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Lowest Personal Loan Interest Rates (October 2026)

Which bank's personal loan starts at the lowest rate? Every bank's published starting rate, ranked lowest first, with the EMI on your loan amount. Your own rate depends on your credit score, income and employer.

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Calculator and results

The lowest personal loan starting rate is 8.9% p.a. at Axis Bank, as of 21 October 2026, from each bank’s own website.

₹

Lowest starting rate

Axis Bank 8.9%

Highest starting rate

RBL Bank 18%

These are the lowest personal loan rates each bank publishes. The rate you are offered depends on your credit score, income and employer, and can be higher. A row marked “rates actually charged” shows the lowest and highest rates the bank charged on loans in that period, not a starting rate, and is left out of the lowest and highest figures. EMIs above do not include processing fees, insurance or other charges. Check with the bank before you apply. How we check these rates.

What it is:
A ranking of Indian banks' personal loan starting interest rates.
What it calculates:
Each bank's lowest published rate and the EMI on your amount at that rate.

Key Assumptions

  • Starting rates as published on each bank's site on the date shown.
  • Your actual rate depends on credit score, income and employer.
  • EMIs exclude processing fees and other charges.

How does the Lowest Personal Loan Interest Rates work?

Each starting rate was read from the bank's own website or rate document and dated; each row links to its source. A row marked "may be outdated" has not been re-checked for more than 45 days.

For loans a lower rate is better, so the list starts with the lowest. The starting rate is the best the bank offers, usually to borrowers with a high credit score; many people are offered more.

The EMI shown uses the starting rate for the amount and tenure you enter. Processing fees, insurance and other charges are not included; fees are shown in the bank's own words where it publishes them.

Rates as of 21 October 2026.

Lowest Personal Loan Interest Rates formula

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

P
= loan amount
r
= monthly rate = annual starting rate ÷ 12 ÷ 100
n
= tenure in months

Lowest Personal Loan Interest Rates: worked example

Lowest 3 starting rates: EMI on ₹5,00,000 over 5 years

Axis Bank
8.9%, EMI ₹10,355
Union Bank of India
9.15%, EMI ₹10,416
Punjab & Sind Bank
9.9%, EMI ₹10,599

Lowest Personal Loan Interest Rates: frequently asked questions

Which bank has the lowest personal loan rate?
The list above ranks every bank's published starting rate, lowest first. The lowest rates are usually for salaried customers of large employers with a high credit score.
Do processing fees matter?
Yes. A fee of 1–2% of the loan adds to the real cost, especially on short loans. Compare the fee as well as the rate.

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Reviewed by Pradipta Ray, MBA (Finance) · Updated