Personal loan interest rates — read the fine print first
Starting rates and processing fees from nine banks and NBFCs, how to compare the true cost, how to stay safe with instant loan apps, and cheaper alternatives to consider first.
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- APR and fee maths explained
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Personal loan interest rates from major banks and NBFCs
Published starting rates and ranges for salaried borrowers. Your rate depends on your credit score, income, employer and existing loans.
| Lender | Interest rate | Processing fee | Loan amount | Max tenure |
|---|---|---|---|---|
| Axis Bank | 8.75% – 21.55% | Up to 2% | Up to ₹40 lakh | Up to 5–7 yrs |
| HDFC Bank | 9.99% onwards | ₹6,500 + GST | Up to ₹40 lakh | Up to 5 yrs |
| ICICI Bank | 9.99% – 16.50% | Up to 2% | Up to ₹50 lakh | Up to 6 yrs |
| IDFC FIRST Bank | 9.99% onwards | 0% – 3.5% | As per profile | Up to 5 yrs |
| State Bank of India | 10.00% – 15.00% | Up to 1.5% | Up to ₹20–35 lakh | Up to 6–7 yrs |
| Bajaj Finance | 10.00% onwards | Up to ~4% | Up to ₹55 lakh | Up to 8 yrs |
| Bank of Baroda | 10.15% onwards | Up to 2% | Up to ₹20 lakh | Up to 7 yrs |
| Kotak Mahindra Bank | 10.99% – 16.99% | Up to 5% | Up to ₹40 lakh | Up to 5 yrs |
| Tata Capital | 10.99% onwards | Up to 5% + GST | Up to ₹35 lakh | Up to 6 yrs |
Rates as of Aug–Oct 2026. Source: lender websites and public sources.
Fixed rates and foreclosure charges
Unlike home loans, most personal loans in India carry a fixed interest rate. Your EMI stays the same for the whole tenure, which makes budgeting easy. But it also means the RBI's Pre-payment Charges Directions, effective 1 January 2026, which ban prepayment fees on floating-rate loans to individuals, usually do not protect you here. Lenders can charge a foreclosure or part-prepayment fee on fixed-rate loans, sometimes only after a minimum number of EMIs. Read the Key Fact Statement (KFS) and sanction letter for the exact charge before you sign.
How lenders decide your personal loan rate
The table shows the lowest rate each lender advertises, but personal loans are priced individually. Lenders look at your credit score (750+ usually gets the better rates), your employer (government, PSU and large listed companies often qualify for lower rates), your net monthly income and your existing EMIs. Existing salary-account customers with a long, clean banking history are often offered pre-approved loans at a lower rate and fee. Self-employed borrowers can usually get a personal loan too, but expect closer scrutiny of income-tax returns and bank statements, and often a higher rate. Before applying, check your score, close any small loans you can, and avoid several applications at once, because each one is a hard enquiry on your credit report.
Look at the APR, not just the interest rate
The interest rate is only part of the cost. Processing fees (plus 18% GST), documentation charges and any bundled insurance raise the real cost. That is why the RBI requires every lender to give you a Key Fact Statement showing the APR (annual percentage rate), the all-inclusive yearly cost of the loan.
Illustration: a ₹5 lakh loan at 11% for 4 years has an EMI of about ₹12,923 and total interest of about ₹1,20,293. If a 2% processing fee plus GST (₹11,800) is deducted upfront, you receive only ₹4,88,200 but repay the same EMIs, so the effective annual cost rises to about 12.28%. A lender with a slightly higher rate but a low fee can be cheaper overall.
Personal loan EMI calculator
The calculator starts with ₹5 lakh at an illustrative 11% for 4 years. Try a shorter tenure: the EMI rises, but total interest falls noticeably.
Borrow only what you need. A personal loan is unsecured, so it is priced well above a home or car loan. Use the full loan EMI calculator for a year-wise schedule.
