Business · India Bureau
Personal loan rates inch up as major Indian banks revise September pricing
Interest rates on personal loans across India's leading banks have shifted upward in September 2026, with offerings beginning at 8.75% and major lenders quoting rates from 9.99% onwards. Processing fees and eligibility criteria continue to vary significantly across institutions.
LSN India ·
Personal loan rates have moved higher this month as India's banking sector adjusts its lending posture. Axis Bank, HDFC Bank, ICICI Bank and other major lenders have unveiled their revised rate structures for September, reflecting broader monetary conditions and competitive positioning within the retail lending space.
Entry-level rates now begin at 8.75%, though borrowers seeking approval from the country's largest banks should anticipate quoted rates starting from 9.99%. The variation reflects differences in risk assessment methodologies, operational costs and individual borrower creditworthiness across institutions.
Beyond headline interest rates, prospective borrowers must account for processing fees, which differ materially between lenders. Eligibility requirements also show considerable variance, with banks applying distinct criteria around income levels, employment stability and credit history when evaluating applications.
Industry analysts attribute the rate movement to evolving liquidity conditions and competitive dynamics in the personal lending segment. Consumers shopping for personal loans are advised to compare not only interest rates but also processing charges, repayment tenure options and prepayment penalties across multiple institutions before finalising borrowing decisions.
Prospective borrowers should contact lenders directly or consult official bank websites for the most current rate information and detailed terms applicable to their specific circumstances.