A personal loan can help you cover unforeseen expenses, such as medical costs, foreign education, and home renovations. Keeping the same factor in mind, prominent lending institutions across the country, such as State Bank of India, HDFC Bank, ICICI Bank, among others, are offering eligible borrowers with lucrative personal loan offers. These offers start at rates as low as 8.75% to 9%.
Furthermore, Equated Monthly Instalments (EMIs) for a ₹5 lakh loan over five years generally start at around ₹10,300; however, the actual cost per individual depends on factors such as credit profile, tenure, repayment potential and lending charges.
On similar lines, prominent Public Sector banks such as Union Bank of India and Bank of Maharashtra offer eligible borrowers some of the most lucrative and lowest starting rates. Whereas leading private banks across the country provide for wider eligibility and faster processing.
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What are the typical personal loan interest rates in May 2026?⌵
In May 2026, personal loan rates from prominent lenders like SBI, HDFC, and ICICI Bank start as low as 8.75% to 9%. Public sector banks such as Union Bank of India and Bank of Maharashtra may offer some of the lowest starting rates.
How can I ensure I get the best personal loan offer?⌵
To secure the best personal loan offer, maintain a strong credit score, compare the total loan cost including processing and hidden fees, and choose a tenure that aligns with your repayment comfort. Borrow only what is necessary after thorough due diligence.
What factors influence my personal loan EMI?⌵
Your Equated Monthly Instalment (EMI) for a personal loan is influenced by factors such as your credit profile, the loan tenure, your repayment potential, and the lending institution’s charges. For example, a ₹5 lakh loan over five years might start around ₹10,300.
Should I consider all costs before taking a personal loan?⌵
Yes, it’s critical to consider all aspects of a personal loan beyond the headline interest rate. This includes processing fees, prepayment charges, total cost of borrowing, and any other potential hidden charges to make an informed decision.
How do personal loan rates compare to fixed deposit rates?⌵
Personal loan rates in May 2026 start around 8.75%-9%, while fixed deposit rates in the same period range from 6.05% to 7.25% depending on the bank and tenure. This means personal loans are significantly more expensive than earning interest on FDs.
Before locking in on any personal loans, it is critical that you carefully consider and understand the fundamentals of borrowing. Factors such as the total loan amount, headline interest rate, processing fees, prepayment charges, total cost of borrowing, and a host of other hidden charges must be given proper consideration.
Keeping this in mind, let us look at the comprehensive list of prominent banks, both private and public, along with leading NBFCs across the country, to get a fair idea of the offerings they provide. This will help in proper comparison, analysis and clarity in decision-making before you agree to any particular personal loan.
Comprehensive list of personal loan interest rates – May 2026
|
Lender |
Interest Rate (p.a.) |
EMI on ₹5 Lakh (5 Years) |
EMI on ₹1 Lakh (5 Years) |
Processing Fee |
|---|---|---|---|---|
| HDFC Bank | 9.99% onwards | ₹10,621 onwards | ₹2,124 onwards | Up to ₹6,500 |
| Tata Capital | 10.99% onwards | ₹10,869 onwards | ₹2,174 onwards | Flat ₹99 |
| State Bank of India | 10.00% – 15.00% | ₹10,624 – ₹11,895 | ₹2,125 – ₹2,379 | Up to 1.5% |
| ICICI Bank | 9.99% onwards | ₹10,621 onwards | ₹2,124 onwards | Up to 2% |
| Bank of Baroda | 10.15% – 18.00% | ₹10,660 – ₹12,697 | ₹2,132 – ₹2,539 | Up to 2% |
| Axis Bank | 9.60% onwards | ₹10,525 onwards | ₹2,105 onwards | Up to 2% |
| Kotak Mahindra Bank | 10.99% onwards | ₹10,869 onwards | ₹2,174 onwards | Up to 5% |
| Bank of India | 10.85% – 16.15% | ₹10,834 – ₹12,199 | ₹2,167 – ₹2,440 | Up to 1% |
| Canara Bank | 9.70% – 15.15% | ₹10,550 – ₹11,934 | ₹2,110 – ₹2,387 | 0.50% |
| Punjab National Bank | 10.25% – 16.80% | ₹10,685 – ₹12,373 | ₹2,137 – ₹2,475 | Up to 1% |
| HSBC Bank | 9.75% onwards | ₹10,562 onwards | ₹2,112 onwards | Up to 2% |
| Federal Bank | 11.75% – 18.99% | ₹11,059 – ₹12,968 | ₹2,212 – ₹2,594 | Up to 3% |
| Union Bank of India | 8.90% – 12.65% | ₹10,355 – ₹11,287 | ₹2,071 – ₹2,257 | Up to 1% |
| Bajaj Finserv | 10.00% – 30.00% | ₹10,624 – ₹16,177 | ₹2,125 – ₹3,235 | Up to 3.93% |
| Bank of Maharashtra | 8.75% – 13.55% | ₹10,319 – ₹11,518 | ₹2,064 – ₹2,304 | Up to 1% |
| IndusInd Bank | 10.49% onwards | ₹10,744 onwards | ₹2,149 onwards | Up to 3.5% |
Source: Paisabazaar
Rates as of 6 May 2026 were taken from the official websites of the respective lending institutions. For recent updates,terms and conditions, refer to the official website of the respective lender.
5 factors to keep in mind before applying for a personal loan
- Maintain a strong credit score for better rates. Ensure that you have a strong borrower profile. Don’t just look at the headline rate. Go into the details of the personal loan offering.
- Compare total loan cost offered by each lender, applicable processing fees, any hidden fees, features, exclusive benefits and long-term implications, not just interest rate.
- If you have doubts, don’t sign the personal loan agreement under pressure or persuasion by the loan agent. Discuss theand hidden charges with the concerned customer support executives. Proceed only if you are completely willing and convinced.
- Choose tenure based on repayment comfort. Be honest with your repayment potential. If you find it difficult to plan, seek professional guidance and do proper planning.
- Borrow only what is necessary. The decision to borrow should be ‘rational’, ‘objective’ and not driven by emotions or greed. Understand why you are money, look at the larger picture and don’t fall for offers and inconsequential benefits.
In conclusion, should be made only after proper comparison, a clear understanding of the offers, and thorough due diligence. The final decision should only be made after consulting a certified financial advisor to ensure alignment with your economic objectives, current credit score, and repayment potential.
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