India Personal Loan Rates Compared: Find the Cheapest Option

In today’s India, personal loans have become a financial lifeline for millions—whether it’s for managing medical emergencies, funding education, or consolidating debt. However, what many borrowers overlook is that a small difference in the interest rate can translate into significant savings over the loan tenure. Understanding how to compare personal loan rates and identifying the cheapest options available can empower you to make smarter borrowing decisions and avoid unnecessary financial strain.

Top Personal Loan Products in India and Their Key Advantages

HDFC Bank Personal Loan

Unique Advantages:

• Interest rates starting from 10.50% p.a.
• Instant approval for pre-approved customers
• No collateral required and flexible tenure up to 6 years

Review: HDFC Bank offers one of the most accessible personal loans with quick online approval. Ideal for salaried professionals looking for reliability and speed.

SBI Xpress Credit Personal Loan

Unique Advantages:

• Rates starting from 11.15% p.a.
• No hidden charges or prepayment penalty
• Exclusive for salaried employees maintaining salary accounts with SBI

Review: A trusted option backed by India’s largest public sector bank. SBI’s transparency and stable service make it perfect for government and PSU employees.

ICICI Bank Personal Loan

Unique Advantages:

• Interest rates from 10.75% p.a.
• Approval within minutes for existing customers
• Attractive balance transfer option with reduced EMIs

Review: ICICI combines flexibility with innovation. Their balance transfer and quick disbursal features attract tech-savvy borrowers seeking convenience.

Axis Bank Personal Loan

Unique Advantages:

• Competitive interest rates from 10.49% p.a.
• Minimal documentation and doorstep service
• Tenure options up to 7 years

Review: Axis Bank stands out for customer-centric service and flexible repayment plans—great for first-time borrowers.

Frequently Asked Questions (FAQs)

1. What factors determine personal loan interest rates in India?

Lenders consider your credit score, income stability, employment type, and relationship with the bank. A higher credit score usually earns lower rates.

2. Which bank offers the lowest personal loan interest rate currently?

As of 2025, HDFC Bank and Axis Bank often offer the lowest personal loan rates starting around 10.49% p.a., depending on your profile.

3. How can I get the best personal loan offer?

Compare rates on financial portals, maintain a credit score above 750, and negotiate with your existing bank for a better offer.

4. Is a fixed or floating rate better for personal loans?

Most personal loans are fixed-rate, ensuring EMI stability. Floating rates can fluctuate but may offer savings if interest trends decline.

5. What is a balance transfer, and how does it help?

A balance transfer lets you shift your loan to another bank offering a lower rate, reducing your EMI and overall interest burden.

6. Can I prepay or foreclose my personal loan?

Yes. Most banks allow prepayment or foreclosure after 6–12 months, often with a small charge. Doing so saves on total interest paid.

7. Are digital lending apps safe for personal loans?

Choose only RBI-registered NBFCs or banks. Always verify credentials, read loan terms, and avoid apps demanding unnecessary permissions.