Getting a personal loan in Italy doesn’t have to break the bank.

With interest rates stabilizing and new digital banks entering the market, 2025 offers excellent opportunities for borrowers to find affordable financing options.

Whether you’re an Italian citizen, EU resident, or foreigner living in Italy, choosing the right bank can save you thousands of euros in interest payments.

This comprehensive guide reveals the 10 most affordable banks for personal loans in Italy, helping you make an informed decision for your financial needs.

The Current Italian Loan Market in 2025

The Italian personal loan market has shown remarkable stability in 2025, with average interest rates ranging from 3.5% to 8.5% depending on the bank and borrower profile.

Digital transformation has made loan applications faster and more accessible, while traditional banks continue to offer competitive rates for existing customers.

Key trends shaping the market include:

• Lower TAEG rates for loans with guarantees

• Faster approval times through digital platforms

• Increased competition among fintech companies

• Special rates for young borrowers under 36

TOP 10 Cheapest Banks for Personal Loans

1. Findomestic Banca

Starting TAEG: 3.9%

Findomestic leads our list with some of the most competitive rates in Italy.

This French-owned bank specializes in consumer credit and offers flexible repayment options.

Key Features:

• Loan amounts from €1,000 to €60,000

• Repayment terms up to 120 months

• Online application process

• Skip-a-payment option available

Why Choose Findomestic

Their digital platform makes applying simple, and existing customers often receive preferential rates.

The bank also offers insurance options to protect your loan payments.

2. Compass Banca

Starting TAEG: 4.2%

Compass has established itself as a reliable choice for personal loans, particularly for consolidating existing debts.

Their customer service receives consistently high ratings.

Advantages:

• Quick approval process (often same day)

• Flexible payment dates

• Debt consolidation options

• Branch network across Italy

Special Offers

Compass frequently runs promotions with reduced rates for new customers and offers personalized loan terms based on your financial situation.

3. Intesa Sanpaolo

Starting TAEG: 4.5%

Italy’s largest bank by assets offers competitive rates for existing customers and provides various loan products tailored to different needs.

Product Range:

• Personal loans up to €75,000

• Salary-backed loans (cessione del quinto)

• Student loans with deferred payments

• Pension-backed loans for retirees

Customer Benefits

Existing account holders enjoy faster processing times and often qualify for reduced interest rates based on their banking history.

4. BPER Banca

Starting TAEG: 4.7%

BPER offers transparent pricing and no hidden fees, making it an excellent choice for borrowers who value straightforward terms.

Features:

• Clear fee structure

• No early repayment penalties

• Online rate calculator

• Competitive rates for amounts up to €75,000

5. UniCredit

Starting TAEG: 4.9%

One of Europe’s leading banks, UniCredit combines international expertise with local market knowledge to offer competitive loan products.

Loan Options:

• Standard personal loans

• Salary-deducted loans

• Secured loans with collateral

• Business loans for entrepreneurs

Digital Advantage

Their mobile app allows you to manage your loan, make extra payments, and track your balance in real-time.

6. BancoPosta (Poste Italiane)

Starting TAEG: 5.1%

BancoPosta leverages Italy’s extensive postal network to offer accessible banking services, including competitively priced personal loans.

Unique Benefits:

• Available at any post office

• Mini loans from €500 to €3,000

• Standard loans up to €10,000

• Extended branch hours

7. Banco BPM

Starting TAEG: 5.3%

Formed from the merger of Banco Popolare and BPM, this institution offers solid loan products with reasonable rates and good customer service.

Services:

• Personal loans up to €50,000

• Flexible repayment terms

• Insurance options available

• Regional focus with personalized service

8. Crédit Agricole Italia

Starting TAEG: 5.5%

The Italian arm of the French banking giant offers competitive rates and European banking standards to Italian borrowers.

Highlights:

• International banking expertise

• Competitive rates for larger loans

• Strong digital platform

• Multilingual customer service

9. Revolut

Starting TAEG: 5.7%

This digital bank has revolutionized personal finance in Italy, offering quick approvals and transparent terms through their mobile app.

