Personal loan interest rates in March 2025: Top 7 banks charge these rates on their advances
Banks charge interest on their personal loans which could range anywhere in the range of 10.85 to 24 percent per annum.
If you are planning to raise a personal loan, one of the key things that you should consider is the interest rate at which the loan is offered. This directly influences the monthly instalment, which is also referred to as EMI (equated monthly instalment).
An EMI is a function of several factors including credit score, amount of loan, salary of borrower and the category of employer i.e., government, PSU, large corporate or SME.
For instance, someone who has a job in a small and medium sized company with a low credit score is likely to get a loan at a higher rate of interest in comparison to the other borrower who has a high-paying job in a large listed company and also boasts of a high credit score (say 700 and above).
Personal loan interest rates
Here we list out the personal loan interest rates charged by top banks.
| Bank | Interest rate (%) |
|---|---|
| HDFC Bank | 10.85 to 24 (processing ₹6,500) |
| ICICI Bank | 10.85 and 16.65 per annum (upto 2% + tax) |
| Federal Bank | 11.49 to 14.49 |
| Kotak Mahindra Bank | 10.99 to 16.99 (upto 5%) |
| State Bank of India | 12.60 to 14.60 for corporates |
| Bank of Baroda | 12.15 to 18.50 for private sector employees |
| Union Bank of India | 11.50 to 15.20 |
As we can see in the table above, HDFC Bank charges an interest in the range of 10.85 to 24 percent per annum. As mentioned above, low interest is charged from borrowers who have high credit scores and high interest is charged from those who have high credit scores. The bank also charges processing charges upto ₹6,500.
ICICI Bank charges an interest in the range of 10.85 to 16.65 percent per annum while there are 2 percent processing charges as well.
Meanwhile, Federal Bank offers personal loans at an interest rate of 11.49 percent to 14.49 percent. Another private sector bank Kotak Mahindra Bank charges an interest of 10.99 percent to 16.99 percent while processing charges can be as high as 5 percent.
State Bank of India (SBI) charges interest in the range of 12.60 to 14.60 percent for borrowers in the corporate sector. Another state lender Bank of Baroda charges an interest in the range of 12.15 percent to 18.50 percent for private sector employees.
Union Bank of India charges interest in the range of 11.50 percent to 15.20 percent per annum on personal loans.
(Note: Raising a loan comes with its own risks. So, due caution is advised)
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