Personal loans are one of the most popular financial products in India. Whether it’s for medical emergencies, weddings, education, or debt consolidation, personal loans provide instant financial support without collateral.
In 2025, banks are offering lower interest rates, faster approvals, and digital applications, making it easier for customers to access funds. But with so many options available, choosing the right bank can be confusing.
This article highlights the Top 10 banks offering the lowest interest rate personal loans in 2025, along with eligibility, benefits, and tips for faster approval.
What is a Personal Loan?
A personal loan is an unsecured loan provided by banks and NBFCs. It doesn’t require collateral, and the money can be used for multiple purposes:
- Medical treatment
- Travel and holidays
- Home renovation
- Wedding expenses
- Education fees
- Emergency needs
The loan is repaid through Equated Monthly Installments (EMIs) over a tenure ranging from 12 months to 7 years.
Why Choose a Personal Loan in 2025?
Here are the main reasons personal loans remain a top choice in 2025:
- ✅ No collateral required
- ✅ Quick approvals (within 24–48 hours)
- ✅ Flexible usage for any personal need
- ✅ Competitive interest rates starting from 9% onwards
- ✅ Digital processing with minimal paperwork
Top 10 Banks Offering Lowest Interest Rate Personal Loans in 2025
Here’s a detailed look at the banks with the most affordable interest rates and attractive features this year.
1. State Bank of India (SBI) – Xpress Credit Personal Loan
- Interest Rate: 9.60% onwards
- Loan Amount: Up to ₹20 Lakhs
- Tenure: 12 to 72 months
- Highlights: Lowest interest rates in 2025, minimal documentation, best for salaried employees.
2. HDFC Bank Personal Loan
- Interest Rate: 10.50% onwards
- Loan Amount: Up to ₹40 Lakhs
- Tenure: 12 to 72 months
- Highlights: Instant approval for pre-approved customers, same-day disbursal.
3. ICICI Bank Personal Loan
- Interest Rate: 10.75% onwards
- Loan Amount: ₹50,000 – ₹25 Lakhs
- Tenure: Up to 72 months
- Highlights: Flexible repayment, balance transfer facility available.
4. Kotak Mahindra Bank Personal Loan
- Interest Rate: 10.25% onwards
- Loan Amount: Up to ₹25 Lakhs
- Tenure: 12–60 months
- Highlights: Competitive rates, zero prepayment charges on floating loans.
5. Axis Bank Personal Loan
- Interest Rate: 10.49% onwards
- Loan Amount: Up to ₹25 Lakhs
- Tenure: 12–60 months
- Highlights: Attractive EMI plans, online application with fast processing.
6. Bajaj Finserv Personal Loan
- Interest Rate: 11% onwards
- Loan Amount: Up to ₹25 Lakhs
- Tenure: Up to 60 months
- Highlights: 100% digital process, instant top-up loan facility.
7. Tata Capital Personal Loan
- Interest Rate: 10.99% onwards
- Loan Amount: ₹75,000 – ₹25 Lakhs
- Tenure: 12–72 months
- Highlights: Customizable EMI plans, part-payment allowed.
8. IDFC First Bank Personal Loan
- Interest Rate: 10.49% onwards
- Loan Amount: ₹1 Lakh – ₹40 Lakhs
- Tenure: Up to 84 months
- Highlights: Same-day disbursal, paperless approval.
9. IndusInd Bank Personal Loan
- Interest Rate: 11% onwards
- Loan Amount: Up to ₹15 Lakhs
- Tenure: 12–60 months
- Highlights: Quick processing, minimal paperwork.
10. Yes Bank Personal Loan
- Interest Rate: 10.99% onwards
- Loan Amount: Up to ₹20 Lakhs
- Tenure: 12–60 months
- Highlights: Flexible repayment, easy balance transfer.
Lowest Interest Rates
| Bank | Starting Interest Rate (2025) |
|---|---|
| SBI | 9.60% |
| Kotak Mahindra Bank | 10.25% |
| Axis Bank | 10.49% |
| IDFC First Bank | 10.49% |
| HDFC Bank | 10.50% |
| ICICI Bank | 10.75% |
| Tata Capital | 10.99% |
| Yes Bank | 10.99% |
| Bajaj Finserv | 11% |
| IndusInd Bank | 11% |
Eligibility for Personal Loans in 2025
For Salaried Individuals:
- Age: 21–60 years
- Minimum monthly income: ₹20,000–₹30,000 (varies by bank)
- Work experience: 1–2 years
- CIBIL Score: 750+ preferred
For Self-Employed:
- Age: 21–65 years
- Minimum business income: ₹3–5 Lakhs annually
- Business stability: 3+ years
- CIBIL Score: 750+ preferred
Salaried vs Self-Employed
| Salaried Professionals | Self-Employed Applicants |
|---|---|
| Need salary slips & Form 16 | Need ITR & business proof |
| Employer certificate required | Proof of business continuity |
| Age limit 60 years | Age limit 65 years |
Documents Required
Keep these documents ready for faster approval
How to Get Quick Personal Loan Approval in 2025
- Maintain a CIBIL score of 750+
- Apply with your salary account bank
- Keep income documents updated
- Avoid applying with multiple lenders simultaneously
- Opt for pre-approved offers if available
Mistakes to Avoid
- Borrowing more than you can repay
- Ignoring hidden charges (processing fees, foreclosure charges)
- Choosing wrong tenure (too short = high EMI, too long = more interest)
- Applying without comparing banks
Internal Linking Suggestions
👉 You may also like:
- How to Apply for a Home Loan Online – Step by Step Guide
- Best Personal Loan Options in 2025 – Low Interest & Quick Approval
- How to Improve Your Credit Score Before Applying for a Loan
Benefits of Choosing the Right Bank
- Lower EMIs due to reduced interest
- Flexible repayment options
- Faster disbursal with digital approval
- Transparency in charges
FAQs on Personal Loans 2025
Q1. Which bank has the lowest personal loan interest rate in 2025?
SBI currently offers the lowest starting rate at 9.60%.
Q2. How much personal loan can I get?
Loan amount depends on income, credit score, and bank policy. Salaried individuals may get up to 20–40 times monthly salary.
Q3. Can I apply for a personal loan online?
Yes, most banks now provide 100% digital applications with instant approval.
Q4. What is the ideal CIBIL score?
A score of 750 or above ensures faster approval at lower interest rates.
Q5. Can I prepay my personal loan?
Yes, but banks may charge prepayment or foreclosure fees unless waived.
Final Thoughts
Choosing the right lender for a personal loan in 2025 can save you thousands in interest payments. While SBI offers the lowest starting rate, banks like HDFC, ICICI, Kotak, and Axis Bank provide strong digital platforms and quick approval processes.
Always:
- Compare multiple banks
- Check hidden charges
- Borrow only what you need
- Maintain a good credit score
By doing so, you’ll enjoy low-interest, hassle-free personal loans that support your financial needs in 2025.
