If you’re thinking about a Lowest Personal Loan Interest Rate in India, July 2025 could be a good time to explore your choices.
As more people look for quick money for different needs, many banks are offering better deals to attract customers. Whether you need funds for a medical emergency, home renovation, education, or even a dream vacation, a personal loan can be a handy option.
But remember, not all personal loans are the same. The personal loan interest rates in July 2025 are different from bank to bank.
In this article, we’ll look at the Lowest Personal Loan Interest Rate in India, compare top banks, and 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 rate you get depends on things like your credit score, income, how easily you can repay, and the bank’s rules. Even a small difference of 1–2% in the interest rate can make your EMIs higher and increase your total loan cost.
That’s why doing a proper personal loan comparison in July 2025 can help you:
- Save money by paying less interest
- Pick repayment options that suit your budget
- Stay away from hidden charges
- Get loans more quickly with less paperwork
Lowest Personal Loan Interest Rate in India – July 2025
If you’re planning to take a personal loan, it’s important to compare interest rates and charges before choosing a bank. Below is a quick and easy table of the lowest interest rate personal loans in India from top banks as of July 2025.
| Bank Name | Interest Rate (per year) | Processing Fee | Loan Amount Range |
| HDFC Bank | 10.50% – 21.00% | Up to ₹4,999 | ₹50,000 – ₹40 lakh |
| ICICI Bank | 10.25% – 17.99% | 0.5% – 2.5% of loan amount | ₹50,000 – ₹25 lakh |
| SBI (State Bank of India) | 11.15% – 14.30% | 1% of loan amount | ₹24,000 – ₹20 lakh |
| Axis Bank | 10.99% – 21.00% | Up to 2% | ₹50,000 – ₹15 lakh |
| Kotak Mahindra Bank | 10.75% – 16.99% | Up to 2.5% | ₹50,000 – ₹25 lakh |
| IDFC FIRST Bank | 10.49% – 23.00% | Up to 1% | ₹20,000 – ₹40 lakh |
| Punjab National Bank (PNB) | 11.90% – 15.00% | Up to 1% | ₹50,000 – ₹10 lakh |
| Bank of Baroda | 10.90% – 16.55% | Up to 2% | ₹50,000 – ₹20 lakh |
These are the current lowest interest rate personal loans in India from major banks. Actual rates may vary depending on your credit score, repayments history, and loan amount.
Factors That Affect Your personal Loan Interest Rate
Before you apply, it’s good to know what affects your personal loan interest rate in July 2025:
- Credit Score: If your score is above 750, you’re more likely to get a lower interest rate.
- Income Level: The higher your income, the better loan offers you may get.
- Loan Tenure: Choosing a shorter repayment period can sometimes reduce the interest rate.
- Employer Type: People working in well-known companies may get better deals from banks.
- Relationship with the Bank: If you’re already a customer, you might get pre-approved offers with lower fees.
Best Bank for Personal Loan in 2025
Wondering which is the best bank for a personal loan in 2025? It depends on your job and needs. Here’s a quick guide:
- For salaried employees: HDFC Bank and ICICI Bank are great for fast processing and good interest rates.
- For government employees: SBI and PNB usually offer steady rates and need less paperwork.
- For self-employed: IDFC FIRST and Kotak Bank are more flexible with documents and requirements.
Always check the latest offers and use online tools for personal loan comparison in July 2025 before deciding.
Tips to Get the Lowest Personal Loan Interest Rate in India
Want the lowest loan rates in India? Try these smart tips:
- Review your credit report to fix any mistakes before applying.
- Compare rates and fees from at least 3 different banks.
- Use online platforms or bank websites, they often have special deals.
- If you have a good credit history, don’t hesitate to ask for a better rate, because many banks are open to matching offers.
- Avoid applying to too many lenders at once. It can lower your credit score.
Final Thoughts
Personal loan demand is rising fast in India, and banks are now competing to offer better deals. In July 2025, there are plenty of chances to get a loan at a low personal loan interest rate in India.
Whether you need quick money or are planning something big, picking the right bank with the lowest personal loan interest rates in India can help you save a lot of time.
So, be a smart borrower and compare, check, and then apply.
FAQs
Which bank is offering the lowest personal loan interest rate in July 2025?
Right now, ICICI Bank and HDFC Bank are giving some of the lowest personal loan interest rates in India, starting around 10.25% to 10.50% per year, based on your credit profile.
Is SBI a good option for personal loans in 2025?
Yes, SBI is a trusted bank and offers decent rates, starting at 11.15%. It’s a solid choice, especially if you’re a salaried government employee.
How can I reduce my personal loan interest rate?
Keep your credit score above 750, choose a shorter loan tenure, and try negotiating with your bank if you have a good repayment history.
Can I get a personal loan with a low credit score?
Yes, but the interest rate will likely be higher and you can also look into NBFCs or go for a secured personal loan.
Are personal loan rates fixed or floating?
Most banks in India offer fixed interest rates on personal loans. This means your EMI will stay the same for the entire loan period.