Personal Loan in India — Are You Paying Too Much?

## Personal loan rates in India In 2025, personal loan rates in India range from 10%–24%. Public sector banks (SBI, Bank of Baroda) offer lower rates for existing customers. NBFCs and fintech apps often charge 18%–36%. ## The rule of thumb If you're borrowing to fund a wedding, vacation, or phone — don't. These are lifestyle expenses that shouldn't be financed. A ₹2 lakh personal loan at 14% for 3 years costs ₹46,000 in interest alone. ## When it does make sense - Medical emergency (especially if no other option) - Paying off high-interest credit card debt (if your personal loan rate is lower) - Home renovation where the asset value will increase