If you are planning to take a personal loan in 2025, one of the biggest factors to consider is the personal loan interest rate. A lower interest rate means you pay less over time, saving you money. But with so many banks and NBFCs (Non-Banking Financial Companies) offering loans, how do you find the lowest interest rate loan?
In this blog, we will compare loan interest rate comparisons across top banks in India and help you choose the best option for low interest personal loans in 2025.
Understanding Personal Loan Interest Rates
Before we dive into comparing banks, it’s important to understand what affects personal loan interest rates. Banks consider factors like your income, credit score, employment history, and existing debts before deciding your interest rate. A higher credit score often translates to a lower interest rate, as it indicates you’re less risky as a borrower.
Why Interest Rate Matters
The loan interest rate directly affects your monthly EMI and the total amount you repay. Even a small difference in the rate (say 1%) can make a big impact over a loan tenure of 3–5 years. So always go for low interest personal loans whenever possible.
Factors That Affect Your Personal Loan Interest Rate
Before we get into which bank offers the lowest interest rate loan, let’s understand what decides your rate:
- Credit Score: A good CIBIL score (750 and above) can get you lower rates.
- Income: Higher income means better chances of approval and a lower rate.
- Loan Amount and Tenure: Higher loan amounts or longer tenure may affect the rate.
- Employment Status: Salaried employees (especially in reputed companies) usually get better rates.
- Banking Relationship: If you already have a good relationship with the bank, you might get a special rate.
How to Get the Lowest Interest Rate on Personal Loans?
Just knowing which bank offers the lowest personal loan interest rate isn’t enough. You also need to ensure you qualify for the best rate. Here’s how:
1. Maintain a High Credit Score (750+)
Banks prefer borrowers with a good credit history. A score above 750 increases your chances of getting the lowest interest rate loan.
2. Compare Multiple Banks
Do a loan interest rate comparison across different lenders before applying. Use online tools to check EMI calculators and interest rates.
3. Negotiate with Your Bank
If you have a long-standing relationship with a bank, you can ask for a better rate. Many banks offer discounts to loyal customers.
4. Opt for a Shorter Tenure
Longer tenures may have lower EMIs but higher interest costs. A shorter tenure reduces the total interest paid.
5. Check for Special Offers
Banks often run festive or seasonal offers with discounted interest rates. Keep an eye out for such deals.
Personal Loan Interest Rate Comparison – 2025
Let’s now look at the loan interest rate comparison across top banks in India for 2025. These are indicative rates and can vary based on your profile.
| Bank | Interest Rate (per annum) | Loan Amount | Tenure |
| HDFC Bank | 10.50% – 21.00% | ₹50,000 – ₹40 lakhs | Up to 6 years |
| ICICI Bank | 10.75% – 20.00% | ₹50,000 – ₹25 lakhs | Up to 5 years |
| SBI (State Bank of India) | 9.60% – 15.65% | ₹25,000 – ₹20 lakhs | Up to 6 years |
| Axis Bank | 10.49% – 21.00% | ₹50,000 – ₹40 lakhs | Up to 5 years |
| Kotak Mahindra Bank | 10.99% – 24.00% | ₹50,000 – ₹25 lakhs | Up to 5 years |
| Punjab National Bank | 10.40% – 16.95% | ₹50,000 – ₹10 lakhs | Up to 5 years |
| Bank of Baroda | 10.10% – 16.50% | ₹50,000 – ₹20 lakhs | Up to 5 years |
| IDFC FIRST Bank | 10.49% – 23.00% | ₹20,000 – ₹40 lakhs | Up to 5 years |
Which Bank Has the Lowest Interest Rate Loan in 2025?
As of 2025, SBI (State Bank of India) offers one of the lowest personal loan interest rates starting at 9.60% per annum, especially for salaried individuals and government employees.
Bank of Baroda is also close with rates starting from 10.10% per annum, and it offers good features like a paperless process and zero prepayment charges in some cases.
So if you are looking for low rate personal loans, these public sector banks are worth considering. You can apply through BigMudra to skip long lines and waiting periods with no hidden charges, no paperwork, and instant loan approval.
Benefits of Choosing a Low Interest Personal Loan
- Lower EMIs: Your monthly burden is less.
- Lower Total Repayment: You save a lot over the loan period.
- Less Financial Stress: Managing finances becomes easier when EMI is manageable.
- Better Credit Health: Timely EMI payments improve your credit score further.
Quick Tips to Get a Low Rate Personal Loan
- Apply through trusted platforms or directly from the bank website.
- Avoid applying to too many lenders at once, it can hurt your credit score.
- Choose the shortest tenure you can afford. It may come with a better rate.
- Look for low interest personal loans that also offer flexible repayment options.
Conclusion
Choosing the right personal loan is not just about fast approval. It’s about finding a loan that suits your budget and comes with a low interest rate. In 2025, SBI, Bank of Baroda, and Punjab National Bank are some of the top choices for those looking for the lowest interest rate loan. But remember, the final rate you get depends on your profile.
So always do a proper loan interest rate comparison, keep your credit score healthy, and apply wisely. A well-chosen low rate personal loan can help you meet your goals without affecting your financial stability.
