Current Personal Loan Interest Rates in India
If you are planning to take a personal loan, one of the most important factors to check is the personal loan interest rate. In India, interest rates vary widely depending on the bank or NBFC, your credit profile, and loan amount. Knowing the latest rates can help you choose the best personal loan in India with low EMIs and minimum charges.
What is a Personal Loan Interest Rate?
A personal loan interest rate is the cost you pay to the bank or financial institution for borrowing money. It is expressed as an annual percentage. Lower rates mean cheaper EMIs and overall savings on repayment.
Current Personal Loan Interest Rates in India (2025)
In 2025, personal loan rates in India range from 9% to 36% per annum.
- Lowest rates (~9%) – Usually available from public sector banks for customers with a strong credit score.
- Private banks – Typically charge between 9.99% and 16% per annum.
- NBFCs (Non-Banking Financial Companies) – May charge between 11% and 36% depending on risk profile.
Personal Loan Interest Rate Comparison 2025
| Lender | Rate Range (p.a.) |
|---|---|
| SBI | 10.05% – 15.05% |
| HDFC Bank | 10.90% – 24.00% |
| ICICI Bank | 10.60% – 16.50% |
| Axis Bank | 9.99% – 21.55% |
| Kotak Mahindra Bank | From 10.99% |
| IDFC First Bank | From 9.99% |
| IndusInd Bank | From 10.25% |
| Yes Bank | 10.85% – 21.00% |
| Bank of Baroda | 10.40% – 18.10% |
| Bank of India | From 11.10% |
| Punjab National Bank | Around 10.50% |
| IDBI Bank | 11.00% – 15.50% |
| Bank of Maharashtra | Starting at 9.00% |
| Bajaj Finserv (NBFC) | 11.00% – 28.00% |
| Tata Capital (NBFC) | 10.99% – 24.00% |
| IIFL (NBFC) | 12.00% – 28.00% |
| Fullerton (NBFC) | 14.00% – 32.00% |
| Aditya Birla Finance (NBFC) | 11.50% – 22.00% |
| Other NBFCs | Up to 36% |
Factors That Affect Your Personal Loan Interest Rate
- Credit Score – A CIBIL score above 700 improves your chances of getting a low rate.
- Income Level – Higher income borrowers are considered less risky and get better rates.
- Employment Stability – Salaried employees in reputed companies are preferred.
- Loan Tenure & Amount – Shorter tenures may have lower interest cost.
- Debt-to-Income Ratio – Lower existing EMIs means better chances of approval at a low rate.
How to Get the Lowest Personal Loan Interest Rate in India
- Maintain a credit score above 750.
- Compare offers from multiple banks and NBFCs.
- Choose a shorter tenure if possible to reduce overall interest.
- Look for seasonal offers where banks cut down processing fees and interest.
- Negotiate with your existing bank if you have a long-term relationship.
Key Highlights – Personal Loan Rates 2025
- Lowest rates: Around 9% per annum at select public sector banks.
- Private banks: Commonly between 9.99% and 16%.
- NBFCs: Range between 11% and 36% depending on creditworthiness.
- Processing fees: Usually 1% – 3% of loan amount.
Final Thoughts
Personal loan interest rates in India for 2025 are highly competitive, with options ranging from 9% to 36%. If you are looking for the best personal loan, always compare rates, check processing charges, and calculate EMIs before applying. Borrow only what you need and ensure repayment within your budget to maintain a healthy credit score.
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