Rates, Charges and 2026 Rules
How banks, NBFCs and digital lenders set personal loan rates, every fee you can be charged, and the RBI rules on KFS, foreclosure, resets and insurance in force in 2026.
personal loan interest rates India
Personal loan interest rates in India, tested before you sign
The rate on the advert is only the start. These guides show how Indian banks, NBFCs and loan apps price a personal loan, what the Key Fact Statement and APR reveal, which RBI rules protect you in 2026, and how to work out the EMI, fees and switching savings in rupees yourself.
- Read the KFS and APR, processing fee with 18% GST, foreclosure and penal charges the way a lender calculates them
- Use the EMI, upfront charges and balance transfer calculators with your own figures
- Check loan apps, recovery conduct, credit reports and complaints against RBI, CIC and Ombudsman sources
Explore by topic
EMI Calculations and Checklists
Worked EMI, tenure, flat-rate, eligibility, offer comparison, prepayment and balance transfer sums with the arithmetic shown, plus application checklists.
Mistakes, Complaints and Official Sources
Common personal loan mistakes, credit reports and CIBIL scores, loan app fraud, recovery agent rules, missed EMIs, complaints to the RBI Ombudsman and official sources.
Start here
Mistakes, Complaints and Official Sources
CIBIL score and credit report for a personal loan: free reports, errors and 2026 reporting rules
How credit reports and scores from India's four credit bureaus affect personal loan approval and rate, how to get a free report, fix errors, and what changed in reporting in 2026.
EMI Calculations and Checklists
Comparing personal loan offers: a worked APR example with three quotes
Compare three illustrative personal loan offers on APR, net amount received and total outgo, and learn why the lowest headline rate is often not the cheapest loan.
Rates, Charges and 2026 Rules
Key Fact Statement and APR on a personal loan: how to read the KFS line by line
What RBI's Key Fact Statement must show for loans sanctioned from 1 October 2024, how APR differs from the interest rate, and what to check before you sign.
EMI Calculations and Checklists
How to calculate personal loan EMI: formula, amortisation and worked examples
The reducing-balance EMI formula Indian lenders use, step-by-step arithmetic, how each EMI splits into interest and principal, and checklists for every personal loan sum.
Rates, Charges and 2026 Rules
Personal loan foreclosure and prepayment charges in 2026: what RBI allows
When Indian lenders can and cannot charge for closing a personal loan early, the 2025 RBI pre-payment directions, how to foreclose, and when foreclosing saves money.
Rates, Charges and 2026 Rules
Personal loan interest rates in India 2026: what decides your rate and what you really pay
How Indian banks, NBFCs and app lenders set personal loan interest rates in 2026, what the APR adds, which charges apply and which RBI rules protect borrowers.
Tools
Personal Loan EMI Calculator
Calculate the monthly EMI, total interest and total outgo on a personal loan, with the outstanding balance at the end of each year.
Processing Fee and GST Calculator
Work out the processing fee with 18% GST, flat charges and other deductions on a personal loan, and the net amount that will reach your bank account.
Personal Loan Balance Transfer Calculator
Compare your current personal loan EMI with a balance transfer offer and see the monthly saving, break-even month and net saving after switching costs.
Personal Loan Offer Checklist
Questions to answer about the lender, the Key Fact Statement, charges, insurance and your own budget before you accept a personal loan.
Personal loan and alternative borrowing options compared
| Option | How it is priced | Good for | Watch out for |
|---|---|---|---|
| Bank personal loan, fixed rate | Fixed rate for the whole tenure set by the bank's risk-based pricing; processing fee + 18% GST | Salaried borrowers with a good credit report who want a predictable EMI | Foreclosure and part-prepayment charges may apply to fixed-rate loans; check the KFS |
| Bank personal loan, floating rate | External benchmark such as the RBI repo rate plus a spread, reset at least once every three months | Borrowers who expect to prepay, since floating-rate loans to individuals carry no foreclosure charges | EMI or tenure rises if the benchmark goes up; few banks offer floating personal loans |
| NBFC personal loan | Usually fixed, set on the NBFC's own pricing policy; often higher rates for wider eligibility | Self-employed or newer-to-credit borrowers, faster processing | Higher fees, bundled insurance and stricter penal charges; confirm RBI registration |
| Loan through an app (digital lending) | Priced by the regulated bank or NBFC behind the app; KFS and APR required; cooling-off period | Small, short loans for borrowers who check the regulated lender and APR | Fake apps, upfront-fee frauds, data misuse; very high APRs on small short loans |
Frequently asked questions
What decides my personal loan interest rate in India?
Mostly your credit report and score, your income and employer category, your existing EMIs compared with income, the loan amount and tenure, and the lender's own cost of funds and policy. Banks usually price lower than NBFCs and app lenders for the same borrower. The only figure to compare is the APR in each lender's Key Fact Statement.
What is the RBI repo rate and does it change my personal loan EMI?
The policy repo rate shown on the RBI website in late October 2026 is 5.50%. It changes your EMI only if your loan is floating-rate and linked to the repo rate or another benchmark. Most personal loans are fixed-rate, so the EMI stays the same for the whole tenure.
Can a bank charge me for closing my personal loan early?
For a floating-rate loan to an individual for a non-business purpose, RBI rules do not allow foreclosure or prepayment charges. For a fixed-rate personal loan, the lender may charge as stated in your KFS and loan agreement, so check that figure before you borrow.
Is GST charged on a personal loan?
GST is not charged on the interest or the principal. It is charged, at 18%, on fees such as the processing fee, foreclosure charges and some service charges. Stamp duty is a separate state levy.
What is the Key Fact Statement?
A standard summary that RBI-regulated lenders must give you before you sign a retail or MSME term loan sanctioned on or after 1 October 2024. It shows the loan amount, interest rate, APR, all charges, the repayment schedule and grievance contacts. Charges not listed in it cannot be levied without your explicit consent.
How do I know whether a loan app is genuine?
Find the name of the bank or NBFC behind it, check that the lender is regulated by the RBI, and check that the app appears in the RBI's directory of digital lending apps. A genuine loan is paid into your own bank account and repaid to the lender, not to a person's UPI ID. Report illegal lenders on Sachet and fraud on the cybercrime helpline 1930.
Where do I complain if my lender does not resolve my problem?
First complain in writing to the lender and its grievance officer. If the lender rejects the complaint, you are not satisfied, or there is no reply within 30 days, you can file with the RBI Ombudsman on cms.rbi.org.in. Since 1 July 2026 the Reserve Bank – Integrated Ombudsman Scheme, 2026 applies, and it sets a time limit for filing after the lender's reply, so act promptly.
How this site is made
Karz Kasauti is an independent information project. Guides are drafted with the help of AI writing tools and checked against official and primary sources before publication; see our Editorial Policy. We are not affiliated with any provider mentioned on the site and do not sell products or services.