Table of Contents

Personal Loan Interest Rates 2025 Types of Personal Loans What are the Eligibility Criteria for a Personal Loan?What are the Documents Required for a Personal loan How to Apply for a Personal Loan Online: Step-by-Step Process?How to Check Personal Loan Application Status?How to Download a Personal Loan Statement Online?How to Calculate Personal Loan EMI?How to Get the Lowest Interest Rate on a Personal Loan?Factors That Affect Personal Loan Interest Rates Personal Loan vs. NoBroker Cash Loan â Which is Better?Get the Best Interest Rate on a Personal Loan with NoBroker Frequently Asked Questions

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Home Blog Cash Loan Personal Loan Interest Rates

Personal Loan Interest Rates 2025: Types, Eligibility, Steps to Apply & Processing Fees in 2025

Published : January 31, 2025, 12:00 AM

Updated : September 18, 2025, 2:53 PM

Author : kiranks

Cash Loan

Personal Loans

11922 views

Summary

When applying for credit, comparing personal loan interest rates is important to finding the most affordable option. The lowest interest rates in India typically range from 9% to 14% per annum. The digital options, such as NoBroker InstaCash, provide competitive rates with faster approvals and disbursal. To qualify for the best personal loans, lenders usually require a CIBIL score of 700 or above. The processing time for such loans may take 2-7 working days.

Table of Contents

Are you a salaried employee or self-employed? How does your profession impact the personal loan interest rate you qualify for? Personal loan interest rates vary based on income, credit score, and lender policies. Some of the best personal loans in India are NoBroker InstaCash, SBI, HDFC Bank, and ICICI Bank. NoBroker InstaCash provide the lowest rates starting around 9%-13% per annum. Typically, loans come with flexible tenures ranging from 1 to 7 years, while documentation requirements include KYC, income proof, and bank statements. A good CIBIL score of 700 improves your chances of approval at lower rates.

Personal Loan Interest Rates 2025

Interest rates and costs for personal loans vary widely across lenders and applicants. Before choosing, examine rates and conditions from lenders. For reference, here's a table containing data for tentative personal loan interest rates in banks:

Bank	Interest Rate (p.a.)	Loan Amount	Tenure	Processing Fee
NoBroker InstaCash	12.99%	₹10 lakhs	3-60 months	0.25% -1% +GST
State Bank of India	10.05%	₹35 lakhs	6-84 months	1.50%+GST
HDFC Bank	9.99%	₹40 lakhs	1 -8 years	₹6,000+GST
ICICI Bank	10.60%	₹50 lakhs	72 months	2%+GST
Axis Bank	9.99%	₹40 lakhs	84 months	2%+GST
Kotak Mahindra Bank	9.98%	₹35 lakhs	6 years	5%+GST
Bajaj Finserv	16%	₹15.5 lakhs	12-96 months	3.93%+GST
Bank of Baroda	10.40%	₹20 lakhs	48-60 months	1-2% +GST
RBL Bank	18%	₹5 lakhs	12-36 months	2%+GST
IDFC First Bank	9.99%	₹10 lakhs	60 months	₹2,124+GST
IndusInd Bank	12%	₹5 lakhs	12-48 months	2.5%+GST

Types of Personal Loans

Here are the types of personal loans in India:

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Personal Loan for Salaried: These are for the individuals working in private companies or MNCs. Salaried applicants can get personal loans based on their monthly income, job stability, and credit score.
Personal Loan for Self-Employed: Self-employed professionals and business owners can opt for this type of loan. The eligibility depends on their business vintage, annual turnover, and financial documents like ITR. The interest rates for this type of loan may be slightly higher than those for salaried loans.
Personal Loan for Doctors, Pensioners, or Government Employees: Special personal loans are available for professionals and individuals with stable, assured incomes. Doctors often get customised personal loans with minimal documentation. Pensioners and government employees are also offered loans with competitive interest rates and longer tenures.

What are the Eligibility Criteria for a Personal Loan?

Here are the personal loan eligibility criteria for both salaried and self-employed professionals [1]:

For Salaried Individuals:

The applicant should be between 21-60 years of age.
The applicant must be an Indian citizen.
Most lenders require a monthly income of ₹15,000-₹30,000 for salaried applicants.
Salaried applicants need at least 6-12 months of work experience.
A CIBIL score of 720 or above is required.

For Self-Employed Individuals:

Applicant must be aged between 21-65 years
Should have a stable business vintage of at least 2-3 years
Minimum annual income as per lender norms is required.
The self-employed must submit stable income proof.
A CIBIL score above 700 is preferred.

What are the Documents Required for a Personal loan

Here are the documents required for a personal loan in India [2]:

Identity Proof - Aadhar card, voter ID, driving license, passport copy.
Address Proof - PAN Card, Aadhar card, driving license, voter ID.
Income Proof - Last 3 months bank statements

How to Apply for a Personal Loan Online: Step-by-Step Process?

