Personal Loan

Current Charges and Interest Rates on Personal Loan


A personal loan is one of the financial instruments you can get to cover your numerous financial needs. You can easily apply for a personal loan, online or offline, from a bank that provides the best personal loan offers to its clients. However, before you apply for a personal loan, you should compare the personal loan interest rates provided by the various institutions, which range from 7.90% per annum to 49% per annum.

Current Charges and Interest Rates

Lending InstitutionInterest Rate (p.a.)
Citibank9.99% p.a. – 16.49% p.a.
Central Bank of India9.85% and above
State Bank of India9.60% p.a. – 15.65% p.a.
HSBC Bank9.50% p.a. – 15.25% p.a.
Bank of Maharashtra9.45% p.a. – 12.80% p.a.
Karur Vysya Bank9.40% p.a. – 19.00% p.a.
Indian Overseas Bank9.30% p.a. – 10.80% p.a.
IDBI Bank8.15% p.a. – 10.90% p.a.
Punjab National Bank7.90% p.a. onwards
IIFL24% p.a. onwards
Home Credit Cash Loan19% p.a. – 49% p.a.
TurboLoan Powered by Chola15% – 21% (fixed) p.a.
Aditya Birla Capital14% p.a. -26% p.a.
RBL Bank14% p.a. – 23% p.a.
Axis Bank12% p.a.- 21% p.a.
Karnataka Bank12% p.a. – 17% p.a.
City Union Bank12.75% p.a.
Fullerton India11.99% p.a. – 36% p.a.
Ujjivan Small Finance Bank11.49% p.a. – 16.49% p.a.
Yes Bank10.99% p.a. – 16.99% p.a.
Tata Capital10.99% onwards
J&K Bank10.80% p.a.
South Indian Bank10.60% p.a. – 18.10% p.a.
Bank of Baroda10.50% p.a. – 12.50% p.a.
HDFC Bank10.5% p.a. – 21.00% p.a.
IDFC First Bank10.49% p.a. onwards
IndusInd Bank10.49% p.a. – 31.50% p.a.
Federal Bank10.49% p.a. – 17.99% p.a.
Bank of India10.35% p.a. – 12.35% p.a.
Kotak Mahindra Bank10.25% and above

How Can I Get The Lowest Bank Personal Loan Interest Rate?

Here are some suggestions to assist you to obtain the lowest bank personal loan interest rate when applying for a personal loan:

Increase your credit score

If your credit score is high, you are creditworthy. The lowest bank personal loan interest rates are offered to applicants with good credit by banks and other financial organizations. You should therefore verify your credit rating before applying for a personal loan. If your credit score is below 750, you should seek ways to improve it. You have a greater chance of getting a personal loan from a bank with a low interest rate if your credit score is over 750.

Prevent Missing Repayments

If you fail to pay a loan or credit card bill, your credit score may suffer. Lenders often take into account your payback history when determining personal loan interest rates. If you have previously made payments of credit card or EMI regularly, you will likely be awarded a reduced bank personal loan interest rate.

Be on the lookout for promotions

Banks and other financial organizations that offer personal loans frequently offer attractive interest rates for a limited time during the holiday seasons. You may be eligible for a loan with a lower bank personal loan interest rate while this deal is ongoing.

Examine the bank’s personal loan interest rates

It is crucial to check the interest rates that various banks and NBFCs charge for personal loans before applying for one from a certain bank. As a result, you will be able to get a personal loan from a bank with a fair interest rate.

Negotiate with the lender

If you have an excellent working relationship with the loan provider or are an existing customer of the bank, you can work out a deal for the lowest interest rate. It is advised to send the loan provider a formal, written request while doing this.

Factors That Can Affect The Personal Loan Rates


When setting the interest rate for a loan, lenders consider the applicant’s income. High-earning people may have a reduced interest rate since they are considered a smaller risk to the bank. Conversely, those with lesser yearly salaries might be required to pay a higher interest rate.

Employer Information

The bank or financial institution is more likely to give you a cheaper interest rate if you work for a reputable company.

Employment Type

Loan providers may offer various interest rates to applicants depending on whether they are salaried employees or independent contractors.


The borrower’s age may affect the interest rate that the loan provider quotes. A greater interest rate might be applied to people who are closer to retirement age.

Relationship with the loan provider

Current bank/financial institution clients who have a good relationship with the loan provider may be given a cheaper interest rate when applying for a personal loan. However, the bank reserves the right to decide whether to give a favourable interest rate to all current customers.


The interest rates on personal loans range from 7.90% per annum to 49% per annum. The interest rate on your loan is determined by the amount you have borrowed, your credit score, and the length of time you have to repay it. The interest rate on your loan may be reduced if you keep a solid credit score and work well with the bank.

Personal loans from top lenders are frequently offered, starting at 10.49% p.a. To specified market sectors, certain public sector banks may offer personal loans with lower interest rates. It should be noted that the interest rate for a personal loan will depend on several factors, including the borrower’s employment history, monthly income, credit history, etc. Choose the most suitable loan offer after comparing the personal loan interest rates offered by as many institutions as feasible. For more information, check out Piramal Finance.