Personal Loan Interest Rates January 2026: If you’re considering taking out a personal loan in the first month of the year, this news could prove very useful. Today, we’re going to tell you which banks are offering the lowest interest rates in January.
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Personal Loan Interest Rates January 2026: Do you also need a loan? If yes, then today we have brought the answer to your biggest question. Actually, today we are going to tell you which bank is offering loan at the lowest interest rate in the first month of the year 2026. Along with this, we will also tell you how much your EMI will be if you take a loan for 5 years.
Whenever there is mention of taking a loan, the name of State Bank of India comes first in the mind. Many people think that they will get the cheapest personal loan from this government bank. However, this is not the case at all. In the list of personal loan interest rates released in January, there are two banks which have left SBI behind.
You can get personal loans here that are cheaper than SBI.
As of January, Union Bank of India and Bank of Maharashtra offer the lowest interest rates. Union Bank’s rates start at 8.75%, while Bank of Maharashtra also offers loans at rates starting at 8.75%. This means that if you take out a loan of ₹5 lakh for 5 years, your EMI will be lower here than at other banks.
See the list of interest rates for all banks here.
| Name of Bank | Interest Rate (% per annum) | EMI ( ₹ ) Loan Amount – 5 Lakh, Tenure – 5 Years | EMI ( ₹ ) Loan Amount – 1 Lakh, Tenure – 5 Years | Processing Fee (% of loan amount) |
|---|---|---|---|---|
| HDFC Bank | Starting at 9.99 | Starting at 10,621 | Starting at 2,124 | Up to a maximum of ₹ 6,500 |
| Tata Capital | Starting at 10.99 | Starting at 10,869 | Starting at 2,174 | Up to a maximum of 3.5% |
| State Bank of India | 10.05–15.05 | 10,636–11,908 | 2,127–2,382 | NIL by January 31, 2026 |
| ICICI Bank | Starting at 9.99 | Starting at 10,621 | Starting at 2,124 | Up to a maximum of 2% |
| Bank of Baroda* | 10.15–18.05 | 10,660–12,710 | 2,132–2,542 | Maximum 2% ( up to ₹ 10,000) |
| Axis Bank | Starting at 9.99 | Starting at 10,621 | Starting at 2,124 | Up to a maximum of 2% |
| Kotak Mahindra Bank | Starting at 10.99 | Starting at 10,869 | Starting at 2,174 | Up to 5% |
| Bank of India | 10.85–16.15 | 10,834–12,199 | 2,167–2,440 | Maximum 1% ( ₹ 250– ₹ 15,000) |
| Canara Bank | 9.70–15.15 | 10,550–11,934 | 2,110–2,387 | 0.50% ( ₹ 1,000– ₹ 5,000) |
| Punjab National Bank | 10.25–16.80 | 10,685–12,373 | 2,137–2,475 | Up to 1% |
| HSBC Bank | Starting at 9.95 | Starting at 10,611 | Starting at ₹2,122 | Up to a maximum of 2% |
| Federal Bank | Starting at ₹11.99 | Starting from ₹11,120 | Starting from ₹2,224 | Up to 3% |
| Union Bank of India | 8.75–12.55 | 10,319–11,262 | 2,064–2,252 | Maximum 1% ( up to ₹ 7,500) |
| Bajaj Finserv | 10.00–31.00 | 10,624–16,485 | 2,125–3,297 | Up to a maximum of 3.93% |
| Punjab & Sind Bank | 9.60–13.85 | 10,525–11,595 | 2,105–2,319 | 0.50%–1% |
| Indian Overseas Bank | Starting at 10.25 | Starting from ₹10,685 | Starting from ₹2,137 | Up to 0.75% |
| UCO Bank | 9.95–13.20 | 10,611–11,428 | 2,122–2,286 | 1% maximum ( ₹ 750 minimum) |
| IDFC First Bank | Starting at 9.99 | Starting at 10,621 | Starting at 2,124 | 1.5% |
| Bank of Maharashtra | 8.75–13.55 | 10,319–11,518 | 2,064–2,304 | Maximum 1% ( up to ₹ 10,000) |
| Central Bank of India | 9.65–11.55 | 10,538–11,009 | 2,108–2,202 | Up to 1% |
| IndusInd Bank | Starting from ₹10.49 | Starting from ₹10,744 | Starting from ₹2,149 | Maximum 3.5% (2% for limited period for instant loan) |
