carefully check:
- Sanctioned loan amount
- Interest rate
- APR
- EMI
- Processing fee
- Insurance charges, if any
- Foreclosure conditions
- Late payment penalties
- Total repayment amount
Step 9: Accept the Loan
After you accept the loan agreement and complete verification, the lender may disburse the approved amount to your registered bank account.
How to Get a Lower Personal Loan Interest Rate
If you want to improve your chances of obtaining a lower interest rate, consider the following practices.
Maintain a Strong Credit Score
Pay credit-card bills and loan EMIs before the due date.
Keep Credit Utilisation Low
Avoid consistently using your entire credit-card limit.
Reduce Existing Debt
If possible, clear smaller loans or outstanding credit-card balances before applying.
Compare Multiple Offers
A small difference in interest rate can produce significant savings over a longer tenure.
Ask Your Existing Bank
Your salary-account bank may have a pre-approved personal-loan offer based on your transaction history.
Avoid Applying for More Than You Need
Borrowing only the amount you genuinely need can make EMI management easier.
Personal Loan Processing Fees
Processing fees can substantially affect the actual cost of borrowing.
For example, if you borrow ₹5 lakh and the lender charges a 2% processing fee:
Processing Fee = ₹10,000
GST may also apply to the processing fee.
Therefore, do not choose a personal loan solely because it advertises the lowest interest rate.
Always examine the complete cost of borrowing.
Fixed vs Floating Personal Loan Interest Rate
Fixed Interest Rate
With a fixed-rate loan, your applicable rate is generally fixed according to the loan agreement.
This provides more predictable repayments.
Floating Interest Rate
A floating rate can change depending on the lender’s benchmark and applicable loan terms.
Read the loan agreement carefully to understand whether and how your interest rate can change.
Personal Loan vs Credit Card Loan
A personal loan may be more suitable for a large expense that you want to repay through structured monthly EMIs.
Credit-card borrowing can become expensive if outstanding amounts are rolled over instead of being repaid in full.
Before choosing either option, compare the effective annual cost.
Things to Check Before Taking a Personal Loan
Before signing a loan agreement, check:
- Interest rate
- APR
- Monthly EMI
- Processing fee
- GST
- Late-payment charges
- EMI bounce charges
- Foreclosure charges
- Part-payment conditions
- Loan insurance charges
- Total interest payable
- Total amount repayable
A lender advertising a slightly higher interest rate but lower fees may sometimes be cheaper overall than a loan advertising a lower rate with expensive charges.
Frequently Asked Questions
Which bank offers the lowest personal loan interest rate in India in 2026?
Several lenders advertise competitive starting rates. Axis Bank and IDFC FIRST Bank have advertised personal-loan rates starting from approximately 9.99% p.a. for eligible borrowers. Your actual rate depends on your credit and income profile.
Can I get a personal loan at 9.99% interest?
Possibly, if you satisfy the lender’s eligibility and credit requirements. The advertised starting rate is not guaranteed for every applicant.
What is a good CIBIL score for a personal loan?
A score of around 750 or higher is generally considered strong, but lenders can approve or reject applications based on many additional factors.
Can I get a personal loan without collateral?
Yes. Most conventional personal loans are unsecured and therefore normally do not require property, gold or another asset as security.
How much personal loan can I get?
Your eligible amount depends on factors such as monthly income, existing EMI obligations, employer, age, credit score and the lender’s internal policy.
Can I apply for a personal loan online?
Yes. Major banks including Axis Bank, ICICI Bank, Kotak Mahindra Bank and IDFC FIRST Bank provide online personal-loan application facilities.
Is personal-loan interest tax deductible?
For ordinary personal expenses, personal-loan interest generally does not receive a specific tax deduction merely because the borrowing is called a personal loan. Tax treatment can depend on how borrowed funds are used, so consult a qualified tax professional when claiming any deduction.
Final Words
Finding the best personal loan interest rate in India in 2026 requires more than simply looking for the lowest advertised number.
Axis Bank and IDFC FIRST Bank advertise rates beginning around 9.99% p.a. for eligible borrowers, while ICICI Bank and Kotak Mahindra Bank also offer competitive personal-loan options.
Before applying, compare the final interest rate, APR, EMI, processing fee, foreclosure charges and total repayment amount.
Most importantly, apply only through the lender’s official website or authorised application and borrow an amount that you can comfortably repay.
Useful Official External Links
- Axis Bank – Personal Loan
- IDFC FIRST Bank – Personal Loan
- ICICI Bank – Personal Loan Interest Rates
- Kotak Mahindra Bank – Personal Loan
- State Bank of India – Official Website
- Reserve Bank of India – Official Website
Disclaimer: This article is for educational and informational purposes only and should not be treated as financial advice or a loan offer. Interest rates, eligibility conditions, processing fees and other charges can change at any time. Check the lender’s official website and loan agreement before applying.