Current Loan Interest Rates in India (2026)
Indicative interest rate ranges across major banks and NBFCs as of January 2026. Actual rates depend on your credit score, income, loan amount and relationship with the lender — always confirm the latest offer directly with the bank.
| Loan Type | Interest Rate Range (p.a.) | Typical Tenure | Collateral |
|---|
| Home Loan | 7.10% – 9.50% | Up to 30 years | Secured |
| Car Loan | 7.40% – 14.00% | Up to 8 years | Secured |
| Two-Wheeler Loan | 9.00% – 18.00% | Up to 5 years | Secured |
| Gold Loan | 9.00% – 26.00% | Up to 5 years | Secured |
| Education Loan | 8.50% – 13.00% | Up to 15 years | Varies |
| Business Loan | 10.00% – 20.00% | Up to 10 years | Unsecured/Secured |
| Personal Loan | 10.00% – 24.00% | Up to 7 years | Unsecured |
What Is EMI (Equated Monthly Installment)?
EMI is the fixed amount you pay your lender every month until your loan is fully repaid. Each EMI is split into two parts — principal and interest. In the early years of a loan, a larger portion of your EMI goes towards interest; as the loan matures, more of it goes towards reducing the principal.
How Is EMI Calculated?
Lenders use the reducing-balance method, where interest is charged only on the outstanding principal. The formula is:
EMI = P × r × (1 + r)n / ((1 + r)n − 1)
Where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly installments. This calculator applies the exact same formula used above.
Factors That Affect Your EMI
- Loan amount — a higher principal means a higher EMI.
- Interest rate — even a 0.5% difference can change your EMI noticeably over a long tenure.
- Tenure — a longer tenure lowers your EMI but increases total interest paid.
- Credit score — a score above 750 usually unlocks better rates.
- Down payment — a larger upfront payment reduces the loan amount you need to borrow.
Fixed vs Floating Interest Rate
- Fixed rate stays the same for the whole tenure — predictable EMIs, usually priced slightly higher.
- Floating rate moves with the lender's benchmark (like the RBI repo rate) — can fall or rise over time.
- Most home loans in India are floating, since borrowers benefit automatically when rates fall.
- Personal and gold loans are more often offered at fixed rates.
Tips to Lower Your EMI Burden
- Make a higher down payment to reduce the loan amount you actually borrow.
- Compare rates across banks and NBFCs before finalising your lender.
- Improve your credit score before applying to qualify for better interest rates.
- Consider a balance transfer if your current lender's rate is higher than the market.
- Make partial prepayments whenever you have surplus funds — most floating-rate loans carry no prepayment penalty.
How to Use This EMI Calculator
- Select your loan type from the tabs above — the rate and tenure auto-adjust to typical values.
- Enter your loan amount, interest rate and tenure, or drag the sliders.
- Optionally add a processing fee to see your total cost of borrowing.
- Your EMI, total interest and full repayment schedule update instantly.