Struggling with wedding costs or medical bills in Jamshedpur? Personal loans offer quick funds from ₹50K to ₹50L, but rates from 8.75% to 44% p.a. make smart shopping key—especially post-RBI’s repo cut.
Explore current rates by banks/NBFCs, latest policy impacts, eligibility tips, EMI calculations, and strategies to snag the lowest deals. This guide arms you with data as of January 2026.
Table of Contents
Overview
Rates start at 8.75%-9.99% p.a. for prime borrowers (CIBIL 750+), up to 44% for riskier profiles; tenures 1-6 years. Banks like Bank of Maharashtra (8.75-13.55%) and Kotak (9.98%) lead lows; NBFCs like Moneyview higher at 14%+. Factors: CIBIL, income, employer—salaried get better.
Latest Updates
RBI cut repo to 5.25% on Dec 5, 2025—25 bps drop sparking bank slashes like Axis to 9.99%, SBI 10.05%. Paisabazaar notes rates as of Dec 12, 2025; SBI waives fees till Jan end amid liquidity boost.
HDFC/ICICI hold 9.99-10.45%; NBFCs steady. No new hikes; floating rates may dip further if MPC cuts Feb 2026. Check CIBIL—700+ scores snag lows.
Lowest Rate Lenders
Bank of Maharashtra offers 8.75% base for strong profiles; Punjab & Sind 9.60%—public banks edge privates. Kotak/HDFC at 9.98-9.99% for salaried >₹25K/month, up to ₹40L.
- Mahindra Finance: 8-25%, flexible but variable
- Canara/Central: 9.65-9.95%, low fees
- Poonawalla Fincorp: 9.99%, quick disbursal
Private banks faster approval; ever compared EMIs? ₹5L at 10% (5yr) = ₹10,616/month.
Factors Affecting Rates
CIBIL score primary—750+ gets 9-12%, <700 faces 15%+ rejection risk. Income (₹25K+ salaried), stable job (IT/PSU better), low debt-to-income (<40%) lower risk.
- Employer: MNCs top-tier
- Tenure: Shorter hikes rate slightly
- Floating vs Fixed: Repo-linked cheaper long-term
NBFCs for low scores but 14-30% rates. Negotiate with existing ties.
Eligibility and Tips
Salaried/self-employed aged 21-60, min income ₹15-25K; docs: PAN, salary slips, bank statements. Improve CIBIL: Pay dues, limit cards.
- Compare: Paisabazaar/BankBazaar aggregators
- EMI Calc: Use online tools—factor fees (0.25-5%)
- Prepay: Save interest; check charges
- Balance Transfer: Switch to lower rate
Jamshedpur borrowers: Local SBI branches quick. Avoid Hero/IIFL highs.
Costs Beyond Interest
Processing 0-5% (SBI NIL now), GST extra; prepay 2-4% early. Late fees ₹500-1,500; foreclosure 3-5%. Total APR ~11-20%—calculate full cost.
Example: ₹3L at 10.5% (5yr), 2% fee = ₹6,646 EMI, ₹99K interest total.
Conclusion
Grab lows like 8.75-9.99% from BoM/Kotak amid RBI easing—prime borrowers save lakhs. Key: High CIBIL, compare, short tenure. 2026 outlook? More cuts if inflation cools—borrow wisely, repay fast.
FAQs
Lowest rate now?
Bank of Maharashtra 8.75%, Kotak 9.98% p.a. for eligibles.
How CIBIL impacts?
750+ = 9-12%; <700 higher or rejection.
SBI fees?
NIL processing till Jan 31, 2026.
Floating or fixed?
Floating cheaper with repo cuts.
Max amount?
₹40-50L from HDFC/ICICI.
Prepayment ok?
Yes, but 2-5% charge after 6-12 months.
Docs needed?
ID proof, income slips, bank statements.