Personal loans can be a real lifesaver when you need quick cash—whether it’s for a wedding, travel, medical emergency, home renovation, or even to clear existing debt. The good thing is, in 2025, there are plenty of trusted banks in India offering personal loans with simple terms, fast approvals, and competitive interest rates.
But with so many options, how do you know which bank is the best for you?
Here’s a list of the top 10 banks for personal loans in India in 2025—based on interest rates, approval time, loan amount, repayment flexibility, and overall customer experience.
1. HDFC Bank
Why it’s popular:
HDFC Bank is one of the most trusted names when it comes to personal loans. They offer quick approvals, minimal paperwork, and flexible EMI options.
- Loan amount: ₹50,000 to ₹40 lakh
- Interest rate: Starting from 10.5% p.a.
- Tenure: Up to 6 years
- Approval time: Within 24 hours (for pre-approved customers)
Best for: Salaried professionals and existing HDFC customers.
2. ICICI Bank
Why it stands out:
ICICI is known for smooth digital processes. You can apply online and get approval quickly if your documents are in order.
- Loan amount: ₹50,000 to ₹25 lakh
- Interest rate: Starts from 10.75% p.a.
- Tenure: Up to 6 years
- Processing time: 1-2 days
Best for: People with a good credit score and stable income.
3. SBI (State Bank of India)
Why it’s reliable:
SBI is India’s largest public sector bank and offers personal loans at very competitive rates. It’s a good option for government employees and pensioners too.
- Loan amount: Up to ₹20 lakh
- Interest rate: Starting from 10.6% p.a.
- Tenure: Up to 6 years
- Processing time: 2-3 days
Best for: Those who prefer government banks and low processing fees.
4. Axis Bank
Why it’s a strong choice:
Axis offers high-value personal loans with attractive interest rates and quick disbursement. Their mobile app makes tracking loans easy.
- Loan amount: ₹50,000 to ₹40 lakh
- Interest rate: Starting at 10.49% p.a.
- Tenure: Up to 5 years
- Disbursement: Within 2 days
Best for: Tech-savvy users who prefer app-based loan management.
5. Kotak Mahindra Bank
Why it’s trending:
Kotak offers fast approvals and paperless processing. Their personal loans are available for both salaried and self-employed individuals.
- Loan amount: ₹50,000 to ₹25 lakh
- Interest rate: From 10.99% p.a.
- Tenure: Up to 5 years
- Approval: Often same-day for eligible customers
Best for: Young professionals and first-time borrowers.
6. IDFC FIRST Bank
Why it’s gaining popularity:
Known for customer-centric services and low processing charges, IDFC FIRST is making a mark with flexible EMI options and fast disbursal.
- Loan amount: ₹1 lakh to ₹40 lakh
- Interest rate: Starting from 10.75% p.a.
- Tenure: Up to 5 years
- Disbursement: Within 24-48 hours
Best for: Anyone looking for a low-EMI, low-penalty loan.
7. IndusInd Bank
Why it’s worth considering:
IndusInd offers fully digital personal loans with quick approval and no collateral required. It’s easy to apply, even through mobile.
- Loan amount: ₹50,000 to ₹25 lakh
- Interest rate: From 10.5% p.a.
- Tenure: Up to 5 years
- Processing time: As quick as 24 hours
Best for: Quick loan seekers with minimal paperwork.
8. Bank of Baroda
Why it’s a solid option:
A trusted public sector bank with one of the lowest interest rates for personal loans in India. Also great for pensioners and salaried government employees.
- Loan amount: ₹50,000 to ₹10 lakh
- Interest rate: Starts at 10.1% p.a.
- Tenure: Up to 5 years
- Processing time: 2-3 days
Best for: Budget-conscious borrowers who want low interest.
9. Federal Bank
Why it’s growing fast:
Federal Bank is known for its friendly service, low documentation, and fast turnaround for loan approvals.
- Loan amount: ₹50,000 to ₹25 lakh
- Interest rate: From 10.5% p.a.
- Tenure: Up to 4 years
- Approval: Within 48 hours
Best for: Salaried individuals and professionals with a steady income.
10. Yes Bank
Why it’s reliable:
Yes Bank offers competitive rates and a fully digital process. They also provide good support for self-employed applicants.
- Loan amount: ₹1 lakh to ₹40 lakh
- Interest rate: Starting from 10.99% p.a.
- Tenure: Up to 6 years
- Processing time: 1-2 working days
Best for: High loan amounts and flexible tenures.
Tips Before You Apply for a Personal Loan:
- Check your credit score: A score above 750 increases your chances and lowers interest rates.
- Compare interest rates: Even a 1% difference can save a lot over the loan period.
- Look at hidden charges: Processing fees, prepayment charges, and late payment penalties matter.
- Use EMI calculators: Know what you’ll be paying monthly before applying.
- Go digital: Most banks now allow online applications with e-KYC and instant approvals.
Final Word
Personal loans are easy to get these days, but it’s important to pick a trusted bank with transparent terms. The ten banks listed above are among the best in India for 2025, offering a balance of low interest rates, fast service, and customer support.
Always read the fine print, borrow only what you need, and choose a repayment plan that works for your monthly budget. A well-planned personal loan can give you breathing room without causing long-term financial stress.
FAQs
Q: Which bank gives the fastest personal loan in India?
A: HDFC, Axis, and Kotak Mahindra offer instant or same-day approvals for eligible customers.
Q: What is the ideal credit score to get a personal loan in India?
A: A credit score of 750 or above is considered good for personal loan approvals.
Q: Can I prepay my personal loan early?
A: Yes, most banks allow prepayment, but some may charge a small fee. Always check the pre-closure terms.