Choosing the right personal loan in 2025 can save you thousands in interest. Whether you’re consolidating debt, planning a wedding, or covering an emergency, the interest rate makes a big difference in your total repayment. In this blog, we compare the top 5 banks in India that are offering the lowest personal loan interest rates this year — and help you make a smart borrowing decision.
🔹 1. Bandhan Bank – Starting at 9.47% p.a.
Bandhan Bank continues to lead the list with personal loan interest rates as low as 9.47% per annum. The bank offers flexible loan amounts and terms, with minimal documentation, especially for salaried individuals. Its relatively lower processing fee and customer-friendly policies make it an ideal option for low-risk borrowers.
Best for: Salaried professionals with a good credit score.
Why it stands out: Among the lowest personal loan interest rates 2025 from a scheduled bank.
(Source – Livemint)
🔹 2. Axis Bank – Around 9.99% p.a.
Axis Bank is a private sector favorite with personal loan rates starting from 9.99% p.a. It also offers pre-approved instant loans to eligible customers via mobile banking. With zero foreclosure charges on floating rate loans, it’s ideal for those who plan to close the loan early.
Best for: Digitally-savvy borrowers and those seeking quick disbursal.
Why it stands out: Robust online loan application system.
(Source – Economic Times)
🔹 3. State Bank of India (SBI) – ~10.30% p.a.
India’s largest public-sector bank, SBI, is offering personal loans at approximately 10.30% per annum, with special rates for government and defense personnel. The wide reach and trust factor associated with SBI make it a reliable option, especially for those in Tier-2 and Tier-3 cities.
Best for: Government employees and rural borrowers.
Why it stands out: Extensive network and lower risk perception.
(Source – Livemint)
🔹 4. HDFC Bank – 10.25% to 10.90% p.a.
HDFC Bank, one of India’s largest private banks, offers personal loans starting from 10.25% to 10.90% p.a. They provide instant loan approvals for salaried applicants and special discounted rates for long-term customers and credit cardholders.
Best for: Existing HDFC customers and corporate employees.
Why it stands out: Attractive pre-approved offers and seamless digital process.
(Source – FinCrif)
🔹 5. ICICI Bank – From 10.50% to 10.85% p.a.
ICICI Bank offers competitive interest rates from 10.50% to 10.85%, with flexible tenure up to 72 months. Their unique “top-up” loan feature is helpful for borrowers who may need an additional loan on top of an existing one.
Best for: Professionals looking for flexibility and top-up options.
Why it stands out: Strong digital infrastructure and repayment flexibility.
(Source – PaisaBazaar)
Comparison Table: Lowest Personal Loan Rates in India (2025)
| Rank | Bank | Interest Rate (p.a.) | Loan Tenure |
|---|---|---|---|
| 1 | Bandhan Bank | 9.47% | Up to 60 months |
| 2 | Axis Bank | 9.99% | Up to 60 months |
| 3 | SBI | ~10.30% | Up to 72 months |
| 4 | HDFC Bank | 10.25% – 10.90% | Up to 60 months |
| 5 | ICICI Bank | 10.50% – 10.85% | Up to 72 months |
Tips to Get the Lowest Personal Loan Interest Rates
Even if you’re applying to these top banks, your interest rate depends on a few personal factors. Here’s how to secure the best personal loan offer in 2025:
1. Maintain a High Credit Score
Banks reward borrowers with credit scores above 750 by offering lower interest rates. Check your score regularly via CIBIL or Experian.
2. Compare Loans on Aggregator Sites
Use platforms like PaisaBazaar, BankBazaar, or FinCrif to compare offers across banks instantly. This helps find the most suitable match for your profile.
3. Choose a Shorter Tenure
Shorter loan tenure reduces the risk for banks, often leading to better rates and lower total interest paid.
4. Check Pre-approved Offers
If you’re already a bank customer, check for pre-approved personal loans, which typically come with lower interest and faster processing.
5. Apply During Festival Seasons
Banks often roll out discounted loan rates around festivals like Diwali, Holi, or New Year.
Final Thoughts
When it comes to finding the lowest personal loan interest rates in India (2025), you don’t have to settle for high EMIs. By researching and comparing banks like Bandhan Bank, Axis, SBI, HDFC, and ICICI, and taking steps to strengthen your creditworthiness, you can secure a budget-friendly loan that meets your needs.
Still confused? Contact a loan advisor at Square Sky Solutions — we’ll help you match with the most affordable options in minutes.