According to the latest data from NDTV Profit, personal loan interest rates in September 2026 start at 8.75% per annum, with leading private-sector banks offering rates from 9.99% onwards. For a ₹5 lakh personal loan with a five-year tenure, the monthly EMI works out to approximately ₹10,319 at the lowest rate and ₹10,621 at starting rates offered by major private sector banks. The comparison includes eight private-sector banks with varying rates and processing fees, with EMIs calculated on a reducing balance basis.
As reported by NDTV Profit, the rate comparison shows Bank of Maharashtra leading with the lowest rate at 8.75% to 13.55%, followed by HSBC Bank at 9.75% onwards and Axis Bank at 9.99% onwards. Federal Bank offers the highest rates at 10.15% to 18.00%, while Kotak Mahindra Bank has the highest processing fee at up to 5%. The processing fees range from up to 1% (maximum ₹10,000) to up to 3.5% across different banks. State Bank of India and Bank of Baroda also feature in the comparison with rates from 10.00% onwards and 10.15% to 18.00% respectively.
According to the latest comparison data, the monthly EMI for a ₹5 lakh loan varies significantly based on interest rates. At the lowest rate of 8.75%, the EMI is approximately ₹10,319, while at the highest rate of 18.00%, it increases to around ₹12,697 per month. This represents a difference of ₹2,378 in monthly payments, highlighting the substantial impact of interest rate variations on loan affordability. For a ₹1 lakh loan, the EMI ranges from ₹2,064 to ₹2,539 depending on the lender and interest rate.
As noted in the NDTV Profit report, the headline interest rates advertised by lenders are generally aimed at borrowers who meet stringent credit criteria. The final rate offered to an applicant can depend on multiple factors including CIBIL score of 750 or higher, income levels, job stability, and existing debt commitments. Employees of established private companies and public sector organisations may qualify for more competitive pricing, while banks assess borrowers' outstanding financial commitments and income to determine EMI affordability. Borrowers should compare complete costs including processing fees, administrative charges, and prepayment terms when assessing overall loan costs.