Applying for an instant personal loan is quick and simple. Below are the steps on how to apply for a personal loan in India [3]:

Visit the lender’s website or app and use the eligibility calculator to see if you qualify for an instant personal loan.
Review different banks and NBFCs for interest rates, processing fees, and repayment tenures before applying for the loan.
Fill in the basic details such as name, income, employment status, and loan amount required.
Submit scanned copies of KYC documents, income proof, bank statements, or ITR (for self-employed).
Select the desired loan amount and repayment tenure based on your repayment capacity.
Once documents are verified, you’ll receive instant approval along with details of the interest rate and EMI.
After agreement and e-signing, the loan amount is credited directly to your bank account, often within 2-24 hours.

How to Check Personal Loan Application Status?

Tracking your personal loan application is easy and quick. Many banks and NBFCs offer both online and offline options for tracking. Below are the steps on how to track your loan status [4]:

Visit the official website or download the mobile app of your bank/NBFC.
Enter your registered mobile number, application ID, or reference number.
Find the option under the loan services or application tracking section.
Provide details like the application number for verification.
Check whether your application is under review, approved, rejected, or disbursed.
If the status isn’t updated online, reach out to the lender’s helpline or branch for assistance.

How to Download a Personal Loan Statement Online?

You can manage your loan, track EMIs, outstanding balance, and payment history without visiting the bank with a personal loan statement download. Below are the steps on how to download them online [5]:

Visit your bank/NBFC’s official portal or download their app.
Enter your registered mobile number, customer ID, or internet banking details.
Select the Personal Loan section under accounts or loan services.
Find the option for personal loan statement download.
Select the loan account number and time period for the statement.
Click on View/Generate Statement to preview details.
Download the statement in PDF.
Some lenders also provide the option to receive the loan statement directly via email.

How to Calculate Personal Loan EMI?

Before applying, it’s important to estimate your monthly EMI and principal amount. With varying personal loan interest rates, tenure, and principal amount, calculating your EMI helps in better financial planning. Here are the step-by-step procedures for calculating your personal loan EMI [6]:

Visit the official website of your bank.
Search for the EMI calculator tool.
Input the values such as loan amount, interest rate and tenure.
The tool will display your exact monthly EMI, total interest payable and overall repayment amount.
You can adjust the loan amount, tenure, or interest rate to see how your EMI changes and choose the most affordable option.

How to Get the Lowest Interest Rate on a Personal Loan?

Getting the lowest personal loan interest rate might affect your finances both short-term and long-term. Also, you must do a thorough personal loan interest rates comparison before settling. The steps to reach this aim are listed below:

Improve Your Credit Score (Check) Credit score is crucial to interest rate qualification. Higher credit ratings make consumers less risky, so lenders favour them. Before applying for a personal loan, check your credit record and score. If it needs improvement, take aggressive action: pay payments on schedule, lower credit card balances, and fix credit report errors.
Compare Offers from Multiple Lenders: Don't accept the first loan offer. Shop around and compare lender interest rates and conditions. Underwriting standards vary per lender, resulting in different offers. Compare personal loan rates online or call banks, credit unions, and internet lenders to obtain the best deals.
If you have a lower credit score, try applying for a personal loan with a co-signer with a better credit history. Co-signers guarantee the loan if you fail, giving the lender security. Increased assurance may decrease interest rates. The loan conditions will also depend on the co-signer's credit score and financial background.
Choose a Shorter Loan Term: Lower personal loan interest rates in India are characteristic of shorter loan durations. Shorter periods may increase monthly payments, but you'll pay less interest over time. Establish your budget and financial objectives to establish the shortest term you can handle and choose it to acquire a lower interest rate.
Select a Fixed-Rate Loan: Personal loans may have fixed or variable interest rates. Fixed-rate loans are stable and predictable since the interest rate is constant. However, market factors affect variable-rate loans. Choose a fixed-rate loan to reduce rate hikes, particularly if you expect them.
Lenders often offer interest rate savings to borrowers who make automated payments. Setting up automated bank account payments shows dependability, which may decrease your interest rate. Automatic payments also save late fees and boost your credit score.
Negotiate with lenders to cut loan rates. A good credit history and consistent income help you negotiate a lower rate. To boost your negotiation position, give financial stability evidence and compare offers from different lenders.
Maintain Stable Employment and Income: Lenders favour borrowers with continuous income and stable employment. A steady income decreases default risk and may lower your interest rate. Before applying for a personal loan, avoid employment changes or income variations that may hurt your application.

Follow these techniques and aggressively seek the finest loan conditions to increase your chances of getting a personal loan with the lowest interest rate on a personal loan. To make sure a loan offer meets your financial requirements, read the terms and conditions before accepting it.

