Personal loan interest rates from 8.75% in 2026: Compare PSU vs private bank rates before you apply

Nowadays, the majority of lenders provide quick online personal loans with flexible terms and little documentation. Depending on your income, you can select the lowest personal loan interest rate, best terms and the repayment plan. Most people can benefit from a personal loan, including self-employed people and salaried professionals. A personal loan is an important financial choice that needs to be carefully thought about. To make sure you are making an informed decision, it is important to ask yourself the correct questions before moving forward.

However, a personal loan is still a significant financial commitment and should not be taken lightly. Before applying, it is important to compare interest rates, EMIs, and processing fees across lenders so that you can select the option that best matches your financial needs. Understanding how different public and private sector banks price their loans can help you make a more informed and confident borrowing decision.

Lowest PSU bank personal loan interest rates

Lowest personal loan interest rates (based on the minimum rate in the range)

Name of Lender	Interest Rate (p.a %)	EMI (Rs ) Loan Rs 5 lakh, 5 yrs	EMI (Rs ) Loan Rs 1 lakh, 5 yrs	Processing Fee
Union Bank of India	8.75–12.55	10,319–11,262	2,064–2,252	Up to 1% (Max Rs 7,500)
Bank of Maharashtra	8.75–13.55	10,319–11,518	2,064–2,304	Up to 1% (Max Rs 10,000)
Punjab & Sind Bank	9.60–13.85	10,525–11,595	2,105–2,319	0.50%–1%
Canara Bank	9.70–15.15	10,550–11,934	2,110–2,387	0.50% (Rs 1,000–Rs 5,000)
Central Bank of India	9.85–11.65	10,587–11,034	2,117–2,207	Up to 1%
UCO Bank	9.95–13.20	10,611–11,428	2,122–2,286	Up to 1% (Min Rs 750)
State Bank of India	10.00–15.00	10,624–11,895	2,125–2,379	Up to 1.50% (Rs 1,000–Rs 15,000)
Bank of Baroda	10.15–18.00	10,660–12,697	2,132–2,539	Up to 2% (Max Rs 10,000)
Indian Overseas Bank	10.25 onwards	10,685 onwards	2,137 onwards	Up to 0.75%
Punjab National Bank	10.25–16.80	10,685–12,373	2,137–2,475	Up to 1%
Bank of India	10.85–16.15	10,834–12,199	2,167–2,440	Up to 1% (Min Rs 250; Max Rs 15,000)

Data source: Paisabazaar (As on April 15, 2026)

Lowest private banks personal loan interest rates

Name of Lender	Interest Rate (p.a %)	EMI (Rs ) Loan Rs 5 lakh, 5 yrs	EMI (Rs ) Loan Rs 1 lakh, 5 yrs	Processing Fee
Axis Bank	9.60 onwards	10,525 onwards	2,105 onwards	Up to 2%
HDFC Bank	9.99 onwards	10,621 onwards	2,124 onwards	Up to Rs 6,500
ICICI Bank	9.99 onwards	10,621 onwards	2,124 onwards	Up to 2%
IDFC FIRST Bank	9.99 onwards	10,621 onwards	2,124 onwards	Up to 3.5%
IndusInd Bank	10.49 onwards	10,744 onwards	2,149 onwards	Up to 3.5% (2% for instant loans limited period)
Kotak Mahindra Bank	10.99 onwards	10,869 onwards	2,174 onwards	Up to 5%
Federal Bank	11.75–18.99	11,059–12,968	2,212–2,594	Up to 3%

Data source: Paisabazaar (As on April 15, 2026)