Indialends, 24 Jul 2025

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Best Banks Offering Personal Loans in India

What’s Inside This Blog?

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Compare Interest Rates, Features, Eligibility, and Disbursal Speeds to Find the Right Personal Loan for You

Overview

Personal loans are one of the most accessible forms of credit available today. In FY 2024–25, India’s personal loan segment witnessed a 19.6% annual growth, with disbursals exceeding ₹1.25 lakh crore, as per RBI.

In this guide, we’ve compared the top banks offering personal loans in India in 2025 using a data-backed and metrics-driven approach. You’ll find comparisons for interest rates, eligibility, disbursal times, loan amounts, and documentation.

For those actively seeking a loan, you can compare personal loansonline and apply instantly via IndiaLends.

Top Banks Offering Personal Loans in 2025 – Comparison Table

2025 Lending Trends

• Digital Lending: Over 70% of personal loans are now processed digitally.
• Average Loan Size: ₹2.8 lakhs across metros.
• Market Size: Expected to reach ₹2.5 lakh crore by 2027.

For more market trends and instant loan approval options, visit IndiaLends Market Insights.

Bank-wise Loan Breakdown

HDFC Bank PersonalLoan

• Interest Rate: 10.50% – 21.00%
• Disbursal: Within 24–48 hours
• Prepayment: Allowed after 12 months

ICICI Bank PersonalLoan

• Interest Rate: 10.75% – 19.00%
• Mobile App: iMobile Pay for quick KYC
• Best suited for: ICICI salary account holders

Axis Bank PersonalLoan

• Interest Rate: 10.99% – 22.00%
• Flexible EMI options with part payment facility

SBI Personal Loan

• Interest Rate: 10.60% – 15.65%
• Lowest processing fee among competitors
• Ideal for: Government/PSU employees

KotakMahindra Personal Loan

• Interest Rate: 10.99% – 24.00%
• Instant online approvals for salaried individuals

Eligibility Criteria

You can use this IndiaLendseligibility checker tool to instantly find out your eligibility.

How to Apply for a Personal Loan Online

1. Visit IndiaLends Personal Loan Page
2. Choose your preferred bank
3. Fill basic details and upload documents
4. Get instant approval (if pre-qualified)
5. Disbursal in as little as 24 hours

FAQs

Q1. Which bank gives personal loans at the lowest interest rate in 2025?

Answer: SBI offers one of the lowest personal loan interest rates starting at 10.60%. Check updated SBI rates here.

Q2. What is the fastest way to get a personal loan?

Answer: Applying online via IndiaLends offers instant approval and disbursal in under 24 hours for select banks like HDFC and Kotak.

Q3. Can I get a loan if my credit score is below 700?

Answer: It's possible but difficult. Try improving your credit score or check IndiaLends Credit ReportTool for a free analysis.

Q4. What are the pre-closure charges?

Answer: Most banks allow foreclosure after 12 EMIs, with charges between 2%–4% of the outstanding principal. Always verify with your lender.

Q5. Is it better to take a personal loan from a bank or NBFC?

Answer: Banks usually offer lower rates but stricter criteria. NBFCs like Tata Capital or BajajFinserv provide quicker disbursals and flexible options.

Conclusion

Choosing the right bank for a personal loan depends on your income, employment type, credit score, and urgency. Use tools like IndiaLends personal loancomparison to find the best offers instantly.