Personal loan: Before choosing a lender, it is recommended to compare interest rates charged by different banks. One can, thereafter, opt for the one that is offering loan at the lowest rate of interest.
Meanwhile, one should also factor in processing charges which also add to your financial burden at the time of seeking a loan. Sometimes, these charges make the entire deal costlier even when interest rates are lower.
Here, we compare the interest rates charged by different lenders, particularly the more prominent ones in both private and government sector.
Personal loan interest rates in Oct 2025
HDFC Bank: This private sector bank charges interest in the range of 9.99 to 24% per annum. Meanwhile, it charges ₹6,500 processing charges plus GST.
ICICI Bank: This private sector bank charges interest in the range of 10.60% and 16.50% a year. Meanwhile, processing charges are upto 2 percent of loan amount plus applicable taxes, shows the bank’s official website.
Kotak Mahindra Bank: Interest rate charges by Kotak Mahindra Bank start at 9.98 percent per annum and processing fee is upto 5 percent plus taxes.
Federal Bank: It charges interest in the range of 11.99 to 18.99% per annum. Processing charges are upto 3% per annum.
State lenders
State Bank of India (SBI): Largest state lender charges interest in the range of 10.05 to 15.05% per annum. These rates came into force with effect from 15 August 2025. Processing charges on personal loan range between ₹1,000 to ₹15,000 plus GST.
Union Bank of India: Union Bank of India charges interest in the range of 10.75% to 14.45% per annum.
Bank of Baroda: It charges interest in the range of 10.40 to 15.75 percent per annum.
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