Are you looking for a personal loan? Have you devised a plan to repay the borrowed funds? This is important because borrowing funds is just the first step in the process. Further, personal loan interest rates can vary widely across lenders, affecting both the monthly EMI and the overall cost of borrowing.
As of today, the rates listed by 22 prominent lending institutions range from 8.90% to 30.50%, depending primarily on the lending institution, the borrower’s profile, the loan tenure, and a host of other factors.
For example, for a ₹5 lakh personal loan with a 5-year tenure, the EMI starts at ₹10,355 at Axis Bank and Union Bank of India, as per data compiled by Paisabazaar. Bajaj Finserv, on the other hand, has the widest stated interest rate range, from 10% to 30.50%.
Yet another extremely important aspect that needs proper due diligence and consideration is the processing fee. This metric also differs considerably from one to another.
For example, Tata Capital lists a flat ₹49 processing fee, and Kotak Mahindra Bank charges up to 5% of the loan amount. With these aspects in mind, let us look at rates and applicable EMIs for October 2026.
Personal loan rates and EMI comparison for October 2026
|
Lender |
Interest rate (p.a.) |
EMI: ₹5 lakh, 5 years |
EMI: ₹1 lakh, 5 years |
Processing fee |
|---|---|---|---|---|
| Axis Bank | 8.90% onwards | ₹10,355 onwards | ₹2,071 onwards | Up to 2% |
| Bajaj Finserv | 10.00%-30.50% | ₹10,624- ₹16,177 | ₹2,125- ₹3,235 | Up to 4.13% |
| Bank of Baroda* | 10.15%-18.00% | ₹10,660- ₹12,697 | ₹2,132- ₹2,539 | Up to 2% (Max. ₹10,000) |
| Bank of India | 10.85%-16.15% | ₹10,834- ₹12,199 | ₹2,167- ₹2,440 | Up to 1% (Min. ₹250; Max. ₹15,000) |
| Bank of Maharashtra | 9.75%-15.00% | ₹10,562- ₹11,895 | ₹2,112- ₹2,379 | Up to 1% (Max. ₹10,000) |
| Canara Bank | 9.70%-15.75% | ₹10,550- ₹12,093 | ₹2,110- ₹2,419 | 0.25% ( ₹500- ₹2,500) |
| Central Bank of India | 11.25% onwards | ₹10,934 onwards | ₹2,187 onwards | Up to 1% |
| Federal Bank | 11.75%-18.99% | ₹11,059- ₹12,968 | ₹2,212- ₹2,594 | Up to 3% |
| HDFC Bank | 9.99% onwards | ₹10,621 onwards | ₹2,124 onwards | Up to ₹6,500 |
| HSBC Bank | 9.70% onwards | ₹10,562 onwards | ₹2,112 onwards | Up to 1% |
| ICICI Bank | 9.99% onwards | ₹10,621 onwards | ₹2,124 onwards | Up to 2% |
| IDFC FIRST Bank | 9.99% onwards | ₹10,621 onwards | ₹2,124 onwards | Up to 3.5% |
| Indian Overseas Bank | 10.25% onwards | ₹10,685 onwards | ₹2,137 onwards | Up to 0.75% |
| IndusInd Bank | 10.49% onwards | ₹10,744 onwards | ₹2,149 onwards | Up to 3.5% (2% for instant personal loans for limited period) |
| Kotak Mahindra Bank | 10.99% onwards | ₹10,869 onwards | ₹2,174 onwards | Up to 5% |
| Poonawalla Fincorp | 9.99% onwards | ₹10,621 onwards | ₹2,174 onwards | Up to 4% |
| Punjab & Sind Bank | 9.65%-13.90% | ₹10,538- ₹11,608 | ₹2,108- ₹2,322 | 0.50%-1% |
| Punjab National Bank | 10.25%-16.80% | ₹10,685- ₹12,373 | ₹2,137- ₹2,475 | Up to 1% |
| State Bank of India | 10.00%-15.00% | ₹10,624- ₹11,895 | ₹2,125- ₹2,379 | Up to 1.50% ( ₹1,000- ₹15,000) |
| Tata Capital | 10.99% onwards | ₹10,869 onwards | ₹2,174 onwards | Flat ₹49 |
| UCO Bank | 9.95%-13.20% | ₹10,611- ₹11,428 | ₹2,122- ₹2,286 | Up to 1% (Min. ₹750) |
| Union Bank of India | 8.90%-12.65% | ₹10,355- ₹11,287 | ₹2,071- ₹2,257 | Up to 1% (Max. ₹7,500) |
*Bank of Baroda offers an interest concession of 0.10% to customers opting for group credit life insurance.
Source: Paisabazaar.com. Rates and charges as of 7 October 2026.
What should aspiring borrowers keep in mind before borrowing?
It is vital for aspiring borrowers to carefully calculate the total cost of borrowing. This is because a lower advertised rate does not necessarily mean a cheaper personal loan. Factors such as the applicable interest rate, EMI, processing fee and other charges must be considered before making a
Furthermore, the final rate offered may also depend on factors such as , current income, overall debt levels, employment profile and
Hence, before proceeding with the submission of their personal loan application, borrowers should look beyond the headline rate, analyse their repayment potential and assess the overall cost of borrowing. Carefully comparing multiple lending institutions can help identify a loan that better suits their long-term economic needs.
Still, in case of doubts it is wise to consult a financial advisor before availing a loan in order to ensure that the best possible borrowing decision is made as per an individuals current financial requirements.
Disclaimer: Interest rates, EMIs and processing charges are indicative and may change. The actual rate and terms offered to an individual borrower may vary based on the lender’s eligibility criteria and applicant’s credit profile. Borrowers should check the latest terms and conditions with the respective lender before taking a loan.