Personal Loan Rates October 2025: Planning A Big Purchase This Festive Season? Rates Compared

If you are short of funds and need cash immediately, a personal loan can be a practical solution. It allows you to cover unforeseen expenses without dipping into your savings, while also giving you the freedom to use the money for different needs. These loans usually come with structured repayment schedules, making them easier to plan for, and they often carry lower interest rates compared to credit cards.

Many leading banks provide personal loans with annual interest rates beginning at roughly 9-11%. Individuals with a good credit record and stable earnings may be able to secure even more favourable terms.

Maintaining good ties with your bank and practising sound money management can also work in your favour, as lenders often extend preferential rates to long-standing or reliable customers.

In many cases, personal loans come with a fixed rate of interest. This means that if you secure a rate, for instance 10%, it will stay the same for the entire duration of the loan, unaffected by changes in the wider market.

On the other hand, floating rates are tied to market benchmarks (like the central bank's repo rate) and change over time, causing your EMIs to rise or fall. You could save money if rates drop, but face higher costs if rates increase.

It’s always wise to look at and compare interest rates before taking a personal loan, as this helps you find the most economical deal. Since lenders can charge noticeably different rates, even a minor variation can make a big difference to the total amount you end up repaying over time.

Make sure you pay your EMIs and credit card bills on time, as delays can hurt your credit score. Lenders closely review repayment behaviour when deciding the interest rate on personal loans, and individuals with a consistent record of timely payments are often offered better rates.