Are you considering a personal loan? Lenders may have presented you with a 10% interest rate, and you might be thinking, Is that good or not? Knowing the interest on personal loans can be a bit difficult, but it is no longer an issue.
Interest on personal loan is the extra money you pay a lender for borrowing. Even a small difference in rate can affect your EMIs (monthly payments) and total interest over time. That’s why it’s important to know whether 10% is favourable for your situation.
In this guide, we’ll explain it in very simple terms: what banks typically charge, when 10% is good, and when to think twice. By the end, you’ll know if 10% works for you and how to make a smart choice without stress.
Typical Interest on Personal Loan in India
Before deciding if 10% is good, let’s see what lenders usually charge today,
| Bank / Lender | Interest Rate Range (per annum) |
| Private banks (ICICI, HDFC) | 10.85% – 16.65% |
| Public banks (SBI, PNB) | 11% – 15% |
| NBFCs / online lenders | 9.99% – 24% |
Looking at this, 10% sits near the lower end, especially if you have a stable credit history. If your profile fits, you can even apply through Olyv’s online platform, complete the verification digitally, and get a quick response, making the process easier and more convenient than traditional bank visits.
When a 10% Interest on a Personal Loan is Good
A 10% rate can be helpful in a lot of cases,
- Lower EMIs than 12-15% rates.
- Less interest during the whole loan period.
- Repayment is easier if your income is low or not steady.
- It is suitable for short to medium-term loans.
For example, by using Olyv, you can see clear details of the interest on personal loan and repayment schedule instantly, which helps you decide confidently without hidden surprises.
When 10% Might Not Be Enough
Even a “good” rate is dependent on your individual circumstances,
- Some rates are slightly lower (like 9.9%) if you meet the requirements, then it is better.
- Even though large loan amounts spread over many years can increase significantly.
- Hidden charges (like processing, prepayment, or administrative fees) make it more expensive to borrow in the end.
- Floating vs fixed rates, floating may rise later.
In such cases, platforms like Olyv can help compare offers quickly, giving you a transparent view of charges along with the interest on a personal loan.
Other Things to Check Besides Interest
It is important to take into account the following factors while comparing loans,
- Processing Fees – Have the potential to increase the overall cost.
- Loan Tenure – Shorter loans, as a rule, mean lower total interest.
- Income & Job Stability – The stronger the profile, the better the rates.
- Interest Calculation – Fixed vs floating has an impact on EMIs.
Being aware of these details, along with the quoted 10% interest, can save money in the long run. Using a digital platform can make this evaluation fast and hassle-free.
Example: ₹1,00,000 Loan Over 3 Years
| Loan Amount | Interest Rate | EMI (per month) | Total Interest Paid |
| ₹1,00,000 | 10% | ₹3,226 | ₹15,744 |
| ₹1,00,000 | 15% | ₹3,579 | ₹28,044 |
Even a 5% difference in interest saves over ₹12,000 in three years. Seeing this clearly online through Olyv can help you make a quick, informed choice.
Conclusion
So, is 10% a good interest rate on a personal loan? Yes, for many borrowers. It is near the lower range, easier on EMIs, and cost-effective for short to medium-term loans. But always check total cost, extra fees, and repayment terms.
If your profile fits, applying through Olyv allows you to complete verification digitally, check repayment schedules instantly, and take the loan without long paperwork, making the experience smoother and faster. That way, you can get your loan at 10% or compare better offers, all in one place.
