Average Personal Loan Rates In February 2026: Cheaper Deals Exist, But The Spread Is Still Wide

February 2026 personal loan pricing in India remains wide, but bank-disclosed averages cluster in the low teens while rate cards still cross 20%.

February 2026 Personal Loan Rate

“Average personal loan rate” sounds like a single number, but Indian lenders price unsecured loans by borrower risk, employer profile, ticket size and relationship history. So the better benchmark is what banks themselves disclose as mean rates, plus what credible market trackers list as headline ranges. 

In February 2026, SBI’s scheme page publishes a mean ROI and an effective range, and Axis Bank publishes a mean disbursal rate and a full ROI band. News and comparison portals also show how far rates can stretch for non-prime applicants.

Borrowers see “starting from 9.99%” in ads, then get an offer at 16% or 19%. That gap comes from risk-based pricing. Even within the same bank, salaried customers from top employers may land near the lower end, while self-employed or thin-file borrowers can be priced much higher. For February 2026, the clean way to report an “average” is to lean on bank-reported mean rates and published effective ranges, instead of picking one headline teaser rate.
 

Why “Average Personal Loan Rate” Varies Across Borrowers?

SBI’s personal loan scheme page shows Mean ROI 12.68% (Q4 FY25) and an effective interest rate band of 10.00% to 15.00%, listed as effective w.e.f. 15.08.2025. Axis Bank’s February 2026 page lists an effective ROI band of 9.99% to 22%, and also discloses Mean Rate 11.84% for loans disbursed during Jul’25 to Sep’25, with Min ROI 9.50% and Max ROI 21.55%.

Put together, bank-published means sit near 12%. For a news-friendly benchmark, many prime salaried borrowers are realistically landing around 13% to 15%, while riskier profiles can still cross 20% depending on lender and eligibility.

Before the first table, here is the most direct February 2026 snapshot from bank disclosures.
 

After the table, the signal is clear. The “average” sits in low-teens territory for strong profiles, but the published maximums show why many borrowers still see steep offers.

Bank-Reported Averages And Rate Bands For February 2026 

Coverage through 2025 repeatedly showed personal loan ranges staying wide across banks. Moneycontrol, in a piece dated 11.06.2025, listed lender ranges such as HDFC 10.90% to 21%, ICICI 10.85% to 16.65%, Axis up to 22%, and SBI 10.30% to 15.30%. Economic Times, in an article dated 10.07.2025, published a comparison table of bank offers, including processing fees, signalling that borrowing cost discussions were shifting from only ROI to total cost.

By 06.11.2025, Mint published a bank list that included HDFC 9.99% to 24%, ICICI 10.45% to 16.50%, and SBI 10.05% to 15.05%. That “up to 24%” headline has stayed sticky for readers because it highlights the ceiling for non-prime approvals.

Before the second table, here is how major trackers and comparison portals framed the ranges around late 2025 to early 2026.
 

After the table, the pattern looks consistent: starting rates can be single-digit, but reported ceilings for many lenders sit well above 20%.
 

Statements By Stakeholders

Banks keep repeating the same line, but it helps readers. Axis Bank says its personal loan ROI depends on factors such as credit score, loan amount and income profile, and it publishes a mean rate for transparency. LoansJagat, in a piece dated 19.11.2025, warned borrowers not to expect uniform pricing shifts across lenders because repricing timelines vary.

Conclusion

For February 2026, the most defensible “average personal loan rate” for many prime borrowers sits around 13% to 15%, backed by bank-disclosed mean rates. But published caps above 20% stay common, so comparisons are still the smartest move before signing.