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For those who need money to pay off debts or meet an unexpected need, low interest loans India are the best way.
Many think that borrowing is synonymous with getting into debt. However, this is not always the reality. There is a difference between taking a quick loan and taking a cheap loan. That’s why you should know all the alternatives of low interest loans India, to find the one that best meets what you are looking for and that offers a portion that fits in your pocket.
It is worth mentioning that hiring a good low interest loans India is not just about the fee charged. Other factors must be analyzed, for example, the deadlines and the reputation of the bank. These and other details will be presented to you today, clearly and objectively so that you can ultimately choose your credit.
How to compare low interest loans India?
Comparing personal loans is based on three pillars, namely:
- Annual interest rate (p.a.);
- Maximum amount granted;
- Payment term.
From this comparison, you can make an objective analysis, helping you avoid harmful business.
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The 10 Best Options in 2025
1. Bank of Maharashtra (Low Interest Loans India)
Founded in 1935 in Pune, Bank of Maharashtra seeks to support small traders and today has more than 2,600 branches.
It is one of the most reliable banks and draws attention for its low interest rates. As a rule, offering personal loans from 9% per year, with a term of up to 7 years.
The amount awarded depends on your income. It can reach up to 20 times the gross salary, limited to Rs 20 lakh.
2. Bank of Baroda
Founded in 1908, Bank of Baroda is the second-largest public bank in India.
At first, it gets personal loans of up to Rs 50 lakh, with rates starting from 9.99% to be repaid in up to 6 years.
Attention! The reputation is very low. On Trustpilot, the average score is 1.5/5, with many complaints about service.
So, if you value good customer service, it may not be the most comfortable choice.
3. State Bank of India (SBI)
The State Bank of India (SBI) has more than 22,000 branches spread across the country. Providing up to Rs 35 lakh in personal loans, with an initial rate of 10.3% and a term of up to 6 years.
It is stable, reliable and safe. But it is not the fastest loans. The process is usually more bureaucratic than other alternatives.
4. HDFC Bank (Low Interest Loans India)
Established in 1994, HDFC Bank is India’s largest private bank.
In it, you can get credit of up to Rs 40 lakh, with rates ranging from 10.9% to 24%. The differential is speed. As a rule, the credit is released within 48 hours.
But, due to agility, higher fees are charged. This point should be considered.
5. ICICI Bank
At ICICI Bank, it gets up to Rs 50 lakh, with rates starting from 10.85% and a term of up to 72 months.
We emphasize that this is a modern bank, with well-organized digital processes.
However, service is the weak point, with an average score on Trustpilot being 1.4/5 in more than 800 reviews.
6. Kotak Mahindra Bank
Founded in 1985 as a financial company and transformed into a bank in 2003, Kotak Mahindra is a new and innovative company.
As a rule, it offers up to Rs 35 lakh in personal loans, with rates starting from 10.99% to be repaid in up to 6 years.
As a rule, this option is more interesting for those who are already customers of the bank, as they get lower rates.
7. IDBI Bank
Created in 1964 as a development bank, IDBI became a commercial bank in 2005.
Today it belongs mostly to the government and the LIC. And its personal loans range from Rs 50,000 to 10 lakh, with rates between 11% and 15.5% and a term of up to 72 months.
8. Central Bank of India (Low Interest Loans India)
Despite its name, the Central Bank of India is not the country’s central bank, but rather a commercial bank founded in 1911.
Its credits go up to Rs 20 lakh, with fixed rates at 11.65% or 12.40% and a term of up to 7 years.
FAQs on Low Interest Loans in India
1. What factors influence the interest rate on a personal loan?
The interest rate is never the same for everyone. It varies according to your:
- CIBIL score monthly income.
- Bond with the bank;
- The region where you live.
For example, customers with a good payment history and an active salary account get lower initial rates, at first. Those who have overdue debts or low scores pay more.
2. Is it better to choose a public or private bank to get low interest rates?
Public banks like SBI tend to offer lower entry fees, but they require more documents and are often slow in the clearance process.
Private banks, such as HDFC and ICICI, are quick to approve and deposit, but pay higher interest rates for it.
Therefore, if you prioritize low cost and can wait a few days, choose public banks. If urgency speaks louder, private schools are the best option.
3. Is there a processing fee?
Yes. Most banks charge a processing fee ranging between 1% and 2% of the amount borrowed.
It sounds little, but on a loan of Rs 10 lakh, this expense can be as high as Rs 20,000.
4. Can I pay off the loan early? (Low Interest Loans India)
In most cases, yes, but some banks charge a prepayment penalty of between 2% and 4% of the outstanding balance if you decide to pay before the deadline.
This is because the institution loses part of the interest it would receive over the years.
5. How to choose between short or long timeframes?
The rule is simple: longer terms mean smaller installments, but higher total interest; Short terms require larger installments, but reduce the final cost.
The choice depends on your cash flow. If you have a stable income and can afford larger installments, the short term is smarter financially.
Conclusion (Low Interest Loans India)
After all this journey, it is clear that low interest loans India are not myths, but require care.
Public banks like Bank of Maharashtra and SBI have low fees, while private ones like HDFC and ICICI are fast.
What really matters is to know that a loan is just a tool. Used consciously, it saves a lot.
Do you want to no longer depend on loans in the future? The first step is to control your finances, we recommend that you know the best personal finance apps in India that will help you with this.