Personal loan interest rates July 2025: Which bank is offering the lowest rate?
As of July 2025, leading banks in the country are providing competitive personal loan interest rates for salaried and self employed individuals. These loans can be used for weddings, medical expenses, traveling or debt consolidation.
While RBI has recently reduced repo rates, still it is important to keep in mind that interest rates on individual loans vary depending on the lender’s terms and conditions along with the borrower's credit profile.
| Processing fee | ||||
|---|---|---|---|---|
| Axis Bank | 9.99% – 22.00% | Up to ₹40 lakh | 1–7 years | Up to 2% |
| State Bank of India | 10.30% – 15.30% | Up to ₹35 lakh | 1–7 years | Up to 1.5% ( ₹1,000– ₹15,000) |
| ICICI Bank | 10.85% – 16.65% | Up to ₹50 lakh | 1–6 years | Up to 2% |
| HDFC Bank | 10.90% – 24.00% | Up to ₹40 lakh | 1–5 years | Up to ₹6,500 |
| Kotak Mahindra Bank | 10.99% – 16.99% | Up to ₹35 lakh | 1–6 years | Up to 5% |
| Canara Bank | 9.95% – 15.40% | Up to ₹20 lakh | 1–7 years | Up to 0.25% (Max. ₹2,500) |
| Union Bank of India | 10.35% – 14.45% | Up to ₹15-20 lakh | 1–7 years | Up to 1% (Max. ₹7,500) |
| Bank of Baroda | 10.40% – 18.20% | Up to ₹50 lakh | 1–7 years | Up to 2% (Max. ₹10,000) |
Note: Interest rates and fees are indicative and may vary based on individual profiles, loan amount and bank policies. Please refer to the official website of the above discussed lenders for accurate and updated information on personal loan interest rates.
Hence, salaried borrowers in the month of July 2025 have several unique digital first personal loan opportunities. ICICI Bank provides swift disbursals with minimal paperwork, whereas SBI provides pre approved loans through its YONO application. HDFC Bank provides overdraft facilities along with other special features. Axis Bank and Kotak Mahindra Bank reward strong credit scores with friendly rates.
Therefore, before applying for any particular loan, carefully read the terms and conditions, compare interest rates, EMIs, tenures and the charges across various lenders. A stronger credit profile improves your chances of securing a better loan.
To secure the lowest personal loan interest rate, you should focus on maintaining a high credit score. Select shorter tenures, apply with reputable banks and also avoid submitting several loan applications that may result in a hard inquiry.
A repo rate cut by RBI generally results in reduced personal loan interest rates. Especially on floating rate loans as it lowers bank’s borrowing costs, fostering the possibility of cheaper credit for borrowers.
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