In the budget speech of 2025, the Finance Minister of India, Nirmala Sitharaman made numerous announcements. Some of the key announcements were for example no income tax till ₹12 lakh income when taking in account the ₹75,000 standard deduction.
Further, a slew of changes in TDS and TCS. Along with the same several amendments were made in the MSME, KCC and personal loan areas as well.
One such announcement was the enhancement of the limit of interest subvention scheme for Kisan Credit Card to ₹5 lakhs. Now on the question of personal loan it is clear that the interest rates charged by different lenders is not large, still even a small difference of 25 or 50 basis points can make a substantial difference over a long period of time as the loan is repaid through EMIs.
It is also crucial to note that interest rates on personal loans vary from one lender to another. It is influenced primarily by factors such as credit score, employment type, annual income, and existing bank relationships, past credit history among other associated factors.
Below is a comparison of personal loan interest rates offered by the top 5 banks in India for the month of February 2025, ranked from the lowest to the highest rate:-
Top banks with the best personal loan interest rates in 2025
| Bank | Interest Rate (p.a.) |
|---|---|
| Bandhan Bank | 9.47% onwards |
| Indian Bank | 10.00% – 15.25% |
| HDFC Bank | 11.05% – 18.75% |
| Bank of Baroda | 11.05% – 18.75% |
| SBI | 11.45% – 14.85% |
Hence, by staying informed and comparing options, you can ensure your personal loan fits your needs without stretching your finances. It is advised for borrowers to consider speaking to the customer service of the respective banks to gain clarity on further details as interest rates are bound to change according to the policies of the bank or lending institution. The list shared above is indicative only.
(Note: Raising a loan comes with its own risks. So, due caution is advised)
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