Searching for the lowest personal loan interest rates in India for 2025? Compare top providers like Bank of Maharashtra, Indian Bank, and IDFC FIRST Bank to find the best deal!
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Introduction: Finding The Lowest Personal Loan Rates
Are you searching for a personal loan in India and wondering, “Which personal loan provider offers the lowest interest rates?” A low interest rate can save you significant money, whether funding a wedding, covering a medical emergency, or planning a dream vacation.
At THOUSIF Inc. – INDIA, we have researched the latest rates as of June 2025 to pinpoint the provider with the best deal.
Spoiler: one lender shines with an exceptional rate for qualified borrowers!
Let us explore the top options and guide you to a smart choice.
Why Low Interest Rates Are Key
A personal loan’s interest rate affects your monthly payments (EMIs) and the total cost over time.
The lower the rate, the less you pay beyond the borrowed amount, easing your financial load.
However, the best rates typically require excellent credit scores, stable income, or a strong bank relationship.
We will highlight the provider with the lowest rate and share tips to help you qualify.
The Leader: Bank Of Maharashtra At 9.50% P.A.
Our research crowns Bank of Maharashtra as the personal loan provider offering India’s lowest interest rate in June 2025, starting at 9.50% annually for eligible borrowers.
This standout rate among public sector banks comes with specific conditions.
Here is the breakdown.
Why Bank Of Maharashtra Tops The List
Bank of Maharashtra delivers a 9.50% rate to salaried employees who:
- Maintain a salary account with the bank.
- Have a CIBIL score of 800 or higher.
- Work for the central/state government, public sector undertakings, or government educational institutions.
If you do not qualify, the rate adjusts to 10.30% for those with a salary account elsewhere but a strong credit score.
Check the rate structure:
| Category | CIBIL | Rate |
|---|---|---|
| Salaried (Salary Account with BOM, 800+) | 800+ | 9.50% |
| Salaried (Other Bank, 800+) | 800+ | 10.30% |
| General Salaried | 750-799 | 10.75% – 11.25% |
Bank of Maharashtra leads for salaried borrowers with top credit profiles.
Not a perfect fit?
Other providers have competitive offers too.
Strong Runners Up: Indian Bank And IDFC FIRST Bank
While Bank of Maharashtra sets the bar, other providers offer compelling rates.
Here are two close contenders: Indian Bank and IDFC FIRST Bank.
Indian Bank: 9.75%-9.85% p.a.
Indian Bank follows closely, with rates starting at 9.75% to 9.85% per annum, based on your profile.
This public sector provider suits a broad range of borrowers.
Key details:
- Eligibility: Salaried, pensioners, or self-employed with a minimum credit score of 700.
- Loan Amount: Up to 20 times monthly gross salary for salaried, 15 times monthly pension for pensioners.
- Tenure: Up to 7 years for salaried, 10 years for pensioners.
- Processing Fee: 1% of loan amount, waived for pensioners on loans up to ₹25,000.
Its rates are slightly above Bank of Maharashtra’s, but more accessible if your credit score or bank relationship isn’t ideal.
IDFC FIRST Bank: 9.99% p.a.
For private bank fans, IDFC FIRST Bank offers a rate of 9.99% per annum, the top rate in the private sector.
Its digital process and perks stand out. Here’s the scoop:
- Eligibility: Minimum monthly salary of ₹25,000, credit score of 730+.
- Loan Amount: Up to ₹10 lakh.
- Tenure: Up to 5 years (7 years in some cases).
- Key Perks: Paperless approval, flexible EMI dates, zero foreclosure charges.
Compare the top three providers:
| Provider | Rate | Amount | Tenure | Features |
|---|---|---|---|---|
| Bank of Maharashtra | 9.50% | Up to 20x salary | Up to 7 years | Lowest rate for high CIBIL, salary account holders |
| Indian Bank | 9.75%-9.85% | Up to 20x salary | Up to 7-10 years | Flexible for pensioners, salaried, self-employed |
| IDFC FIRST Bank | 9.99% | Up to ₹10 lakh | Up to 5-7 years | Zero foreclosure charges, digital process |
Other Competitive Providers In 2025
If these don’t suit you, other providers offer solid rates.
