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Personal Loan Interest Rates for Banks & NBFCs 2024

“Explore the latest 2024 personal loan interest rates from top Banks & NBFCs. Find competitive rates to suit your financial goals and secure the best loan offer.

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What is Personal Loan Interest Rate?

Before we dive into the specifics of personal loan interest rates, let’s first define what interest rates are. An interest rate is the amount of money a lender charges you for borrowing money. It is typically expressed as a percentage of the total loan amount and is added to the principal amount of the loan. This means that you will be paying back the loan amount plus the interest rate.

Personal loan interest rates can be fixed or variable. Fixed interest rates remain the same throughout the life of the loan, while variable interest rates can fluctuate based on market conditions. Variable interest rates are typically lower than fixed interest rates initially, but they can increase over time, making your monthly payments higher.

Comparison of Personal Loan Interest rates of Banks 2024
Banks
Institution Interest rates Loan amount
DBS bank From 10.99% Upto 15 Lakhs
HDFC From 10.5% Upto 40 Lakhs
Axis Bank From 10.49%` Upto 40 Lakhs
ICICI bank 10.75%-19% Upto 40 Lakhs
Bank of Baroda 10.75% – 18.5% Upto 5 Lakhs
SBI From 11% Upto 30 Lakhs
IndusInd From 10.49% Upto 50 Lakhs
Yes Bank From 10.99% Upto 40 Lakhs
Standard Chartered From 11.5% Upto 50 lakhs
IDFC From 10.49% Upto 50 Lakhs
Kotak Mahindra From 10.99% Upto 40 Lakhs
PNB From 11.40% Upto 20 Lakhs
Bandhan bank From 11.55% Upto 25 Lakhs
Comparison of Personal Loan Interest rates of NBFCs 2024
NBFCs
Institution Interest rates Loan amount
Piramal Finance From 12.99% Upto 35 Lakhs
Shriram Finance From 14% Upto 35 Lakhs
Tata Capital From 10.99% Upto 35 Lakhs
InCred From 18% Upto 3 Lakhs
Finnable From 16% Upto 10 Lakhs
PaySense From 16.8% Upto  5 Lakhs
Poonawalla From 9.99% Upto 30 Lakhs
Fullerton From 11.99% Upto 25 Lakhs
LendingKart From 12% Upto 3 Lakhs
Axis Finance From 13% Upto 25 Lakhs
L&T Finance From 12% Upto 7 Lakhs
Mahindra Finance From 10.99% Upto 10 Lakhs
Aditya Birla From 11.99% Upto 50 Lakhs
Bajaj Finance From 11% Upto 50 Lakhs

Factors influence the Personal loan Interest Rate

Several factors influence the interest rate you receive on a personal loan, some of which you can control and others that are out of your hands. Here’s a breakdown:

Factors you can influence:

  • Credit Score: This is the single biggest factor affecting your interest rate. A higher credit score (generally 685 or above) indicates lower risk for the lender and translates to a better interest rate.
  • Debt-to-Income Ratio (DTI): This measures your monthly debt payments against your gross income. A lower DTI (ideally below 35%) demonstrates your ability to manage debt and makes you a more attractive borrower.
  • Loan Amount: Larger loan amounts may attract slightly higher interest rates, as they pose a greater risk to the lender.
  • Loan Term: Longer loan terms generally come with higher interest rates compared to shorter terms.
  • Repayment History: A history of timely loan repayments on past loans demonstrates your creditworthiness and can lead to better interest rates.
  • Co-signer: Adding a co-signer with good credit can improve your loan terms and potentially lower your interest rate.

Factors beyond your control:

  • Market Interest Rates: Overall market interest rates can influence what lenders charge for personal loans.
  • Lender’s Policies and Risk Tolerance: Each lender has its own criteria for risk assessment and sets its own interest rates accordingly.
  • Loan Features and Fees: Some lenders may offer additional features or services with their loans, which can increase the overall cost and affect the effective interest rate.

Tips for getting the best personal loan interest rate:

  • Shop around and compare rates: Don’t settle for the first offer you receive. Compare rates and terms from multiple lenders to find the best deal.
  • Negotiate your rate: Don’t be afraid to negotiate your interest rate with the lender, especially if you have a strong credit score or other factors in your favor.
  • Improve your credit score: If your credit score is low, take steps to improve it before applying for a loan. This can significantly impact your interest rate.
  • Consider a shorter loan term: Opting for a shorter loan term can lower the overall interest paid, even if the monthly payment is higher.
  • Avoid unnecessary fees: Read the loan terms carefully and watch out for any hidden fees that could increase the overall cost of your loan.

Remember, the key to getting the best personal loan interest rate is to be informed, proactive, and compare options before making a decision.

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