Customers with pressing financial needs can use a personal loan for any aspiration or to consolidate their debts. While choosing any other loan, the borrower would be concerned about the best personal loan interest rate because the expense of financing depends on this rate. Here are some of the best personal loan options with low-interest rates of up to ₹1 lakh, keeping in mind 2025.
Why Low-Interest Personal Loans Matter
A personal loan finances expenses without collateral. The interest rate can deeply impact the pay-out. Personal loan interest rates assist in helping the lender reduce monthly payments, save money on interest charges, and manage finances well.
What Affects Personal Loan Rates?
Prior to considering the ideal choices, one needs to know what affects lenders’ interest rates:
Credit Score: A credit score of 700+ suggests being frugal with money and usually commands good interest rates.
Loan Tenure: Shorter tenures may be eligible for lower interest rates compared to longer tenures.
Lender Policies: Banks, NBFCs, and fintech organizations may have different interest rates depending on their internal policies.
Income: Higher incomes ensure lenders that they will be repaid and can avail themselves of lower rates.
Top 7 Low-Interest Personal Loan Offers for ₹1 Lakh in 2025
1. HDFC Bank Personal Loan
HDFC Bank is known to provide affordable personal loan interest rates and easy term service.
Features:
Interest rate begins at as low as 10.50% per annum
Instant disbursal process with disbursal within 10 seconds for pre-approved clients
Flexible repayment term of up to 5 years
Eligibility
candidates must have minimum basic pay of ₹15,000
minimum credit score of 700 and above provides finest rates
The HDFC Bank is the best bank of the salaried segment to avail a ₹1 lakh low-interest personal loan.
2. SBI Personal Loan (State Bank of India)
SBI is a public sector bank and provides low-cost products and low personal loan interest rates to its customers in India.
Features:
10.40% p.a. rate of interest, as per creditworthiness
No prepayment penalty
Repayment period 12 months to 72 months
Eligibility:
Preferred class of regular income salaried
The credit applicant should also have a good track record of debt repayment
SBI is optimal for anyone searching for trust and reliability when taking a ₹1 lakh personal loan.
3. ICICI Bank Personal Loan
ICICI Bank provides easy and speedy loans designed for salaried professionals and business individuals.
Features:
Interest rate begins at 10.75% per annum
Pre-approved customers get disbursal of loan in 24 hours
Flexibility in 12 to 60 months loan term
Eligibility:
Minimum salary ₹20,000 per month
Good credit score (700+) to have maximum approval chances
ICICI Bank is most suitable for instant disbursal and low personal loan interest rates in 2025.
4. Bajaj Finserv Personal Loan
Bajaj Finserv is one of the leading NBFCs of India with a flexible and innovative lending policy.
Features:
Interest rate of up to 11.00% per year
Instantly available pre-approved personal loan offers and online loan application facility
Facility to pay interest-only EMIs throughout the loan tenure and settle principal at the end of the loan term
Eligibility:
The candidates should have a minimum monthly income of ₹25,000 for cities
Credit score of 750 increases the chance of loan approval
Bajaj Finserv is best suited for customers who want the convenience of flexible repayment of their ₹1 lakh personal loan.
5. Axis Bank Personal Loan
Axis Bank is one of the widely used lenders that provide convenient personal loans at reasonable rates of interest.
Features:
Minimum interest rate of 10.50% per annum
Instant application process
Loan tenure of 12 to 60 months
Eligibility:
Salaried applicants with a steady income source
Good credit history (above 700)
This is a personal loan of ₹1 lakh that would cater best to a salaried professional who required some degree of customisation in terms of repayment.
6. Kotak Mahindra Bank Personal Loan
Kotak Mahindra Bank is well known for providing low-interest rate small-amounst personal loans like ₹1 lakh.
Features:
Lowest interest rates of 10.99% per annum
Instant approval for regular customers
Maximum 5-year repayment period
Eligibility:
₹25,000 minimum monthly salary
Applicants should have a good credit history
The low rates and easy processing of Kotak Mahindra Bank make it an ideal option for a ₹1 lakh personal loan in 2025.
7. Fullerton India Personal Loan
Fullerton India is a trusted NBFC and offers personal loans to the salaried and self-employed on competitive interest rates.
Features:
Interest from 11.99% p.a.
Loans are disbursed within 24 to 48 hours
Tenor for up to 48 months
Eligibility:
Minimum monthly salary of ₹15,000 (city-based)
Applicants must have a credit score of 650 and above
Fullerton India’s tailored loan products are appropriate for borrowers with ₹1 lakh loan needs.
Comparison Table for Quick Reference
| Lender | Starting Interest Rate | Loan Tenure | Eligibility |
| HDFC Bank | 10.50% p.a. | 12 to 60 months | ₹15,000 salary, 700+ CS |
| SBI | 10.40% p.a. | 12 to 72 months | Stable salary, good record |
| ICICI Bank | 10.75% p.a. | 12 to 60 months | ₹20,000 salary, 700+ CS |
| Bajaj Finserv | 11.00% p.a. | Flexible terms | ₹25,000 (metro), 750+ CS |
| Axis Bank | 10.50% p.a. | 12 to 60 months | Regular salary |
| Kotak Mahindra Bank | 10.99% p.a. | 12 to 60 months | Fixed salary, 700+ CS |
| Fullerton India | 11.99% p.a. | Up to 48 months | ₹15,000 salary, 650+ CS |
Tips to Get the Best Interest Rate on Personal Loans
Improve Your Credit Score: Check and enhance your credit history by prompt payment of bills.
Negotiate with Lenders: Negotiate for lower interest and better terms if you possess a good credit history.
Compare Offers: Never take the first deal. Shop around for loans using online aggregators and tools.
Take a Shorter Tenure: Short tenure loans have lesser interest but higher EMIs.
Final Thoughts: Choose the Right Loan for Your Needs
Small personal loans of ₹1 lakh are easily available, but the best lender with the lowest personal loan interest rates is what is important. Depending on whether you require quick disbursal, tenor flexibility, or reduced EMI, ensure to compare the terms and conditions and eligibility criteria of all lenders. If you are going to apply for a ₹1 lakh personal loan in 2025, then HDFC Bank, SBI, and ICICI Bank are some of the banks from where you can start. But never ignore checking your financial past, repayment ability, and future budgeting while making the final choice. A thought-provoking approach towards personal borrowing will not only keep you away from interest charges but will also simplify financial management. Thus, compare, choose, and acquire your loan smoothly! Cheers to borrowing!
