How are personal loan interest rates calculated?

Scheduled commercial banks calculate interest on a monthly reducing-balance basis. Under this method, interest is charged only on the outstanding principal at the end of each monthly cycle, not on the original sanctioned loan amount. Rates typically range from 10.25% to 24.00% p.a. depending on your risk profile.

What is the minimum CIBIL score required for a personal loan?

A CIBIL score of 720 or higher is generally considered ideal by major banks to qualify for prime interest rates and fast digital approval. While applicants with scores between 650 and 719 can still secure approval from select NBFCs, they may be charged higher processing fees and risk-adjusted interest margins.

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Q: What is the maximum personal loan amount I can get in India?

Most leading Indian banks and NBFCs sanction personal loans up to ₹40 Lakhs to ₹50 Lakhs for eligible salaried individuals. The exact approved amount is determined by your net monthly take-home salary, employer categorization, existing debt obligations (FOIR), and credit score.

Compare lowest personal loan interest rates starting at 10.25% p.a. across 30+ Indian banks. Check your CIBIL cut-off score (750+), compare processing fees (0.5%–2.5%), zero pre-closure charges, moratorium options, and instant paperless disbursal for salaried vs self-employed borrowers.

Compare Bank Rates Calculate EMI SBI vs HDFC Comparison

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Lender Comparison

Compare Personal Loan Interest Rates & Processing Fees (Updated Monthly)

Compare verified interest rates, processing charges, and borrowing limits from leading banks and NBFCs.

HDFC Bank Personal Loan

10.50% - 14.50% p.a.

Max amount: ₹40 Lakhs • Processing fee: Up to 1.5% + GST • Instant digital disbursal.

State Bank of India (SBI)

10.30% - 13.60% p.a.

Max amount: ₹20 Lakhs • Processing fee: 0.50% - 1.00% + GST • Lowest benchmark rates.

ICICI Bank Personal Loan

10.65% - 14.99% p.a.

Max amount: ₹50 Lakhs • Processing fee: Up to 1.5% + GST • 3-second digital approval.

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Approval Slabs

Personal Loan Eligibility Criteria for Salaried & Self-Employed Borrowers

Detailed benchmarks required by major Indian banks and NBFCs for salaried and self-employed applicants.

Parameter	Salaried Borrowers	Self-Employed Professionals
Age Range	21 – 60 years	23 – 65 years
Minimum Monthly Income	₹15,000 – ₹25,000/month	Annual turnover > ₹3.5 – ₹5 Lakhs
CIBIL Score Cut-off	750+ preferred (min 720)	750+ preferred (min 720)
FOIR Threshold	Below 40% – 50% of net take-home	Below 45% – 50% of profit

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Checklist

Mandatory Documents Required for Instant Personal Loan Disbursal

Keep digital copies of these KYC and income proofs ready for 100% paperless instant processing.

Identity & Residence Proof

PAN Card (Mandatory), Aadhaar Card (for DigiLocker e-KYC), Passport, Voter ID, or registered rent agreement.

Income & Banking Documents

Last 3 months' salary slips, Form 16, and latest 6 months' bank statements in PDF or via Account Aggregator.

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Interactive Repayment Estimator

Calculate Your Personal Loan Monthly EMI

Estimate your monthly installments, total interest cost, and overall borrowing expense based on verified reducing-balance interest rates.

EMI Formula: E = [P x r x (1 + r)^n] / [(1 + r)^n - 1]

Check loan EMIs across principal amounts from ₹50,000 to ₹50 Lakhs with tenures ranging from 12 to 72 months.

Open EMI Calculator

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How Your CIBIL Score Affects Your Personal Loan Interest Rate

In India, credit bureaus calculate your credit score between 300 and 900. Lenders use a CIBIL cut-off score of 750+ as the benchmark for prime lending terms. Borrowers above 750 access pre-approved personal loans starting at 10.25% p.a., with fast-track digital verification and zero pre-closure charges on floating-rate loans.

Personal Loan EMI Calculator Free CIBIL Score Check CIBIL Credit Report Improve CIBIL Score Fast

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Clear Answers

FAQs on Personal Loan Applications, Prepayment & Foreclosure

Everything you need to know about personal loan eligibility, interest rates, charges, and repayments.

What is the maximum personal loan amount I can get in India?

Leading Indian banks and NBFCs sanction personal loans up to ₹40 Lakhs to ₹50 Lakhs based on your net monthly salary and credit score.

Can I prepay or foreclose my personal loan before the tenure ends?

Per RBI regulations, lenders cannot levy foreclosure penalties or prepayment charges on floating-rate personal loans sanctioned to individuals.