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Personal Loan Offers 2025: Banks offer personal loans with interest rates ranging from 9.50% to 22.31% and processing fees from 0.50% to 3.5%.
A score of 700-750 and above is generally considered ‘good.’ (Representative Image)
Personal Loan Offers 2025: Banks offer varied interest rates to customers for a personal loan, which is an unsecured credit to be used for various personal expenses. The rate of interest that bank charge from customers ranges between 9.50 per cent to 10.50 per cent. They will also cut the processing fee and GST while disbursing these personal loans to customers.
The processing fee may start from 2 per cent to reach up to 3.5 per cent.
A personal loan helps you to get quick credit for personal needs without offering any security like property or gold. You can use a personal loan for medical emergencies, marriage expenses, travel or vacation, home renovation, debt consolidation, and many more.
Let’s see the comparison of personal loan rates offered by top Indian lenders in 2025 (As of July 13).
Bank Personal Loan Interest Rate Offers 2025
| Bank | Interest Rate (p.a.) | Processing Fee | |
| Bank of Maharashtra | 9.50% p.a. | Up to 1% | |
| HSBC Bank | 10.15% p.a. – 16.00% p.a. | Up to 2% | |
| State Bank of India | 10.30% p.a. to 15.30% p.a. | Up to 1.50% | |
| South Indian Bank | 10.50% p.a. to 22.31% p.a. | 1% for loan amount above Rs.25 lakh | |
| Indian Overseas Bank | 10.50% p.a. to 13.90% p.a. | Up to 0.50% | |
| ICICI Bank | 10.85% p.a. – 16.65% p.a. | Up to 2% | |
| IDFC First Bank | 10.70% p.a. onwards | Up to 2% | |
| IndusInd Bank | 10.49% p.a. onwards | Up to 3.5% onwards | |
What Are Pros And Cons Of Personal Loan?
There are a lot of advantages of personal loans including no collateral requirement, quick approval and disbursal, fixed EMI & tenure, and flexible use.
However, customers need to pay higher interest rates on personal loans because there’s no collateral or security. Moreover, they have to pay a processing fee (1% to 5%) of the loan amount, GST, late payment charges and prepayment penalties, etc.
The one who is applying for a credit score must have a score above 700+, stable income and proper documentation to be at least eligible for a personal loan offer.
Missing EMIs or defaulting can damage your credit history badly and hurt your chances of future loans.
A personal loan is helpful when you need money urgently and have no other cheaper options. But it should be used wisely — not for luxuries or avoidable expenses — because the interest and repayment burden is real.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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