Personal loans have become a popular and convenient way to borrow money in 2025, especially for needs like paying off debts, covering medical expenses, renovating a home, or planning a vacation. These loans are often a better option than credit cards or payday loans because they come with lower interest rates, making monthly repayments more affordable. With many banks and digital platforms offering competitive rates, it’s now easier than ever to find a personal loan that suits your budget—particularly if you have a good credit score. You receive a lump sum upfront and repay it in fixed monthly instalments, without the burden of high-interest costs. Platforms like Moneycontrol make this process even simpler by offering digital loans up to Rs 50 lakhs with interest rates starting from just 10.5% per annum.
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Several top banks are currently offering low-interest personal loans
- ICICI Bank provides loans up to Rs 40 lakhs with interest rates starting at 10.85% per annum and a processing fee of up to 2%, along with quick disbursal and minimal paperwork.
- HDFC Bank offers similar terms, with interest rates from 10.85% per annum, loans up to Rs 40 lakhs, and a processing fee of around 2.5%.
- SBI, India’s largest public-sector bank, offers personal loans starting at 11.45% per annum, with loan amounts ranging from Rs 25,000 to Rs 20 lakhs, and lower processing fees, making it a reliable choice despite slightly higher interest rates.
- IDFC FIRST Bank offers loans up to Rs 40 lakhs at interest rates starting from 10.99% per annum, with fast approvals and a processing fee up to 2%.
- Axis Bank also offers loans from Rs 50,000 to Rs 40 lakhs, with interest rates starting at 11.25% per annum and similar flexible repayment terms.
In addition to traditional banks, digital lending apps have become increasingly popular. These apps offer a completely paperless experience, quicker approvals, minimal documentation, and competitive interest rates, making them convenient for today’s tech-savvy borrowers. While banks are seen as more secure, online platforms are praised for their convenience, flexibility, and customer service.
To get the best interest rate on a personal loan, it’s important to maintain a good credit score, as this increases your chances of approval and better loan terms. Choosing a shorter loan tenure can also help lower the overall interest paid, even though the monthly payments may be higher. Another smart move is applying with a co-applicant who has a strong credit profile, which can help you qualify for better rates. With so many options and tools available, finding a low-interest personal loan that fits your financial needs has never been easier.
