What is a Low Interest Personal Loan?
A low interest personal loan is an unsecured credit facility designed to help individuals meet financial needs without high borrowing costs. It comes with reduced EMIs, minimal documentation, and quick processing. These loans are ideal for emergencies, weddings, education, travel, or debt consolidation.
✅ Key highlight: With interest rates starting as low as 10.50% p.a. in 2025, borrowers can save thousands in repayment.
Major Benefits of Low Interest Personal Loans
- Affordable EMIs with minimal burden on your monthly budget.
- Quick approval process – some banks offer instant approval online.
- Flexible repayment options from 12 months to 7 years.
- Minimal documentation – Aadhaar, PAN & bank statements often sufficient.
- Available for salaried, self-employed, and business owners.
- No collateral required since these are unsecured loans.
- Option for balance transfer to further reduce your loan cost.
Top Low Interest Personal Loans in 2025
| Bank/Provider |
Interest Rate (p.a.) |
Processing Fee |
Eligibility |
Repayment Tenure |
| HDFC Bank |
10.75% - 13.50% |
1% of loan amount |
Salaried & Business Owners |
12-72 months |
| SBI Personal Loan |
11.25% - 14.00% |
1% - 2% |
Salaried |
12-60 months |
| ICICI Bank |
10.50% - 13.75% |
1% - 2% |
Salaried & Self-Employed |
12-72 months |
| Axis Bank |
10.99% - 14.50% |
1% of loan amount |
Salaried |
12-60 months |
| Bank of Baroda |
11.00% - 13.50% |
0.5% - 1% |
Salaried |
12-60 months |
| Kotak Mahindra Bank |
10.99% - 15.00% |
Up to 2% |
Salaried & Professionals |
12-72 months |
Eligibility Criteria for 2025
Though eligibility differs by bank, most require:
- Applicant age between 21–60 years.
- Stable monthly income (₹20,000+ for salaried in metros).
- Minimum 1 year of work experience.
- CIBIL score of 700+ for best interest rates.
- Existing loan obligations should not exceed 40–50% of income.
Documents Required
- KYC: Aadhaar Card, PAN Card
- Address Proof: Utility Bill, Passport, Rent Agreement
- Income Proof: Salary slips (last 3 months) or ITR for self-employed
- Bank statement (last 6 months)
Tips to Get the Best Low Interest Loan in 2025
- Maintain a high credit score (750+ preferred).
- Compare at least 3 banks before applying.
- Look for festive offers and zero processing fee schemes.
- Use a loan eligibility calculator online before applying.
- Consider balance transfer if your existing loan has a higher rate.
FAQs - Low Interest Personal Loans
Q1: Can I apply for a low interest loan online?
Yes, most banks & NBFCs allow online applications with instant approval.
Q2: What is the fastest loan approval time?
Some digital lenders approve within minutes; traditional banks take 24–48 hours.
Q3: Can I pre-close the loan?
Yes, but check if the bank charges foreclosure/prepayment fees.
Q4: Do self-employed individuals get the same low interest?
Yes, but rates may vary slightly depending on income proof and credit score.
Q5: How much can I borrow?
Loan amounts range from ₹50,000 to ₹40 Lakhs depending on eligibility.
Disclaimer: The above information is for educational purposes only. Loan offers, interest rates, and terms vary by provider. Please verify with the bank before applying.