Personal Loan · Guide
Personal loan interest rates and the best banks in India
Personal loan rates at the lenders we track start at 9.99% p.a. for the strongest profiles and go well above 20% for riskier ones. Your actual rate depends on your credit score, employer, and existing banking relationship. Below is the rate table across major lenders, taken from their official product pages.
By FinancePaisa Editorial Team · Research & editorialUpdated · 6 min read
Rates checked against the lenders' official pages on 28 September 2026, except HDFC Bank, last checked on 15 June 2025 and possibly out of date. Confirm the current rate with the lender before you apply.
Official rate pages: HDFC Bank · SBI (Xpress Credit) · ICICI Bank · Axis Bank · Kotak Mahindra · IndusInd Bank
On this page (14 sections)
Interest rate comparison
| Bank | Starting rate | Ceiling | Processing fee |
|---|---|---|---|
| HDFC Bank | 10.75% p.a. | 24% p.a. | Up to 2.5% (max ₹25,000) |
| SBI (Xpress Credit) | 10.00% p.a. | 15.00% p.a. | Up to 1.5% (₹1,000 to ₹15,000) + GST |
| ICICI Bank | 9.99% p.a. | — | — |
| Axis Bank | 9.99% p.a. | 22% p.a. | 1.5% to 2% + GST |
| Kotak Mahindra | 10.99% p.a. | — | — |
| IndusInd Bank | 10.49% p.a. | — | 3.5% (1.5% to 2% during offers) |
HDFC Bank
- Starting rate
- 10.75% p.a.
- Ceiling
- 24% p.a.
- Processing fee
- Up to 2.5% (max ₹25,000)
SBI (Xpress Credit)
- Starting rate
- 10.00% p.a.
- Ceiling
- 15.00% p.a.
- Processing fee
- Up to 1.5% (₹1,000 to ₹15,000) + GST
ICICI Bank
- Starting rate
- 9.99% p.a.
- Ceiling
- —
- Processing fee
- —
Axis Bank
- Starting rate
- 9.99% p.a.
- Ceiling
- 22% p.a.
- Processing fee
- 1.5% to 2% + GST
Kotak Mahindra
- Starting rate
- 10.99% p.a.
- Ceiling
- —
- Processing fee
- —
IndusInd Bank
- Starting rate
- 10.49% p.a.
- Ceiling
- —
- Processing fee
- 3.5% (1.5% to 2% during offers)
Best personal loan banks: our shortlist
The "best" personal loan bank is really the one whose rate, fee, and part-payment rules match your specific profile. We rank on four things: (1) starting rate for salaried applicants with 750+ credit score, (2) processing fee cap, (3) part-payment flexibility, and (4) speed to disbursal. We do not accept payment from banks to alter rankings.
| Rank | Bank | Standout |
|---|---|---|
| 1 | HDFC Bank | 10-second insta-loan, part-payment allowed |
| 2 | SBI (Xpress Credit) | Nil foreclosure on floating; govt-employee discounts |
| 3 | ICICI Bank | Loan up to ₹50 lakh; digital iMobile flow |
| 4 | Axis Bank | Aggressive rates for premium salary segments |
| 5 | Kotak Mahindra | Fast digital journey; competitive on ₹10-25 lakh band |
1
- Bank
- HDFC Bank
- Standout
- 10-second insta-loan, part-payment allowed
2
- Bank
- SBI (Xpress Credit)
- Standout
- Nil foreclosure on floating; govt-employee discounts
3
- Bank
- ICICI Bank
- Standout
- Loan up to ₹50 lakh; digital iMobile flow
4
- Bank
- Axis Bank
- Standout
- Aggressive rates for premium salary segments
5
- Bank
- Kotak Mahindra
- Standout
- Fast digital journey; competitive on ₹10-25 lakh band
Who each bank suits best
- HDFC — you value part-payment flexibility and instant disbursal
- SBI — you are a government/PSU employee or want zero foreclosure fee
- ICICI — you need a large loan (up to ₹50 lakh)
- Axis — you are premium-salaried at an empanelled corporate
- Kotak — you want a fully digital, paperless experience
What we do not rank on
We do not rank on advertised rewards, cashback promotions, or joining offers. Those change every quarter and are not a durable reason to pick one bank over another for a multi-year loan.
SBI (Xpress Credit) vs HDFC Bank
SBI's Xpress Credit and HDFC Bank's personal loan are two of India's largest unsecured retail loan products. They target overlapping but not identical borrower profiles. Here's the comparison in detail.
| Feature | SBI (Xpress Credit) | HDFC Bank |
|---|---|---|
| Starting interest rate | 10.00% p.a. | 10.75% p.a. |
| Maximum loan amount | ₹1 lakh to ₹50 lakh | ₹50,000 to ₹40 lakh |
| Tenure | 6 to 84 months | 12 to 72 months |
| Processing fee | Up to 1.5% (₹1,000 to ₹15,000) + GST | Up to 2.5% (max ₹25,000) |
| Foreclosure (floating) | Nil | 2-4% |
| Part-payment | Allowed after 6 EMIs (nil charge) | Allowed after 12 EMIs |
| Salary account requirement | SBI preferred (or empanelled) | Not mandatory |
| Best-in-class for | Govt / PSU / defence employees | Private sector, digital-first users |
| Disbursal speed | 2-4 days (instant on YONO for pre-approved) | 10 seconds for pre-approved; 2-5 days otherwise |
| Minimum income (metro) | ₹25,000/month | ₹25,000/month |
Starting interest rate
- SBI (Xpress Credit)
- 10.00% p.a.
- HDFC Bank
- 10.75% p.a.
