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Personal Loan · Updated August 2026

Bank Wise Personal Loan Interest Rates

Every bank publishes a "starting from" rate, and almost nobody is offered it. Comparing those headline numbers tells you very little - here is what to compare instead, and how to get a figure each bank will actually honour.

  • 10.5% – 24%Typical band
  • Floor, not averageAdvertised rate
  • Score + employerSet by
  • APR, not rateCompare on
  • Without noticeRates change
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One bank, one advertised rate Advertised "from 10.49%" Actually offered 10.5% — 22% The advertised figure is the left edge of a wide band, reserved for the strongest files the bank sees.

Why we do not publish a bank-by-bank rate table

You will find dozens of pages listing twenty banks against twenty rates. We have deliberately not built one, for three reasons.

They are stale within weeks. Lenders revise pricing constantly and rarely announce it. A table assembled in March is quietly wrong by June, and nobody updates it.

They compare a number that is not offered to you. The published figure is the floor of a band that can be twelve percentage points wide. Two banks advertising 10.49% and 11.25% may well quote you 15% and 13% respectively — the ranking reverses.

Being wrong here costs you money. Choosing a lender because a table said it was cheapest, then discovering the real quote after a hard enquiry has already been recorded, is a worse outcome than not having read the table at all.

What is worth publishing is the method. That does not go stale.

What actually sets the number you are quoted

FactorRoughly how much it moves your rate
Credit score bandUp to 8 – 10 points between the worst and best bands
Employer category3 – 5 points between a listed company and a small firm
Salary account with the lender0.25 – 1 point, often with the fee waived too
Existing relationship or pre-approved offer0.5 – 1.5 points below the public rate card
Loan sizeLarger loans usually price lower per rupee
TenureLonger terms sometimes carry a small premium
Bank versus NBFCNBFCs price higher but accept weaker files

Your score and your employer together account for most of the spread. That is why the same person can be quoted 12% and 17% by two banks in the same week — the banks grade the same employer differently. The score side is set out on the CIBIL score page.

Did you know?

Banks are required to disclose the annual percentage rate — the all-in cost including the processing fee — not merely the interest rate. Ask for the APR in writing and the comparison becomes honest immediately. A loan at 12.5% with a 3% fee costs more than one at 13% with no fee, and only the APR shows it. Most applicants never ask, which is precisely why the headline rate is the number that gets advertised.

How to get a real, comparable rate from each bank

Four steps, in this order. Doing them out of order is what costs people points and money.

1. Check your own score first. It is free and it is a soft enquiry. Knowing your band tells you which part of each bank's range you are in before you speak to anyone.

2. Look at your salary account bank's pre-approved offer. It sits in the app, it needs no enquiry, and it is frequently below that bank's public rate card. Use it as your floor.

3. Get quotes through soft enquiries only. Applying to four banks to compare is self-defeating — four hard enquiries can cost you thirty points, which is worth more than the rate difference you were shopping for.

4. Compare APR and total repayment, not the rate. Put each offer through the EMI calculator with the same amount and the same tenure. The cheapest headline rate is often not the cheapest loan.

Expert insight

Once you hold two written offers, go back to whichever lender you would prefer and ask them to match the better one. This works far more often than people expect, because the cost of acquiring a new borrower is much higher than the margin they give up to keep you. It is also the only rate reduction available that costs you nothing — no fee, no fresh paperwork, and no additional enquiry on your credit report.

Banks, NBFCs and where each one wins

Banks generally price lower and are stricter — they want a score around 720 or above, a graded employer, and clean banking. NBFCs price higher and are more flexible on score, employment type and documentation. Neither is better in the abstract; they serve different files.

If your profile is strong, start with banks and let NBFCs be the fallback. If your score is below 700 or your income is hard to document, an NBFC is likely to be the realistic option and a bank application is likely to be a wasted hard enquiry. The eligibility thresholds are covered on the eligibility page, and income-side limits on the loan by salary page.

Please note

The bands and factor weightings above are indicative and describe how pricing generally works across lenders, not any specific bank's policy. Rates, fees and eligibility criteria vary by lender and change without notice. Nothing here is a quote, an offer, or a guarantee of approval or of a particular rate — confirm all terms directly with the lender in writing before proceeding.

Questions this page gets asked

Which bank gives the lowest personal loan interest rate?

There is no single answer, because each bank prices your file differently. The bank that is cheapest for a government employee with an 800 score is often not the cheapest for a private-sector applicant at 690.

Why is the rate I was quoted higher than the advertised one?

The advertised figure is the floor of a band, reserved for the strongest profiles. Your quote reflects your score, your employer grade and your existing obligations.

What is a good personal loan interest rate right now?

Roughly 10.5% to 13% is a strong rate, 13% to 16% is ordinary, and above 18% usually signals a weak score or an ungraded employer. Compare against your own profile, not against the lowest advertised number.

Should I compare interest rate or APR?

APR. It includes the processing fee, which is where two apparently similar offers separate. Ask for it in writing.

Can I negotiate the rate a bank offers me?

Often, especially with a competing written offer or an existing relationship. The processing fee is even more negotiable than the rate.

Do NBFCs charge more than banks?

Generally yes, typically two to six points more, in exchange for accepting weaker scores, informal income and faster processing.

Will applying to several banks help me find the best rate?

No — it will lower your score. Each application is a hard enquiry. Compare using soft enquiries, then apply once.

How often do banks change these rates?

Frequently and without announcement, which is why any published bank-by-bank table should be treated as out of date.

Conclusion

Comparing advertised rates across banks feels like research, but it compares a number none of those banks has offered you. The useful comparison is between real quotes on your own file, at the same amount and tenure, measured on APR.

So check your score, start from your salary bank's pre-approved offer, gather quotes without spending hard enquiries, and then ask your preferred lender to match the best of them. That sequence is worth more than any rate table, and it does not go out of date. Fees are broken down on the processing fee page, and the fixed-versus-floating question on the fixed vs floating page.

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More Personal Loan Guides

Where This Page Sits

This is one page in a larger guide. The pillar covers the whole subject end to end — rates, eligibility, documents and the process — and links to every page in the silo.

Comparing products rather than digging into one? These are the main guides.

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Responsible borrowing note

All rates, fees and eligibility figures on this page are indicative market ranges for illustration and are not an offer. Approval, pricing and the sanctioned amount rest entirely with the bank or NBFC. Money Bharti is a loan marketplace, not a lender. Assess your repayment capacity honestly and read the sanction letter in full before signing. This content is general information, not financial advice.

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