Finding the lowest personal loan interest rate in 2026 can significantly reduce your EMI and the total amount you repay over the life of the loan.

Banks in India offer personal loans at different interest rates depending on factors such as credit score, monthly income, employer profile, existing EMIs, repayment history, loan amount, and tenure. Therefore, the bank advertising the lowest starting rate may not necessarily offer the lowest rate to every customer.

Based on the currently displayed official rates of several major banks, Axis Bank and IDFC FIRST Bank advertise personal loans starting from 9.99% per annum. SBI currently lists rates starting from 10.05% p.a., ICICI Bank from 10.60% p.a., HDFC Bank from 10.90% p.a., and Kotak Mahindra Bank from 10.99% p.a.

In this detailed guide, we compare major banks, explain how personal-loan interest rates work, show EMI examples, and discuss how you may qualify for a lower rate.

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Lowest Personal Loan Interest Rates in 2026 – Quick Comparison

Bank	Advertised Starting Interest Rate	Important Feature
Axis Bank	9.99% p.a.	Loan up to ₹40 lakh
IDFC FIRST Bank	9.99% p.a.	Digital loan and zero foreclosure charges on eligible product
SBI	10.05% p.a.	Rates published up to 15.05% for standard SBI Personal Loan
ICICI Bank	10.60% p.a.	Published personal-loan rate from 10.60%
HDFC Bank	10.90% p.a.	Published salaried rate range up to 24%
Kotak Mahindra Bank	10.99% p.a.	Fixed personal-loan rate starting from 10.99%

These are advertised or currently published starting rates and should not be treated as guaranteed rates for every applicant.

Your final loan offer may be higher depending on your personal financial profile.

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Which Bank Has the Lowest Personal Loan Interest Rate in 2026?

Among the major banks compared in this article, Axis Bank and IDFC FIRST Bank currently advertise the lowest starting personal-loan interest rate at 9.99% per annum.

Axis Bank’s official personal-loan page currently shows:

• Interest rate starting from 9.99% p.a.
• Loan amount up to ₹40 lakh
• Tenure up to 84 months
• Processing fee up to 2% of the loan amount plus GST

IDFC FIRST Bank currently advertises eligible digital personal loans starting at:

9.99% p.a.

Its official banking page also promotes personal loans of up to ₹10 lakh starting at 9.99% p.a. on the displayed product offer.

However, the lowest advertised rate is usually reserved for customers who meet the lender’s strongest credit and eligibility requirements.

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1. Axis Bank Personal Loan Interest Rate 2026

Axis Bank currently advertises personal loans starting from:

9.99% per annum

The bank’s official personal-loan page also lists:

• Maximum loan amount: ₹40 lakh
• Repayment tenure: 12 to 84 months
• Processing fee: Up to 2% of the loan amount plus GST

Therefore, Axis Bank currently has one of the lowest advertised starting rates among the major banks included in this comparison.

Who May Get the Lowest Axis Bank Rate?

The final rate can depend on factors such as:

• Credit score
• Monthly income
• Existing loans
• Employer profile
• Banking history
• Requested loan amount
• Repayment tenure

A 9.99% offer is not automatically available to every applicant.

Example

Suppose two people apply for a ₹5 lakh personal loan.

Applicant A has:

• Credit score above 800
• High monthly salary
• No previous loan defaults
• Low existing EMI burden

Applicant B has:

• Lower credit score
• Several existing EMIs
• Recent late payments

Even if both apply to Axis Bank, they can receive different interest rates.

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2. IDFC FIRST Bank Personal Loan Interest Rate 2026

IDFC FIRST Bank also currently advertises personal loans starting at:

9.99% per annum

The bank’s official digital personal-loan information also highlights flexible repayment and zero foreclosure charges for the relevant digital product.

For salaried borrowers, IDFC FIRST Bank states that its FIRSTmoney personal-loan interest rate starts from 9.99% p.a.

Another important feature is that eligible digital personal loans may allow customers to foreclose without additional foreclosure charges.

This can be important if you expect to repay your loan early.

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3. SBI Personal Loan Interest Rate 2026

State Bank of India currently publishes its standard personal-loan rate range as:

10.05% to 15.05% per annum

The official SBI page states that the interest rate starts from:

10.05% p.a.

SBI also lists personal loans of up to:

₹35 lakh

for eligible salaried customers under its standard personal-loan product.

SBI’s officially published rate structure shows an effective interest-rate range of 10.05% to 15.05%.

SBI May Be Suitable for Eligible Salary Account Customers

The standard SBI Personal Loan scheme is primarily designed for eligible salaried employees maintaining salary-package accounts with SBI.

