Personal Loan Interest Rate 2025

Find out the interest rates and related charges for our personal loan. Check your offer in just 2 steps to know the exact interest rate applicable for you and plan your repayment easily.

Use the interest calculator to get accurate repayment details based on the latest rates for a personal loan. It helps you plan better with competitive interest rates and manage your loan efficiently, ensuring lower EMIs. By understanding the fees and charges, you can make informed decisions and comfortably repay your loan.

Note: Additional cess if any, will be applicable to all charges according to state law.

*Terms and conditions apply.

Getting the best deal on a personal loan isn't just about choosing the right lender — it's also about how strong your financial profile is. Many key factors impact the interest rate you're offered, and even a small difference in rate can impact your total repayment significantly.

Let’s break down the main things lenders look at when deciding your personal loan interest rate:

• CIBIL Score: Think of your CIBIL score as your financial report card. The higher your score, the more trustworthy you appear to lenders. A good score means lower risk for them — and a lower interest rate for you.

Here’s how your score affects loan approval:

Pro tip: Check your credit score regularly and pay EMIs on time to boost your score before applying.

• Occupation: Whether you're salaried or self-employed can influence the interest rate you're offered. Salaried professionals, especially those working with reputed companies, may get better rates due to income stability.
• Monthly income: A higher monthly income improves your repayment capacity — which makes lenders more confident about lending to you at a lower rate.

Why it matters: A stable and sufficient income helps lower the lender’s risk, and that often translates into better interest offers.

• Debt-to-income ratio: This ratio shows how much of your income is already going into existing EMIs or loans.
  

Lower ratio = better chances at a low-interest personal loan

If your debts are eating up most of your income, lenders may offer you higher rates to offset the risk.

• Age of the borrower: Younger applicants — especially those in their 20s and 30s — may get more competitive interest rates because they have more working years ahead, offering longer repayment potential.
• Your employer: Working for a well-known company or a government institution often works in your favor. It signals income stability, which lenders like.
• Your existing relationship with the lender: If you already have an account or past loan history with a lender and a good repayment track record, you might get preferential interest rates.

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What is the personal loan interest rate?

In simple terms, it’s the cost you pay for borrowing money — shown as a percentage of your loan amount.

Lenders decide your personal loan interest rate based on:

• Your credit score
• Income and employment details
• Current market conditions

There are two types of personal loan interest rates:

• Fixed interest rate: This stays the same throughout your loan term. Great if you want predictable EMIs.
• Floating/variable interest rate: This can change based on market conditions. Your EMI may go up or down over time.

Why it matters: A difference of just 1–2% in interest rate can save you thousands over your loan tenure. Always compare offers before applying.

Comparing rates from different lenders is crucial to finding the most favourable terms for a personal loan, minimising overall borrowing costs.

You can calculate the interest on personal loan with our interest calculator.

How is personal loan interest calculated?

Let’s understand with a quick example:

Priya takes a personal loan of ₹1,00,000 at 15% interest per year for 12 months.
She pays:

• Total interest: ₹8,310
• Monthly EMI: Around ₹9,026

You don’t need to calculate manually — just use a free personal loan EMI calculator. It helps you adjust the loan amount, interest rate, and tenure to find the most comfortable EMI for your budget.

EMI formula used for a personal loan is given by:

EMI = [PxRX(1+R)^N]/[(1+R)^N-1]​

Where:

• P = Loan amount
• R = Monthly interest rate
• N = Number of monthly instalments

*Terms and conditions apply.

Our representative will call you for the next steps. The loan amount will be transferred to your bank account after successful verification of your documents.