Which Bank Provides Personal Loans with the Lowest Interest Rate?
Introduction
With the suitable repayment structure, personal loans can help in the case of an emergency, wedding, education, travel, etc. Although, it requires adequate information on which financial institution to work with due to the differences in interests. A loan with lower interest will be less expensive in the long run.
In this piece, we aim to assist you with the bank which has the lowest interest rate for personal loans in India.
What is a Personal Loan?
A personal loan is an example of cash advance where the individual does not give any securing asset, thus almost anyone can qualify for a personal loan. The cash can be expended according to the borrower’s personal and private needs such as pay debts. Additionally, banks evaluate your income, loan repayment capacity, creditworthiness and employment history for loan approval.
Why is Interest Rate Important?
The interest rate determines how high the overall payment will be on the loan taken. high rate, more payment. lower rate results in reduced payments. Hence brings the conclusion to always look out for a bank that offers a better rate than others.
Banks Offering Personal Loans At Reduced Interest Rates (2025)
The following is a compilation of some of the most recognized Indian banks that have personal loans offered at reduced interest rates:
1.HDFC Bank
- Interest Rate: From 10.50% to 21.00% per year
- Loan Amount: Approximately ₹40 lakhs
- Tenure: 1 to 5 years
2.ICICI Bank
- Interest Rate: From 10.75% to 19.00% per year
- Loan Amount: Approximately ₹25 lakhs
- Tenure: 1 to 6 years
3.Axis Bank
- Interest Rate: From 10.49% to 21.00% per year
- Loan Amount: Approximately ₹40 lakhs
- Tenure: 1 to 5 years
4.SBI (State Bank of India)
- Interest Rate: From 11.15% to 14.30% per year
- Loan Amount: Approximately ₹20 lakhs
- Tenure: 1 to 6 years
- Special Feature: Salary account holders enjoy reduced rates
5.Kotak Mahindra Bank
- Interest Rate: From 10.99% to 24.00% per year
- Loan Amount: Approximately ₹25 lakhs
- Tenure: 1 to 5 years
6.IDFC FIRST Bank
- Interest Rate: From 10.75% to 23.00% per year
- Loan Amount: Approximately ₹40 lakhs
- Tenure: 1 to 5 years
Which Bank has The Lowest Interest Rate?
In the present context, Axis Bank is said to have one of the lowest starting interest rates of 10.49% per annum. Contingent upon a borrower’s credit rating, level of income, occupation, and the amount of loan sought, these details will determine the final rate charged.
How to Get a Loan at a Lower Interest Rate
- Keep your credit score in good standing (700 or above, ideal).
- Pick a shorter tenure if you’re able to make quicker payments.
- Check the loan offers from various banks.
- Apply online to enjoy better deals and service fees.
- Maintain a stable job and consistent income.
- Negotiate with the bank if you are a current client.
Also Read : HDFC Bank Q4 FY25 Results: ₹17,616 Crore Profit, ₹22 Dividend (2,200%); Asset Quality
Conclusion
Accessing personal loans ceases to be a problem for people. Issuing institutions have increased in number, but interest rates vary for different banks. Right now, Axis Bank, HDFC Bank, and ICICI Bank Personal Loans stand out as some of the lowest-rate Providers. Always Compare Offers Before Accepting A Loan. Always read the fine print.