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Top 5 Personal Loan Providers in India offering the lowest interest rates as of June 2025:
🥇 1. Indian Bank – 9.75 % p.a. onwards
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Offers the lowest starting rate among major banks
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Loan range and tenure vary by applicant profile 2. Bank of Maharashtra – 9.75 % p.a. onwards
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Same low starting rate for eligible applicants
3. IDFC FIRST Bank – 9.99 % p.a. onwards
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Competitive private-sector lender with no collateral requirement
4. State Bank of India (SBI) – 10.30 %–15.30 % p.a.
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Public-sector, widely accessible; retains starting rate of 10.30 %
5. ICICI Bank – 10.85 %–16.65 % p.a.
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Private bank; fast disbursal and minimal paperwork
🧾 Quick Comparison at a Glance
| Bank | Starting Interest Rate | Typical Range | Notes |
|---|---|---|---|
| Indian Bank | 9.75 % p.a. | 9.75–15.25 % | Best-in-class base rate |
| Bank of Maharashtra | 9.75 % p.a. | 9.75–14.55 % | Similar advantage to Indian Bank |
| IDFC FIRST Bank | 9.99 % p.a. | 9.99 % onwards | Strong contender in private banking |
| SBI | 10.30 % p.a. | 10.30–15.30 % | Offers via YONO, public-sector reliability |
| ICICI Bank | 10.85 % p.a. | 10.85–16.65 % | Quick online approvals |
💡 What This Means for You
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Lowest starting rates (below 10 %) typically need a strong credit score and stable income.
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Actual rate and fees depend on factors like credit history, loan amount, repayment term, and employment type.
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Processing fees can vary: e.g., SBI (~1.5% max), ICICI and Axis Bank (
2%), HDFC (₹6,500 cap)
✅ Tips to Secure the Best Rate
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Check your CIBIL score; scores 750+ tend to unlock sub-11 % rates.
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Shop and compare across banks—take note of processing and prepayment fees.
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Aim for loans between ₹5 lakh to ₹50 lakh over 1–7 years to get top-tier offers.
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Use pre-approved offers through your primary bank’s app (e.g., SBI YONO).
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Evaluate total cost—interest + fees—not just the base interest rate.
✍️ Final Take
If your profile (credit score, job/income) meets eligibility, Indian Bank or Bank of Maharashtra offer the best starting rate at 9.75 % p.a., followed closely by IDFC FIRST Bank at 9.99 % p.a.. For strong digital experience and quick disbursal, SBI and ICICI Bank also provide attractive options.
Let me know if you'd like help comparing processing fees, eligibility criteria, or alternatives like credit union or fintech loan
