From ICICI And HDFC To SBI: Here’s What 5 Major Banks Are Charging On Personal Loans

A close look at the loan pricing shifts shaping personal borrowing at the end of 2025.

How much does a personal loan cost today when banks face tighter risk rules and higher demand? Borrowers asked this again after updated loan rates surfaced through verified reports in November 2025 and August 2025.

Fresh data placed ICICI Bank’s personal loan rate at 10.45 percent, confirmed by an India Today report released on 6 November 2025. This formed the base of the ongoing discussion on major banks personal loan charges.

What 5 Big Banks Are Charging Right Now?

A clearer picture emerged once five leading banks were placed side by side. These lenders cover a bulk of the personal-loan market in India.

An article by Loansjagat, published in Sept 2025, placed HDFC Bank’s starting personal loan rate at 9.99 percent. This pushed private lenders into stronger competition right as the State Bank of India updated its rate sheet.

The following table shows the starting interest rates offered by different banks. This helps the reader compare the options easily and choose a bank that fits their borrowing needs
 

These rates may change from time to time, so the reader should check with the bank for the latest figures before making any financial decision.

How Banks Decide Personal Loan Rates?

Banks follow a structured method to calculate personal-loan pricing. They start with a benchmark rate and then add a spread. The spread reflects the bank’s assessment of the borrower’s risk level.

Key factors that influence the spread include:
 

• Credit score: Borrowers with high scores generally get lower spreads.
• Employment type: Stable, long-term jobs usually attract better rates.
• Income level: Higher income suggests lower risk to the bank.
• Repayment history: A clean repayment track record supports a lower rate.
• Debt-to-income ratio: Lower existing liabilities improve the borrower’s chances.

This system explains why banks advertise only a starting rate. It represents the lowest rate offered to the most credit-strong applicants. Many borrowers may receive higher rates based on their profiles. This also clarifies why two people applying at the same bank may still receive different final rates.

Public-sector banks and official financial sites regularly update these rules and rate structures, helping borrowers stay informed and compare their options with greater confidence.

Government And Public Bank Sources For Verified Lending Rules

Before reading the table, note that these sites publish rule books, lending norms and complaint channels used across India.
 

Borrowers check these pages when loan terms appear unclear or inconsistent with bank claims.

Conclusion

Personal loan rates in late 2025 show a competitive but cautious market. While private banks continue to offer attractive starting rates, public-sector banks remain steady with moderate pricing. 

The borrower’s own financial behaviour plays a major role in determining the final rate. With proper research and updated information, choosing the right lender becomes simpler and more transparent.
 

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About the Author

LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.