Navigating the personal loan landscape in June 2025? Many Indian banks are offering competitive rates, but finding the cheapest option means looking beyond just the interest rate. Processing fees, loan amounts, and repayment tenures all play a significant role in the overall cost.
Understanding Personal Loan Rates in June 2025
Here’s a look at what different banks are offering, keeping in mind that your eligibility and credit score will heavily influence the actual rate you receive:
| Bank name | Interest rate (p.a.) | Loan amount range | Tenure (years) | Processing Fee |
|---|---|---|---|---|
| ICICI Bank | 10.85% – 16.65% | Up to ₹50 lakh | 1–6 | Up to 2% |
| State Bank of India | 10.30% – 15.30% | Up to ₹35 lakh | 1–7 | Up to 1.5% |
| HDFC Bank | 10.85% – 21.00% | Up to ₹40 lakh | 1–5 | Up to ₹6,500 |
| Axis Bank | 11.25% – 22.00% | Up to ₹40 lakh | 1–7 | Up to 2% |
| Kotak Mahindra Bank | 10.99% – 16.99% | Up to ₹35 lakh | 1–6 | Up to 5% |
Finding Your Best Personal Loan
To truly pinpoint the cheapest option for your specific needs, consider these crucial factors:
- Your Credit Score: A high credit score (typically 750+) is your best friend for securing the lowest rates.
- Processing Fees: These can vary significantly, from 0% (for some government employees at BoB) to up to 5% of the loan amount. Don’t overlook them!
- Loan Amount & Tenure: Ensure the bank offers the loan amount you need for a comfortable repayment period.
- Prepayment/Foreclosure Charges: If you plan to repay your loan early, check for any associated fees.
- Your Employment Type: Government employees often get preferential rates, as seen with Union Bank of India.
- Existing Bank Relationship: Your current bank might offer better terms or pre-approved options.
Your Next Steps
Don’t rely solely on advertised starting rates. Your best bet is to:
- Check your credit score.
- Contact a few banks directly (especially those with lower starting rates or that you have an existing relationship with).
- Get a personalized quote that includes the interest rate, processing fees, and any other charges.
- Compare the total cost of the loan across different lenders.
By doing your homework, you’ll be well-equipped to find the most cost-effective personal loan that fits your financial goals this June!