Home Loan Interest Rates in India: Complete Bank-wise Comparison Guide
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- 24th Sep 2025
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As of September 2025, home loan interest rates in India have seen reductions due to RBI's repo rate cuts totaling 50 basis points earlier in the year, pushing many floating rates below 8%. Rates typically start from 7.35% p.a. for eligible borrowers (e.g., high credit score of 730+), but final offers depend on factors like credit profile, loan amount, tenure, and borrower type (e.g., women may get 0.05-0.50% concessions). Public sector banks generally offer the lowest rates, while private banks provide faster processing.
Below is a comparison of starting rates from major banks and NBFCs (floating rates unless specified; fixed rates are higher, e.g., 14% at Axis). Data is aggregated from reliable financial sources; always verify with the lender for personalized quotes.
| Bank/NBFC | Starting Interest Rate (p.a.) | Processing Fee (approx.) | Key Notes |
|---|---|---|---|
| Bank of Maharashtra | 7.35% | Up to 0.50% | Lowest for salaried; waiver until Dec 2025. |
| Central Bank of India | 7.35% | Up to 0.50% | Ideal for govt employees; quick approval. |
| Bank of India | 7.35% | Up to 0.50% | Linked to MCLR; women concession up to 0.05%. |
| Indian Overseas Bank | 7.35% | Up to 0.50% | Strong for NRIs; min loan ₹5 lakh. |
| Union Bank of India | 7.35%-8.60% | Up to 0.50% | Varies by CIBIL; tax benefits under 80C/24(b). |
| Bajaj Housing Finance | 7.35%-7.45% | Up to 1% | Digital process; festive offers available. |
| ICICI Bank | 7.70% | 0.50% + taxes | Repo-linked; valid till Sep 30, 2025; instant loans. |
| Punjab National Bank (PNB) | 8.00%-8.50% (est.) | Up to 0.50% | MCLR-based; no prepayment penalty from Jan 2026. |
| Bank of Baroda | 8.30%-8.75% | Up to 0.50% | Flexible tenure up to 30 years; NRI-friendly. |
| HDFC Bank | 8.15%-8.50% | Up to 0.50% | Balance transfer options; min loan ₹5 lakh. |
| State Bank of India (SBI) | 8.40% (est.) | 0.35%-0.50% | Max loan ₹10 Cr; linked to EBLR. |
| Axis Bank | 8.75% | Up to 1% | Fixed option at 14%; quick digital EMI calc. |
| IDFC FIRST Bank | 8.50%-9.00% (est.) | Up to 0.50% | Repo-influenced; good for first-time buyers. |
Key Insights:
- Lowest Overall: Public banks like Bank of Maharashtra and Union Bank lead at 7.35%, often 0.50-1% below private peers.
- Trends for 2025: Expect further dips if RBI cuts rates again; hybrid/fixed options suit risk-averse borrowers looking to invest in property in Mumbai or other major cities.
- Tips: Use EMI calculators (e.g., for ₹30 lakh loan at 7.35% over 20 years: ~₹23,500/month). Check eligibility via CIBIL score and compare via portals like BankBazaar or Paisabazaar for real-time quotes. Consider exploring real estate investment strategies to maximize your returns.
When considering home loans for property in Bangalore or property in Pune, rates may vary based on local market conditions. For those interested in emerging markets, explore opportunities in property in Hyderabad or property in Chennai.
Investment opportunities are also growing in tier-2 cities. Consider the potential in property in Nashik, property in Nagpur, or property in Thane for better affordability and growth prospects.
For comprehensive guidance on property investment, check out our expert property investment guide which covers tax benefits and wealth building strategies. Additionally, learn about family trusts for property investment to protect your assets effectively.
Rates are subject to change; consult banks directly for the latest information and personalized offers.
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