Top 5 Banks With Lowest Interest Rates on Personal Loans in 2025

Interest rates have a direct impact on the payback amounts and the subsequent EMIs. Lesser the rates, lesser would be the EMIs, resulting in lower financial burden and faster clearance of debt. Thus, in 2025, some banks in India are offering very low interest personal loans to ease your troubles. Top 5 Banks With Lowest Interest Rates on Personal Loans in 2025.

Top 5 Banks With Lowest Interest Rates:

1. State Bank of India (SBI)
Rate of Interest: Starting from 9.60% p.a.
SBI continues to be a name one could trust upon offering flexible tenures and quick disbursal. Minimum documentation, with offers exclusively for salaried employees, makes SBI the best choice for low-rate personal loans.

2. HDFC Bank
Rate of Interest: Starting from 10.50% p.a.
HDFC Bank’s personal loan products are attractive for instant approval and online processing for existing customers, especially with competitive rates available for candidates with a high credit score.

3. ICICI Bank
Rate of Interest: Starting from 10.75% p.a.
ICICI Bank is fast to provide end-to-end service with highly minimal documentation and flexible repayment terms. The pre-approved offers to its own customers, reducing further time in the processing of loans, are also very helpful.

4. Axis Bank
Rate of Interest: Starting from 10.49% p.a.
Axis Bank lends up to ₹40 lakh almost instantly and maintains a competitive interest rate for personal loans along with part-payment options beneficial for salaried as well as self-employed professionals.

5. Kotak Mahindra Bank
Rate of Interest: Starting from 10.25% p.a.
Famous for its digital services, Kotak Mahindra Bank offers a completely paperless process for personal loans which features fast disbursal and low interest for eligible applicants.

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Choosing any of these banks extending personal loans for the lowest interest rate, obviously, would save you several thousands of rupees over time. Compare products, investigate hidden charges, and assess their repayment before applying. A good personal loan can be useful when taken wisely.