Personal loans remain one of the most popular and fastest ways to get money in hand without pledging any asset. Whether it’s for a wedding, medical emergency, home renovation, higher education, or debt consolidation — millions of Indians take personal loans every year.
But interest rates have fluctuated quite a bit in recent years. So what are the real personal loan interest rates in 2026? Who is offering the lowest rates right now? And how can you get the best deal?
This detailed guide answers all these questions with current 2026 data.
Current Personal Loan Interest Rates in India – February 2026
Personal loan rates are floating and depend heavily on:
- Your credit score (CIBIL ≥ 750–760 = best rates)
- Income & job stability
- Relationship with the bank (salary account, existing customer)
- Loan amount & tenure
- City & employment type (salaried vs self-employed)
Latest Interest Rate Range – Top Banks & NBFCs (2026)
| Lender / Bank | Interest Rate Range (p.a.) | Min. Credit Score Preferred | Max Loan Amount | Processing Fee | Best For |
|---|---|---|---|---|---|
| SBI | 10.90% – 15.15% | 720+ | ₹20 lakh | 0.75–1.50% | Very stable salaried borrowers |
| HDFC Bank | 10.90% – 24.00% | 750+ | ₹40 lakh | Up to 2.50% | High salary account holders |
| ICICI Bank | 10.85% – 19.00% | 750+ | ₹50 lakh | Up to 2.25% | Good credit score + metro cities |
| Axis Bank | 11.25% – 22.00% | 740+ | ₹40 lakh | Up to 2% | Quick approval, existing customers |
| Kotak Mahindra Bank | 10.99% – 26.00% | 750+ | ₹40 lakh | Up to 2.50% | Very high CIBIL + salaried |
| Bajaj Finserv | 11.00% – 31.00% | 720+ | ₹55 lakh | Up to 3.93% | High loan amounts, quick disbursal |
| IDFC FIRST Bank | 10.49% – 25.00% | 730+ | ₹10 lakh (mostly) | Up to 3.5% | Attractive starting rates |
| Bank of Baroda | 11.15% – 16.00% | 700+ | ₹20 lakh | 1–2% | Government & PSU employees |
| Tata Capital | 11.99% – 24.00% | 720+ | ₹35 lakh | Up to 2.75% | Good digital process |
| Fullerton India | 12.00% – 36.00% | 680+ | ₹25 lakh | Up to 4% | Lower credit score acceptable |
| Aditya Birla Finance | 13.00% – 30.00% | 700+ | ₹50 lakh | Up to 3% | High loan amount seekers |
Most realistic range in 2026 for good profiles
- Excellent credit score (780+) + good salary account → 10.85% – 13.50%
- Average good score (720–760) → 13.00% – 18.00%
- Below 720 or self-employed → 18% – 30%+
Factors That Decide Your Personal Loan Interest Rate in 2026
- Credit Score — the single biggest factor 780+ → best rates 720–760 → average-good rates Below 700 → significantly higher rates or rejection
- Income Stability & Employer MNCs, PSU, government jobs, large private companies → lower rates
- Existing Relationship Salary account + FD + credit card + good repayment history → 1–3% lower rate
- Loan Amount & Tenure Smaller loans (₹1–5 lakh) and shorter tenures (12–24 months) often get slightly better rates
- City Tier Metro & Tier-1 cities usually get marginally better rates
Current Trend – Personal Loan Interest Rates in 2026
- RBI repo rate has remained relatively stable in 2025–early 2026
- Banks have started offering sub-11% starting rates again to high-quality borrowers
- Digital-first lenders and fintech-backed NBFCs are aggressively competing → pushing starting rates down
- However, processing fees + penal interest + foreclosure charges have increased for many lenders — so effective cost is not falling as fast as headline rates
How to Get the Lowest Personal Loan Interest Rate in 2026
Follow this practical checklist:
- Maintain CIBIL score 750+ (ideally 780+)
- Keep credit utilisation below 30%
- Pay all EMIs and credit card bills on time
- Apply with banks where you already have salary account / FD / relationship
- Compare at least 4–6 lenders (use BankBazaar, Paisabazaar, Lendingkart, Financer, direct bank sites)
- Upload complete documents (salary slips, ITR, bank statements) → faster approval + better rate offers
- Negotiate — especially if you have multiple good offers
- Prefer fixed-rate loans (most personal loans are fixed anyway)
- Choose shorter tenure if you can afford higher EMI → saves a lot of interest
Quick Decision Guide – 2026
| Your Profile | Best Lenders to Compare First | Expected Rate Range |
|---|---|---|
| Credit score 780+, salaried, metro | HDFC, ICICI, Kotak, IDFC FIRST, SBI | 10.85% – 13.50% |
| Credit score 720–760, good job | SBI, Axis, Bajaj Finserv, IDFC FIRST, Tata Capital | 12.50% – 17.00% |
| Self-employed, ITR filer | Bajaj Finserv, Aditya Birla, Tata Capital, Fullerton | 14.00% – 24.00% |
| Credit score 680–720 | Fullerton, Aditya Birla, some NBFCs | 18.00% – 30%+ |
| Need very high amount (₹30–50 lakh) | Bajaj Finserv, ICICI, HDFC, Aditya Birla | 12.50% – 22.00% |
Final Thought
In 2026, personal loan interest rates start from ~10.5–11% for the best profiles — but the real rate most people get is 13–18%.
The difference between 12% and 18% on a ₹10 lakh loan for 5 years is ₹1.6–2 lakh in total interest. So spending 30–45 minutes comparing properly is worth it.
Have a specific loan amount, tenure, city and credit score range in mind? Drop the details in the comments — we can give you a more accurate expectation of what rate you might get in 2026.