Personal loan interest rates September 2026: Axis Bank, HDFC, ICICI and 5 others start at 8.90%

Planning to take a personal loan? Interest rates offered by leading private-sector banks start at 8.90% per annum as of September, according to data compiled by Paisabazaar.

For a ₹5 lakh personal loan with a five-year tenure, the monthly EMI starts at around ₹10,355 at the lowest listed rate among the banking institutions compared.

Here is a comparison of personal loan interest rates, EMIs and processing fees offered by eight private-sector banks as of 9 September.

Personal loan interest rates, EMIs, processing fee comparison

The following table compares the interest rates and estimated monthly EMIs for a ₹5 lakh personal loan and a ₹1 lakh loan, both repaid over five years.

Source: Paisabazaar.com. Rates and charges as of 9 September 2026. The rates may vary as per individual applicants, subject to bank policies and terms.

What borrowers should check before taking a personal loan

The lowest advertised interest rate does not guarantee that every borrower will receive it. This is because banking institutions determine the final interest rate based on a range of factors, including individual credit history, credit score, income, employment history and repayment history.

For example, a ₹5 lakh loan at 8.90% for a period of five years has an EMI of approximately ₹10,355, whereas the same loan at 15% would cost around ₹11,895 per month. The higher rate can significantly increase the total repayment over the entire loan tenure.

To avoid such a situation and secure the best possible personal loan interest rate terms, borrowers should compare the final interest rate offered, processing fees, applicable taxes and foreclosure charges before choosing a lending institution. A lower processing fee can reduce upfront costs, whereas a lower interest rate can reduce the overall repayment burden.

The best personal loan is not necessarily the one with the lowest interest rate. You should opt for a lending institution that offers a competitive final rate, transparent charges, flexible repayment terms and an EMI that fits seamlessly within your monthly budget.

Disclaimer: Interest rates, EMIs and charges are indicative and subject to change. Actual loan terms depend on the lender’s policies and the borrower’s profile. Verify the latest details with the respective bank before applying. This article is for informational purposes only and is not financial advice.