Are you planning to take a personal loan in 2025? Whether it’s for a medical emergency, home renovation, education, or a dream vacation, choosing the right personal loan with a low-interest rate can save you a lot of money. 🏦
In this article, we bring you the Top 7 Best Personal Loans with Low Interest Rates in 2025 from leading banks in India. We’ll also cover the key details like interest rates, processing fees, and important tips to help you make the best decision.
🏆 1. Bank of Maharashtra Personal Loan
Interest Rate: 9.50% – 14.30% p.a.
Processing Fee: Up to 1% (Maximum ₹10,000)
Loan Amount: Up to ₹20 Lakhs
Loan Tenure: Up to 60 months
Why It’s the Best:
Bank of Maharashtra tops the list with the lowest starting interest rate of just 9.50% per annum. It’s a public sector bank known for transparent terms and fast approval.
Pros:
- Low starting interest rate
- Minimal processing fee
- Flexible repayment options
Ideal For: Salaried and self-employed individuals looking for low-cost loans.
💼 2. IDFC FIRST Bank Personal Loan
Interest Rate: Starts at 9.99% p.a.
Processing Fee: Up to 2% + taxes
Loan Amount: Up to ₹40 Lakhs
Loan Tenure: Up to 84 months
Why Choose IDFC FIRST:
This private sector bank offers attractive interest rates and flexible repayment tenures. It’s perfect for borrowers who want higher loan amounts with longer durations.
Pros:
- Longer loan tenure (up to 7 years)
- High loan amount
- Instant online approval
Ideal For: Borrowers with a good credit score needing larger loans.
🏛️ 3. State Bank of India (SBI) Personal Loan
Interest Rate: 10.30% – 15.30% p.a.
Processing Fee: Up to 1.5% (Minimum ₹1,000; Max ₹15,000)
Loan Amount: Up to ₹20 Lakhs
Loan Tenure: Up to 72 months
Why Go With SBI:
SBI is the most trusted public sector bank in India. Its personal loan schemes cater to both salaried and pensioners.
Pros:
- Trusted nationwide bank
- Low prepayment charges
- Multiple loan schemes
Ideal For: Government employees, pensioners, and regular salaried individuals.
🏦 4. ICICI Bank Personal Loan
Interest Rate: 10.85% – 16.65% p.a.
Processing Fee: Up to 2% + GST
Loan Amount: Up to ₹50 Lakhs
Loan Tenure: Up to 72 months
Why Pick ICICI:
ICICI Bank offers fast disbursement and flexible eligibility. It is ideal for those who want hassle-free and paperless loan processing.
Pros:
- High loan limits
- Instant disbursal
- Online document verification
Ideal For: Salaried professionals with good credit history.
🏠 5. HDFC Bank Personal Loan
Interest Rate: 10.90% – 24.00% p.a.
Processing Fee: Up to ₹6,500
Loan Amount: Up to ₹40 Lakhs
Loan Tenure: 12 to 60 months
What Makes It Stand Out:
HDFC Bank provides pre-approved personal loans to its existing customers with attractive terms. If you’re already an HDFC customer, check if you have a pre-approved offer.
Pros:
- Quick loan disbursement (within hours)
- Paperless application process
- Prepayment allowed after 12 months
Ideal For: HDFC account holders and salaried individuals.
📊 6. Kotak Mahindra Bank Personal Loan
Interest Rate: 10.99% – 16.99% p.a.
Processing Fee: Up to 5% of loan amount
Loan Amount: Up to ₹25 Lakhs
Loan Tenure: Up to 60 months
Why Consider Kotak:
Known for quick approval and custom loan plans, Kotak Mahindra Bank is ideal for self-employed professionals and businessmen.
Pros:
- Flexible documentation
- Quick online process
- Good customer service
Ideal For: Self-employed individuals with business income.
🧾 7. Canara Bank Personal Loan
Interest Rate: 10.45% – 15.90% p.a.
Processing Fee: Up to 0.25% (Max ₹5,000)
Loan Amount: Up to ₹10 Lakhs
Loan Tenure: Up to 60 months
Highlights:
Canara Bank offers very low processing fees, making it one of the most cost-effective choices for small loan needs.
Pros:
- Low processing fee
- Attractive rates for government employees
- Public sector trust and service
Ideal For: Small loan seekers and government employees.
💡 Tips to Get the Lowest Interest Rate on Personal Loans
Choosing the right loan is important, but getting the lowest rate depends on your financial profile. Here are some helpful tips:
1. Maintain a Good Credit Score (750+)
Banks offer the best rates to borrowers with high credit scores. Regular repayment history and low credit utilization help boost your score.
2. Keep Your Debt-to-Income Ratio Low
Lenders evaluate your repayment ability based on your monthly income and existing liabilities. Keep your debts under 40% of your income for better chances.
3. Compare Multiple Lenders
Don’t go with the first bank you see. Use loan comparison platforms or check individual bank websites for the most updated rates.
4. Check for Pre-approved Offers
If you’re an existing customer with good financial history, your bank may offer a pre-approved personal loan at a special rate.
5. Negotiate with the Bank
Especially if you have a long-standing relationship with your bank, don’t hesitate to ask for a better deal.
📌 Final Thoughts
Personal loans can be a great financial tool if chosen wisely. Always consider the interest rate, processing fee, repayment tenure, and total cost of the loan before signing up.
Among the top contenders in 2025, Bank of Maharashtra stands out for its lowest interest rates, while IDFC FIRST Bank and ICICI Bank offer excellent flexibility and fast disbursement.
Choose the loan that matches your income, repayment ability, and purpose.
📝 Frequently Asked Questions (FAQs)
✅ Which bank offers the lowest personal loan interest rate in 2025?
Bank of Maharashtra currently offers the lowest starting rate at 9.50% p.a.
✅ What credit score is needed for a personal loan?
Most banks prefer a credit score of 750 or higher.
✅ Is a personal loan better than a credit card?
For large expenses, personal loans are better as they have lower interest rates compared to credit cards.
Take the right step toward your financial goals. Compare, choose, and borrow smart in 2025!