Best Personal Loan from Small Finance Banks to Explore in 2025

Personal loan from small finance banks are growing more popular in 2025 among salaried and self-employed individuals looking for rapid financial assistance. A personal loan from a small financing bank is a convenient, low-documentation, and cost-effective way to meet personal requirements such as medical emergencies, education, travel, or debt consolidation.

What Is a Small Finance Bank Personal Loan?

A personal loan in small finance bank is an unsecured loan offered by banks designated as small finance banks (SFBs). These categories of banks deal in the underserved and lower-income segments, but now have widened their gamut of products to the upscale variety of customers. Small finance banks tend to have less demanding eligibility criteria, faster approval disbursal mechanism, and personalized customer service than your typical large banks.

Advantages of Taking Personal Loans from Small Finance Banks

• Flexible loan amounts: You are allowed to borrow as low as ₹10,000 or as much as ₹5 lakh depending on the bank and eligibility.

• Quick Processing: Minimal documentation requirements and digital-first application process ensure faster disbursal. 

• Attractive Interest Rates: competitive interest rates from as low as 11-14% per annum. 

• To serve your varied needs: Be it a medical emergency, education, or home repairs, you can get a tailored loan that meets your needs.

Popular Small Finance Banks Offering Personal Loans

Ujjivan Small Finance Bank Personal Loan:

Ujjivan offers personal loan from ₹50,000-₹10 lakh with repayment terms of up to 60 months. Quick approval with less documentation makes it best suited for salaried individuals and self-employed borrowers. The interest rate is competitive, and one may apply either online or at a branch close by.

AU Small Finance Bank:

Offers personal loan for salaried individuals with interest rates of 12-20% depending on credit profile. The AU Bank app allows checking eligibility and applying instantly.

Equitas Small Finance Bank:

Being known for its favourable customer policies and fast loan disbursal: Equitas gives personal loan with flexible EMIs and very few charges.

Conclusion

In 2025, a fast approval personal loan with small finance banks may prove to be a good financial option, if you are looking for fewer interest charges, less documentation, and quicker approval. Whether Ujjivan Small Finance Bank personal loan or any other SFB offer, always compare interest rate, processing fees, and tenure for the one which fits your needs.