Loan EMI calculator
Indicative EMI for a reducing-balance loan. Your lender's schedule, fees and rate resets may differ.
Instant loan apps: how to stay safe
Instant loan apps have become common in Dehradun and across Uttarakhand, and some are fronts for illegal lenders that charge extreme fees and harass borrowers. RBI's digital lending rules give you clear protections:
- The lender must be an RBI-regulated entity — a bank or a registered NBFC — and the app must clearly name it.
- You must receive a Key Fact Statement with the APR and all charges before you sign.
- The loan must be paid directly into your bank account, and repayments go directly to the lender.
- You get a cooling-off period to exit the loan by repaying the principal and proportionate cost, without a penalty.
- Do not install apps that ask for access to your contacts, photos or call logs.
- Do not pay any "advance fee" to get a loan sanctioned.
- Do not borrow from an app you cannot find on the RBI's public list of digital lending apps or the lender's own website.
If something feels wrong, report it on the RBI's Sachet portal or to the cyber-crime helpline 1930.
Cheaper alternatives to a personal loan
- Loan against mutual funds or shares: you pledge your units instead of selling them. Usually cheaper than an unsecured loan, and your investments stay invested.
- Loan against fixed deposit: typically priced a little above your FD rate, with no impact on the deposit's interest.
- Gold loan: fast and secured, but watch the loan-to-value and the risk of auction if you miss payments.
- Home loan top-up: if you already have a home loan, a top-up is often priced close to the home loan rate.
If you invest in mutual funds through us, we can explain how a loan against your units works, as an alternative to redeeming investments meant for long-term goals.
Getting a personal loan in Dehradun
Most lenders in the table have branches or offices in Dehradun, and many offer pre-approved offers to existing salary-account customers through their apps. Start with your own bank, compare at least two more lenders, and keep your total EMIs within a level you can manage — lenders typically cap them at about 40–50% of take-home pay. A strong score helps you get the lower end of each range: see how to improve your CIBIL score. Prefer Hindi? Read पर्सनल और कार लोन गाइड.
Frequently asked questions
Which bank offers the lowest personal loan interest rate?
See the starting rates in the table above, collected before the 7 Oct 2026 repo hike. The lowest rates go to borrowers with high credit scores, stable salaried jobs at well-rated employers and low existing EMIs. Most people are offered a rate somewhere inside the lender's published range.
Can I prepay a personal loan without charges?
It depends on the loan. Most personal loans are fixed-rate, and lenders can charge foreclosure or part-prepayment fees on fixed-rate loans. RBI's rules from 1 January 2026 bar such charges only on floating-rate loans to individuals for non-business purposes. Check the Key Fact Statement before you sign.
What is APR and why does it matter?
APR (annual percentage rate) is the all-in yearly cost of the loan, including processing fees and other charges, not just the interest rate. Lenders must show it in the Key Fact Statement. Compare APRs, not headline rates.
What is the processing fee on a personal loan?
Typically a percentage of the loan amount plus 18% GST, usually deducted from the amount disbursed. The table above shows the range each lender publishes; some offer lower fees online or for existing customers.
How do I know if a loan app is genuine?
The actual lender must be a bank or NBFC regulated by the RBI, and the app must name it. Check the RBI's public list of digital lending apps, insist on a Key Fact Statement, and never let an app access your contacts or photos. The money should go directly to your bank account.
What credit score do I need for a personal loan?
Most banks prefer a CIBIL score of 750 or more for their better rates. Below about 700, you may get a smaller amount or a higher rate. Our guide on improving your CIBIL score explains how to get there.
Is a loan against mutual funds cheaper than a personal loan?
Often, because it is secured by your units. Your investments stay invested, though they are pledged until you repay, and the lender can sell them if their value falls sharply and you do not top up. Rates and limits vary by lender and fund type.
Ready to start your investment journey?
Visit us at Ghanta Ghar, Dehradun, or talk to us on WhatsApp. We serve investors across Uttarakhand and Delhi NCR.