Personal Loans — Compare Top Rates 2025
1. Overview of 2025 Rates
As of 2025, Indian banks offer personal loan interest rates ranging from 9.99% p.a. to 16.50% p.a.. Rates depend on credit profile, income, and relationship with the lender. Borrowers can choose tenures between 3 months and 7 years, with maximum loan amounts up to ₹50 lakh.
2. Bank Comparison Table
| Bank | Rate Range (p.a.) | Loan Amount | Tenure |
|---|---|---|---|
| HDFC Bank | 9.99%–12.50% | Up to ₹40 lakh | 3 months–6 years |
| State Bank of India (SBI) | 10.05%–15.05% | ₹1 lakh–₹35 lakh | 6 months–7 years |
| ICICI Bank | 10.80%–16.50% | Up to ₹50 lakh | 1–6 years |
3. Bank-by-Bank Details
3.1 HDFC Bank
HDFC Bank’s personal loans start at 9.99% p.a. for high-credit salaried applicants, extending to 12.50% p.a. for other segments. Processing fees are up to ₹6,500 + GST, and pre-approved customers may enjoy fee waivers.
3.2 State Bank of India (SBI)
SBI links its rates to the 2-year MCLR (8.80%) plus a spread of 1.25%–6.25%, resulting in an effective range of 10.05%–15.05% p.a. Salary account holders often secure the lower end of the range.
3.3 ICICI Bank
ICICI Bank offers rates from 10.80% p.a. up to 16.50% p.a. across regular and specialized schemes (e.g., NRI, FlexiCash overdraft). Processing charges are typically 1.5%–2% of the loan amount.
4. Eligibility & Documentation
Eligibility Criteria
- Age: 21–60 years (salaried), 21–65 years (self-employed).
- Minimum income: ₹20,000/month (metro) or ₹15,000/month (non-metro).
- Minimum CIBIL score: 650+
Required Documents
- Identity proof (Aadhaar, PAN)
- Address proof
- Income proof (salary slips, bank statements)
- Passport-size photographs
5. Fees & Charges
| Fee Type | HDFC | SBI | ICICI |
|---|---|---|---|
| Processing Fee | ₹6,500 + GST | 1% of loan (min ₹1,000) | 1.5%–2% of loan |
| Foreclosure Charge | Nil for salaried | 1% (after 1 year) | 2% of outstanding |
| Late Payment | 2% of EMI | 2.5% of EMI | 2% of EMI |
6. Factors Affecting Rates
- Credit Score: Scores above 720 unlock best rates.
- Income Stability: Salaried vs self-employed spreads differ.
- Bank Relationship: Existing customers get preferential pricing.
- Loan Size & Tenure: Larger amounts/longer tenures may cost more.
7. How to Secure the Best Rate
- Maintain a high credit score by timely repayments.
- Use pre-approved offers to reduce spreads.
- Negotiate with your relationship manager if you hold multiple products.
- Consider a balance transfer to refinance at lower current rates.
8. FAQs
Q1. Can self-employed professionals get the lowest rates?
A1. Yes, with strong financials and high credit scores, self-employed applicants can access sub-11% rates at select banks.
Q2. Are there prepayment penalties?
A2. Most banks waive foreclosure fees for salaried customers after 1 year; check specific terms before applying.
Q3. How soon can I get disbursal?
A3. Disbursal typically occurs within 2–3 working days post-approval for verified documents.
9. Conclusion
Comparing rates and understanding associated fees and eligibility criteria are crucial to minimize borrowing costs. In 2025, HDFC Bank offers the lowest starting rate at 9.99% p.a., followed by SBI at 10.05% p.a., and ICICI Bank at 10.80% p.a. By optimizing your credit profile and leveraging pre-approved offers, you can secure a personal loan tailored to your financial needs.
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