Best personal loan options in 2025: Top 10 banks with low interest rates | Mint

If you are in need of quick funds to cover your financial needs for a while, personal loans can be a great option for you to consider. Personal loans provide quick loan disbursements with minimal documentation so that you can get funds quickly and have a smooth user experience.

If you are planning to borrow a personal loan, it is important to understand the interest rates provided by the banks so that you can compare and get the best deal for yourself. Let’s have a look at top banks providing low interest rates on personal loans in January

1. HDFC Bank

Maximum loan amount: Up to Rs. 40 lakh

Processing fee: Up to Rs. 6,500

Loan tenure: Up to 6 years

2. ICICI Bank

Maximum loan amount: Up to Rs. 50 lakh

Processing fee: Up to 2% of the loan amount

Loan tenure: Up to 6 years

3. Indian Bank

Maximum loan amount: Up to 20 times of monthly gross salary

Processing fee: 1% of the loan amount

Loan tenure: Up to 7 years

4. Canara Bank

Maximum loan amount: Up to Rs. 10 lakh

Processing fee: Up to 0.50% of loan amount ( ₹1,000 to ₹5,000)- 50% off on processing fee

Loan tenure: Up to 7 years

5. IDFC Bank

Maximum loan amount: Up to Rs. 10 lakh

Processing fee: Up to 2% of the loan amount

Loan tenure: Up to 5 years

6. Bank of Baroda

Maximum loan amount: Up to Rs. 20 lakh

Processing fee: Up to 2% (maximum Rs. 10,000)

Loan tenure: Up to 7 years

7. Axis Bank

Maximum loan amount: Up to Rs. 10 lakh

Processing fee: Up to 2% of the loan amount

Loan tenure: Up to 5 years

8. Yes Bank

Maximum loan amount: Up to Rs. 40 lakh

Processing fee: Up to 2.5% of the loan amount

Loan tenure: Up to 5 years

9. Punjab National Bank

Maximum loan amount: Up to Rs. 20 lakh

Processing fee: Up to 1% of the loan amount

Loan tenure: Up to 7 years

10. State Bank of India

Maximum loan amount: Up to Rs. 35 lakh

Loan tenure: Up to 7 years

Tips to get lowest interest rates on personal loans

It is important to maintain a healthy credit score so that you can get your desired deal on the loan. Credit score is extremely important as it portrays your creditworthiness as well as reflects your past credit history which gives the lender an idea of your financial situation. With this the lender determines whether you are capable of repaying the loan on time or not.

You must stay ahead of your bill payments and ongoing debt repayment so that it can help reflect you as a mindful and disciplined borrower. You must also avoid frequent hard inquiries as it reflects that you are in need of funds and are probably facing financial constraint. This will in fact decrease your credit score and reduce your chances of getting low interest rates on personal loans.

In conclusion, you must first understand your needs and evaluate whether you really require a personal loan. This is because personal loans attract higher interest rates than other loans in the market which as a result leads to higher EMIs. 

You must ensure that you borrow only the amount you can afford so that you do not land in any financial burden and stay away from debt traps. This way you can not only get the benefit of personal loans but also improve your credit score gradually.

(Note: The list is indicative, and not exhaustive. Check the bank websites for the latest updates)