The interest rate on a personal loan depends on the bank, your employment profile, credit history, and loan amount. As of 2025, unsecured personal loan interest rates in India typically range between about 10% to 16% per annum, depending on these factors. Let’s see what is the interest rate on a personal loan for top banks.
What is a Good Interest Rate on a Personal Loan?
Generally speaking, a personal loan interest rate that is below average is a good rate. For instance, State Bank of India (SBI) offers personal loans at roughly 10.05% to 15.05% p.a., depending on the borrower’s profile.
More commonly, many borrowers see interest rates in the band of 11% to 15% p.a. from top banks.
Other lenders may have broader spreads. For instance, private banks often quote from as low as 10.5% p.a. to as high as 24% p.a., depending on income, credit score, loan amount, and repayment tenure.
Your actual rate depends on:
Employment and lender relationship: Salaried borrowers (especially govt/PSU employees) may get lower rates.
Credit history and income level: A good credit score and higher, stable income improve chances of getting interest at the lower end of the range.
Loan amount and tenure: Larger loans or longer tenures may attract higher interest or wider spreads.
Processing fees and other charges: Apart from interest, lenders often charge processing fees (a percentage of the loan amount), which adds to the overall cost.
If you are a salaried borrower with a good credit history, you can expect to get a personal loan interest rate in the band of 10% to 13% p.a. If your profile is average or the loan amount/tenure is risky, rates may go up to 15% to 18% or more.
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What is the Interest Rate on a Personal Loan?
ashish
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2025-11-28T16:11:30+00:00 2025-11-28T16:11:32+00:00Comment
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