Getty ImagesYour unplanned purchases, debt consolidation, medical emergencies, and various other needs can be met with personal loans. These loans are termed as "unsecured" because you are not required to pledge any assets as collateral, unlike with home or auto loans. A personal loan is a convenient way to receive the necessary funds, and it is fast also.
While various factors, such as CIBIL score, repayment history, principal amount, and tenure, influence the interest rate on personal loans, borrowers should compare the interest rates from other lenders (banks and NBFCs), as even a slight difference could significantly impact their financial situation.
Home loan rates from 7.35%, FD interest rates up to 7.35% and savings account changes for this bank's customers
Many banks have reduced their lending rates after the Reserve Bank of India (RBI)'s cumulative rate cut of 1% (or 100 basis points) that began in February. In response, several public and private sector banks have passed on the benefit to borrowers by lowering their marginal cost of funds-based lending rate (MCLR) and other benchmark lending rates. As a result, loans such as home loans, personal loans, and car loans have become comparatively cheaper for new as well as existing customers, depending on the terms of their loan agreements.
Among the banks listed, Bank of Maharashtra offers personal loans at the most competitive rates, beginning at 9% per annum; Punjab & Sind Bank follows with rates as low as 9.85%, while Canara Bank's rates start at 9.95%. Axis Bank and IDFC FIRST Bank are also among the top options, offering loans at rates starting at 9.99% per annum.
While various factors, such as CIBIL score, repayment history, principal amount, and tenure, influence the interest rate on personal loans, borrowers should compare the interest rates from other lenders (banks and NBFCs), as even a slight difference could significantly impact their financial situation.
Home loan rates from 7.35%, FD interest rates up to 7.35% and savings account changes for this bank's customers
Many banks have reduced their lending rates after the Reserve Bank of India (RBI)'s cumulative rate cut of 1% (or 100 basis points) that began in February. In response, several public and private sector banks have passed on the benefit to borrowers by lowering their marginal cost of funds-based lending rate (MCLR) and other benchmark lending rates. As a result, loans such as home loans, personal loans, and car loans have become comparatively cheaper for new as well as existing customers, depending on the terms of their loan agreements.
Latest personal loan rates from top banks
The table below shows the name of the lender, interest rate (per annum in %), equated monthly installment (EMI) for a personal loan amount of Rs 5 lakh and Rs 1 lakh with a tenure of 5 years, along with the applicable processing fee (% of the loan amount).| Name of Lender | Interest rate (p.a %) | EMI (Rs) Loan amount- 5 lakh Tenure - 5 years | EMI (Rs) Loan amount- 1 lakh Tenure - 5 years | Processing fee (% of loan amount) |
| HDFC Bank | 10.90-24.00 | 10,846-14,384 | 2,169-2,877 | Up to Rs 6,500 |
| State Bank of India | 10.30-15.30 | 10,697-11,974 | 2,139-2,395 | Up to 1.5% (Min. Rs 1,000; Max. Rs 15,000) |
| ICICI Bank | 10.80 onwards | 10,821 onwards | 2,164 onwards | Up to 2% |
| Bank of Baroda* | 10.40-18.20 | 10,722-12,751 | 2,144-2,550 | Up to 2% (Max. Rs 10,000) |
| Axis Bank | 9.99-22.00 | 10,621-13,809 | 2,124-2,762 | Up to 2% |
| Kotak Mahindra Bank | 10.99 onwards | 10,869 onwards | 2,174 onwards | Up to 5% |
| Bank of India | 11.10-16.15 | 10,896-12,199 | 2,179-2,440 | Up to 1% (Min. Rs 250; Max. Rs 15,000) |
| Canara Bank | 9.95-15.40 | 10,611-12,000 | 2,122-2,400 | Up to 0.25% (Max. Rs 2,500) |
| Punjab National Bank | 10.50-17.05 | 10,747-12,440 | 2,149-2,488 | Up to 1% |
| HSBC Bank | 10.15-16.00 | 10,660-12,159 | 2,132-2,432 | Up to 2% |
| Federal Bank | 11.99 onwards | 11,120 onwards | 2,224 onwards | Up to 3% |
| Union Bank of India | 10.35-14.45 | 10,710-11,751 | 2,142-2,350 | Up to 1% (Max. Rs 7,500) |
| Punjab & Sind Bank | 9.85-12.90 | 10,587-11,351 | 2,117-2,270 | 0.50%-1% |
| Indian Overseas Bank | 10.50 onwards | 10,747 onwards | 2,149 onwards | Up to 0.75% |
| UCO Bank | 10.20-13.20 | 10,673-11,428 | 2,135-2,286 | Up to 1% (Min. Rs 750) |
| IDFC FIRST Bank | 9.99 onwards | 10,621 onwards | 2,124 onwards | 2% |
| Bank of Maharashtra | 9.00-13.80 | 10,379-11,582 | 2,076-2,316 | Up to 1% (Max. Rs 10,000) |
| Central Bank of India | 10.10-11.90 | 10,648-11,097 | 2,130-2,219 | Up to 1% |
| IndusInd Bank | 10.49 onwards | 10,744 onwards | 2,149 onwards | Up to 3.5% |
| *Interest concession of 0.10% to customers opting for group credit life insurance. | ||||
| Rates and charges as of 9th July 2025 | ||||
| Source: Paisabazaar.com | ||||
Among the banks listed, Bank of Maharashtra offers personal loans at the most competitive rates, beginning at 9% per annum; Punjab & Sind Bank follows with rates as low as 9.85%, while Canara Bank's rates start at 9.95%. Axis Bank and IDFC FIRST Bank are also among the top options, offering loans at rates starting at 9.99% per annum.
