If you’re thinking about taking a personal loan in India, July 2025 could be a good time to explore your choices. As more people are looking for quick money for their different needs, different Banks offering lowest personal loan interest rates July 2025. Whether you need personal loans for a medical emergency, home renovation, education, or even for a dream vacation, a personal loan can be a good option to choose.
But you need to keep in mind that not all personal loans are the same. The personal loan interest rates in July 2025 can vary from bank to bank.
Let’s explore some of the Banks offering lowest personal loan interest rates July 2025, compare top banks, which can help you choose the best bank for a personal loan in 2025.
Why Compare Personal Loan Interest Rates?
Personal loan interest rates can be as low as 9% or go up to 24% per year. The interest rate you get depends on the different things like your credit score, income, how easily you can repay the loan, and the bank rules. Even a small interest rate of 1–2% can make your EMIs higher and increase your total loan cost.
That is why doing a proper personal loan comparison in July 2025 can be very helpful for you:
- Save money by paying less interest on your loan
- Pick repayment options that well suits your budget
- Stay away from hidden charges like processing fee, late charges, etc.
- Get loans more quickly with less paperwork through online process
Banks offering lowest personal loan interest rates July 2025
If you’re planning to take a personal loan in July 2025, it is important to compare different interest rates and charges before choosing a bank. Table given below is a quick and easy comparison of the banks with lowest interest rate personal loans in India as of July 2025.
| Bank Name | Interest Rate (per year) | Processing Fee | Loan Amount Range |
| HDFC Bank | 10.50% to 21.00% | Maximum of ₹4,999 | ₹50,000 to ₹40 lakh |
| ICICI Bank | 10.25% to 17.99% | 0.5% to 2.5% of loan amount | ₹50,000 to ₹25 lakh |
| SBI (State Bank of India) | 11.15% to 14.30% | 1% of the loan amount | ₹24,000 to ₹20 lakh |
| Axis Bank | 10.99% to 21.00% | Maximum of 2% | ₹50,000 to ₹15 lakh |
| Kotak Mahindra Bank | 10.75% to 16.99% | Maximum of 2.5% | ₹50,000 to ₹25 lakh |
| IDFC FIRST Bank | 10.49% to 23.00% | Maximum of 1% | ₹20,000 to ₹40 lakh |
| Punjab National Bank (PNB) | 11.90% to 15.00% | Maximum of 1% | ₹50,000 to ₹10 lakh |
| Bank of Baroda | 10.90% to 16.55% | Maximum of 2% | ₹50,000 to ₹20 lakh |
These are the current lowest interest rate personal loans in India from large banks. Keep in mind that the actual rates may vary depending on your credit score, loan amount, and repayment history.
Factors That Affect Your personal Loan Interest Rate
Before you apply for personal loan, it is good to know about the affecting areas of your personal loan interest rate in July 2025:
- Credit Score: If your credit score is above 750, you are more likely to get a lower interest rate from the banks.
- Income Level: The higher your income, the better loan offers you may get from the banks.
- Loan Tenure: Choosing a shorter repayment period for your loan can sometimes reduce the interest rate.
- Employer Type: People who are working in well-known companies may get better loan deals from banks.
- Relationship with the Bank: If you’re already a customer of the bank, you might get pre-approved offers with lower fees from the same bank.
Best Bank for Personal Loan in 2025
Thinking about which is the best bank for a personal loan in 2025? It totally depends on your job, financial goal, and your needs. Here’s a quick guide for different employees:
- For salaried employees: HDFC Bank and ICICI Bank are great options for fast processing and good interest rates.
- For government employees: SBI and PNB usually offer steady rates and it needs less paperwork, which can save your time.
- For self-employed: IDFC FIRST and Kotak Bank are more adjustable with documents and other requirements.
Don’t forget to check the latest offers and use online tools for personal loan comparison in July 2025 before taking a personal loan.
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Tips to Get the Lowest Personal Loan Rates in India
Want the lowest personal loan rates in India? You can try these smart and important tips:
- Examine your credit report thoroughly to fix any mistakes before applying.
- Compare interest rates and fees from at least 3 to 5 different major banks.
- Use different online platforms or bank websites, because they usually have special deals for different categories.
- If you have a good credit history from the past, don’t hesitate to ask for a better rate, because many banks are open to provide exciting offers.
- Avoid applying for too many personal loans at once. It can lower your credit score.
Final Thoughts
Demand for personal loans is rising day by day in India, and different banks are now competing to offer better deals for their customers. In July 2025, there are a lot of chances to get a loan at a low personal loan interest rate in India.
Even if you need quick money or if you are planning for something big, choosing the right bank with the lowest personal loan interest rates in India can help you save a lot of money and time.
So, always be a smart borrower and compare, check, and then apply for the personal loan in India.
FAQs
Which bank is offering the lowest personal loan interest rate in July 2025?
For now, ICICI Bank and HDFC Bank are offering some of the lowest personal loan interest rates in India, which starts around 10.25% to 10.50% per year, which is based on your credit profile.
Is SBI a good option for personal loans in 2025?
Yes, SBI is the most trusted bank, which is backed by the government and it offers decent rates, starting at 11.15%. It is a smart choice, if you’re a salaried government employee.
How can I reduce my personal loan interest rate?
Try your best to keep your credit score above 750, choose a shorter loan tenure, and try settling for good interest rates from your bank if you have a good credit history.
Can I get a personal loan with a low credit score?
Yes, but the interest rate will be higher. You can also think about taking loans from NBFCs or even go for a secured personal loan.
Are personal loan rates fixed or floating?
Most banks in India offer fixed interest rates on your personal loans. This means your EMI will remain the same for the entire loan period.