Personal Loan Interest Rates in India: Current and Average Rates
Personal loan rates start at 9.99% at major banks (17 Sep 2026); banks' mean rates for Apr–Jun 2026 were 10.89% to 13.07%.
Written by Rohan Mehta
Updated on 17 September 2026·6 min read
On this page10 sections
Personal loan interest rates in India start at 9.99% a year at the major banks as of 17 September 2026, and borrowers with weaker profiles pay up to 33% at some lenders. The average rate banks actually charged sat near the bottom of those ranges: ICICI Bank’s mean personal loan rate for April to June 2026 was 11.45%, and HDFC Bank’s average was 10.89%.
Key facts
| Item | Position on 17 September 2026 |
|---|---|
| RBI policy repo rate | 5.25%, unchanged since 5 December 2025 |
| Next RBI rate decision | Meeting of 5–7 October 2026 |
| Lowest advertised personal loan rate, 8 lenders tracked | 9.99% (Axis Bank, HDFC Bank, ICICI Bank, IDFC First Bank) |
| Highest advertised rate, same lenders | 33.00% (Tata Capital) |
| Average rate charged, April–June 2026 | ICICI Bank 11.45%; HDFC Bank 10.89%; Axis Bank 13.07% |
| Average rate on all fresh bank loans | 8.52% in July 2026 (every loan type, not only personal loans) |
| Rate type | Mostly fixed for the full tenure |
| Who sets the rate | Each lender, under its board-approved policy; RBI fixes no personal loan rate |
Current personal loan interest rates at 8 lenders
These are the advertised ranges on each lender’s own rate page, checked on 17 September 2026. Your offer depends on your credit score, income, employer and loan amount.
| Lender | Type | Interest rate | Processing fee |
|---|---|---|---|
| Axis Bank | Private bank | 9.99%–22.00% | Up to 2% + GST |
| HDFC Bank | Private bank | 9.99%–24.00% | Up to ₹6,500 + GST |
| ICICI Bank | Private bank | 9.99%–16.50% | Up to 2% + taxes |
| IDFC First Bank | Private bank | 9.99%–25.00% | 0% to 3.5% (incl. GST) |
| Bajaj Finserv | NBFC | 10.00%–30.50% | Up to 4.13% (incl. taxes) |
| State Bank of India | Public sector bank | 10.00%–15.00% | Up to 1.50% (min ₹1,000, max ₹15,000) + GST |
| Kotak Mahindra Bank | Private bank | 10.99%–24.00% | Up to 5% + taxes |
| Tata Capital | NBFC | 10.99%–33.00% | Up to 5% + GST |
Updated 17 Sep 2026 · Lender rate pages, checked individually. For a lender-by-lender comparison of the cheapest offers, see our guide to the lowest interest rate personal loans. The personal loan interest rates page tracks the same lenders.
What is the average personal loan interest rate?
Advertised ranges tell you the floor and the ceiling. Banks also publish the rates they actually charged in the last quarter, and those figures are the best guide to an average.
| Bank | Period | Minimum | Maximum | Mean |
|---|---|---|---|---|
| ICICI Bank | April–June 2026 | 9.99% | 16.50% | 11.45% |
| HDFC Bank (IRR) | Q1 2026-27 | 9.97% | 24.06% | 10.89% |
| HDFC Bank (APR, with charges) | Q1 2026-27 | 9.99% | 33.94% | 11.18% |
| Axis Bank | Disbursed April–June 2026 | 8.75% | 21.55% | 13.07% |
The mean rates at these three banks fell between 10.89% and 13.07%, much nearer the bottom of each range than the top. Axis Bank calculates its mean as the sum of rates on all loan accounts divided by the number of accounts. HDFC Bank shows both the interest rate (IRR) and the annual percentage rate (APR), which adds fees to the cost.
What the rate difference costs on ₹5 lakh
EMIs below are for a ₹5,00,000 loan over five years, worked out with the standard reducing-balance formula.
| Interest rate | What it represents | EMI | Total interest |
|---|---|---|---|
| 9.99% | Lowest advertised rate | ₹10,621 | ₹1,37,264 |
| 11.45% | ICICI Bank mean, April–June 2026 | ₹10,984 | ₹1,59,025 |
| 13.07% | Axis Bank mean, April–June 2026 | ₹11,394 | ₹1,83,668 |
| 16.50% | ICICI Bank maximum | ₹12,292 | ₹2,37,536 |
| 24.00% | HDFC Bank and Kotak maximum | ₹14,384 | ₹3,63,039 |
Moving from 9.99% to 24% adds ₹3,763 to every EMI and about ₹2.26 lakh in interest. Try your own numbers on the EMI calculator.