Maximum loan amount
- SBI (Xpress Credit)
- ₹1 lakh to ₹50 lakh
- HDFC Bank
- ₹50,000 to ₹40 lakh
Tenure
- SBI (Xpress Credit)
- 6 to 84 months
- HDFC Bank
- 12 to 72 months
Processing fee
- SBI (Xpress Credit)
- Up to 1.5% (₹1,000 to ₹15,000) + GST
- HDFC Bank
- Up to 2.5% (max ₹25,000)
Foreclosure (floating)
- SBI (Xpress Credit)
- Nil
- HDFC Bank
- 2-4%
Part-payment
- SBI (Xpress Credit)
- Allowed after 6 EMIs (nil charge)
- HDFC Bank
- Allowed after 12 EMIs
Salary account requirement
- SBI (Xpress Credit)
- SBI preferred (or empanelled)
- HDFC Bank
- Not mandatory
Best-in-class for
- SBI (Xpress Credit)
- Govt / PSU / defence employees
- HDFC Bank
- Private sector, digital-first users
Disbursal speed
- SBI (Xpress Credit)
- 2-4 days (instant on YONO for pre-approved)
- HDFC Bank
- 10 seconds for pre-approved; 2-5 days otherwise
Minimum income (metro)
- SBI (Xpress Credit)
- ₹25,000/month
- HDFC Bank
- ₹25,000/month
SBI (Xpress Credit) vs HDFC Bank: our verdict
For a private-sector salaried applicant with a strong credit score, HDFC wins on processing speed; compare the rates each bank quotes you, since both publish wide ranges. For a government, PSU, or defence employee, SBI is nearly always cheaper because of the lower processing fee, nil foreclosure charges on floating-rate loans, and the fact that free part-payment is allowed after just 6 EMIs. The choice is genuinely profile-dependent - both are safe, RBI-regulated scheduled commercial banks.
Total-cost view
Compare total cost, not the headline rate: interest over the full tenure plus the processing fee. A fee of 1.5-2% on a ₹10 lakh loan adds ₹15,000-20,000, which can outweigh a small rate difference on a short loan. Once you have written quotes from both banks, run each through our personal loan EMI calculator and add the fee. The choice then usually comes down to non-price factors: employer type, service preference, and how much you value part-payment flexibility.
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HDFC Bank vs ICICI Bank
HDFC Bank and ICICI Bank are India's two largest private-sector personal-loan lenders. Both offer digital, near-instant disbursal to pre-approved customers. The differences are in the fine print - part-payment rules, foreclosure fees, and rate tiers.
| Feature | HDFC Bank | ICICI Bank |
|---|---|---|
| Starting interest rate | 10.75% p.a. | 9.99% p.a. |
| Maximum loan amount | ₹50,000 to ₹40 lakh | ₹50,000 to ₹50 lakh |
| Tenure | 12 to 72 months | 12 to 72 months |
| Processing fee | Up to 2.5% (max ₹25,000) | |
| Foreclosure charges | 2-4% of outstanding | 5% of outstanding |
| Part-payment allowed | Yes, after 12 EMIs | Not allowed |
| Pre-approved offer | 10-second insta-loan | iMobile Insta-loan |
| Minimum income (metro) | ₹25,000/month | ₹40,000/month |
| Bounce charge | ₹550 | ₹500 |
Starting interest rate
- HDFC Bank
- 10.75% p.a.
- ICICI Bank
- 9.99% p.a.
Maximum loan amount
- HDFC Bank
- ₹50,000 to ₹40 lakh
- ICICI Bank
- ₹50,000 to ₹50 lakh
Tenure
- HDFC Bank
- 12 to 72 months
- ICICI Bank
- 12 to 72 months
Processing fee
- HDFC Bank
- Up to 2.5% (max ₹25,000)
- ICICI Bank
Foreclosure charges
- HDFC Bank
- 2-4% of outstanding
- ICICI Bank
- 5% of outstanding
Part-payment allowed
- HDFC Bank
- Yes, after 12 EMIs
- ICICI Bank
- Not allowed
Pre-approved offer
- HDFC Bank
- 10-second insta-loan
- ICICI Bank
- iMobile Insta-loan
Minimum income (metro)
- HDFC Bank
- ₹25,000/month
- ICICI Bank
- ₹40,000/month
Bounce charge
- HDFC Bank
- ₹550
- ICICI Bank
- ₹500
HDFC Bank vs ICICI Bank: our verdict
For most salaried borrowers, HDFC Bank has the edge on terms - lower minimum income and, crucially, the ability to make part-payments. Starting rates are close; compare the rate each bank actually quotes you. ICICI Bank's no-part-payment policy is a genuine drawback if you get an annual bonus you want to deploy. Choose ICICI if you need a larger loan (up to ₹50 lakh) or already have your salary account with them.
Rate comparison in practice
The difference between the two banks' published starting rates is smaller than what you'll see across two applicants at the same bank. Your credit score, employer category, and existing relationship move the actual rate you're quoted far more than the bank you pick.
What moves the rate you're quoted
- Credit score - 750+ typically gets the starting rate; below 700 pushes 200-400 bps higher
- Employer category - listed corporates and PSUs get better rates than SMEs or startups
- Existing banking relationship - salary account or existing loans with the bank helps
- Loan amount and tenure - larger loans and shorter tenures see slightly lower rates
- Location - metros and Tier-1 cities generally see marginally better rates
Reducing balance vs flat rate
All banks in this table quote reducing balance interest rates - the fair way to compute. Avoid any NBFC or fintech quoting "flat" rates, which look lower but are effectively 1.7-1.9x the reducing rate equivalent.
How to negotiate down
- Compare quotes in writing from 2-3 banks before signing
- Highlight your existing salary account or long tenure with the bank
- Ask for a lower processing fee if the rate is fixed
- Time the application during festive campaigns (Sep-Nov, Jan-Mar) when banks push rate promos