New Delhi: Are you planning for a personal loan this year, 2025? If yes, then it’s important to know what different banks are charging before you apply. Personal loans are taken for various reasons—medical emergencies, weddings, home renovations, education, travel, or to pay off other debts.
Since they’re unsecured, you don’t need to provide any collateral. This makes them a quick and flexible financial option. However, keep in mind that banks may charge a processing fee which typically ranges between 2 per cent and 3.5 per cent of the loan amount.
Bank-wise Personal Loan Interest Rates (2025)
– Bank of Maharashtra: 9.50 per cent p.a. | Processing fee: up to 1 per cent
– State Bank of India (SBI): 10.30 per cent – 15.30 per cent p.a. | Processing fee: up to 1.5 per cent
– ICICI Bank: 10.85 per cent – 16.65 per cent p.a. | Processing fee: up to 2 per cent
– Indian Overseas Bank: Processing fee as low as 0.5 per cent
– IndusInd Bank: Processing fee may go up to 3.5 per cent or more
Apart from the interest, borrowers must also pay a processing fee which typically ranges between 2 per cent and 3.5 per cent of the loan amount. GST is applicable on this fee, and it varies across banks. While some banks charge minimal fees, others may have higher charges depending on the loan amount and the applicant’s profile.
Pros and Cons of Taking a Personal Loan
Personal loans come with several benefits. They don’t require any collateral, the approval and disbursal process is usually quick, and you get fixed EMIs with a clear repayment period. Plus, the money can be used for a variety of purposes like weddings, emergencies, or even travel.
To qualify, you usually need a credit score of 700 or above, steady income, and proper documents. But keep in mind—missing EMIs or defaulting can seriously impact your credit score and make it harder to get loans in the future.
