When looking for quick financial support without collateral, personal loans come to the rescue. But with so many banks offering these loans, it’s important to know which bank is best for personal loan with low interest. This article explores top choices and helps you decide the best bank for personal loans based on interest rates, customer service, and overall benefits.

Why Interest Rate Matters in Personal Loans

Interest rate plays a crucial role in determining the total cost of your personal loan. Even a small difference in rate can impact your monthly EMIs and total repayment. That’s why choosing the best bank for low-interest personal loan can save you thousands over the loan term.

Best Banks for Personal Loans in 2025

Here are some of the most trusted banks in India currently offering personal loans at attractive interest rates:

1. HDFC Bank

  • Interest Rate: Starting from 10.5% p.a.

  • Loan Amount: Up to ₹40 lakhs

  • Repayment Tenure: Up to 6 years

  • Why Choose: Fast approval, minimal paperwork, and special rates for salaried individuals. HDFC remains one of the best banks for personal loans with competitive terms.

2. ICICI Bank

  • Interest Rate: Starting from 10.75% p.a.

  • Loan Amount: ₹50,000 to ₹25 lakhs

  • Tenure: Up to 5 years

  • Why Choose: Digital process, flexible prepayment options, and personalized offers.

3. State Bank of India (SBI)

  • Interest Rate: Starting from 10.45% p.a.

  • Loan Amount: ₹25,000 to ₹20 lakhs

  • Tenure: Up to 6 years

  • Why Choose: Government-backed reliability, lower interest for existing customers and defense personnel. SBI is often considered the best bank for low-interest personal loan in the public sector.

4. Axis Bank

  • Interest Rate: Starting from 10.49% p.a.

  • Loan Amount: Up to ₹40 lakhs

  • Tenure: Up to 5 years

  • Why Choose: Quick disbursal, low processing fee, and high approval rate.

Tips to Get the Lowest Personal Loan Interest Rate

  • Maintain a good credit score (750+)

  • Compare interest rates online

  • Choose shorter tenure if possible

  • Apply with your existing bank for loyalty benefits

Final Thoughts

Choosing the best bank for personal loans isn’t just about interest rates, it's about the right mix of trust, flexibility, and features. For the lowest rates, public banks like SBI are great, while private banks like HDFC and ICICI offer fast approvals and personalized deals. Compare and choose the bank that fits your needs best.