Personal loans, being unsecured and flexible, have emerged as a go-to solution for both salaried and self-employed individuals. But with a plethora of options available, choosing the best low interest personal loan becomes crucial to ensure manageable EMIs and overall affordability.
This article explores the top low interest personal loan options in India, tailored for both salaried and self-employed individuals, and offers tips on how to get the best rates.
What is a Personal Loan?
A personal loan is an unsecured credit facility offered by banks and financial institutions that doesn’t require any collateral. The loan amount is disbursed based on your income, credit history, and repayment capability. The interest rate varies across lenders and can significantly impact your total repayment amount.
Factors That Affect Personal Loan Interest Rates
Before we dive into the best options, it’s important to understand the key factors that influence personal loan interest rates:
- Credit Score (CIBIL Score): Higher scores (750 and above) often lead to better rates.
- Income Level: Higher and stable income reduces the lender’s risk.
- Employment Type: Salaried individuals in reputed organizations tend to get better rates than those in unstable jobs.
- Relationship with the Bank: Existing customers may get preferential rates.
- Loan Tenure: Shorter tenures usually come with lower interest rates.
Top Low Interest Personal Loan Options in India (2025)
Here are some of the best lenders offering competitive interest rates for both salaried and self-employed borrowers:
1. HDFC Bank Personal Loan
- Interest Rate: Starting from 10.50% p.a.
- Loan Amount: ₹50,000 to ₹40 lakh
- Tenure: 1 to 5 years
- Eligibility: Salaried individuals with minimum ₹25,000/month income and 2 years of work experience.
Why Choose? Fast approval, special offers for HDFC account holders, and minimal documentation.
2. ICICI Bank Personal Loan
- Interest Rate: 10.75% – 16% p.a.
- Loan Amount: Up to ₹50 lakh
- Tenure: Up to 6 years
- Eligibility: Salaried & self-employed professionals with steady income and good credit score.
Why Choose? Flexible repayment options and pre-approved offers for existing customers.
3. Axis Bank Personal Loan
- Interest Rate: Starting from 10.49% p.a.
- Loan Amount: ₹50,000 to ₹40 lakh
- Tenure: 1 to 5 years
- Eligibility: Available to salaried and select self-employed individuals with a good credit profile.
Why Choose? Quick disbursal and low processing fees.
4. Tata Capital Personal Loan
- Interest Rate: 10.99% – 19% p.a.
- Loan Amount: ₹75,000 to ₹35 lakh
- Tenure: Up to 6 years
- Eligibility: Salaried and self-employed individuals with a minimum income of ₹20,000/month.
Why Choose? Customized loan offers and digital application process.
5. Bajaj Finserv Personal Loan
- Interest Rate: Starting at 11% p.a.
- Loan Amount: Up to ₹25 lakh
- Tenure: Up to 5 years
- Eligibility: Salaried and self-employed, with credit score of 750+
Why Choose? Instant loan approval and minimal paperwork.
6. State Bank of India (SBI) Xpress Credit
- Interest Rate: Starting at 11.15% p.a.
- Loan Amount: Up to ₹20 lakh
- Tenure: Up to 6 years
- Eligibility: Available only to salaried employees of Central/State Govt, PSUs, and reputed corporates.
Why Choose? Trusted government banks with transparent charges.
7. Kotak Mahindra Bank Personal Loan
- Interest Rate: Starting from 10.99% p.a.
- Loan Amount: Up to ₹25 lakh
- Tenure: 1 to 5 years
- Eligibility: Salaried individuals with monthly income of ₹25,000+
Why Choose? Fast digital processing and pre-approved offers.
Tips to Get a Low-Interest Personal Loan
- Maintain a High Credit Score: Aim for 750+ for better chances of approval and lower rates.
- Compare Offers: Use online comparison tools or financial marketplaces to check rates across lenders.
- Negotiate with Lenders: If you have a good relationship or credit history, negotiate for lower rates.
- Choose the Right Tenure: A shorter tenure means less interest paid overall, though EMIs will be higher.
- Watch for Hidden Charges: Look beyond interest rates—processing fees, prepayment charges, and penalties can add up.
Conclusion
While personal loans are a quick way to meet urgent financial needs, choosing the right lender at the lowest possible interest rate can make a big difference in your financial journey. Whether you’re salaried or self-employed, it’s wise to compare multiple loan options, read the fine print, and assess your repayment capacity before signing on the dotted line.