Therefore, applicants should not compare SBI with another bank only on the basis of the headline rate.

Eligibility should also be checked.

Also read:

SBI Personal Loan 2026: Latest Interest Rate, Documents and Eligibility

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4. ICICI Bank Personal Loan Interest Rate 2026

ICICI Bank currently displays personal-loan rates starting from:

10.60% per annum

Its published interest-rate range is:

10.60% to 16.50% per annum

The bank states that the final rate applicable to a customer depends on factors including:

• Customer segment
• Asset category
• Location
• Applicant profile

ICICI Bank also lists processing or origination charges of up to:

2% of the loan amount plus applicable taxes

Applicants should compare the final APR and not only the nominal interest rate.

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5. HDFC Bank Personal Loan Interest Rate 2026

HDFC Bank currently publishes a personal-loan rack interest-rate range for salaried borrowers of:

10.90% to 24% per annum

Processing charges can be:

Up to ₹6,500 plus GST

The actual rate depends on the applicant’s creditworthiness and bank assessment.

HDFC Bank can be particularly relevant for eligible existing customers who receive pre-approved personal-loan offers.

However, borrowers should compare their actual HDFC offer against competing banks instead of assuming that a pre-approved loan is automatically the cheapest.

Also read:

HDFC Personal Loan 2026: Interest Rate, Eligibility, EMI and Apply Online

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6. Kotak Mahindra Bank Personal Loan Interest Rate 2026

Kotak Mahindra Bank’s published personal-loan terms currently state that fixed interest rates start from:

10.99% per annum

Its published MITC also mentions:

• Processing fee up to 5% of final loan amount plus taxes
• EMI bounce charges
• Foreclosure conditions
• Part-prepayment conditions

Therefore, borrowers should compare both the rate and charges before accepting an offer.

Also read:

Kotak Mahindra Bank Personal Loan 2026: EMI, Rate and Online Application

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Personal Loan Rate Comparison – Which is Cheapest?

If we compare only the advertised starting interest rate:

Axis Bank: 9.99%
IDFC FIRST Bank: 9.99%
SBI: 10.05%
ICICI Bank: 10.60%
HDFC Bank: 10.90%
Kotak Mahindra Bank: 10.99%

On the headline starting-rate basis, Axis Bank and IDFC FIRST Bank currently appear to have the lowest starting rate among these banks.

But this does not mean they will necessarily be cheapest for every borrower.

The final comparison should be based on:

Interest Rate + Processing Fee + GST + Other Charges + Foreclosure Cost + Total Interest

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Why You May Not Get the Lowest Advertised Rate

Banks use risk-based pricing.

This means two customers applying for the same amount from the same bank may receive different rates.

Important factors include:

Credit Score

Your credit score is one of the most important factors considered by lenders.

A borrower with a strong credit profile may receive a lower rate than someone with a history of:

• Late EMIs
• Credit-card defaults
• Settlements
• High credit utilisation
• Multiple recent loan applications

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Monthly Income

Higher and stable income can improve repayment capacity.

For example, a borrower earning ₹1 lakh per month with limited existing debt may be considered less risky than a borrower earning ₹30,000 with several existing EMIs.

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Employer Profile

Banks may consider whether you work for:

• Government organisation
• PSU
• Large private company
• MNC
• Approved corporate employer

Stable employment can improve the overall credit assessment.

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Existing EMIs

Banks examine how much of your monthly income already goes toward loan repayments.

If you already have:

• Home-loan EMI
• Car-loan EMI
• Credit-card EMI
• Other personal loans

your ability to borrow more may be reduced.

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Relationship With the Bank

Existing customers may receive:

• Pre-approved loans
• Faster processing
• Reduced documentation
• Special pricing

However, an existing banking relationship does not automatically guarantee the lowest interest rate.

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Why Processing Fee Matters

Suppose Bank A offers a loan at 9.99%, but charges a relatively high processing fee.

Bank B offers a loan at 10.20%, but charges a much smaller processing fee.

Depending on the:

• Loan amount
• Tenure
• Processing fee
• Other charges

Bank B could still produce a similar or potentially lower overall borrowing cost.

Therefore, you should compare the APR, not only the nominal rate.

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What is APR in a Personal Loan?

APR means:

Annual Percentage Rate

APR attempts to represent the annual cost of borrowing after considering the interest rate and certain loan-related costs.

For example:

Loan A

Interest rate: 10%
Processing charges: High

Loan B

Interest rate: 10.5%
Processing charges: Very low

Looking only at the interest rate makes Loan A look cheaper.

But comparing the APR may show that the difference is much smaller.

Always review the Key Fact Statement (KFS) supplied by the lender.

