Friends, are you also planning to take a personal loan in an emergency but want to avoid the tension of interest rates? In today’s inflation, taking a loan with high rates is like a waste of money, but do you know that there are many such options in India where interest rates start from just 9.9%?
Today we will talk about the lowest interest rate personal loans, where you can easily apply and manage the EMI. Let’s understand step by step Low Interest Rate Personal Loans in India and how these loans can prove beneficial for you.
What is a Personal Loan?
You must know what a personal loan is – this is an unsecured loan where you do not have to give any collateral. Whether it is a medical emergency, vacation plan or home renovation, this loan is available instantly. But interest rates are the factor that makes EMI easy or difficult. Banks and NBFCs in India are now offering low rates, especially if the CIBIL score is good.
I have guided many people in choosing a loan, and my experience says that choosing rates between 9.9% to 12% is the smartest choice, as it keeps the overall cost low.
Which Banks Offer the Lowest Interest Rates?
Now the most important thing – which banks or lenders are offering the lowest rates in India? Interest rates in 2025 depend on economic conditions, but there are some top options where rates start from 9.9%.
Here is a quick table where I have shortlisted the major lenders and their rates. These rates may change depending on your CIBIL score, loan amount and tenure:
| Lender/Bank | Interest Rate (p.a.) |
|---|---|
| IndusInd Bank | 9.9% onwards |
| Axis Bank | 9.99% onwards |
| IDFC First Bank | 9.99% onwards |
| ICICI Bank | 10.60% onwards |
| HDFC Bank | 10.75% onwards |
| SBI | 11.60% onwards |
| Bank of Baroda | 12.9% onwards |
These rates are based on the latest updates, and you can check for yourself. For example, if your CIBIL is 750+, you can get a loan from IndusInd Bank at 9.9% rate where the loan amount goes up to Rs 50 lakh. Similarly, Axis Bank offers quick approval, and their processing fee is also low.
How to Choose Low Interest Rates?
First, check your CIBIL score – if it is 700+, you will qualify for good rates. Then, decide the loan amount and tenure. Small loans (5-10 lakhs) and short tenures (2-3 years) have lower rates.
I have seen many people apply just by looking at the rates, but also check the processing fee, prepayment charges and insurance. For example, HDFC Bank has no prepayment charges, which leads to savings in the long term.
Benefits of Low Rate Loans
The biggest benefit is low EMI. Suppose you take a loan of Rs 5 lakh at 10% rate for 3 years, then the EMI will be around Rs 16,000, while at 15% rate it will be Rs 17,500. This small difference becomes a big saving in the long run.
Also, taking a loan from good banks like ICICI or SBI also improves the credit score. But remember, take a loan only when needed, otherwise you may get caught in a debt trap.
Eligibility for Low Interest Rate Personal Loans
Most banks require age 21-60 years, minimum income Rs 25,000 per month, and CIBIL 700+. Documents like Aadhaar, PAN, salary slips and bank statements are sufficient. Apply online – platforms like Airtel Finance get approval within minutes.
Mistakes to Avoid While Choosing Low Rates
Many people take loans from NBFCs where rates are high, while banks like SBI or Bank of Baroda have rates of 11-12%. Also, use comparison tools to get the best offer.
Final Words
Choosing a low-interest personal loan is a smart financial decision, but use it responsibly.
FAQs
Which bank offers the lowest interest personal loan in India?
IndusInd Bank and Axis Bank start at 9.9%, but it depends on your CIBIL.
What is the minimum CIBIL score required for a personal loan?
700+ is ideal, but some banks approve even at 650+, rates may be slightly higher.
How long does it take to get a personal loan?
Disbursement is done within 1-2 days if you apply online, like IDFC First Bank.
Are there any charges on personal loan prepayment?
Many banks like HDFC don’t charge any, but do check.
How to calculate personal loan EMI?
Use the EMI calculator of banks, like the one on SBI’s website.
Best Low Interest Rate Personal Loans
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