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Personal Loan

Lowest Interest Rate Personal Loans: 8 Lenders Compared

Personal loan rates at 8 major lenders start at 9.99% (Axis, HDFC, ICICI, IDFC First) and run up to 33% as of 17 September 2026.

AI

Written by Ananya Iyer

Updated on 17 September 2026·5 min read

On this page8 sections
Credsir Personal Loan guide cover with a percent icon

The lowest advertised personal loan interest rate among the eight lenders we track is 9.99% a year, at Axis Bank, HDFC Bank, ICICI Bank and IDFC First Bank, as of 17 September 2026. SBI and Bajaj Finserv start at 10.00%. Top-end rates run from 15.00% at SBI to 33.00% at Tata Capital.

Key facts

Item Position on 17 September 2026
Lowest advertised starting rate 9.99% (Axis, HDFC, ICICI, IDFC First)
Narrowest range SBI, 10.00% to 15.00%
Widest range Tata Capital, 10.99% to 33.00%
Processing fees Up to 1.50% at SBI; up to 5% at Kotak and Tata Capital
EMI on ₹5 lakh over 5 years at 9.99% ₹10,621
RBI repo rate 5.25%; next decision after the 5–7 October 2026 meeting
Credit data sent to bureaus As on the 9th, 16th, 23rd and last day of each month, from 1 July 2026

Personal loan interest rates of 8 lenders

The table is sorted by the lowest rate each lender advertises on its own rate page. Lenders with the same minimum share a place.

Lender Type Interest rate Processing fee Max tenure
Axis Bank Private bank 9.99% to 22.00% Up to 2% + GST 7 years
HDFC Bank Private bank 9.99% to 24.00% Up to ₹6,500 + GST 6 years
ICICI Bank Private bank 9.99% to 16.50% Up to 2% + taxes 6 years
IDFC First Bank Private bank 9.99% to 25.00% 0% to 3.5% (incl. GST) 5 years
Bajaj Finserv NBFC 10.00% to 30.50% Up to 4.13% (incl. taxes) 9 years
State Bank of India Public sector bank 10.00% to 15.00% Up to 1.50% (min ₹1,000, max ₹15,000) + GST 7 years
Kotak Mahindra Bank Private bank 10.99% to 24.00% Up to 5% + taxes 6 years
Tata Capital NBFC 10.99% to 33.00% Up to 5% + GST 6 years

Updated 17 Sep 2026 · Lender rate pages, checked individually. Rates change without notice, so confirm on the lender’s site before you apply. Our personal loan interest rates page tracks these lenders with the date of each update.

Which lender has the lowest personal loan interest rate?

Four private banks tie at 9.99%. The starting rate is only part of the picture, though, because few applicants get it.

ItemDetails
Lowest ceilingSBI’s rates stop at 15.00% and ICICI Bank’s at 16.50%. A borrower with an average profile is less exposed at these two.
Highest ceilingsTata Capital goes up to 33.00% and Bajaj Finserv to 30.50%. NBFCs lend to a wider range of profiles and price the risk into the rate.
FeesA 5% fee on ₹5 lakh is ₹25,000 before GST. Add the fee to the interest when you compare offers.

What the rate difference costs you

The table shows the EMI and total interest on a ₹5,00,000 loan repaid over 5 years.

Interest rate EMI Total interest
9.99% ₹10,621 ₹1,37,264
12.00% ₹11,122 ₹1,67,333
15.00% (SBI maximum) ₹11,895 ₹2,13,698
18.00% ₹12,697 ₹2,61,803
24.00% (HDFC and Kotak maximum) ₹14,384 ₹3,63,039

Borrowing at 24% instead of 9.99% costs ₹2,25,775 more over five years on the same loan. Try your own figures in the EMI calculator.

What decides the rate you are offered

ItemDetails
Credit score and history.Lenders reserve starting rates for applicants with strong scores and clean repayment records. Since 1 July 2026, lenders report your credit data four times a month, so a missed EMI shows up on your report within days. See the credit score needed for a personal loan.
Income and employer.Salaried borrowers at large employers, and government staff at public sector banks, usually get lower rates.
Existing debt.A high share of income already going to EMIs pushes the rate up or leads to rejection.
Loan amount and tenure.Lenders price each combination separately.
Relationship.Pre-approved offers to salary account holders often carry lower rates than open-market applications.

How to get the lowest rate you qualify for

  1. Download your credit report and correct any errors before you apply.
  2. Check pre-approved offers in your own bank’s app first.
  3. Shortlist three lenders from the table and read each one’s rate and fee page.
  4. Ask each for a Key Facts Statement, which must show the annual percentage rate (APR), fees and repayment schedule.
  5. Compare APRs, not headline rates, since the APR includes the processing fee.
  6. Apply to one lender at a time, because several hard enquiries in a short period can lower your score.
  7. Read the foreclosure clause. Personal loans are usually at a fixed rate, and the RBI’s ban on prepayment charges covers only floating-rate loans to individuals.

If a lender treats you unfairly, complain to it first. If it does not reply in 30 days, or you are unhappy with its reply, you can go to the RBI Ombudsman under the Integrated Ombudsman Scheme, 2026. File the complaint within 90 days of that 30-day period ending or of the lender’s last reply.

Frequently asked questions

Which bank has the lowest interest rate on personal loan?

Axis Bank, HDFC Bank, ICICI Bank and IDFC First Bank all advertise 9.99% as their lowest rate, as of 17 September 2026. SBI starts at 10.00%.

What are current personal loan interest rates in India?

Among the eight lenders tracked, rates run from 9.99% to 33.00% a year. Banks cap out lower than NBFCs; SBI’s maximum is 15.00%.

What is the average personal loan interest rate?

No official average is published for personal loans alone. Most tracked lenders’ ranges sit between about 10% and 24%, and your rate depends on your credit profile.

What is the minimum interest rate on a personal loan?

The lowest advertised minimum is 9.99%. Lenders offer it only to applicants with strong credit scores and stable incomes.

Which loan has the lowest interest rate?

Secured loans are cheaper. Home loans at the lenders we track start at 7.15%, well below any personal loan rate.

Is SBI personal loan interest rate lower than private banks?

SBI starts at 10.00%, slightly above the 9.99% at four private banks. Its maximum of 15.00% is the lowest ceiling in the group.

Sources

Go deeper

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Compare interest rates, processing fees and eligibility across every lender in India — home loans, personal loans, gold loans, car loans, education loans and business credit. All-in cost, not just the teaser rate.

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