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Lowest Personal Loan EMI Example

Consider a personal loan of:

₹5 lakh

for:

5 years

The approximate EMI changes depending on the rate.

Interest Rate	Approx. EMI for ₹5 Lakh / 5 Years
9.99%	Around ₹10,620
10.05%	Around ₹10,635
10.60%	Around ₹10,770
10.90%	Around ₹10,846
10.99%	Around ₹10,870
12%	Around ₹11,122

These are illustrative calculations.

A difference of only 1% in interest can become meaningful over several years, especially for larger loans.

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Example: ₹10 Lakh Personal Loan

Suppose you take:

₹10 lakh

for:

5 years

At Around 9.99%

Your EMI may be approximately:

₹21,240 per month

At Around 12%

Your EMI may increase to approximately:

₹22,244 per month

That is roughly ₹1,000 more every month.

Over 60 months, the difference in total repayment can become significant.

Therefore, comparing rates before applying can save money.

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Which Bank Should You Choose for a Personal Loan?

Instead of selecting a bank only because it advertises the lowest rate, compare these seven factors:

1. Your Actual Interest Rate

Ask for the rate applicable specifically to your profile.

2. Processing Fee

Check whether the bank charges:

• Flat fee
• Percentage-based fee
• GST

3. Loan Amount

Make sure the bank can provide the amount you need.

4. Repayment Tenure

Longer tenure means lower EMI but generally more total interest.

5. Foreclosure Charges

This is important if you plan to repay early.

6. Part-Prepayment Rules

Check whether you can pay extra toward the principal.

7. APR and Total Repayment

This provides a better comparison than just looking at the starting interest rate.

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How to Get the Lowest Personal Loan Interest Rate

There is no guaranteed method, but these steps may improve your chances of receiving competitive terms.

Maintain a High Credit Score

Pay:

• Credit-card bills
• Personal loans
• Home loans
• Car loans

on time.

Also read:

How to Improve CIBIL Score Before Applying for a Loan

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Lower Your Existing Debt

If possible, reduce existing credit-card balances and expensive debts before applying.

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Avoid Multiple Applications

Applying for loans from many lenders within a short period can create multiple hard enquiries on your credit report.

Instead, research likely offers before submitting formal applications.

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Maintain Stable Employment

Frequent job changes can sometimes make your profile appear less stable to lenders.

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Compare Pre-Approved Offers

If you already bank with:

• SBI
• HDFC Bank
• ICICI Bank
• Axis Bank
• Kotak Mahindra Bank
• IDFC FIRST Bank

check whether you have a pre-approved offer.

But compare the actual rate and fees before accepting it.

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Is a Government Bank Personal Loan Always Cheaper?

Not necessarily.

SBI currently advertises a starting rate of 10.05% p.a., which is competitive.

However, private-sector banks such as Axis Bank and IDFC FIRST Bank currently advertise starting rates of 9.99% p.a.

Therefore, borrowers should not assume that:

Government Bank = Lowest Rate

or:

Private Bank = Expensive Loan

The actual rate depends on the lender and borrower profile.

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Fixed vs Floating Personal Loan Rate

Personal loans may use different interest-rate structures depending on the lender.

Fixed Rate

The applicable interest rate generally remains fixed according to the loan agreement.

This can make EMI planning easier.

Floating Rate

The rate can change with the linked benchmark and applicable loan terms.

Check whether your loan rate is fixed or floating before signing the agreement.

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Personal Loan Documents Generally Required

Although requirements differ by bank, applicants commonly need:

Identity Documents

• PAN
• Aadhaar or another accepted KYC document
• Passport
• Driving Licence
• Voter ID

Income Documents

• Salary slips
• Bank statements
• Form 16
• ITR where applicable

Employment Details

• Employer information
• Work experience
• Salary details

Additional Documents

The bank may request further information according to the applicant’s profile.

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Can You Get a Personal Loan at 9.99%?

Yes, some banks currently advertise rates starting at 9.99% p.a.

However, the word “starting” is important.

To qualify for the advertised lowest rate, the lender may consider factors such as:

• Excellent credit score
• Strong income
• Low existing debt
• Stable employment
• Good repayment history
• Internal risk category

Therefore, applicants should not assume that submitting an application guarantees a 9.99% loan.

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Is 10% a Good Personal Loan Interest Rate?

Relative to the currently advertised ranges of major banks, a personal-loan offer around 10% is close to the lower end of several major-bank starting rates.

However, whether an offer is attractive should also depend on:

• Processing fee
• Loan amount
• Tenure
• Foreclosure terms
• APR
• Your alternative offers

A 10% loan with very high fees may not necessarily be better than a slightly higher rate with lower overall charges.

