SBI's personal loan interest rate starts at 10% this October, according to reporting by Inshorts. On a ₹1 lakh loan, the monthly EMI starts at ₹10,624, as reported.
That's the best-case figure, not what every borrower will get. Your own rate depends on your credit score, income and job type. Here's how to read the number and use it well.
Key takeaways
- SBI's personal loan rate starts at 10%, as reported by Inshorts in October.
- The reported EMI on a ₹1 lakh loan starts at ₹10,624.
- A starting rate is the lowest rate. Many borrowers pay more.
- A longer tenure lowers your EMI but raises the total interest you pay.
- Always compare fees and total cost, not just the headline rate.
How a ₹1 lakh personal loan EMI works
EMI stands for equated monthly instalment. It's the fixed amount you pay your bank every month. Each EMI covers a part of the loan and a part of the interest.
Tenure is the time you take to repay. A longer tenure means a smaller EMI. But you pay interest for more months, so the loan costs more overall.
The headline doesn't say which tenure sits behind the ₹10,624 figure. So don't compare it blindly with other banks' numbers. Always check the tenure first.
What a 10% rate costs you: a worked example
Let's take a ₹1 lakh loan at a flat 10% yearly rate, with interest charged on the reducing balance. These are our own estimates, rounded to the nearest rupee.
| Tenure | Approx. monthly EMI | Total repaid | Total interest |
|---|---|---|---|
| 12 months | ₹8,792 | ₹1,05,504 | ₹5,504 |
| 24 months | ₹4,614 | ₹1,10,736 | ₹10,736 |
| 36 months | ₹3,227 | ₹1,16,172 | ₹16,172 |
Notice the reported ₹10,624 is higher than the 12-month figure above. So the real tenure is likely shorter, or the rate sits above 10%. The headline doesn't tell us which.
Processing fees and taxes are extra. Ask your bank for the full cost before you sign.
Who is affected
Salaried people with steady income often get rates near the starting figure. A good credit score helps too. A credit score is a number that shows how well you've repaid past loans.
Self-employed borrowers and people with a thin credit history may be offered higher rates. Other banks and NBFCs set their own prices too. So the SBI figure is a handy yardstick, not a promise for everyone.
If you already have a personal loan, this doesn't change your current rate. Your existing terms stay as they are.
What to do now
If you're thinking of a loan this month, take these steps:
- Decide the exact amount you need. Borrow only that.
- Use an EMI calculator to test 12, 24 and 36 months.
- Check your eligibility before you apply, so you avoid a rejection.
- Compare the latest interest rates from at least three lenders.
- Ask about the processing fee, prepayment charges and any insurance add-ons.
For more guides, see our personal loan section. You can also follow the news hub for rate updates.
Frequently asked questions
What is SBI's personal loan interest rate in October?
As reported by Inshorts, SBI's personal loan rate starts at 10%. Your actual rate depends on your profile and the lender's checks.
What is the EMI on a ₹1 lakh personal loan?
The reported starting EMI is ₹10,624. The exact EMI depends on your rate and tenure. At 10%, a 24-month loan works out to roughly ₹4,614 a month.
Is a lower EMI always better?
Not always. A lower EMI usually means a longer tenure. That raises the total interest you pay, so check the total cost too.
BankCreds analysis
The 10% is a starting point, not your rate
A headline rate is the lowest rate a bank shows. Most borrowers pay a little more. A small gap matters less than you'd think on ₹1 lakh. Moving from 10% to 12% on a 2-year loan adds only about ₹1,000 in total interest.
Fees can matter just as much. A processing fee of 1-2% on ₹1 lakh is ₹1,000 to ₹2,000. That can wipe out the gain from a slightly lower rate.
This news doesn't mean rates are falling or rising. It's a snapshot of one bank's entry price. Don't rush into a loan because of it. Compare the total cost of two or three offers, and pick the tenure you can comfortably repay.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Sources & references
- Inshorts — originating report https://inshorts.com/en/amp_news/what-are-personal-loan-interest-rates---emis-on--1-lakh-loan-in-india-in-oct--1791627670420
- Reserve Bank of India — Banks set their own personal loan rates within RBI's overall framework https://www.rbi.org.in/
Source links are shown as plain text, not clickable links. Copy a URL into your browser to read the original report.
Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
Rates and figures. Interest rates, per-gram values and premium bands quoted here are indicative, move daily, and differ by borrower profile, city and lender policy. Confirm the final number with the institution before you act on it — the sanction letter or policy schedule governs, not a news report.
Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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