Personal loan interest rates in June 2026 vary significantly across banks, with EMIs for a ₹5 lakh loan over 5 years typically ranging from ₹10,300 to over ₹16,000 depending on the lender, credit profile, and eligibility. According to reports from Paisabazaar.com, the wide range reflects different lending approaches and borrower risk assessments across the banking sector. RBI's new lending guidelines have introduced additional protection measures, with lenders now required to follow strict EMI-to-income ratios and transparent lending practices.
Some of the most competitive starting interest rates are offered by Bank of Maharashtra at 8.75% onwards, Union Bank of India at 8.90%–12.65%, and Axis Bank at 8.95% onwards. At these rates, EMIs for a ₹5 lakh loan may start from approximately ₹10,319 onwards for Bank of Maharashtra, ₹10,367 onwards for Axis Bank, and ₹10,355–₹11,287 depending on profile for Union Bank of India. As reported by Paisabazaar.com, Bank of Maharashtra currently offers the lowest starting EMI in this category.
Public sector banks offer relatively stable lending with broader interest ranges. State Bank of India (SBI) provides rates from 10.00%–15.00% with EMIs ranging from ₹10,624–₹11,895. Bank of Baroda (BoB) offers 10.15%–18.00% with EMIs of ₹10,660–₹12,697. Punjab National Bank (PNB) provides rates from 10.25%–16.80% with EMIs of ₹10,685–₹12,373. Other PSBs include Canara Bank at 9.70%–15.15% (EMIs: ₹10,550–₹11,934), Indian Overseas Bank at 10.25% onwards (EMIs: ₹10,685 onwards), and Bank of India at 10.85%–16.15% (EMIs: ₹10,834–₹12,199).
Private banks often offer sharper pricing for strong credit profiles. HDFC Bank and ICICI Bank both offer 9.99% onwards with EMIs starting from ₹10,621 onwards. Axis Bank maintains competitive rates at 8.95% onwards with EMIs of ₹10,367 onwards. Other private lenders include Kotak Mahindra Bank at 10.99% onwards (EMIs: ₹10,869 onwards), IndusInd Bank at 10.49% onwards (EMIs: ₹10,744 onwards), and HSBC Bank at 9.75% onwards (EMIs: ₹10,562 onwards).
RBI's new lending guidelines have introduced comprehensive protection measures for personal loan borrowers. Under these rules, lenders must follow strict EMI-to-income ratios of up to 50%, meaning monthly EMIs should not exceed 50% of net monthly income including existing EMIs. The guidelines also establish credit score thresholds - applicants with scores above 760 have very high approval chances, while those below 650 have negligible approval chances. Borrowers can escalate complaints to RBI if lenders violate these rules, ensuring complete financial transparency and protection from fraudulent activities.
