In May 2026, personal loan interest rates from major lenders, including State Bank of India (SBI), HDFC Bank, and ICICI Bank, range from 8.75% to 9%. For a ₹5 lakh loan over five years, the Equated Monthly Instalment (EMI) generally starts at approximately ₹10,300. Public sector banks such as Union Bank of India and Bank of Maharashtra are also offering competitive rates, making them attractive options for borrowers. However, individuals should consider additional costs, including processing fees, which can vary significantly across lenders. For instance, processing fees can range from flat ₹99 to up to 5% of the loan amount, depending on the bank. It's essential for borrowers to maintain a strong credit score and compare the total cost of borrowing, including any hidden charges. Before finalizing a loan, potential borrowers are advised to conduct thorough due diligence and consult with a certified financial advisor to ensure the loan aligns with their financial goals and repayment capabilities.