Latest Personal Loan Interest Rates In November 2025; What Banks Are Charging Now
Before taking a personal loan, financial experts strongly advise comparing the rates offered by different banks. Even a difference of one percentage point can translate into substantial savings over the repayment period. Personal loans, being unsecured, tend to attract higher interest rates than secured credit products. Understanding how banks determine their lending rates — and how credit scores impact them — can help borrowers secure the best deal while avoiding unnecessary financial strain.
Experts also suggest evaluating not just the interest rate but also the processing fees, repayment flexibility, and prepayment charges, which together influence the total cost of borrowing. Borrowers with a strong repayment history and a good credit score often qualify for more competitive rates.
According to lending experts, improving one’s credit profile — by paying bills on time, maintaining low credit utilisation, and avoiding multiple loan applications — can help reduce borrowing costs over time. Many banks now offer instant loan approvals for high-scoring customers with minimal documentation.
Experts also recommend comparing loans using online calculators and aggregators, which provide side-by-side comparisons of interest rates, monthly EMIs, and tenure flexibility. This allows borrowers to make informed choices tailored to their income and repayment capacity.
The best personal loan isn’t necessarily the one with the lowest interest rate but the one that suits your financial needs, repayment comfort, and long-term goals. According to experts, maintaining a healthy credit score, negotiating rates with lenders, and borrowing only when necessary can help individuals keep their finances stable. Whether it’s for an emergency or planned expense, comparing multiple banks before applying remains the key to smart borrowing.
Disclaimer: This article is for informational purposes only and is based on expert analysis and publicly available data from financial institutions. Readers should verify the latest interest rates directly from official bank websites before making borrowing decisions.
Why Comparing Personal Loan Rates Matters
Personal loans are one of the most accessible forms of borrowing, often used to meet urgent expenses such as medical bills, education costs, or home renovations. However, because they are not backed by collateral, lenders charge higher interest to mitigate risk. According to financial planners, comparing multiple banks before finalising a loan is essential. Even a marginal difference in interest — say 10.5% versus 11.5% — can save thousands of rupees over the tenure of a three-to-five-year loan.Experts also suggest evaluating not just the interest rate but also the processing fees, repayment flexibility, and prepayment charges, which together influence the total cost of borrowing. Borrowers with a strong repayment history and a good credit score often qualify for more competitive rates.
How Credit Scores Influence Loan Rates
The credit score, typically measured on a scale of 300 to 900, is one of the most important factors determining loan eligibility and pricing. Borrowers with scores above 750 are usually considered low-risk and are offered better rates. A lower score, on the other hand, signals a higher likelihood of default, prompting banks to charge a premium.According to lending experts, improving one’s credit profile — by paying bills on time, maintaining low credit utilisation, and avoiding multiple loan applications — can help reduce borrowing costs over time. Many banks now offer instant loan approvals for high-scoring customers with minimal documentation.
Current Personal Loan Interest Rates Across Major Banks
Interest rates on personal loans currently vary widely across banks, depending on internal risk assessments, customer profiles, and loan tenures. Below is a summary of the prevailing rates among leading Indian banks as of late 2025.HDFC Bank
HDFC Bank, one of the largest private lenders, offers personal loans at 9.99% to 24% per annum, with processing fees of ₹6,500 (excluding GST). The rate depends on factors such as income stability, loan amount, and credit profile.ICICI Bank
ICICI Bank charges between 10.45% and 16.50% per annum, with a processing fee of up to 2% of the loan amount plus GST. The lender also provides digital pre-approved offers for existing customers.Kotak Mahindra Bank
Kotak Mahindra Bank’s personal loan rates start from 9.98% per annum, one of the lowest in the private sector. Processing fees can go up to 5% of the loan amount, deducted during disbursal.Federal Bank
Federal Bank offers personal loans with rates ranging between 11.99% and 18.99% per annum. The processing fee is capped at 3% of the sanctioned amount, depending on the borrower’s risk grade.State Bank of India (SBI)
The country’s largest lender, SBI, provides personal loans at 10.05% to 15.05% per annum. Its processing fees range from ₹1,000 to ₹15,000 before taxes, making it one of the more accessible options for salaried borrowers.Canara Bank
Canara Bank offers two variants — a fixed-rate loan (14.50% to 16%) and an RLLR-linked product (13.75% to 15.25%). Experts note that repo-linked loans tend to fluctuate with policy rate changes, offering possible savings during rate cuts.Bank of Baroda (BoB)
Bank of Baroda’s personal loan rates fall between 10.40% and 15.75% per annum, depending on the borrower’s employment type (government or private) and credit history.Union Bank of India
Union Bank of India charges between 10.75% and 14.45% per annum, offering competitive terms for salaried professionals and government employees.How to Choose the Right Personal Loan
According to financial advisors, borrowers should prioritise lenders that combine competitive rates, transparent terms, and strong customer service. It’s also wise to assess additional costs such as insurance premiums, late-payment penalties, and early settlement charges. Borrowers planning short-tenure loans should look beyond just the interest rate and consider the total cost of credit, which includes all fees and taxes.Experts also recommend comparing loans using online calculators and aggregators, which provide side-by-side comparisons of interest rates, monthly EMIs, and tenure flexibility. This allows borrowers to make informed choices tailored to their income and repayment capacity.
The best personal loan isn’t necessarily the one with the lowest interest rate but the one that suits your financial needs, repayment comfort, and long-term goals. According to experts, maintaining a healthy credit score, negotiating rates with lenders, and borrowing only when necessary can help individuals keep their finances stable. Whether it’s for an emergency or planned expense, comparing multiple banks before applying remains the key to smart borrowing.
Disclaimer: This article is for informational purposes only and is based on expert analysis and publicly available data from financial institutions. Readers should verify the latest interest rates directly from official bank websites before making borrowing decisions.
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