28 June, 2025 | 11:01 IST
Personal loans have become an essential part of modern financial planning. They offer individuals quick access to funds without the need to pledge any assets. Almost all leading banks and other lending institutions are offering personal loans at low interest rates to cover various financial needs, such as paying off debt, medical emergencies, house renovation and even to plan a holiday for your loved ones.
Let us dive into what a personal loan means and how its interest rates work, besides looking at banks offering the best deals.
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In simple terms, a personal loan stands for an unsecured loan that people can receive from banks and Non-Banking Financial Companies (NBFCs) to access money, without the need to pledge any collateral.
Today, people can easily get personal loans using new-age lending apps on their phones. The process is fully digital, quick and hassle-free.
Unlike secured loans, where an individual is required to provide collateral, personal loans are primarily based on creditworthiness as well as the income level of the borrower. The loan amount needs to be paid back to the financial institution in EMIs over a predetermined term.
The online loans platform of Moneycontrol provides all the relevant details regarding digital loans of up to Rs 50 lakhs from top lenders. The rates start at 10.5% per annum, making it easy for borrowers to repay the total amount within the stipulated time period.
State Bank of India (SBI): The largest public-sector bank offers personal loans with interest rates starting at 10.3% per annum. It provides loans up to Rs 35 lakhs.
HDFC Bank: It has a 100% digital process to provide loans of up to Rs 40 lakh, with rate of interest anywhere between 10.9% and 24%. Borrowers will also be required to pay loan processing charges of up to Rs 6,500 in addition to GST.
ICICI Bank: Here borrowers can get loan amounts of up to Rs 50 lakh with interest rates starting at 10.85% to 16.5% and a flexible tenure that reaches up to 72 months.
Axis Bank: Offers personal loans up to Rs 40 lakhs. The tenure ranges from 12 months to 84 months and the interest rate starts at 11.25% per annum. The processing fee is up to 2% of the total loan amount and GST.
IDFC FIRST Bank: Get a personal loan of up to Rs 10 lakh instantly, starting at 9.99% per annum.
HSBC Bank: Personal loans between Rs 1 lakh and Rs 50 lakh are available. The interest rate is from 10.15% to 16% per annum and the processing fee is up to 2% of the loan amount.
Yes Bank: Those having Rs 25,000 as monthly stable income and a good credit score can secure personal loans with an interest rate between 11.25% and 21% per annum, while the processing fee will be up to 2.5% of the loan amount.
Kotak Mahindra Bank: A maximum personal loan of Rs 35 lakh can be availed for anywhere from one to six years at interest rates starting at 10.99% per annum.
(It must be noted that the rates are as of June 25, 2025, from the official websites of the banks. For additional details, please visit the website of the respective banks)
To get a detailed view of various lending institutions, users can access Moneycontrol which provides personal loan offers from various lenders with interest rates starting as low as 10.5% per annum.
Personal loans provide financial flexibility and quick access to money. The key is to compare the interest rates across different banks to make a smart choice to fulfil your financial needs.
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