Personal loan: If you are planning to raise a personal loan from a bank or a non banking financial institutional (NBFC), it is vital to compare the interest rates charged by different institutions. Typically unsecured loans are given at fixed rates of interest. This means when a loan is taken at 11 percent interest rate, it will remain at that during the loan’s tenure regardless of any changes in the market rates.
However, when the interest rate is floating, it is mandatory for the bank to give an option to the borrower to switch from floating to fixed interest at the time of resetting interest rate on personal loans, as per an RBI circular.
Here we list out the interest rates charged by top private and public sector banks
Personal loan interest rates April 2025
I. HDFC Bank: The largest private bank charges anywhere between 10.90 percent to 24 per cent per annum from salaried borrowers. The processing charges, meanwhile, are around ₹6,500 plus GST.
II. ICICI Bank: This private bank charges anywhere between 10.85 percent and 16.65 percent per annum from borrowers. It charges 2 percent of the loan plus taxes as processing charges.
III. Kotak Mahindra Bank: This private lender charges interest rate between 10.99 to 16.99 per cent per annum. Processing charges, meanwhile, are upto 5 percent of the final loan amount plus taxes.
IV. Federal Bank: This private lender charges an interest in the range of 11.49 to 14.49 per cent per annum from borrowers.
V. Bank of Baroda: The state lender charges an interest in the range of 13.05 to 15.30 percent per annum from the employees of private and public sector undertakings having account relationships with the bank.
VI. Union Bank of India: This public sector bank charges interest on personal loan in the range of 11.50 percent to 15.2 percent per annum.
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