Personal Loan Interest Rates in India – 2025 Guide
Compare the latest personal loan interest rates from top banks and NBFCs in India. Learn about factors affecting rates, how EMI is calculated, and get expert tips on choosing the best personal loan at MYFINFLOW.
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Personal Loan Interest Rates in India – 2025 Guide
Are you planning to take a personal loan and wondering about the interest rates? At MYFINFLOW, we help you understand everything about personal loan interest rates, how they're calculated, and how to make smart borrowing decisions.
What Is a Personal Loan Interest Rate?
A personal loan interest rate is the percentage charged by lenders on the total loan amount borrowed. This rate determines how much you'll repay over the loan tenure.
Interest rates can be fixed or floating and are influenced by several personal and market factors.
Latest Personal Loan Interest Rates – Bank & NBFC List [2025]
Here’s a quick look at the latest interest rates offered by major banks and NBFCs in India:
| Lender Name | Interest Rate (per annum) | Loan Amount Range | Tenure |
|---|---|---|---|
| HDFC Bank | 10.50% – 21.00% | ₹50,000 – ₹40 lakhs | 12 – 60 months |
| ICICI Bank | 10.75% – 19.00% | ₹50,000 – ₹25 lakhs | 12 – 60 months |
| SBI (State Bank of India) | 10.60% – 15.65% | ₹25,000 – ₹20 lakhs | 12 – 72 months |
| Axis Bank | 10.49% – 21.00% | ₹50,000 – ₹40 lakhs | 12 – 60 months |
| Kotak Mahindra Bank | 10.99% – 24.00% | ₹50,000 – ₹25 lakhs | 12 – 60 months |
| Bajaj Finserv (NBFC) | 11.00% – 26.00% | ₹30,000 – ₹25 lakhs | 12 – 84 months |
| Tata Capital (NBFC) | 10.99% – 24.00% | ₹40,000 – ₹35 lakhs | 12 – 72 months |
| Fullerton India (NBFC) | 11.99% – 36.00% | ₹50,000 – ₹25 lakhs | 12 – 60 months |
| IndusInd Bank | 10.25% – 22.00% | ₹50,000 – ₹25 lakhs | 12 – 60 months |
| IDFC First Bank | 10.49% – 23.00% | ₹50,000 – ₹40 lakhs | 12 – 60 months |
Factors Affecting Personal Loan Interest Rates
Here are some major factors that impact the interest rate you are offered:
Credit Score (CIBIL):
Higher credit score (750+) usually means lower interest rate.
Income Level:
Higher income indicates better repayment ability and lower risk for the lender.
Employer Type & Stability:
Salaried individuals working in reputed companies or government jobs generally get better rates.
Existing Relationship with Bank:
Pre-approved or loyal customers may get exclusive lower rates.
Loan Amount & Tenure:
Larger loan amounts or longer tenures may attract higher interest rates.
Debt-to-Income Ratio:
Lesser existing debt improves your creditworthiness and chances of securing lower rates.
How Does a Personal Loan EMI Calculator Work?
A Personal Loan EMI Calculator helps you determine your monthly repayment (EMI). You just need to enter:
Loan Amount (Principal)
Interest Rate
Loan Tenure (Months/Years)
EMI Formula:
EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]
Where:
P = Loan Amount,
R = Monthly Interest Rate,
N = Loan Tenure in Months
Why Compare Interest Rates on MYFINFLOW?
Compare offers from multiple banks and NBFCs
100% paperless loan process
Fast disbursal within 24-48 hours
Free credit score check
Expert assistance throughout
Frequently Asked Questions (FAQs)
Q1. What is the average personal loan interest rate in India?
The average rate ranges between 10.50% to 24%, depending on the lender and your profile.
Q2. Can I negotiate my personal loan interest rate?
Yes, especially if you have a high credit score or a strong relationship with the bank.
Q3. Does my credit score affect the interest rate?
Absolutely. A credit score above 750 usually results in lower interest rates.
Q4. Are NBFCs more expensive than banks?
NBFCs often have slightly higher interest rates but offer quicker disbursal and flexible eligibility.
Q5. Can I switch my loan to a different bank with a lower rate?
Yes, through loan balance transfer you can shift to a lender offering a lower rate.
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