Top 10 Personal Loan Companies with Lowest Interest Rates
Introduction
Personal loans have become one of the most popular financial tools for individuals in India, offering quick access to funds for emergencies, weddings, education, travel, or debt consolidation. With so many banks and non-banking financial companies (NBFCs) competing in the market, interest rates have become more competitive than ever in 2025. Choosing the right lender with the lowest rates can save you thousands of rupees over the loan tenure.
However, interest rates aren’t the only factor to consider—you should also look at processing fees, prepayment charges, eligibility criteria, and repayment flexibility. Still, the lowest interest rate personal loan providers stand out for offering affordable borrowing options without hidden costs. If you’ve ever asked yourself “Which company has the lowest personal loan interest rates in 2025?” or “Where can I get the cheapest personal loan in India?”, this guide covers the top 10 lenders you should consider this year.
1. State Bank of India (SBI)
SBI remains one of the most trusted lenders for personal loans in India. In 2025, it continues to offer highly competitive rates with flexible repayment options.
Its large branch network and easy online application process make it convenient for borrowers. SBI is particularly popular among salaried professionals looking for quick approval and reliability.
2. HDFC Bank
HDFC Bank offers personal loans with some of the lowest interest rates in the private sector. Known for quick disbursal and minimal documentation, it appeals to both salaried and self-employed individuals.
Its pre-approved loan offers for existing customers make borrowing seamless, while digital-first services add to the convenience.
3. ICICI Bank
ICICI Bank is a strong competitor in 2025, offering affordable personal loan interest rates with a variety of tenure options. Its transparent fee structure makes it appealing for borrowers concerned about hidden charges.
The bank also offers easy top-up loans for existing customers, making it a good choice for those needing additional funds.
4. Axis Bank
Axis Bank provides personal loans with flexible repayment terms and attractive interest rates. It has also integrated AI-driven approval systems, ensuring faster loan processing in 2025.
The bank’s balance transfer options are popular among borrowers looking to reduce their existing EMI burden by shifting to lower rates.
5. Kotak Mahindra Bank
Kotak Mahindra has positioned itself as one of the most affordable lenders for personal loans, offering competitive rates and quick approvals.
It is especially known for catering to younger borrowers, including first-time loan applicants, with simplified eligibility requirements.
6. Bajaj Finserv
Bajaj Finserv continues to dominate the NBFC segment with personal loans at low rates, combined with flexible repayment structures.
Its digital ecosystem allows instant approvals and quick disbursals, making it one of the fastest lenders in 2025.
7. Tata Capital
Tata Capital provides personal loans with affordable rates and transparent terms. It has a reputation for customer-friendly policies and wide coverage across India.
The lender also offers step-up repayment plans, where borrowers can pay lower EMIs initially and increase them as their income grows.
8. IndusInd Bank
IndusInd Bank’s personal loans in 2025 are designed for convenience, with low interest rates and minimal documentation.
It offers special schemes for salaried professionals and business owners, giving flexible repayment options that suit different financial needs.
9. IDFC FIRST Bank
IDFC FIRST has gained popularity for offering low-cost personal loans with flexible tenure options and no hidden charges.
Its customer-first approach and digital lending platform make it an attractive choice for tech-savvy borrowers seeking quick solutions.
10. Federal Bank
Federal Bank rounds out the top 10 by offering personal loans with competitive interest rates and fast processing.
It is particularly appealing for individuals in Tier-2 and Tier-3 cities, where it provides strong service coverage and simple documentation requirements.
Conclusion
In 2025, the personal loan market in India is highly competitive, giving borrowers the chance to secure loans at historically low interest rates. Lenders like SBI, HDFC, ICICI, Axis, and Kotak Mahindra stand out in the banking sector, while NBFCs like Bajaj Finserv and Tata Capital continue to innovate with flexible repayment options.
Before applying, compare interest rates, fees, and repayment terms carefully. Choosing the right lender not only lowers your EMI burden but also ensures a stress-free borrowing experience. With the right choice, you can manage your financial needs affordably and confidently in 2025.