When it comes to managing unexpected expenses, funding a dream vacation, or consolidating debt, a personal loan can be a lifesaver. But with so many options in the Indian financial market, choosing the right lender with the lowest interest rate can be tricky. Don’t worry—we’ve got your back!
In this article, we’ve listed the Top 10 Personal Loan Providers in India that offer competitive interest rates, simple documentation, and quick disbursal. Whether you’re a salaried professional or a self-employed individual, this guide will help you make an informed decision.
What is a Personal Loan?
A personal loan is an unsecured loan offered by banks and NBFCs (Non-Banking Financial Companies) without the need for collateral. You can use it for any purpose—medical emergencies, weddings, education, or even home renovations. Since these loans are unsecured, interest rates are usually higher than secured loans, but with a good credit score, you can qualify for better rates.
Factors That Affect Personal Loan Interest Rates
Before diving into the top lenders, here are key factors that affect your personal loan interest rate:
- Credit Score: A higher score (750 and above) usually gets you lower rates.
- Income Level: Higher income can fetch better offers.
- Employer Reputation: Employees of reputed companies enjoy better deals.
- Loan Tenure: Shorter tenures usually have lower interest costs.
- Existing Relationship with Bank: Existing customers often get preferential rates.
Top 10 Personal Loan Providers in India with Lowest Interest Rates (2025)
1. HDFC Bank
Interest Rate: 10.50% – 21.00% per annum
Loan Amount: ₹50,000 – ₹40 Lakhs
Tenure: 1 – 5 years
Processing Fee: Up to 2.50% of loan amount
Why Choose HDFC?
HDFC Bank is one of the top choices for salaried individuals. The loan process is fully digital, and funds are disbursed quickly—often within a day. If you’re an existing customer, you might get pre-approved offers with zero documentation.
2. ICICI Bank
Interest Rate: 10.75% – 19.00% per annum
Loan Amount: ₹50,000 – ₹25 Lakhs
Tenure: 1 – 6 years
Processing Fee: Up to 2.50%
Why Choose ICICI?
ICICI Bank offers flexible tenures and instant approvals. Their strong online presence ensures a smooth loan application process.
3. State Bank of India (SBI)
Interest Rate: 10.60% – 13.85% per annum
Loan Amount: ₹25,000 – ₹20 Lakhs
Tenure: Up to 6 years
Processing Fee: 1% of the loan amount
Why Choose SBI?
As India’s largest public sector bank, SBI offers trusted and secure personal loan solutions with transparent charges and low interest rates, especially for government employees.
4. Axis Bank
Interest Rate: 10.99% – 21.00% per annum
Loan Amount: ₹50,000 – ₹40 Lakhs
Tenure: 1 – 5 years
Processing Fee: Up to 2%
Why Choose Axis Bank?
Axis Bank provides competitive interest rates and easy EMI options. They offer special deals for salaried individuals working in top-rated companies.
5. Kotak Mahindra Bank
Interest Rate: 10.99% – 24.00% per annum
Loan Amount: ₹50,000 – ₹25 Lakhs
Tenure: 1 – 5 years
Processing Fee: Up to 2.50%
Why Choose Kotak Mahindra?
With minimal documentation and quick disbursement, Kotak Mahindra Bank is ideal for applicants looking for instant personal loan approval.
6. Bajaj Finserv
Interest Rate: 11.00% – 26.00% per annum
Loan Amount: ₹30,000 – ₹25 Lakhs
Tenure: 1 – 5 years
Processing Fee: Up to 3.99%
Why Choose Bajaj Finserv?
Bajaj Finserv offers personal loans with minimal paperwork and fast approval. Their pre-approved offers are great for existing customers, and they even provide loans with zero foreclosure charges.
7. IDFC FIRST Bank
Interest Rate: 10.49% – 23.00% per annum
Loan Amount: ₹20,000 – ₹40 Lakhs
Tenure: 1 – 5 years
Processing Fee: Up to 3.5%
Why Choose IDFC FIRST?
Known for its customer-friendly approach, IDFC FIRST Bank provides tailor-made personal loans with attractive rates and zero part-payment charges.
8. Tata Capital
Interest Rate: 10.99% – 24.00% per annum
Loan Amount: ₹75,000 – ₹35 Lakhs
Tenure: 1 – 6 years
Processing Fee: Up to 2.75%
Why Choose Tata Capital?
Tata Capital is a popular NBFC known for its quick approval process and customizable personal loan EMI options. They also offer step-up and step-down EMI plans.
9. IndusInd Bank
Interest Rate: 10.49% – 23.00% per annum
Loan Amount: ₹50,000 – ₹15 Lakhs
Tenure: 1 – 5 years
Processing Fee: Up to 2.50%
Why Choose IndusInd Bank?
IndusInd Bank is ideal for borrowers looking for low starting interest rates. Their customer support and transparent processing make the borrowing experience smoother.
10. Yes Bank
Interest Rate: 10.99% – 23.00% per annum
Loan Amount: ₹1 Lakh – ₹40 Lakhs
Tenure: 1 – 5 years
Processing Fee: Up to 2.50%
Why Choose Yes Bank?
Yes Bank offers competitive personal loan interest rates, especially for salaried individuals in the private sector. Their digital onboarding process is simple and fast.
Tips to Get the Lowest Personal Loan Interest Rate
- Maintain a High Credit Score: Always check your credit score before applying.
- Compare Multiple Offers: Use online loan comparison platforms to check which bank gives the best rate.
- Keep Your Documents Ready: Salary slips, ITR, and ID proof can speed up approvals.
- Negotiate with the Lender: Especially if you have a long-standing relationship with the bank.
- Check Pre-approved Offers: These are usually offered at lower rates and require minimal documentation.
Final Thoughts
Choosing the right personal loan provider can save you thousands of rupees in interest over the loan tenure. The key is to compare rates, check eligibility, and read the fine print. The banks and NBFCs listed above are among the most reliable in India, offering personal loans at competitive interest rates for both salaried and self-employed individuals.
Whether you’re planning a wedding or need urgent funds for a medical emergency, a personal loan can help bridge the gap—without putting your savings at risk.