Factors That Affect Personal Loan Interest Rates

Lenders may charge different personal loan interest rates depending on many risk criteria. Knowing these criteria may help you predict your interest rate and boost your chances of getting a cheaper rate. Here are the factors that affect the personal loan interest rate of all banks:

Credit Score: Lenders heavily weigh your credit score when setting your current personal loan interest rates. This three-digit number indicates your creditworthiness and loan repayment possibility based on your credit history. Higher credit scores make consumers less risky; therefore, lenders provide lower loan rates. Excellent credit scores (720 or more) usually mean the lowest rates, while lower scores may mean higher rates or difficulties getting a loan.
Income and Employment: Lenders evaluate income and employment to verify loan repayment ability. Stable work and income show you can make loan payments, which may decrease your interest rate. Your interest rate may also depend on your career history, job stability, and prospective earnings.
Debt-to-Income Ratio (DTI): Compares monthly debt payments to gross monthly income. This percentage helps lenders assess your debt management skills. You may qualify for a reduced interest rate if your DTI ratio is low enough to support your obligations and new loan payments. Before applying for a personal loan, pay off debts or increase income to improve your DTI ratio.
Loan Amount and Term: The loan amount and term length affect your interest rate. Larger loans and longer durations may result in higher interest rates since lenders take on more risk. Lower interest rates are standard for smaller loans and shorter durations. Determine the loan size and period that best fits your financial demands and budget while reducing borrowing costs.
Loan Purpose: This might impact the interest rate you obtain. Some lenders provide debt consolidation, home renovation, and medical loan programs. Specialist loans may have lower interest rates than personal loans. Home equity and savings account loans may have cheaper rates than unsecured loans.
Credit History: Lenders may evaluate your credit history in addition to your credit score when deciding interest rates. A good credit history, including regular payments and appropriate credit use, will boost your application and decrease your rate. Negative records like late payments, defaults, or bankruptcy may raise interest rates or make loan applications harder.
Economic variables, such as Federal Reserve prime interest rate fluctuations, may affect personal loan interest rates. Lenders may vary rates based on inflation, unemployment, and monetary policy. Monitoring economic trends and interest rates might help you predict personal loan rate changes and schedule your application.

Understanding how these elements impact personal loan interest rates will help you prepare for the loan application and increase your chances of getting a reasonable rate. Before applying for a personal loan, improve your credit score, lower your debt, and compare rates and conditions from several lenders. Presenting yourself as a low-risk customer and researching loan offers may help you receive the best interest rate.

Personal Loan vs. NoBroker Cash Loan – Which is Better?

When searching for the best personal loans, borrowers often compare traditional bank/NBFC options with modern digital platforms like NoBroker Cash Loan. Both have their pros and cons depending on eligibility, speed, and repayment flexibility. Here’s a comparison table between personal loans vs NoBroker cash loan:

Feature	Personal Loans	NoBroker Cash Loan
Processing time	24-48 hours	Instant approval and disbursal
Documentation	Extensive (salary slips, address proof, identity proof)	Minimal (basic KYC, income proof)
Loan Amount	₹50,000 - ₹40 lakhs	₹10,000 - ₹10 lakhs
Interest Rates	10%-24%	12.99%

Get the Best Interest Rate on a Personal Loan with NoBroker

Most of the traditional banks and NBFCs provide personal loan interest rates starting from 10%-17% per annum. For those looking for a faster, more convenient option, NoBroker InstaCash is the reliable choice. NoBroker InstaCash interest rates start at just 12.99% with minimal documentation, and instant approval with same-day disbursal. Our loan experts can simplify the loan procedure for property owners and help you get the best deal from the banks. If you are looking for the best personal loan interest rates, then contact NoBroker now! Download NoBroker InstaCash now!

Frequently Asked Questions

Q1. What is a personal loan?

Ans. Personal loans may be borrowed from banks, credit unions, or internet lenders for home improvements, debt consolidation, medical costs, and other unexpected needs. Unlike mortgages or vehicle loans, personal loans seldom demand collateral.

Q2. How do personal loans work?

Ans. When applying for a personal loan, the lender considers your credit score, income, job history, and debt-to-income ratio. You will get a lump payment and repay it with interest if accepted. Interest rates and periods depend on the lender, creditworthiness, and loan amount.

Q3. What are the advantages of personal loans?

Ans. Personal loans have following benefits:
Flexible: Use the money as you like.
Set payments: A set interest rate and duration simplify budgeting with predictable monthly payments.
Personal loans are collateral-free, minimising asset risk.
Competitive rates: Good credit may qualify you for reduced rates.

Q4. When does personal loan become a stress ?

Ans. If you can not make payments on time, a personal loan might strain your resources. The credit enquiry and new credit account might temporarily affect your credit score when applying for a personal loan.

Q5. How to qualify for Personal loans ?

Ans. Loan applicants for personal loans usually need:
Good credit score: Higher credit scores improve approval odds and decrease financing rates.
Lenders will assess your income and job history to ensure you can repay the loan.
Your income should cover your obligations and new loan payments if your debt-to-income ratio is minimal.
On-time payments show borrower dependability.
Low recent credit enquiries: Multiple enquiries may indicate financial difficulties and lessen your acceptance prospects.

Q6. What is the minimum interest rate for personal loans in India?

Ans. The minimum interest rate for personal loans in India usually ranges from 9% - 12% p.a.

Q7. Can I get a personal loan with a low CIBIL score?

Ans. Yes, some lenders provide personal loans with a low CIBIL score.

Q8. Which are the best personal loans with low interest rates?

Ans. Some of the best personal loans with low interest rates are NoBroker InstaCash, SBI, HDFC Bank, and Bank of Baroda.