Best personal loan rates this June 2025 – Which bank offers the cheapest option?

As of June, 2025, several Indian banks are providing aspirational applicants with competitive interest rates on personal loans. The focus of these loans is to cater to a diverse range of borrowers.
The Reserve Bank of India (RBI's) rate cuts signal a clear shift to an accommodative stance, but personal loan rates still vary from one bank to another. Borrowers might see better offers going ahead, though terms depend on each bank's lending policy.
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%
Note: Interest rates and fees are indicative and may vary based on individual profiles and bank policies. Please refer to the official website of the above discussed lenders for accurate and updated information on personal loan interest rates.
Therefore, salaried individuals seeking personal loans in June 2025 have several different digital first options and opportunities. ICICI Bank provides quick disbursals and seamless online tools, whereas State Bank of India provides pre-approved loans through its widely used YONO application.
This is particularly beneficial for government employees. HDFC Bank on the other hand stands out with flexibility in prepayment and overdraft options. Axis Bank personalises rates based on credit risk and Kotak Bank permits faster approvals in metro cities.
Union Bank of India provides interest rates beginning at 8.95% per annum for government employees and 10.85% per annum for general applicants. Furthermore, Bank of Baroda (BoB) provides rates from 11.15% per annum for salaried individuals maintaining salary accounts and having strong credit profiles.
Federal Bank's interest rates start from 11.49% per annum for standard personal loans. These institutions offer viable and prudent alternatives for aspirational borrowers seeking favourable loan terms.
Note: The interest rates discussed above are indicative and may vary based on credit score, repayment history, and eligibility. Always check the lender's official website for the latest rates and terms.
Therefore, to choose the right personal loan, compare interest rates, fees, hidden charges, credit score requirements, terms and associated conditions across banks. Do verify the latest details on official websites to match with your financial goals before applying.
Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.

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