Personal loans are one of the most popular financial products in India, offering quick access to funds without collateral. However, interest rates vary significantly across banks and NBFCs, making it essential to compare before applying.
In this guide, we will compare the latest personal loan interest rates in India (2025), factors that influence the rates, and tips to get the lowest rates.
📊 Latest Personal Loan Interest Rates of Top Banks (2025)
| Bank/NBFC | Interest Rate (per annum) | Loan Amount | Tenure | Processing Fees |
|---|---|---|---|---|
| HDFC Bank | 10.50% – 24.00% | ₹50,000 – ₹40 Lakh | 12 – 60 months | Up to 2.5% |
| ICICI Bank | 10.65% – 24.00% | ₹50,000 – ₹25 Lakh | 12 – 72 months | Up to 2.5% |
| SBI (State Bank of India) | 10.60% – 15.65% | ₹25,000 – ₹20 Lakh | 12 – 72 months | Up to 1% |
| Axis Bank | 10.49% – 22.00% | ₹50,000 – ₹40 Lakh | 12 – 60 months | Up to 2% |
| Kotak Mahindra Bank | 10.75% – 24.00% | ₹50,000 – ₹25 Lakh | 12 – 60 months | Up to 2.5% |
| Bajaj Finserv (NBFC) | 11.00% – 26.00% | ₹30,000 – ₹40 Lakh | 12 – 84 months | Up to 4% |
| Tata Capital (NBFC) | 10.99% – 24.00% | ₹75,000 – ₹35 Lakh | 12 – 84 months | Up to 2.75% |
| IDFC FIRST Bank | 10.75% – 23.00% | ₹1 Lakh – ₹40 Lakh | 12 – 60 months | Up to 3.5% |
| IndusInd Bank | 10.50% – 22.00% | ₹50,000 – ₹25 Lakh | 12 – 60 months | Up to 2.5% |
🔍 Note: Rates are indicative and may vary based on credit score, employment, loan tenure, and other eligibility criteria.
🧮 How Interest Rates Are Calculated
Lenders consider the following factors when deciding your personal loan interest rate:
1. Credit Score (CIBIL)
- 750+ = Low interest rate
- Below 650 = Higher risk, higher rate or rejection
2. Income Level
- Higher monthly income = Better loan terms
3. Employer Category
- Government/PSU or reputed MNC employees may get lower rates
4. Loan Amount & Tenure
- Shorter tenure = Lower interest burden
- Higher amounts may get discounted rates
5. Existing Relationship with the Lender
- Pre-approved offers for existing customers often come at better terms
📝 Types of Interest Rates: Fixed vs Floating
| Type | Description | Suitable For |
|---|---|---|
| Fixed Rate | Interest stays the same throughout | When market rates are rising |
| Floating Rate | Varies as per market (RBI repo rates) | When rates are expected to fall |
💡 Tips to Get the Lowest Personal Loan Interest Rate
- Improve your CIBIL score to 750+
- Compare offers on third-party platforms like Paisabazaar, BankBazaar
- Choose a shorter tenure if repayment is manageable
- Negotiate if you have existing relationship with the bank
- Look out for pre-approved offers with 0 processing fee
🔁 Bank vs NBFC: Where Should You Take a Personal Loan?
| Criteria | Bank | NBFC |
|---|---|---|
| Interest Rates | Usually Lower | Slightly Higher |
| Processing Time | 2–5 days | 24–48 hours |
| Credit Score Flexibility | Strict (700+) | More flexible (600+) |
| Documentation | More stringent | Minimal |
✅ Verdict: If you have a good credit score and stable income, choose banks for better rates. If you need quick funds with lenient approval, NBFCs are a good choice.
📱 Best Apps/Websites to Compare Personal Loan Interest Rates
- Paisabazaar
- BankBazaar
- PolicyBazaar
- MyLoanCare
- LoanTap
- Navi App
🧾 Example: EMI Calculation Table for ₹5 Lakh Loan (5 years)
| Interest Rate | Monthly EMI | Total Interest Payable | Total Amount Payable |
|---|---|---|---|
| 10.5% | ₹10,746 | ₹1,44,768 | ₹6,44,768 |
| 12.5% | ₹11,249 | ₹1,74,940 | ₹6,74,940 |
| 15.0% | ₹11,895 | ₹2,13,700 | ₹7,13,700 |
🏁 Final Words
Before taking a personal loan, always compare interest rates, calculate EMIs, and read the fine print. Even a small difference in interest rate can save you thousands of rupees over the loan tenure.
Personal loans are helpful, but smart borrowing starts with smart comparing.