Here is a snapshot of notable options as of June 2025:
| Provider | Rate | Amount | Tenure | Notes |
|---|---|---|---|---|
| State Bank of India | 10.30% | Up to ₹20 lakh | Up to 6 years | Lower rates for defense, paramilitary personnel |
| HDFC Bank | 10.85% | Up to ₹40 lakh | Up to 6 years | Higher rates for general customers |
| ICICI Bank | 10.85% | Up to ₹50 lakh | Up to 7 years | Competitive for salaried, processing fees apply |
| Punjab National Bank | 11.15% | Up to ₹20 lakh | Up to 7 years | Special rates for salary account holders |
| Bajaj Finance (NBFC) | 10.00% | Up to ₹35 lakh | Up to 7 years | Higher rates for lower credit scores |
| Axis Bank | 11.25% | Up to ₹25 lakh | Up to 7 years | Linked to MCLR, rates up to 22% for some |
State Bank of India (SBI)
SBI starts at 10.30% p.a. for groups like defence personnel, with general rates from 11.45% to 14.85%. Ideal for government employees or SBI customers.
HDFC and ICICI Bank
Both begin at 10.85% p.a., perfect for larger loans or longer tenures, but better rates require a strong credit score.
Bajaj Finance
This NBFC starts at 10.00% p.a., which is great for fast approvals, though rates rise for riskier profiles.
What Affects Your Interest Rate?
Why might you miss the 9.50% rate? Providers evaluate:
- Credit Score: Above 750 (ideally 800+) gets the lowest rates; below 700 risks higher rates.
- Income Level: Higher income signals lower risk, unlocking better deals.
- Employment Type: Salaried, especially in government or reputed private sector, often scores lower rates.
- Loan Tenure: Shorter terms may raise rates but cut total interest; longer terms ease EMIs but cost more.
- Bank Relationship: Salary accounts or prior loans can lower rates.
Pro Tip: Check your credit score. If below 750, improve it by paying bills on time, keeping credit card balances low, and avoiding multiple applications.
Tips To Secure The Lowest Rate
To grab Bank of Maharashtra’s 9.50% or a great deal elsewhere:
- Boost Your Credit Score: Clear debts, keep credit use below 30%, avoid multiple applications.
- Pick the Right Provider: Public banks like Bank of Maharashtra or Indian Bank often beat private banks and NBFCs.
- Negotiate: Existing customers can request better rates in writing.
- Check Festive Offers: Look for deals during Diwali or the New Year.
- Shorten Tenure: Higher EMIs with shorter terms save on total interest.
Beyond Rates: Other Features To Weigh
The lowest rate isn’t everything. Compare these for the top providers:
| Feature | Bank Of Maharashtra | Indian Bank | IDFC FIRST Bank |
|---|---|---|---|
| Processing Fee | 1% of the loan amount | 1% (waived for pensioners up to ₹25,000) | 1.5% or ₹4,500 min |
| Foreclosure Charges | Varies by scheme | Varies | Zero |
| Digital Process | Partial | Partial | 100% paperless |
| Loan Disbursal Time | 3-7 days | 3-7 days | Within 30 minutes for pre-approved |
IDFC FIRST Bank shines with fast, paperless approvals and no foreclosure fees.
Indian Bank suits pensioners, while Bank of Maharashtra excels for salaried borrowers.
Conclusion: The Provider With The Lowest Rate
Which personal loan provider offers the lowest interest rates in India in June 2025?
Bank of Maharashtra leads with a 9.50% p.a. rate for salaried borrowers with excellent credit and a salary account.
Indian Bank (9.75%-9.85%) and IDFC FIRST Bank (9.99%) follow, suiting diverse needs.
Look beyond rates, check fees, disbursal time, and flexibility.
At THOUSIF Inc. – INDIA, we empower your financial decisions.
Review your credit score, compare providers, and negotiate.
Need more advice?
Visit our site for tips and insights.
Here’s to landing the best loan at the lowest rate!
Trivia: Bank of Maharashtra Fun Fact
Bank of Maharashtra, founded in 1935 in Pune, is among India’s oldest public sector banks. Nationalized in 1969, it has over 2,000 branches and offers affordable banking. Fun fact: “Mahabank Kisan Credit Card” supports farmers and boosts rural communities.
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