Personal Loan in India 2026: Rates, Costs and How to Choose

Last reviewed: 10 October 2026. Rates and charges checked on each bank’s official website. See how we rate loans.

Personal loan interest rates in India start between 8.90% and 10.99% a year at the nine banks we compare, but the floor is only one part of the price. Processing fees run from nil to 5% of the loan and foreclosure charges from nothing to 5%, so two loans with similar rates can cost very different amounts. Most personal loans are fixed rate, which means the RBI’s repo hike to 5.50% on 7 October 2026 leaves existing EMIs untouched but can change the price of a new loan.

For bank-by-bank notes and full fee rules, see our full personal loan interest rates comparison.

Personal loan interest rates compared (October 2026)

Bank	Lowest rate	Range	Processing fee
Axis Bank	8.90%	8.90% to 21.55% fixed; headline from 9.99%	Up to 2%
ICICI Bank	9.99%	9.99% to 16.50% fixed	Up to 2%
IDFC FIRST Bank	9.99%	From 9.99% fixed	0% to 3.5%, GST included
HDFC Bank	9.99%	9.99% to 24.00% fixed	Up to ₹6,500
SBI	10.00%	10.00% to 15.00%	Up to 1.50% (₹1,000 to ₹15,000)
Bank of Baroda	10.15%	10.15% to 17.50% floating; 10.95% to 18.00% fixed	Nil for government staff with a BOB salary account; others 1% to 2%
IndusInd Bank	10.49%	From 10.49%	2% for a limited period
YES Bank	10.85%	10.85% to 21%	Up to 2.50%
Kotak Mahindra Bank	10.99%	From 10.99% fixed	Up to 5%

Rates % a year; fees exclude 18% GST unless stated. Axis Bank’s 8.90% is its 3-year MCLR with no spread, and its own headline starts at 9.99%. Bank of Baroda is the only bank here offering a floating option, linked to a BRLLR that rose to 8.15% on 8 October. The other banks do not say whether their tables reflect the hike.

What a personal loan actually costs

Here is ₹5 lakh borrowed over 5 years at a selection of lowest published rates, with each bank’s maximum fee included, as worked out in our full comparison:

Rate	Bank	Monthly EMI	Total interest	Interest plus fee
8.90%	Axis Bank	₹10,355	₹1,21,296	₹1,33,096
9.99%	HDFC Bank	₹10,621	₹1,37,264	₹1,44,934
10.00%	SBI	₹10,624	₹1,37,411	₹1,46,261
10.85%	YES Bank	₹10,834	₹1,50,031	₹1,64,781
10.99%	Kotak Mahindra Bank	₹10,869	₹1,52,123	₹1,81,623

At the floors, EMIs sit within about ₹515 of each other, so the fee and the rate you are actually offered decide the ranking. HDFC Bank’s flat fee cap makes its 9.99% slightly cheaper in total than SBI’s 10.00%. Kotak, with a fee of up to 5%, costs about ₹32,500 more than ICICI on the same loan. Typical borrowers pay more: Axis Bank’s loans in April to June 2026 averaged 13.07% and ICICI’s 11.45%. Test other amounts on our EMI calculators.

What decides your personal loan rate

Credit score

Because the loan is unsecured, your credit record carries most of the weight. Kotak links its best rate to scores above 750, ICICI prefers 750 or more and IDFC FIRST states 710. At SBI, a score of 800 or more also halves the processing fee.

Employer and salary account

Where you work and bank matters. SBI’s regular scheme is for salaried customers with an SBI salary package account, and Bank of Baroda gives its 10.15% floor and a nil fee to government and defence staff with a BOB salary account.

How much you can borrow

Limits depend on income and the bank. ICICI lends from ₹50,000 to ₹50 lakh to salaried and self-employed borrowers, and Kotak goes up to ₹1 crore according to its FAQ. YES Bank asks for a minimum monthly income of ₹25,000 and lends to salaried applicants aged 21 to 60.

Prepayment and foreclosure

This is where banks differ most. IDFC FIRST charges nothing to foreclose standard loans from the first EMI, though it does not allow part prepayment, and Bank of Baroda lists no pre-closure charge. ICICI charges 3% until 24 EMIs and nothing after. Axis charges 3% up to 36 EMIs and 2% after, but allows free part payments of up to 25% a year after 12 EMIs. SBI charges 2%, HDFC Bank and Kotak 2% to 4%, and IndusInd 4% to 5%. YES Bank allows nothing before 12 EMIs.

Checklist before you apply

Check your CIBIL score; most best rates need 750 or more.
Ask for a fresh quote dated after the 7 October repo hike.
Compare interest plus fee in rupees, not the EMI alone.
Negotiate the processing fee, since most banks quote “up to” figures.
Read the foreclosure terms if you might repay early.
Check the annual percentage rate on the Key Fact Statement.
Use the cooling-off period to review the agreement before it binds you.

Frequently asked questions

Which bank has the lowest personal loan interest rate?

Axis Bank publishes the lowest floor at 8.90%, though its headline is 9.99%. ICICI, IDFC FIRST and HDFC Bank start at 9.99%, with SBI at 10.00%.

Did the RBI repo hike raise personal loan rates?

Not on existing fixed-rate loans. New loans may be repriced, and Bank of Baroda’s floating loans follow its BRLLR.

What is the EMI on a ₹5 lakh personal loan for 5 years?

At the lowest rates here, between ₹10,355 at 8.90% and ₹10,869 at 10.99%.

Which bank charges the lowest processing fee?

Bank of Baroda charges nothing for eligible government staff. HDFC Bank caps its fee at ₹6,500 plus GST and SBI at ₹15,000.

Is a gold loan cheaper than a personal loan?

Usually, because it is secured. Compare them on our gold loan interest rates hub.

See every bank’s charges and notes on our personal loan interest rates hub.

This article is for informational purposes only and does not constitute financial advice. Loan rates change often; confirm the latest terms with the bank before you apply.