Personal loans are a convenient way to meet financial needs, but interest rates and fees vary widely across lenders. Knowing the current rates and factors affecting them helps you make smarter borrowing decisions.
This guide covers personal loan interest rates for September 2025, along with tips to secure the best deal.
1. Personal Loan Interest Rates – September 2025
| Bank | Interest Rate (p.a.) | Processing Fee |
|---|---|---|
| IDFC FIRST Bank | 9.99% onwards | ₹2,124/month EMI per lakh |
| HDFC Bank | 9.99% onwards | Up to ₹6,500 |
| Axis Bank | 9.99%–22.00% | Up to 2% |
| Canara Bank | 9.95%–15.40% | Up to 0.25% (Max ₹2,500) |
| State Bank of India | 10.10%–15.10% | Up to 1.5% (Min ₹1,000; Max ₹15,000) |
| ICICI Bank | 10.60% onwards | Up to 2% |
| Kotak Mahindra Bank | 10.99% onwards | Up to 5% |
| Indian Bank | 9.10%–15.00% | Varies by profile |
| Bank of India | MCLR-based (varies) | Varies by loan type |
Note: Rates and fees are indicative. Confirm with your lender before applying.
2. Key Factors Affecting Your Personal Loan Interest Rate
Credit Score: Higher scores (750+) usually get lower rates.
Income Stability: Salaried employees may get better offers than self-employed borrowers.
Loan Amount & Tenure: Larger amounts or longer tenures can attract higher rates.
Existing Debt: Lenders view high liabilities as higher risk.
Type of Lender: Private banks may offer competitive rates; public sector banks may have more flexible terms.
3. Tips to Secure the Best Interest Rate
Improve Your Credit Score: Pay bills on time and reduce outstanding debt.
Compare Multiple Lenders: Look beyond rates—check processing fees and hidden charges.
Opt for Shorter Tenures: Reduces total interest paid, even if EMIs are slightly higher.
Negotiate: Some banks offer lower rates for loyal customers or high-value accounts.
Consider Balance Transfer: Switch your existing loan to a lender with a lower interest rate to save on EMIs.
4. Why September 2025 Is a Good Time to Borrow
Interest rates are competitive, starting as low as 9.10% p.a.
Lenders are offering flexible tenures and lower processing fees.
Borrowers with a strong credit profile can lock in low EMIs and save on total interest.
Conclusion
Understanding personal loan rates, fees, and influencing factors empowers you to make informed financial decisions. By comparing banks, improving your credit score, and exploring options like balance transfers, you can secure a personal loan that fits your budget and goals.
FAQs
Q1: Which bank offers the lowest personal loan rate in September 2025?
Indian Bank offers rates starting from 9.10% p.a., but rates vary based on profile and eligibility.
Q2: Does loan tenure affect interest rates?
Yes, longer tenures may increase total interest even if EMIs are lower.
Q3: Can I negotiate the processing fee?
Yes, some banks may reduce or waive processing fees for eligible borrowers.
Q4: How can I get the best EMI for my loan?
Maintain a strong credit score, opt for shorter tenure, and compare offers across banks.
Q5: Should I consider balance transfer?
Yes, transferring an existing loan to a lower-rate lender can significantly reduce EMI and interest burden.
Published on : 12th September
Published by : SMITA
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