Current Personal Loan Rates in India: What You Really Pay

When you hear current personal loan rates, the percentage of interest lenders charge you each year on borrowed money. Also known as personal loan interest rates, it's the single biggest factor that decides how much you'll end up paying back. In India today, these rates range from 10.5% to 24%—but that number means nothing unless you know why yours is higher or lower than your friend’s.

Your credit score, a three-digit number banks use to judge how risky you are as a borrower. Also known as CIBIL score, it's the main reason two people with the same income get totally different rates. If your score is above 750, you’re likely to get rates near 10.5%. Below 650? You might pay 18% or more. That’s not a small difference—it’s thousands of rupees over the life of your loan. Lenders also look at your income stability, existing debts, and whether you’ve taken a loan before. A salaried employee with a 5-year job history will always get a better deal than a freelancer with the same income.

And it’s not just about the rate. The loan EMI, your fixed monthly payment that includes both principal and interest. Also known as equated monthly installment, it’s what you actually see in your bank account every month. A 1% difference in interest might only change your EMI by ₹200—but over 3 years, that’s ₹7,200 extra you didn’t plan for. Some lenders hide fees in the fine print: processing charges, prepayment penalties, insurance add-ons. These don’t show up in the rate, but they raise your real cost. Always ask: "What’s the total cost of borrowing?" not just "What’s the interest rate?"

Right now, banks like HDFC, ICICI, and Axis are offering competitive rates to salaried customers with strong credit histories. NBFCs like Bajaj Finserv and Tata Capital are more flexible for self-employed borrowers—but often charge more. Online lenders move faster, but their rates can swing weekly. If you’re shopping around, check rates from at least three lenders. Don’t just go with the first offer you see.

What you’ll find below are real, up-to-date breakdowns of how personal loans work in India today. We’ve pulled together posts that explain why your rate jumped last month, how to lower it before applying, what happens if you miss an EMI, and which lenders are actually giving the best deals right now. No theory. No guesswork. Just what’s happening on the ground, for real people with real loans.