Personal loans: Latest interest rates charged by top banks in July 2025
With the Reserve Bank of India (RBI) cutting the repo rate by 100 basis points, banks have followed suit and revised their interest rates — albeit marginally. However, only a limited category of loans (home and car loans) saw a change, whereas personal loans continue to be disbursed at a fixed rate of interest.
In other words, if you have borrowed a personal loan at a particular rate of interest, it stays the same during the tenure of the loan.
Meanwhile, when you apply for a personal loan, it is imperative to compare the interest rates charged by different lenders. Here, we list out the interest rates charged by most major banks including HDFC Bank, ICICI Bank, Kotak Mahindra Bank, among others.
Latest personal loan interest rates
HDFC Bank: The largest private lender of India charges an interest in the range of 10.90 percent to 24 percent. Aside from this, the bank charges processing charges of ₹6,500 plus tax.
ICICI Bank: This private sector bank charges interest in the range of 10.80 percent to 16.50 per cent per annum. Loan processing charges can be as high as 2 percent of loan amount plus taxes.
Kotak Mahindra Bank: This private sector bank charges interest rate of 10.99 percent per annum and above. The loan processing charges can be as high as 10.99 percent per annum.
Federal Bank: This private sector bank charges interest in the range of 11.49 percent to 14.49 per cent per annum.
Bank of Baroda (BOB): This government sector bank charges interest in the range of 11.25 to 18.30 percent per annum which changes based on the category of employment (government or private sector) and his/her credit score (low, moderate or high).
State Bank of India (SBI): The largest government sector bank charges interest in the range of 10.30 to 15.30 percent per annum.
Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
For all personal finance updates, visit here
