Dreaming of buying your own home? Find out which bank is offering the cheapest home loans—check out the complete list..
Bank Home Loan Rates: If you are planning to buy your own home, it is crucial to compare the interest rates offered by different banks before taking out a home loan. Even a slightly lower interest rate can significantly reduce your EMI and the total cost of the loan over the long term. Currently, several banks and housing finance companies are offering home loans at varying interest rates.
Interest Rates Determined by RBI Policy
Home loan interest rates depend largely on the Reserve Bank of India's (RBI) monetary policy. In its monetary policy review in February, the RBI maintained the Repo Rate at 5.25%. This is the reason why no significant changes have been observed in banks' home loan rates at present.
Home Loan Interest Rates at Public Sector Banks
State Bank of India's interest rate ranges from 7.25% to 8.70%.
Union Bank of India's interest rate ranges from 7.15% to 9.50%.
Punjab National Bank's interest rate ranges from 7.20% to 9.10%.
Bank of India's interest rate ranges from 7.10% to 10.25%.
Canara Bank's interest rate ranges from 7.15% to 10.00%.
UCO Bank's interest rate ranges from 7.15% to 9.25%.
Interest Rates at Private Sector Banks
Kotak Mahindra Bank's interest rate starts at 7.70%.
ICICI Bank's interest rate starts at 7.45%.
Axis Bank's interest rate ranges from 8.00% to 11.90%.
HSBC Bank's interest rate starts at 7.75%.
South Indian Bank's interest rate starts at 7.20%. Karur Vysya Bank's interest rates range from 8.50% to 10.65%.
Karnataka Bank's interest rates range from 7.30% to 11.68%.
Offers from Housing Finance Companies
LIC Housing Finance's interest rates start at 7.15%.
Bajaj Housing Finance's interest rates start at 7.15%.
Tata Capital's interest rates start at 7.50%.
PNB Housing Finance's interest rates start at 7.50%.
GIC Housing Finance's interest rates start at 8.20%.
ICICI Home Finance's interest rates start at 7.50%.
Godrej Housing Finance's interest rates start at 7.60%.
Who Gets the Cheapest Home Loans?
Typically, the lowest interest rates are offered to individuals with a credit score of 800 or higher. Additionally, interest rates may vary based on your employment status (salaried or self-employed), income, and the loan amount.
Monetary Policy Review to be Held Again in April
The next meeting of the RBI's Monetary Policy Committee is scheduled to take place between April 7 and April 9, 2026. During this meeting, decisions regarding interest rates will be taken after assessing inflation, economic growth, and global conditions.
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