Personal loan rates in India span from 10.50% to 24% — the same loan amount at the top end costs you ₹2.7 lakh more in interest than at the bottom end. The difference is entirely about who you are, what documents you have, and how you apply. This guide shows you exactly where you stand and which loans to target.
Current interest rates: May 2026
| Bank / Lender | Starting Rate (p.a.) | Max Loan Amount | Max Tenure | Min CIBIL |
|---|---|---|---|---|
| HDFC Bank | 10.50% | ₹75 lakh | 7 years | 700 |
| Tata Capital | 10.99% | ₹35 lakh | 6 years | 700 |
| Bajaj Finserv | 11.00% | ₹40 lakh | 5 years | 685 |
| SBI | 11.15% | ₹20 lakh | 6 years | 700 |
| ICICI Bank | 10.85% | ₹50 lakh | 6 years | 700 |
| Kotak Mahindra | 10.99% | ₹30 lakh | 6 years | 700 |
| Axis Bank | 10.49% | ₹40 lakh | 5 years | 720 |
| Cholamandalam (Chola) | 12.00% | ₹30 lakh | 5 years | 680 |
| Aditya Birla Finance | 12.00% | ₹50 lakh | 7 years | 675 |
| Fullerton India | 14.00% | ₹25 lakh | 5 years | 650 |
| Muthoot Finance | 14.50% | ₹20 lakh | 4 years | 600 |
| Capital First (Bajaj) | 13.00% | ₹15 lakh | 4 years | 650 |
Note: "Starting rate" means the rate for the most creditworthy borrowers. Most salaried applicants get a rate 1–3 percentage points above the starting rate based on their CIBIL score, income, and employer category.
Who gets the best rate and why
1. CIBIL score 750+: You get the starting rate. HDFC offers 10.50%, Axis offers 10.49%, ICICI offers 10.85%. This is the best possible deal in the market.
2. CIBIL 700–749: Banks will approve you at 11–13%. NBFCs may offer 12–14%.
3. CIBIL 650–699: Banks will reject or offer 16–18%. NBFCs will approve at 13–16%.
4. CIBIL below 650: High-rate NBFCs only, 18–24%. Focus on improving your score before taking any loan here — a 50-point improvement can save ₹2–3 lakh on a ₹10 lakh loan.
Most top banks (HDFC, ICICI, Axis) have employer approval lists. Being in a pre-approved employer category can get you 0.5–1% lower rate versus a similar-profile borrower from an unapproved company. Check if your employer is on the bank's approved list before applying.
Top 12 personal loans for salaried Indians ranked
For CIBIL 750+ (Best rates)
HDFC Bank Personal Loan: 10.50% starting. Up to ₹75 lakh. Best for large loans (₹10 lakh+). Processing fee 2.5%. Turnaround: 24–48 hours for existing customers, 3–5 days for new applicants.
Axis Bank Personal Loan: 10.49% starting. Best-in-market rate. Max ₹40 lakh. Best for customers who prefer Axis for salary account. Processing fee 2%. Pre-approved offers available for existing customers.
For CIBIL 700–749 (Good rates)
Tata Capital Personal Loan: 10.99% starting. Tata Group employee discounts available. Up to ₹35 lakh. Best-in-class customer service. Doorstep service in 6 cities. Processing fee 2.5%.
ICICI Bank Personal Loan: 10.85% starting. Up to ₹50 lakh. Good for existing ICICI customers with pre-approved offers. Processing fee 2.5%. Turnaround: 24 hours for pre-approved.
Bajaj Finserv Personal Loan: 11% starting. Up to ₹40 lakh. Fastest disbursal (same-day for existing customers). Flexi Loan option allows you to draw and repay as needed. Best for flexible borrowing needs.
For CIBIL 650–699 (Mid-range)
Cholamandalam (Chola) Personal Loan: 12% starting. Best NBFC for Tier 2 and Tier 3 city borrowers. CIBIL from 680. Up to ₹30 lakh. Good alternative when banks reject.
Aditya Birla Finance Personal Loan: 12% starting. ABFL employee discounts available. CIBIL from 675. Up to ₹50 lakh — the highest max among NBFCs. 84-month tenure option (longest available).
Bank vs NBFC: which route is right for you?
| Factor | Banks | NBFCs |
|---|---|---|
| Rate | 10.5–13% | 11–16% |
| Processing time | 3–7 days | 1–3 days |
| Approval difficulty | Higher (score-focused) | Lower (more flexible) |
| Max amount | Up to ₹75 lakh | Up to ₹50 lakh |
| Foreclosure charges | Varies (SBI nil) | Usually nil |
| Best for | High score, large loan | Mid-score, fast cash need |
CIBIL score and the rate you will actually get (2026)
| Your CIBIL | Expected Rate | Likely Lender | On ₹10L, 4 years |
|---|---|---|---|
| 750+ | 10.5–11% | HDFC, Axis, ICICI | EMI ₹25,530, interest ₹2,25,440 |
| 700–749 | 11–13% | Banks + Tata Capital | EMI ₹26,180, interest ₹2,56,640 |
| 650–699 | 13–16% | Chola, ABFL, Bajaj | EMI ₹27,580, interest ₹3,23,840 |
| 600–649 | 16–20% | Fullerton, High-rate NBFCs | EMI ₹30,100, interest ₹4,48,000 |
| Below 600 | 20–24% | High-rate lenders only | EMI ₹33,500, interest ₹6,08,000 |
Step-by-step application process
1. Check your CIBIL score (free on cibil.com). Know where you stand before applying.
2. Check pre-approved offers in your salary bank's net banking. Pre-approved means soft enquiry, no score impact, and better rates.
3. Apply at 2–3 banks maximum within a 30-day window. Multiple applications in the same period count as one enquiry.
4. Submit documents: Aadhaar, PAN, last 3 months salary slips, last 6 months bank statement, Form 16/ITR. Also submit employer approval letter if your company is on their approved list.
5. Track disbursal: Banks typically take 24 hours for pre-approved, 3–5 days for new applications.
When NOT to apply for a personal loan
- When you already have 2+ active loans. Multiple loan EMIs eat into your FOIR (fixed obligation to income ratio), and banks will reject you at the 50% threshold.
- When your CIBIL is below 650. Banks will reject. NBFCs will give you a high rate. Focus on improving your score first.
- When you need the loan for investing in high-return instruments. Personal loan rates (10.5%+%) almost always exceed equity/MF returns. It is not arbitrage; it is risk.
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