Personal Loan Interest Rate (May 2026)

Bajaj Finance Personal Loan interest rate starts from as low as 10%  p.a., making it a practical option if you are looking for an affordable personal loan. With competitive rates and flexible repayment options, it can help you manage planned or urgent expenses without putting too much pressure on your monthly budget.
 

✅ Check your offer in just 2 steps to know the exact interest rate for your loan and plan repayments without hassle.
 

The personal loan EMI calculator also helps you estimate monthly instalments clearly based on the latest rates. This makes it easier to manage EMIs, compare options, and choose a repayment plan that fits your budget smoothly.

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

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The personal loan interest rate is the cost you pay to borrow money from a lender. It is shown as a percentage of the loan amount and directly affects your monthly EMI and total repayment. Getting the best personal loan interest rates can help you reduce your overall borrowing cost and manage repayments more easily.

Lenders decide the personal loan low interest rate based on several factors, such as:

● Your credit score
● Income level and job stability
● Employment type and repayment history
● Current market conditions

There are mainly two types of personal loan interest rates:

● Fixed interest rate: The rate stays the same throughout the loan tenure. This helps you plan fixed EMIs without changes.
● Floating or variable interest rate: The rate may change based on market conditions, which can increase or decrease your EMI over time.

Choosing the right rate type and comparing offers is important because even a small difference in interest rate can significantly impact your total repayment. Checking and comparing the best personal loan interest rates can help you save money and select a suitable repayment plan. You can also use a personal loan EMI calculator to estimate your monthly instalments and plan your budget better.
 

Why it matters: A difference of just 1–2% in interest rate can save you thousands over your loan tenure. Comparing rates from different loan offers 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.

Getting the best deal on a personal loan depends on your financial profile and the lender you choose. Lenders set personal loan rates based on income, credit history, and repayment ability. Even small changes in rate can affect total repayment. This is why many borrowers look for low interest personal loans to reduce costs. A strong financial profile improves your chances of better terms. You can also explore a personal loan to compare options and make informed borrowing decisions.
 

Let us 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. A good credit score improves your chances of securing the lowest personal loan interest rates.
 

• Occupation: Whether you're salaried or self-employed plays a role in determining your interest rate. Salaried individuals, especially those working with reputed or government organisations, may enjoy lower rates due to stable income.
• Monthly income: Higher income shows better repayment capacity, making you a low-risk borrower. This often leads to more favourable interest rates.
  Why it matters: A stable and sufficient income can help you access current personal loan interest rates at the lower end of the scale.
• Debt-to-income ratio: This ratio reflects how much of your income goes towards existing EMIs or debt.
  Lower ratio = Higher chances of getting a low-interest loan.
  If most of your income is tied up in repayments, lenders may charge a higher rate to cover their risk.
• Age of the borrower: Younger applicants, particularly those in their 20s and 30s, are evaluated based on their income stability and repayment capacity, which can influence the interest rate on personal loan.
• Employer profile: Employment with a reputed company or a government organisation demonstrates income stability, which can positively impact the interest rate on personal loan.
• Relationship with the lender: Borrowers with an existing account or a strong repayment history with the lender often benefit from more favourable interest rates.
   

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Understanding the calculation helps you verify your EMI and total interest cost. Let's break it down with a practical example:
 

Step 1: Use the EMI formula

EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]

Where:
• P = Loan amount (Principal)
• R = Monthly interest rate
• N = Number of monthly instalments

Step 2: Practical example

Loan details:

● Principal loan amount (P) = Rs. 1,00,000
● Annual interest rate = 10%
● Monthly interest rate (R) = 10% ÷ 12 = 0.83% or 0.0083
● Loan tenure = 12 months
● Number of instalments (N) = 12

Calculation:
EMI = [1,00,000 × 0.0083 × (1.0083)^12] / [(1.0083)^12 - 1]

Monthly EMI = Rs. 8,791 (approx.)

Step 3: Calculate total interest

● Total repayment over 12 months: Rs. 8,791 × 12 = Rs. 1,05,492
● Total interest paid: Rs. 1,05,492 – Rs. 1,00,000 = Rs. 5,492

In this example, you pay an EMI of around Rs. 8,791 and total interest of Rs. 5,492 over one year.

Why you do not need to calculate manually

You do not need to calculate EMI manually. You can simply use a personal loan EMI calculator to make the process easier and faster. It helps you:

● Adjust the loan amount, interest rate, and tenure instantly
● Find a suitable EMI based on your budget
● Compare different repayment options
● Avoid manual calculation errors
● Save time and plan better repayments
 

How to secure the lowest interest rate for a personal loan

• Step 1: Maintain a strong credit profile
  A higher credit score improves chances of getting closer to the personal loan minimum interest rate. Timely repayments and low credit utilisation help build trust with lenders.
• Step 2: Compare multiple lenders before applying
  Different lenders offer different personal loan rates. Comparing options helps identify the most affordable interest rate instead of accepting the first offer.
• Step 3: Choose a shorter loan tenure wisely
  Shorter tenures often come with lower overall interest cost. This can help reduce the total burden even if the monthly EMI is slightly higher.
• Step 4: Show stable income and low existing debt
  A stable job and fewer active loans improve eligibility for better rates. Lenders view such borrowers as lower risk, increasing chances of better pricing.
• Step 5: Apply for the right loan amount
  Borrowing only what is needed improves approval chances and may help in securing better personal loan rates.
• Step 6: Check pre-approved offers if available
  Pre-approved loans often come with competitive interest rates due to existing customer relationship and verified financial history.

Step-by-step guide to apply for a personal loan:
 

• Click on ‘CHECK ELIGIBILITY’ on this page.
• Enter your 10-digit mobile number and the OTP sent to your phone.
• Check if you have an offer. If not, fill in the application form with your basic loan details, such as your full name, PAN, date of birth, and PIN code.
• Now, click on ‘PROCEED’ to visit the loan selection page.
• Enter the offer or loan amount that you need. Choose from our personal loan variants.
• Choose the repayment tenure and click on ‘PROCEED’.
• Complete your KYC and submit your application.