Debt Made Affordable: SBI, PNB, BoB Personal Loan Rates Begin At 7.10%

Personal loans remain a popular choice for meeting urgent financial needs such as medical expenses, education, or home renovation. In May 2026, PSU banks have positioned themselves as reliable lenders with transparent processes, lower interest rates, and government-backed trust.

Comparative Loan Rates

According to the latest updates, Bank of India offers the lowest starting rate at 7.10%, followed by Canara Bank, Union Bank of India, and Indian Bank at 7.15%. Bank of Baroda begins at 7.20%, while SBI offers loans from 7.25% and PNB from 7.30%. These rates apply to loans up to ₹30 lakh, with final offers depending on credit score, income, and tenure.

Factors Influencing Loan Costs

Borrowers with credit scores above 750 are more likely to secure lower rates and favorable terms. Processing fees, foreclosure charges, and whether the loan is fixed or floating also impact affordability. Applicants are advised to match repayment plans with financial capacity to avoid debt stress.

Why PSU Banks Stand Out

PSU banks continue to attract borrowers due to their trust, transparency, and relatively lower interest rates compared to private banks. Their simplified loan processes and government backing make them a preferred choice for middle-class households across India.

Key Highlights

•⁠  ⁠Bank of India offers lowest personal loan rate at 7.10%

•⁠  ⁠Canara Bank, Union Bank, Indian Bank start at 7.15%

•⁠  ⁠Bank of Baroda begins at 7.20%, SBI at 7.25%, PNB at 7.30%

•⁠  ⁠Rates apply to loans up to ₹30 lakh, subject to credit profile

•⁠  ⁠PSU banks preferred for trust, transparency, and lower costs

Sources: Mint, MSN, Money9, Live Mint