Before you decide to raise a personal loan, it is recommended to compare the interest rates charged by different banks. These rates tend to change from time to time.-
Notably, even a small difference of 50 basis points in interest rates on personal loans can lead to huge savings for investors over a period of time. For instance, a ₹10 lakh loan for 5 years can lead to savings of ₹14,711 when the interest is 9.5% (instead of 10%). The savings amount to ₹29,422 when the loan amount is ₹20 lakh with all other variables being the same.
Here, we list out the interest rates charged by the top 7 banks in India, including government and private banks.
Personal loan interest rates December 2025
HDFC Bank: This private bank charges interest in the range of 9.99% to 24% on personal loans for salaried persons. The processing fee for the loan is ₹6,500 plus GST.
ICICI Bank: It charges interest in the range of 10.45% to 16.50% per annum. Processing charges on the loan are 2%.
Kotak Mahindra Bank: This private lender charges interest above 10.99% per annum. Processing charges for a loan are up to 5% of the loan amount plus taxes. This is deducted from the loan amount at the time of disbursal.
Federal Bank: This private bank charges interest in the range of 10.49% per annum to 17.99% per annum.
Axis Bank: This lender charges interest in the range of 9.5 to 21.55% per annum, whereas the processing fee is 2%.
State lenders
State Bank of India (SBI): The largest lender in India charges interest in the range of 10.05% to 15.05% per annum.
Canara Bank: This state lender charges interest in the range of 13.75% to 15.25% per annum.
Union Bank of India: This government bank charges interest in the range of 10.75% to 14.45% per annum on personal loans.
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