Personal Loan in India
A personal loan is an unsecured borrowing option you can use for weddings, medical bills, travel, home repairs, or debt consolidation. On this hub you'll find plain-English guides, eligibility checklists, real bank rates, and calculators to help you plan repayment.
Updated
Rates checked against the lenders' official pages on 28 September 2026. Your actual rate depends on your profile; confirm with the lender before you apply.
Official rate pages: HDFC Bank · ICICI Bank · SBI (Xpress Credit) · Axis Bank · Kotak Mahindra
Start here
- RatesPersonal loan interest ratesRate comparison across HDFC, SBI, ICICI, Axis and more.
- BasicsWhat is a personal loan?Basics, uses, and how repayment works.
- BasicsSecured vs unsecured personal loansWhich one costs less and why.
- EligibilityPersonal loan eligibility criteriaIncome, age, credit score minimums.
- ApplyDocuments requiredKYC, income proof and address proof checklist.
- EMIHow is personal loan EMI calculated?Formula, worked example and repayment tips.
- RepaymentPersonal loan foreclosure & part-paymentRBI rules on prepayment + break-even math.
- ApprovalWhy personal loan applications get rejectedTen common reject reasons and how to fix each.
- SegmentPersonal loan for self-employedITR-based underwriting and best lenders.
Banks and their rates
Compare all rates- HDFC Bank Personal LoanInterest from 9.99% p.a.View details
- ICICI Bank Personal LoanInterest from 9.99% p.a.View details
- SBI Personal Loan (Xpress Credit)Interest from 10.00% p.a.View details
- Axis Bank Personal LoanInterest from 9.99% p.a.View details
- Kotak Mahindra Personal LoanInterest from 10.99% p.a.View details
- IndusInd Bank Personal LoanInterest from 10.49% p.a.View details
Run the numbers
Comparisons
When a personal loan makes sense
A personal loan is a good fit when the expense is time-bound and you can comfortably absorb an EMI without stretching your budget. It is not a good fit for long-horizon spending (like buying property) or for recurring lifestyle expenses.
Because it is unsecured, the interest rate is typically higher than a secured loan such as a home loan or a loan against securities. Advertised starting rates at the banks we track begin at 9.99%, but only the strongest salaried profiles get them.
Typical loan size and tenure in India
| Parameter | Typical range |
|---|---|
| Loan amount | ₹50,000 to ₹50 lakh |
| Tenure | 12 to 84 months |
| Interest rate | About 9.99% to 24% p.a. |
| Processing fee | Up to 5% of the loan, or a flat fee at some banks, plus GST |
Loan amount
- Typical range
- ₹50,000 to ₹50 lakh
Tenure
- Typical range
- 12 to 84 months
Interest rate
- Typical range
- About 9.99% to 24% p.a.
Processing fee
- Typical range
- Up to 5% of the loan, or a flat fee at some banks, plus GST
Frequently asked questions
What is the minimum salary for a personal loan in India?
It varies by bank and city. SBI's Xpress Credit accepts a net monthly income from ₹15,000 for eligible salary-account holders; private banks commonly look for ₹20,000 to ₹30,000, more in metros.
How fast can I get a personal loan disbursed?
For pre-approved customers, most banks disburse within a few hours. For fresh applicants with full documentation, disbursal typically happens in 2 to 5 working days.
Does a personal loan affect my credit score?
Every application creates a hard enquiry that briefly reduces your score. Timely EMI repayment then improves your score over the loan tenure. Missed EMIs cause significant damage.
Can I prepay a personal loan?
Yes. On a floating-rate loan, RBI rules bar any prepayment charge or lock-in for individual borrowers. Most personal loans are fixed-rate, where lenders commonly charge 2-4% of the outstanding principal, often falling to nil after a set number of EMIs - the exact terms must be in your Key Facts Statement.
Sources & references
- RBI — Master Direction on Regulatory Framework for Retail Lending — Reserve Bank of India
- RBI — Pre-payment Charges on Loans Directions, 2025 — Reserve Bank of India
- CIBIL — Understanding your credit report — TransUnion CIBIL
Rates, fees, eligibility, and product terms cited on this page reflect the sources above at the time of publication and may have changed since. Always verify directly with the lender or regulator.