Personal Loan Interest Rates in 2025: HDFC, ICICI, SBI, and More

When considering a personal loan, it's crucial to compare interest rates across various banks before making a decision. Interest rates can vary significantly depending on the lender, and understanding these differences can help you secure the best deal.

Interest Rate Variations Across Banks

Interest rates for personal loans differ between government banks, private banks, and non-banking financial companies (NBFCs). In addition to interest rates, it's important to factor in processing fees and other charges, which can also vary from one institution to another. These costs can impact the total repayment amount, so taking the time to compare these aspects is essential.

What Affects Personal Loan Interest Rates?

Banks assess several factors before offering personal loans, including your credit score, monthly income, and existing financial obligations. Each bank follows its own credit policy, which can influence not only the interest rate but also processing fees and other charges.

Though the differences in interest rates may seem small—often just 50 basis points—the cumulative effect can be significant. Over the term of the loan, even a slight difference in rates can lead to thousands of rupees in savings or additional costs.

Top Banks and Their Personal Loan Interest Rates

HDFC Bank: Interest rates start at 10.85%, going up to 24%. The processing fee can reach ₹6,500.

ICICI Bank: Rates range from 10.85% to 16.65%, with processing fees up to 2% of the loan amount.

Kotak Mahindra Bank: Rates vary from 10.99% to 16.99%, and processing fees can be as high as 5%.

SBI: Offers rates between 12.60% and 14.60% for corporate employees, with slightly different rates for other categories. Government employees can avail rates ranging from 11.60% to 14.10%.

Axis Bank: Interest rates range from 10.55% to 21.80%.

Punjab National Bank: Rates are between 12.50% and 14.50%.

As illustrated, interest rates and processing fees differ greatly between institutions. It’s essential to carefully consider these factors when choosing a lender for your personal loan.