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Which Bank Gives Lowest Personal Loan Rate for Salaried Employees?

There is no single guaranteed bank for every salaried applicant.

Currently advertised starting rates among the banks compared here include:

• Axis Bank – 9.99%
• IDFC FIRST Bank – 9.99%
• SBI – 10.05%
• ICICI Bank – 10.60%
• HDFC Bank – 10.90%
• Kotak Mahindra Bank – 10.99%

A salaried borrower should request or check actual offers before making a decision.

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Which Bank Is Best for a ₹5 Lakh Personal Loan?

For a ₹5 lakh loan, compare:

• Actual interest rate
• Processing fee
• EMI
• Total interest
• Foreclosure charges
• Tenure

For example, if two banks offer:

Bank A

Rate: 9.99%
Processing fee: 2%

Bank B

Rate: 10.25%
Processing fee: ₹2,000

it is worth calculating the complete cost before deciding.

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Which Bank Is Best for ₹10 Lakh Personal Loan?

The same principle applies to a ₹10 lakh loan.

Because the principal amount is larger, even small differences in rate and fees can have a larger impact.

Before borrowing ₹10 lakh, ask each bank for:

• Sanctioned rate
• EMI
• APR
• Processing fee
• Total repayment
• Foreclosure conditions

Compare all figures side by side.

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Personal Loan Comparison Checklist

Before applying, use this checklist:

Factor	What to Check
Interest Rate	Actual rate offered to you
APR	Overall annual borrowing cost
Processing Fee	Percentage or fixed amount
GST	Applicable on eligible charges
Loan Amount	Maximum amount approved
EMI	Affordable monthly instalment
Tenure	Short vs long repayment
Foreclosure	Early-closure cost
Part Payment	Whether permitted
Penal Charges	Cost of delayed EMI
Total Repayment	Principal + interest + costs

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Frequently Asked Questions

Which bank currently gives the lowest personal loan interest rate in 2026?

Among the major banks compared here, Axis Bank and IDFC FIRST Bank currently advertise starting personal-loan rates of 9.99% p.a.

The final rate depends on the applicant’s eligibility and credit profile.

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What is SBI Personal Loan interest rate?

SBI’s currently published standard Personal Loan rate starts from approximately 10.05% p.a., with the official published effective range at 10.05% to 15.05%.

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What is HDFC Personal Loan interest rate?

HDFC Bank currently publishes a salaried personal-loan rack rate of approximately 10.90% to 24% p.a.

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What is ICICI Personal Loan interest rate?

ICICI Bank currently displays rates starting from approximately 10.60% p.a., with its published range extending to 16.50% p.a.

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What is Kotak Personal Loan interest rate?

Kotak Mahindra Bank’s published personal-loan terms currently state rates starting from approximately 10.99% p.a.

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Is 9.99% available to everyone?

No.

9.99% is an advertised starting rate. The actual rate depends on the bank’s assessment of the borrower’s income, credit profile, employment, existing liabilities, and other factors.

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Does a high CIBIL score guarantee the lowest rate?

No.

A good credit score can improve your chances, but lenders also consider income, employer, loan amount, debt obligations, repayment history, and their internal lending policies.

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Should I choose the bank with the lowest rate?

Compare the actual offer, not only the advertised rate.

Check the APR, processing fee, foreclosure charges, EMI, tenure, and total repayment amount before accepting any loan.

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Important Official Bank Sources

For the latest offers and terms, borrowers should verify rates directly through the official websites of:

• Axis Bank
• IDFC FIRST Bank
• State Bank of India
• ICICI Bank
• HDFC Bank
• Kotak Mahindra Bank

Interest rates and promotional offers can change at any time.

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Conclusion

So, which bank gives the lowest personal loan interest rate in 2026?

Based on the currently advertised starting rates of the major banks compared in this article, Axis Bank and IDFC FIRST Bank both start at approximately 9.99% per annum.

SBI follows closely with a starting rate of approximately 10.05% p.a., while ICICI Bank currently starts at approximately 10.60%, HDFC Bank at 10.90%, and Kotak Mahindra Bank at 10.99%.

However, borrowers should not choose a loan solely on the basis of the lowest advertised rate.

The actual best-value loan depends on:

• Your final sanctioned interest rate
• Processing fee
• APR
• EMI
• Repayment tenure
• Foreclosure charges
• Other fees
• Total repayment amount

Always compare personalised offers and carefully read the Key Fact Statement and loan agreement before accepting a personal loan.

Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice. Interest rates, eligibility rules, processing fees, loan limits, and other conditions can change. Advertised starting rates are not guaranteed to every customer. Always verify current rates and your final loan offer directly with the respective bank before applying.