Modern Features:

• 100% digital application

• Instant approval decisions

• No paperwork required

• Real-time notifications

Perfect for Digital Natives

Revolut appeals to tech-savvy borrowers who prefer managing their finances entirely through smartphone apps.

10. N26

Starting TAEG: 6.2%

Another digital-first bank, N26 rounds out our top 10 with competitive rates and a user-friendly platform designed for modern banking needs.

Digital Benefits:

• Quick online applications

• Transparent fee structure

• Integration with spending analytics

• European banking license

Rate Comparison Table

Bank	Starting TAEG	Max Loan Amount	Key Advantage
Findomestic	3.9%	€60,000	Lowest rates
Compass	4.2%	€30,000	Same-day approval
Intesa Sanpaolo	4.5%	€75,000	Largest loan amounts

How to Choose the Right Bank

Selecting the cheapest bank isn’t just about the lowest interest rate. Consider these factors when making your decision:

Interest Rates and Fees:

• Compare TAEG (total annual cost) rather than just TAN

• Look for hidden fees like processing charges

• Check if there are early repayment penalties

Loan Terms:

• Longer terms mean lower monthly payments but higher total cost

• Shorter terms save money overall but require higher monthly payments

• Some banks offer flexible payment schedules

Approval Requirements:

• Minimum income requirements vary by bank

• Some banks are more lenient with credit history

• Required documentation differs between institutions

Customer Service:

• Consider branch availability if you prefer in-person service

• Check online reviews and customer satisfaction ratings

• Evaluate digital platform quality for online banking

Tips for Getting the Best Rate

Securing the lowest possible interest rate requires preparation and strategy. Here’s how to maximize your chances:

Improve Your Credit Profile:

• Pay existing debts on time

• Reduce credit card balances

• Avoid applying for multiple loans simultaneously

Choose the Right Timing:

• Banks often offer promotions at year-end

• Consider applying when you have steady employment

• Wait for rate reduction campaigns

Negotiate Terms:

• Existing customers often get better rates

• Consider bringing your banking relationship to the lender

• Ask about rate reductions for automatic payments

Consider Guarantees:

• Secured loans typically offer lower rates

• Co-signers can help reduce interest costs

• Property or vehicle collateral significantly lowers rates

Required Documentation

Most Italian banks require similar documentation for personal loan applications:

Personal Documents:

• Valid passport or Italian ID card

• Codice fiscale (tax code)

• Proof of Italian residency

• Permesso di soggiorno (for non-EU citizens)

Financial Documents:

• Recent pay stubs (last 3 months)

• Bank statements (last 6 months)

• Tax returns (last 2 years)

• Employment contract or pension documentation

Digital Banks May Require Less

Online-only banks like Revolut and N26 often have streamlined documentation requirements and faster verification processes.

Frequently Asked Questions

Q: Can foreigners get personal loans in Italy?

A: Yes, but you’ll need legal residency status, proof of income in Italy, and typically a longer credit history.

Some banks specialize in lending to expatriates.

Q: How long does loan approval take?

A: Digital banks can approve loans within hours, while traditional banks typically take 3-7 business days.

Complex applications may require up to 2 weeks.

Q: What’s the difference between TAN and TAEG?

A: TAN is the basic interest rate, while TAEG includes all costs (fees, insurance, processing charges).

Always compare TAEG rates for accurate cost comparisons.

Q: Can I pay off my loan early without penalties?

A: Most Italian banks allow early repayment, but some charge fees.

Check your contract terms or ask specifically about prepayment policies before signing.

Conclusion

Finding the cheapest personal loan in Italy requires careful comparison of rates, terms, and fees.

While Findomestic currently offers the lowest starting rates at 3.9% TAEG, the best choice depends on your specific situation, loan amount, and banking preferences.

Remember that the lowest advertised rate isn’t always available to all borrowers.

Your final rate depends on your credit profile, income, and the loan amount.

Take time to shop around, negotiate terms, and read the fine print before committing to any loan agreement.

Start your application process with 2-3 banks from our top 10 list to compare actual offers and secure the best possible terms for your financial needs.