Personal Loan EMI 2025: 13 Banks Offering the Lowest Interest Rates – Check ₹1 Lakh Loan EMIs and Total Cost

With the festive season of Karva Chauth, Diwali, and Chhath approaching, many shoppers are turning to personal loans to manage big-ticket purchases and celebration expenses. But before signing up, it’s crucial to compare interest rates, processing fees, and EMIs across banks to avoid overpaying. Here’s a detailed look at 13 major banks and how much you will actually pay on a ₹1 lakh loan for one year, including monthly instalments and total interest outgo.

Why Comparing Personal Loan Rates Matters

Personal loans are unsecured, meaning no collateral is required. While they are quick and convenient, the cost varies significantly across lenders. A small difference in interest rates can lead to a higher EMI (equated monthly instalment) and total repayment. Processing fees also add to the effective cost. Choosing the right bank can save thousands over the loan tenure.

13 Banks with the Cheapest Personal Loan EMIs

1. Bank of Maharashtra – Starting Interest Rate: 9%
One of the most affordable lenders, Bank of Maharashtra charges up to 1% processing fee. For a ₹1 lakh loan over 12 months, the EMI works out to around ₹8,745, with a total interest of roughly ₹4,938.

2. Axis Bank – Rates: 9.99%–21.55%
Processing fees go up to 2%. At the lowest rate of 9.99%, a one-year loan of ₹1 lakh will cost an EMI of ₹8,794, and total interest of about ₹5,532.

3. IDFC First Bank – Starting at 9.99%
Known for quick processing and simple paperwork, IDFC First Bank also charges up to 2% processing fee. A ₹1 lakh loan at 9.99% results in an EMI of ₹8,794, with ₹5,532 in total interest.

4. State Bank of India (SBI) – 10.05%–15.05%
India’s largest lender levies a processing fee of up to 1.5%. At 10.05%, the EMI is about ₹8,798, with ₹5,575 interest.

5. Bank of Baroda – 10.40%–18.10%
Processing fees can go up to 2%. A ₹1 lakh loan at 10.40% means an EMI of ₹8,824 and total interest of around ₹5,889.

6. IndusInd Bank – Starting at 10.49%
Although it offers fast approvals, the processing fee can be as high as 3.5%. At 10.49%, expect an EMI of ₹8,830 and ₹5,957 interest.

7. Punjab National Bank (PNB) – Flat 10.50%
PNB stands out with a very low processing fee of just 0.35%. A ₹1 lakh loan here will cost an EMI of ₹8,831 and ₹5,965 in total interest.

8. Yes Bank – 10.85%–21%
Processing fees can touch 2.5%. At the minimum rate of 10.85%, the EMI is about ₹8,854, and the total interest comes to ₹6,250.

9. HDFC Bank – 10.90%–24%
India’s most popular private lender charges a fixed processing fee of ₹6,500 + GST. At 10.90%, a one-year EMI is ₹8,857, and the total interest is ₹6,287.

10. ICICI Bank – 10.60%–16.50%
With processing fees up to 2%, ICICI offers flexible repayment options. At 10.60%, the EMI is ₹8,837, and total interest is about ₹6,057.

11. Kotak Mahindra Bank – Starting at 10.99%
Kotak charges one of the highest processing fees—up to 5%. At 10.99%, EMI works out to ₹8,862, with total interest of ₹6,344.

12. IDBI Bank – 11%–15.50%
This bank charges a modest 1% processing fee. A ₹1 lakh loan at 11% results in an EMI of ₹8,863 and ₹6,354 in interest.

13. Bank of India – Starting at 11.10%
A reliable government bank with a 1% processing fee, Bank of India offers an EMI of ₹8,870 and total interest of about ₹6,431 on a ₹1 lakh loan.

Key Takeaways for Borrowers

• Best for Lowest Rate: Bank of Maharashtra offers the cheapest starting rate at 9%.

• Best for Low Fees: Punjab National Bank leads with a minimal 0.35% processing charge.

• Best for Quick Approval: IndusInd Bank and IDFC First Bank provide faster disbursals, though fees may be higher.

Final Word

During the festive season, personal loans can bridge short-term funding needs, but it pays to compare interest rates, EMIs, and fees before applying. Even a difference of 0.5% in interest can save thousands over a year. Always check your credit score and negotiate processing fees to secure the most cost-effective deal.