Personal loans are a great way to finance major expenses, consolidate debt, or cover emergency costs. Choosing the right personal loan with a low interest rate can save you thousands in repayment costs. In this guide, we compare the best personal loans with low interest rates, helping you make an informed decision based on loan terms, eligibility criteria, and repayment flexibility.
Why Choose a Personal Loan?
Personal loans offer several benefits, including:
- Lower Interest Rates: Compared to credit cards and payday loans.
- Flexible Repayment Tenures: Ranging from 1 to 7 years.
- No Collateral Required: Most personal loans are unsecured.
- Fixed Monthly Payments: Helps in budgeting and financial planning.
Factors to Consider When Choosing a Personal Loan
Before selecting a loan, consider these key factors:
- Interest Rate: Lower rates mean lower EMIs and total interest payments.
- Loan Tenure: Shorter tenures reduce overall interest but increase EMI.
- Processing Fees & Charges: Hidden costs can impact the loan’s affordability.
- Prepayment & Foreclosure Charges: Check if you can repay early without penalties.
- Eligibility Criteria: Income, credit score, and employment history matter.
Top Personal Loans with Low Interest Rates in 2025
1. HDFC Bank Personal Loan
- Interest Rate: 10.50% – 14.00% p.a.
- Loan Amount: ₹50,000 – ₹40 lakh
- Tenure: 12 – 60 months
- Processing Fee: Up to 2.50% of loan amount
- Best for: Quick approval and pre-approved offers
2. SBI Personal Loan
- Interest Rate: 9.60% – 13.85% p.a.
- Loan Amount: ₹25,000 – ₹20 lakh
- Tenure: 6 – 72 months
- Processing Fee: 1.50% of loan amount
- Best for: Low interest rates and government employees
3. ICICI Bank Personal Loan
- Interest Rate: 10.75% – 16.00% p.a.
- Loan Amount: ₹50,000 – ₹25 lakh
- Tenure: 12 – 72 months
- Processing Fee: Up to 2.50%
- Best for: Instant online approval
4. Axis Bank Personal Loan
- Interest Rate: 10.49% – 16.50% p.a.
- Loan Amount: ₹50,000 – ₹40 lakh
- Tenure: 12 – 84 months
- Processing Fee: Up to 2%
- Best for: Long tenure options
5. Bajaj Finserv Personal Loan
- Interest Rate: 11.00% – 20.00% p.a.
- Loan Amount: ₹1 lakh – ₹25 lakh
- Tenure: 12 – 60 months
- Processing Fee: Up to 3.99%
- Best for: Instant disbursal and minimal documentation
6. Kotak Mahindra Bank Personal Loan
- Interest Rate: 10.99% – 16.99% p.a.
- Loan Amount: ₹50,000 – ₹25 lakh
- Tenure: 12 – 60 months
- Processing Fee: Up to 2.50%
- Best for: Low processing fees
7. IDFC First Bank Personal Loan
- Interest Rate: 10.49% – 18.00% p.a.
- Loan Amount: ₹50,000 – ₹40 lakh
- Tenure: 12 – 84 months
- Processing Fee: Up to 3%
- Best for: High loan amounts
8. Tata Capital Personal Loan
- Interest Rate: 10.99% – 19.00% p.a.
- Loan Amount: ₹75,000 – ₹35 lakh
- Tenure: 12 – 72 months
- Processing Fee: Up to 2.75%
- Best for: Flexible repayment options
9. Punjab National Bank (PNB) Personal Loan
- Interest Rate: 9.99% – 16.00% p.a.
- Loan Amount: ₹50,000 – ₹10 lakh
- Tenure: 12 – 60 months
- Processing Fee: 1% of loan amount
- Best for: Affordable government-backed loans
10. Bank of Baroda Personal Loan
- Interest Rate: 10.50% – 14.50% p.a.
- Loan Amount: ₹50,000 – ₹10 lakh
- Tenure: 12 – 60 months
- Processing Fee: 2%
- Best for: Competitive rates and low fees
How to Get the Best Interest Rate on a Personal Loan
- Maintain a High Credit Score: A score above 750 gets you better offers.
- Compare Multiple Lenders: Don’t settle for the first offer you get.
- Opt for a Shorter Tenure: Lower total interest outgo.
- Negotiate with Your Bank: If you have a good relationship, banks may offer lower rates.
- Check Pre-Approved Offers: Many banks offer lower rates for existing customers.
Final Thoughts
Choosing the best personal loan with a low interest rate depends on your financial needs and repayment capacity. If you prioritize low rates, SBI and PNB are great choices. If you need instant disbursal, HDFC and Bajaj Finserv offer quick approval. Always compare offers, check processing fees, and read the terms carefully before applying.
