A Comparison of Interest Rates on Personal Loans in India

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Interest rates on any loan varies depending on the bank, and income paying capacity of individual and other eligibility criteria like Cibil rating.

To make it simple, let's consider how various leading banks in the country would charge for a personal loan needed for Sanjay who is staying in Bangalore since the last 5 years, who is 30 years old and his take home salary is Rs 50,000. He is salaried person and there are no EMI.

Most of the banks do not allow pre-payment or closure within initial 6 months to one year. 

Also, he stays with his family which is owned by his father. Click on the slide to see options from various banks.

HDFC Bank Interest Rates

HDFC Bank is offering highest loan amount based on Sanjay's eligibility.

Loan amount: Rs 7 lakh (max)
Tenure= 4 years
Interest rate=16.25%

ICICI Bank Interest Rates

Loan amount: Rs 5.5 lakh (max)
Tenure= 4 years
Interest rate=17.25%
EMI= Rs 15,942
Fees and Tax: RS 12,360

Kotak Mahindra Bank Interest Rates

Considering he is working with MNC or large PVT Ltd company.
Loan amount: Rs 50,000-15 lakh
Tenure= 12-60 months
Interest rate=13-24%
Loan processing fees: Upto 3% on loan amount
Documentation charges: Upto Rs 5000

Axis Bank Interest Rates

Loan amount: Rs 50,000-15 lakh
Tenure= 12-60 months
Interest rate=15.50-24%
Loan processing fees: 1.50% to 2.00% + Service Tax as applicable


Loan amount: max upto15 lakh
Tenure= 12-60 months
Interest rates: 13.5- 17.5% p.a.
Processing fee: upto 1% of the disbursed loan amount
Prepayment Charge : 4% of the principal outstanding

Read more about: personal loan, banks, interest rates
Story first published: Friday, November 21, 2014, 9:46 [IST]
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