Best Banks for Personal Loans in India 2025
A personal loan is one of the most preferred lending options in India for meeting any urgent requirement, such as home renovation, medical emergencies, education, debt consolidation, or weddings. With rising financial needs and inflation, choosing the right bank for a personal loan can help you save a significant sum of money and hassle.
This article highlights the top banks offering personal loans in India in 2025. While choosing the best personal loan option in 2025, you need to check the personal loan interest rates, loan amount options ranging from 1 lakh loan to 10 lakh loan, flexible tenure options and features making it a hassle-free experience.
What is a Personal Loan and Why Consider It?
A personal loan is an unsecured loan that provides a sum of money to the borrower when in need. The borrower needs to repay the loan along with an interest agreed at the beginning in fixed monthly instalments (EMIs) over a chosen tenure. As it is an unsecured loan, it does not require any collateral, making it easier for salaried and self-employed individuals to avail of it. If you avail a personal loan from any bank or financial institution, you are free to use the funds for any purpose.
In India, you can avail of personal loans ranging from 1 lakh to 10 lakh, suitable for substantial expenses. Banks or financial institutions will provide loans based on your eligibility criteria without the need for collateral. Various banks now offer personal loans ranging from 1 lakh to 50 lakh, but Rs. 10 lakh loan remains a popular and manageable borrowing limit for many.
Top Banks Offering Personal Loans 2025
Following are some of the best banks offering personal loan options in India at reasonable interest rates, flexible tenure options, and customer convenience.
| Banks | Interest Rate (p.a.)* | Loan Amount (Rs) | Tenure |
|---|---|---|---|
| State Bank of India | 10.30% – 15.30% | Upto 35 lakh | Upto 72 months |
| ICICI Bank | 10.85% – 16.65% | Upto 50 lakh | Upto 72 months |
| HDFC Bank | 10.90% – 24% | Upto 40 lakh | Upto 60 months |
| Axis Bank | 11.25% – 22% | Upto 40 lakh | Upto 84 months |
| IndusInd Bank | Starting at 10.49% | Upto 50 lakh | Upto 84 months |
*Note: Interest rates mentioned are subject to change without any prior information.
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State Bank of India
State Bank of India (SBI) offers personal loan options with competitive interest rates starting as low as 10.30% p.a., making them affordable for borrowers looking for an unsecured loan in 2025. SBI offers personal loans up to Rs. 35 lakh in 2025, making it suitable for any immediate financial needs. It also offers flexible tenure options up to 72 months, which allows borrowers to opt for an EMI that they can manage easily.
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ICICI Bank
ICICI Bank offers personal loans upto Rs. 50 lakh with interest rates ranging between 10.85% and 16.65%. ICICI Bank offers a multi-purpose personal loan which you can avail in case of any medical emergency, marriage expenses, home renovation, purchasing any appliances and gadgets, travelling or education. The bank’s quick disbursal, minimal documentation and top-up loan facilities make it a preferred choice for many borrowers.
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HDFC Bank
HDFC Bank is among the most popular banks in the personal or unsecured loan segment. It offers loans up to Rs. 40 lakh with interest rates ranging between 10.90% and 24% p.a. The bank provides flexible tenure options ranging up to 60 months and caters to salaried and self-employed borrowers with products tailored to suit specific requirements. You can also avail of instant loans or pre-approved loans with quick disbursal for existing HDFC bank customers.
HDFC Insta Jumbo Loan is one of the most popular and standout products offered by HDFC Bank. It is a pre-approved personal loan available to select HDFC credit cardholders. HDFC Insta Jumbo Loan allows existing credit cardholders to get an instant loan beyond their credit card limit without blocking their available credit limit. This is one of the most popular products available in 2025 and is ideal for borrowers who are looking for quick funds without lengthy paperwork.
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Axis Bank
Axis Bank offers personal loans up to Rs. 40 lakh with interest rates ranging between 11.25% and 22% p.a. It also offers flexible tenure options up to 84 months and provides quick approvals, minimal documentation and top up loan option for existing Axis Bank customers.
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IndusInd Bank
IndusInd Bank provides various personal loan options for various user needs like wedding, home renovation, medical, education etc. It offers loan amounts up to Rs. 50 lakh with interest rates starting at 10.49% p.a. The bank also provides flexible tenure options up to 84 months and provides instant personal loans online with quick processing and balance transfer facilities.
Factors to Consider When Selecting a Personal Loan
Following are some of the key factors to consider while opting for a persona loan in 2025:
- Interest rate: A lower interest rate will help reduce the overall loan cost. It is critical to compare different lenders and opt for one that provides the lowest interest rate.
- Loan amount & tenure: Ensure that the bank you want to opt provides your desired loan amount and tenure that fits your repayment capacity.
- Processing Fees: Each bank charges a personal loan processing fee up to 5% of the loan amount. Do check and compare processing fees along with the other fees and charges associated with the loan.
- Disbursal Speed: Instant or quick loan disbursal might be crucial for you in case of an urgent need. Do check for loans like HDFC Insta Jumbo Loan which offers instant disbursal for existing HDFC credit cardholders.
- Eligibility & Documentation: It is critical to check if you fit the eligibility criteria of the bank you are opting for. You should also check what documents are required and whether you hold the required documents.
- Prepayment & Foreclosure Charges: Look for flexible prepayment options to save on interest costs.
Conclusion
Nowadays, personal loans are more accessible and customer-friendly in India. Top banks like SBI, ICICI Bank, HDFC Bank, Axis Bank, and IndusInd Bank offer various personal loan options catering to various needs and budgets. Among these, HDFC Bank Insta Jumbo Loan is one of the standout products for existing HDFC credit cardholders due to its instant disbursal, minimal documentation, and flexible repayment options.
Borrowers who don’t have an HDFC Bank credit card can check and compare different personal loan options available from top banks in India. Comparing these top banks and understanding your eligibility can help you avail the best personal loan for your immediate needs without putting too much pressure on your shoulders.
