Personal loan interest rates in June 2026 vary widely across banks, with EMIs for a Rs 5 lakh loan over 5 years typically ranging from around Rs 10,300 to over Rs 16,000 depending on the lender, credit profile, and eligibility. Here’s a detailed comparison:

EMIs below are calculated for a Rs 5 lakh loan over a 5-year tenure; actual rates may vary based on borrower profile and credit score.

Some of the most competitive starting interest rates are offered by:

• Bank of Maharashtra: 8.75 per cent onwards
• Union Bank of India: 8.90 per cent–12.65 per cent
• Axis Bank: 8.95 per cent onwards

At these rates, EMIs for a Rs 5 lakh loan may start from approximately:

• Bank of Maharashtra: ~Rs 10,319 onwards
• Axis Bank: ~Rs 10,367 onwards
• Union Bank of India: ~Rs 10,355–Rs 11,287 depending on profile

Bank of Maharashtra currently offers the lowest starting EMI in this category, while other lenders follow closely depending on borrower eligibility.

Public sector banks offer relatively stable lending but with broader interest ranges:

• State Bank of India (SBI): 10.00 per cent–15.00 per cent, EMI: Rs 10,624–Rs 11,895
• Bank of Baroda (BoB): 10.15 per cent–18.00 per cent, EMI: Rs 10,660–Rs 12,697
• Punjab National Bank (PNB): 10.25 per cent–16.80 per cent, EMI: Rs 10,685–Rs 12,373
• Canara Bank: 9.70 per cent–15.15 per cent, EMI: Rs 10,550–Rs 11,934
• Indian Overseas Bank: 10.25 per cent onwards, EMI: Rs 10,685 onwards
• Bank of India: 10.85 per cent–16.15 per cent, EMI: Rs 10,834–Rs 12,199
• Central Bank of India: 11.25 per cent onwards, EMI: Rs 10,934 onwards

While PSBs remain relatively stable, EMIs can vary significantly based on credit score and borrower risk profile.

Private banks often offer sharper pricing for strong credit profiles:

• HDFC Bank: 9.99 per cent onwards, EMI: Rs 10,621 onwards
• ICICI Bank: 9.99 per cent onwards, EMI: Rs 10,621 onwards
• Axis Bank: 8.95 per cent onwards, EMI: Rs 10,367 onwards
• Kotak Mahindra Bank: 10.99 per cent onwards, EMI: Rs 10,869 onwards
• IndusInd Bank: 10.49 per cent onwards, EMI: Rs 10,744 onwards
• HSBC Bank: 9.75 per cent onwards, EMI: Rs 10,562 onwards

Private lenders may match or undercut PSBs for top-tier borrowers, but final pricing depends heavily on eligibility and credit history.

Processing fees vary widely across lenders and can significantly affect total borrowing cost:

• Canara Bank: 0.25 per cent
• Punjab & Sind Bank: 0.50–1 per cent
• Indian Overseas Bank: up to 0.75 per cent
• UCO Bank: up to 1 per cent

• SBI: up to 1.5 per cent
• ICICI / Bank of Baroda / Bank of India: up to 2 per cent

• Kotak Mahindra Bank: up to 5 per cent
• IDFC FIRST Bank: up to 3.5 per cent
• Bajaj Finserv: up to 3.93 per cent

Tata Capital: flat Rs 99 in some cases

Borrowers should not evaluate loans only on interest rates. The total cost of borrowing depends on:

• Processing fees
• Credit score and eligibility
• Tenure and repayment structure
• Additional insurance or bundled products

Source: Paisabazaar.com | Rates and charges as of June 3, 2026

(Disclaimer: Borrowers are advised to verify details from the official websites of banks for accuracy. This is just for educational purposes and is not investment advice. Do your own due diligence or consult an expert for financial planning.)