By Ramakant Dua Finding the right bank for a personal loan can save you lakhs of rupees in interest over the loan tenure. In 2026, interest rates for personal loans in India range between 9.99% to 24% per annum, depending on your credit score, income, and relationship with the bank.
If you are a salaried professional looking for the best banks for personal loan in India with low interest rates, here’s a clear and updated guide to help you make the right choice.
Why Interest Rate Matters
Even a 2% difference in interest rate can significantly impact your monthly EMI and total interest paid. For example, on a ₹5 lakh loan for 3 years:
- At 11% interest → Total interest ≈ ₹89,000
- At 15% interest → Total interest ≈ ₹1,23,000
That’s a difference of ₹34,000. Hence, choosing a bank with lower interest rates is crucial.
Top 7 Best Banks for Personal Loan with Low Interest Rates in 2026
Here are the best banks and NBFCs offering competitive personal loan interest rates for salaried individuals in 2026:
1. HDFC Bank – Best Overall Choice
- Interest Rate: 10.49% – 16.00% p.a.
- Loan Amount: Up to ₹40 lakh
- Tenure: 12 to 60 months
- Processing Fee: Up to 2.5%
HDFC Bank remains one of the most preferred choices due to its fast processing, wide branch network, and attractive rates for customers with a good credit score (750+). Salaried employees with existing salary accounts often get preferential rates.
2. ICICI Bank – Excellent Digital Experience
- Interest Rate: 10.75% – 16.50% p.a.
- Loan Amount: Up to ₹50 lakh
- Tenure: 12 to 72 months
ICICI Bank offers one of the smoothest online application experiences. Their iMobile app allows instant approval and paperless processing for existing customers. Good rates are offered to individuals with strong credit profiles.
3. Axis Bank – Competitive Rates for Salaried
- Interest Rate: 10.99% – 17.00% p.a.
- Loan Amount: Up to ₹40 lakh
Axis Bank is known for providing quick sanctions and competitive rates, especially for government and MNC employees. They also offer flexible repayment options and top-up loans for existing customers.
4. State Bank of India (SBI) – Lowest Interest Rates
- Interest Rate: 9.99% – 15.50% p.a.
- Loan Amount: Up to ₹30 lakh
SBI usually offers the lowest interest rates among all major banks, especially for existing salary account holders and pensioners. However, the processing time is slightly longer compared to private banks.
5. Kotak Mahindra Bank – Fastest Approval
- Interest Rate: 10.99% – 16.75% p.a.
- Loan Amount: Up to ₹25 lakh
Kotak is popular for its quick digital approval process. If you have a good credit score and stable income, you can get approval within a few hours.
6. Bajaj Finserv – Best NBFC Option
- Interest Rate: 11.00% – 17.50% p.a.
- Loan Amount: Up to ₹55 lakh
Bajaj Finserv is excellent for those who want higher loan amounts and flexible tenure. Their approval process is fast and documentation is minimal for existing customers.
7. IDFC First Bank – Attractive Rates for New Customers
- Interest Rate: 10.49% – 16.00% p.a.
- Loan Amount: Up to ₹40 lakh
IDFC First Bank has been aggressive in the personal loan segment and often provides good rates along with zero processing fee offers for select customers.
Key Factors That Decide Your Interest Rate
Your final interest rate depends on several factors:
- Credit Score: 750+ gets you the best rates
- Monthly Income: Higher salary = better rate
- Existing Relationship: Salary account with the same bank helps
- Loan Amount & Tenure: Larger loans with longer tenure may get better rates
- Employer Type: MNC and government employees usually get preferential rates
How to Get the Lowest Interest Rate in 2026
- Maintain a credit score above 750
- Keep your credit card utilization below 30%
- Compare offers from at least 4–5 banks
- Apply during festive seasons (banks often offer reduced rates)
- Use your existing salary account bank for better negotiation
- Consider balance transfer if you already have a costly loan
Final Thoughts
For salaried users in India in 2026, SBI offers the lowest interest rates, followed closely by HDFC Bank, ICICI Bank, and IDFC First Bank. However, the “best” bank depends on your credit profile, loan amount, and urgency.
If you have a strong credit score and stable income, you can easily get a personal loan at 10.5% – 13% interest rate from top banks. Always compare the effective interest rate (including processing fees) before finalizing any offer.
Pro Tip: Use comparison platforms like BankBazaar, Paisabazaar, or Bank websites to check personalized offers without affecting your credit score.
Taking the time to choose the right bank with low interest rates can save you a significant amount of money over the loan tenure.
Have you taken a personal loan recently? Which bank gave you the best rate? Share your experience in the comments below.