Archive · 1 Jul 2025
Personal Loan Trends: Growth Slows, Rates Vary, Transparency Up
Personal loans help people with money needs.
The growth of these loans has slowed, but they're still popular.
The central bank is making it cheaper to borrow money.
Banks offer different interest rates.
New rules are making loan costs clearer.
Borrowers can pay back the loans in different ways.
However, borrowers should be careful about high interest rates and missing payments.
Personal loan growth slowed to 6% in Q4 FY25 due to borrower caution and tighter lending standards.
RBI reduced the repo rate to 5.50%, aiming to lower borrowing costs and stimulate the economy.
Banks offer personal loans with interest rates ranging from 10.40% to 18.25% (as of July 1, 2025).
New RBI guidelines mandate clear disclosure of all borrowing costs.
Borrowers can benefit from quick disbursal, flexible repayment, and refinancing options.
- Who
- Borrowers and lenders.
- What
- Changes in personal loans, including growth, interest rates, and regulations.
- When
- Q4 FY25 and as of July 1, 2025.
- Where
- N/A
- Why
- To meet financial needs and stimulate the economy.
- Personal Loan Growth (Q4 FY25)
- 6%
- RBI Repo Rate
- 5.50%
- HDFC Bank Interest Rate (as of July 1, 2025)
- 10.50% – 16.50% p.a.
- ICICI Bank Interest Rate (as of July 1, 2025)
- 10.75% – 17.00% p.a.
- SBI Interest Rate (as of July 1, 2025)
- 10.40% – 15.15% p.a.
- Kotak Mahindra Bank Interest Rate (as of July 1, 2025)
- 10.99% – 18.25% p.a.
