Top 7 banks offering the best personal loan interest rates

When you need urgent funds, a personal loan can be a quick solution, whether it's for a wedding, home renovation, or even a special gift for your partner. But before taking a loan, it's crucial to compare interest rates across banks to ensure you're making an informed choice.

Factors Affecting Interest Rates:

Interest rates for personal loans vary depending on several factors, including your credit score. The higher your credit score, the lower the interest rate you can expect. On the other hand, a lower credit score often leads to a higher interest rate. Additionally, the bank’s policies and your employer can also influence the rate.

Comparison of Personal Loan Interest Rates by Bank (as of January 2, 2025):

Bank Interest Rate (%)

HDFC Bank 10.85 to 24

ICICI Bank 10.85 to 16.25

Bank of Baroda 11.40 to 18.75

Kotak Mahindra Bank 10.99 to 16.99

State Bank of India 11.45 to 14.60

Punjab National Bank 12.40 to 17.95

Axis Bank 10.49 to 22.50

Bank-Specific Information:

HDFC Bank: Interest rates range from 10.85% to 24%, based on factors like your credit score and employer. Processing fees are ₹6,500 + GST.

ICICI Bank: Interest rates range from 10.85% to 16.25%, with a processing fee of up to 2%.

Kotak Mahindra Bank: Charges interest between 10.99% and 16.99%, with a processing fee of up to 5%.

State Bank of India (SBI): Offers interest rates from 11.45% to 14.60%. SBI also offers zero processing fees until January 31, 2025.

Punjab National Bank (PNB): Interest rates range from 12.40% to 17.95%.

Axis Bank: Offers interest rates from 10.49% to 22.50%, with processing fees of up to 2%.

Key Takeaway:

While the interest rates can fluctuate, it’s always wise to compare offers from multiple banks before choosing the best one for your needs. Make sure to also check with the banks for updated rates, as these can change periodically.