Personal Loan Interest Rates In July 2025: Top Banks Offering Lowest Interest Rates

A personal loan could be one of the most convenient options when you need urgent money. It’s quick, provides flexible usage and helps to manage unexpected expenses without depleting your savings. Personal loan schemes are convenient as they come with fixed repayment terms. The interest rates on these loans are often lower than credit cards.

Several top lenders offer personal loans at an interest rate starting at around 10% per annum. However, borrowers can also negotiate lower rates depending on factors like strong credit history and steady income. It’s also important to maintain a healthy relationship with lenders and adopt fiscal discipline, as many banks offer loans to their existing customers at lower rates.

While most lenders are currently offering personal loans from Rs 10,000 to Rs 5 lakh, the loan amount can go up to Rs 50 lakh. The eligibility for higher loan amounts depends on multiple factors like credit score, income and job stability, among others.

For most banks, the eligibility typically includes being a salaried individual or business person with a strong credit score (often 800 or above). For instance, Bank of Maharashtra offers interest rates from 9% onwards for high CIBIL score holders, while the State Bank of India (SBI) provides loans with an interest rate between 10.3% and 15.3% per annum for borrowers with a monthly income of at least Rs 20,000.

The exact interest rate is typically decided by the bank after assessing an individual borrower’s financial and credit profile.

The interest rates on personal loans across top lenders range between 9% and 15% per annum. Here is the list of banks with the lowest personal loan interest rates: