As the festive season approaches, personal loans often become one of the most sought-after financial products in India. Many families and individuals look for quick financing to manage big-ticket expenses such as weddings, travel, home renovations, or festive shopping. Banks, in turn, compete to attract borrowers by offering lower interest rates, reduced processing fees, and flexible repayment options.

If you are planning to take a personal loan this festive season, comparing interest rates and EMI calculations across leading banks is essential. Here’s a detailed look at the top 10 banks offering the cheapest personal loans in September 2025, along with sample EMIs on a ₹1 lakh loan for a one-year tenure.

1. Kotak Mahindra Bank – Starting at 9.98%

Kotak Mahindra Bank currently offers the lowest personal loan interest rate among major lenders. With rates beginning at 9.98% per annum, a ₹1 lakh loan taken for 12 months results in an EMI of ₹8,791. This makes Kotak one of the most attractive options for cost-conscious borrowers this festive season.

2. Axis Bank – From 9.99%

Axis Bank also offers competitive rates, starting at 9.99%. On a ₹1 lakh loan, the EMI works out to ₹8,791 over a one-year tenure. Thanks to quick digital approvals and hassle-free processing, Axis Bank’s personal loans are especially popular with younger customers.

3. HDFC Bank – From 9.99%

India’s largest private lender, HDFC Bank, is offering festive season loans starting at 9.99%. The EMI for a ₹1 lakh loan is ₹8,791. Borrowers with a high credit score and strong repayment history can expect even better deals and faster disbursal.

4. State Bank of India (SBI) – From 10.05%

Among public sector banks, SBI offers the lowest personal loan rate starting at 10.05%. For a one-year loan of ₹1 lakh, the EMI comes to ₹8,794. SBI’s reputation for trust, nationwide reach, and affordable rates make it a top choice during the festive rush.

5. Bank of Baroda – From 10.40%

Bank of Baroda is offering loans at 10.40%, with a ₹1 lakh loan translating to an EMI of ₹8,810. It is considered a balanced option for those who want both affordability and reliable service.

6. Punjab National Bank (PNB) – From 10.50%

PNB is providing personal loans starting at 10.50%. On a ₹1 lakh loan, the EMI comes to ₹8,815. Being one of India’s largest government-owned banks, PNB remains a trusted lender among salaried and self-employed customers alike.

7. ICICI Bank – From 10.60%

ICICI Bank’s personal loans begin at 10.60%. A ₹1 lakh loan has an EMI of ₹8,820 for 12 months. The bank is known for its fast digital loan approval process, making it a convenient choice for those needing urgent funds.

8. Union Bank of India – From 10.75%

Union Bank offers rates starting from 10.75%. For a one-year loan of ₹1 lakh, the EMI amounts to ₹8,827. This is a preferred option for customers who wish to stick with a public sector lender.

9. Yes Bank – From 10.85%

Yes Bank is offering personal loans at 10.85% interest. The EMI on ₹1 lakh comes to ₹8,831. Positioned in the mid-range category of private banks, Yes Bank attracts borrowers with quick disbursals and flexible terms.

How to Choose the Right Personal Loan

When evaluating festive season loan offers, consider more than just the interest rate. Processing fees, prepayment charges, eligibility criteria, and customer service quality also play a big role in determining overall affordability. Borrowers with a strong CIBIL score (750 and above) are more likely to secure the lowest available rates.

Final Takeaway

This festive season, Kotak Mahindra Bank, Axis Bank, and HDFC Bank emerge as the most affordable options, with EMIs of ₹8,791 per lakh borrowed. Among government banks, SBI and PNB stand out for their competitive pricing and reliability.

By comparing rates across banks and calculating EMIs in advance, borrowers can make informed decisions and enjoy the festive season without financial stress.