Does RBI set personal loan interest rates?
No. Under the Reserve Bank of India (Commercial Banks – Interest Rates on Advances) Directions, 2025, each bank prices loans under a policy approved by its board. RBI’s role is indirect:
| Item | Details |
|---|---|
| Repo rate. | RBI’s repo rate is 5.25%. A cut lowers banks’ funding costs, which feeds slowly into new loan pricing. |
| Floating loans. | Every floating-rate personal or retail loan from a bank must be linked to an external benchmark, such as the repo rate, and reset at least once every three months. |
| Fixed loans. | Banks may lend at fixed rates, and most personal loans are fixed. Your EMI on a fixed loan does not change when RBI moves the repo rate. |
| Disclosure. | Lenders must give you a Key Facts Statement with the annual percentage rate (APR) and a repayment schedule before you sign. |
| Prepayment. | For floating-rate loans to individuals for non-business use, sanctioned or renewed from 1 January 2026, lenders cannot charge a prepayment penalty. |
Our explainer on how the repo rate affects your EMI covers what an October rate decision could change.
Current loan interest rates in India by loan type
Secured loans cost far less than personal loans because the lender holds collateral.
| Loan type | Starting rates seen on 17 September 2026 |
|---|---|
| Home loan | 7.15% (Canara Bank, LIC Housing Finance, Union Bank of India) |
| Gold loan | 8.90% for IOB’s general jewel loan; 9.15% for SBI’s 12-month bullet gold loan |
| Personal loan | 9.99% (four private banks) |
| All fresh bank loans, average | 8.52% (RBI, July 2026) |
Prefr and other loan apps: how their rates work
Prefr is a lending platform that connects borrowers with partner NBFCs for personal loans of up to ₹5 lakh. Its site shows no rate card, and the partner lender, not the app, sets the rate after checking your profile. Before you accept an offer through any app:
- Check that the lender named in the offer is regulated, and that the app appears in RBI’s directory of digital lending apps.
- Read the Key Facts Statement and note the APR, which includes the processing fee.
- Compare that APR with the bank averages in the table above.
- Use the cooling-off period, at least one day for digital loans, if you change your mind.
How to get a rate close to the average or lower
- Check your credit report before applying and fix any errors; lenders now report to bureaus four times a month (9th, 16th, 23rd and month-end).
- Apply first with the bank that holds your salary account, since it already has your income records.
- Ask for the APR, not only the interest rate, and compare at least two lenders.
- Keep total EMIs to a level your income can carry; see the credit score needed for a personal loan.
Frequently asked questions
What are current personal loan interest rates in India?
As of 17 September 2026, advertised rates at eight major lenders run from 9.99% to 33% a year. Banks start at 9.99% to 10.99%; NBFCs go higher.
What is the average personal loan interest rate?
Banks’ own disclosures for April–June 2026 show mean rates of 10.89% at HDFC Bank, 11.45% at ICICI Bank and 13.07% at Axis Bank.
What is the RBI personal loan interest rate?
RBI does not set one. Banks price loans under board-approved policies; RBI’s repo rate, now 5.25%, influences their costs.
Does a repo rate cut lower my personal loan EMI?
Only on a floating-rate loan linked to the repo rate, at its next reset. Most personal loans are fixed, so the EMI stays the same.
What is the Prefr personal loan interest rate?
Prefr does not publish a rate card on its site. The partner lender sets the rate, and it appears in the Key Facts Statement before you accept.
Are personal loan rates higher than home loan rates?
Yes. Home loans start at 7.15% at the lenders we track, against 9.99% for personal loans, because a home loan is secured by property.
Sources
- Monetary Policy Statement, August 2026 — Reserve Bank of India (checked 17 Sep 2026)
- Lending and Deposit Rates of Scheduled Commercial Banks, August 2026 — Reserve Bank of India (checked 17 Sep 2026)
- Commercial Banks – Interest Rates on Advances Directions, 2025 — Reserve Bank of India (checked 17 Sep 2026)
- Key Facts Statement for loans and advances — Reserve Bank of India (checked 17 Sep 2026)
- Pre-payment charges on loans — Reserve Bank of India (checked 17 Sep 2026)
- Digital Lending Directions, 2025 — Reserve Bank of India (checked 17 Sep 2026)
- Personal loan interest rates — ICICI Bank (checked 17 Sep 2026)
- Personal loan interest rates and charges — HDFC Bank (checked 17 Sep 2026)
- Personal loan interest rates and charges — Axis Bank (checked 17 Sep 2026)
- Personal loan schemes interest rates — State Bank of India (checked 17 Sep 2026)
- Personal loan — Prefr (checked 17 Sep 2026)
Compare loans with live numbers
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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