Borrowers exploring personal loans in September 2026 have a range of lenders to choose from, with interest rates available at relatively competitive levels.
Rates begin at 8.75% per annum, while leading private sector banks such as Axis Bank, HDFC Bank, ICICI Bank, IDFC FIRST Bank and Kotak Mahindra Bank quote starting rates of 9.99% per annum.
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For a Rs 5 lakh personal loan spread across five years, the monthly EMI works out to roughly Rs 10,319 at the lowest rate available. At the starting rates offered by major private sector banks, the monthly EMI rises to about Rs 10,621.
The table below sets out the key rates, indicative five-year EMIs for Rs 5 lakh and Rs 1 lakh loans, along with the processing fees charged by leading lenders.
| Bank / Lender | Interest Rate (p.a.) | EMI on Rs 5 Lakh | EMI on Rs 1 Lakh | Processing Fee |
| Bank of Maharashtra | 8.75% – 13.55% | Rs 10,319 – Rs 11,518 | Rs 2,064 – Rs 2,304 | Up to 1% (Max. Rs 10,000) |
| HSBC Bank | 9.75% onwards | Rs 10,560 onwards | Rs 2,112 onwards | Up to 2% |
| Axis Bank | 9.99% onwards | Rs 10,621 onwards | Rs 2,124 onwards | Up to 2% |
| HDFC Bank | 9.99% onwards | Rs 10,621 onwards | Rs 2,124 onwards | Up to Rs 6,500 |
| ICICI Bank | 9.99% onwards | Rs 10,621 onwards | Rs 2,124 onwards | Up to 2% |
| IDFC FIRST Bank | 9.99% onwards | Rs 10,621 onwards | Rs 2,124 onwards | Up to 3.5% |
| Kotak Mahindra Bank | 9.99% onwards | Rs 10,621 onwards | Rs 2,124 onwards | Up to 5% |
| State Bank of India (SBI) | 10.00% onwards | Rs 10,624 onwards | Rs 2,125 onwards | Up to 1.50% |
| Bank of Baroda | 10.15% – 18.00% | Rs 10,660 – Rs 12,697 | Rs 2,132 – Rs 2,539 | Up to 2% (Max. Rs 10,000) |
| IndusInd Bank | 10.35% onwards | Rs 10,710 onwards | Rs 2,142 onwards | Up to 3.5% |
*Note: EMIs are calculated assuming a 5-year (60-month) tenure on a reducing balance basis. Final terms are subject to individual credit assessment.
The headline interest rates advertised by lenders are generally aimed at borrowers who meet stringent credit criteria. The final rate offered to an applicant can depend on a range of financial and employment-related factors.
A CIBIL score of 750 or higher can indicate a strong repayment record and may improve a borrower's chances of accessing lower rates. Income levels and job stability also form part of the lender's assessment, with employees of established private companies and public sector organisations potentially qualifying for more competitive pricing.
Existing debt is another consideration. Banks assess a borrower's outstanding financial commitments and income to determine whether the proposed EMI is affordable.
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Borrowers should also look beyond the headline interest rate and account for processing fees, administrative charges and prepayment terms when assessing the overall cost of a loan.
Comparing the complete cost of borrowing and choosing a tenure that fits comfortably within monthly income can help borrowers make a more informed decision when taking an unsecured personal loan.
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