Personal Loan Rates Drop After Repo Cut: Check Which Bank Is Cheapest

Banks offer different types of loans to suit various financial needs, and personal loans are among the most commonly chosen options. Whether it’s for medical expenses, travel, education, or managing emergencies, personal loans offer quick access to funds. However, since these loans are unsecured and do not require collateral, they usually come with higher interest rates.

That’s why anyone planning to take a personal loan should first compare interest rates across banks. This step becomes even more important now, as the Reserve Bank of India (RBI) has recently reduced the repo rate. Following this move, several banks have revised their personal loan interest rates , offering some relief to borrowers.

Here’s a closer look at the latest personal loan interest rates offered by major banks.

SBI Personal Loan

State Bank of India (SBI), the country’s largest public sector bank, is offering personal loans at interest rates starting from 10.05%. The final rate depends on factors such as your CIBIL score, income profile, and the loan amount you apply for. Customers with strong credit histories can benefit from lower rates.

HDFC Bank Personal Loan

HDFC Bank, India’s largest private lender, offers personal loans with interest rates ranging between 10.90% and 24%. The wide range reflects differences in borrowers’ credit scores and repayment capacity. A higher CIBIL score can help secure a more affordable rate.

Bank of Baroda Personal Loan

Bank of Baroda (BOB) is also offering competitive rates after the repo rate cut. Personal loan interest rates at BOB start from 10.15%. The exact rate is influenced by your credit score and the size of the loan, making it essential to maintain a healthy credit profile.

Canara Bank Personal Loan

Canara Bank currently offers one of the lowest starting rates among public sector banks, with personal loan interest rates beginning at 9.25%. Borrowers with good credit scores and stable income may find this option particularly attractive.

ICICI Bank Personal Loan

ICICI Bank, one of India’s leading private banks, offers personal loans at interest rates starting from 10.45%. As with other lenders, the final rate depends on your CIBIL score, loan amount, and overall financial profile.

Things to Keep in Mind Before Applying

While lower interest rates are attractive, borrowers should also consider processing fees, loan tenure, and repayment flexibility. Comparing multiple banks and understanding the total cost of borrowing can help you make a smarter financial decision.

With banks revising personal loan rates after the RBI’s repo rate cut, borrowers now have more options to choose from. Still, interest rates vary widely based on creditworthiness, so doing thorough research before applying can help you secure the best possible deal.

Disclaimer: The interest rates mentioned in this article are indicative and subject to change at the discretion of the respective banks. Actual rates may vary based on factors such as the applicant’s CIBIL score, income, loan amount, tenure, and bank policies. Readers are advised to verify the latest interest rates, terms, and conditions directly with the bank or on its official website before applying for a personal loan.