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Home Loan Interest Rates

Home Home Loan Home Loan Interest Rates

At present, Central Bank of India, Union Bank of India and Bank of Maharashtra offer the lowest home loan interest rates starting from 7.85% p.a. onwards. The final interest rates offered would depend on the applicant's credit score, loan amount, occupation profile, employer’s profile, etc. As even a slight difference in the interest rate can lead to a significant difference in the total interest cost, prospective borrowers should compare the interest rates offered by as many lenders as possible before making the loan application.

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Updated: 25-04-2025 13:55:37 PM

Current Home Loan Interest Rates Offered by Partner Banks & HFCs – April 2025

Name of Lender Interest Rates (p.a.)
Loans Up to Rs. 30 Lakh Loans Above Rs. 30 Lakh to Rs. 75 Lakh Loans Above Rs. 75 Lakh
State Bank of India 8.00% – 9.15% 8.00% – 9.15% 8.00% – 9.15%
HDFC Bank Limited 8.70% onwards 8.70% onwards 8.70% onwards
Bajaj Housing Finance 7.99% onwards 7.99% onwards 7.99% onwards
ICICI Bank 8.75% onwards 8.75% onwards 8.75% onwards
Axis Bank 8.75% – 12.80% 8.75% – 12.80% 8.75% – 9.65%
Federal Bank 8.55% onwards 8.55% onwards 8.55% onwards
Punjab National Bank 8.05% – 9.85% 8.00% – 9.75% 8.00% – 9.75%
Kotak Mahindra Bank 8.65% onwards 8.65% onwards 8.65% onwards
Bank of Baroda 8.40% – 10.40% 8.40% – 10.40% 8.40% – 10.65%
Canara Bank 8.00% – 10.75% 7.95% – 10.65% 7.90% – 10.65%
IDFC FIRST Bank 8.85% onwards 8.85% onwards 8.85% onwards
IDBI Bank 8.40% onwards 8.40% onwards 8.40% onwards
Punjab & Sind Bank 8.05% – 11.25% 8.05% – 11.25% 8.05% – 11.25%
RBL Bank 9.00% onwards 9.00% onwards 9.00% onwards
LIC Housing Finance 8.25% onwards 8.25% onwards 8.25% onwards
Tata Capital Housing Finance 8.75% onwards 8.75% onwards 8.75% onwards
PNB Housing Finance 8.50% – 14.50% 8.50% – 14.50% 8.50% – 11.45%
Sammaan Capital (Formerly known as Indiabulls Housing Finance) 8.75% onwards 8.75% onwards 8.75% onwards
Aditya Birla Capital 8.60% onwards 8.60% onwards 8.60% onwards
India Shelter Finance 11.59% onwards 11.59% onwards 11.59% onwards
L&T Finance Limited 8.65% onwards 8.65% onwards 8.65% onwards
Godrej Housing Finance 8.55% onwards 8.55% onwards 8.55% onwards
Home First Finance 11.90% onwards 11.90% onwards 11.90% onwards
Easy Home Finance 8.99% onwards 8.99% onwards 8.99% onwards
Piramal Capital Housing Finance 9.50% onwards 9.50% onwards 9.50% onwards
Cholamandalam Investment and Finance 10.50% onwards 10.50% onwards 10.50% onwards

Note: Interest rates as of 17 April 2025

Home Loan Interest Rates Offered by Other Banks & HFCs

Name of Lender Interest Rates (p.a.)
Loans Up to Rs. 30 Lakh Loans Above Rs. 30 Lakh to Rs. 75 Lakh Loans Above Rs. 75 Lakh
Public Sector Banks
Union Bank of India 7.85% – 10.25% 7.85% – 10.40% 7.85% – 10.40%
Bank of India 8.00% – 10.35% 8.00% – 10.35% 8.00% – 10.60%
UCO Bank 8.30% onwards 8.30% onwards 8.30% onwards
Bank of Maharashtra 7.85% – 10.65% 7.85% – 10.65% 7.85% – 10.65%
Indian Overseas Bank 7.90% onwards 7.90% onwards 7.90% onwards
Indian Bank 8.25% – 9.65% 8.25% – 9.65% 8.25% – 9.65%
Central Bank of India 7.85% – 9.45% 7.85% – 9.45% 7.85% – 9.45%
Private Sector Banks
Karur Vysya Bank 8.45% – 11.40% 8.45% – 11.40% 8.45% – 11.40%
South Indian Bank 8.50% onwards 8.50% onwards 8.50% onwards
Karnataka Bank 8.94% – 11.06% 8.94% – 11.06% 8.94% – 9.59%
Dhanlaxmi Bank 8.75% onwards 8.75% onwards 8.75% onwards
Tamilnad Mercantile Bank 8.60% – 9.80% 8.60% – 9.80% 8.60% – 9.80%
Bandhan Bank 8.91% – 15.00% 8.91% – 13.33% 8.91% – 13.33%
Housing Finance Companies (HFCs)
Repco Home Finance 9.60% onwards 9.60% onwards 9.60% onwards
GIC Housing Finance 8.80% onwards 8.80% onwards 8.80% onwards
ICICI Home Finance 9.30% onwards 9.30% onwards 9.30% onwards
Foreign Banks
HSBC India 8.40% onwards 8.40% onwards 8.40% onwards
Standard Chartered Bank 8.95% onwards 8.95% onwards 8.95% onwards

Note: Interest rates as of 17 April 2025

5 Factors Determining Interest Rates of Home Loan

Since home loans are typically large-ticket items, banks and HFCs carefully consider the borrower’s credit history, ability to repay the loan, income, and property to be purchased, among other factors. Home loan applicants need to be thoroughly informed about their eligibility as well as the elements that lenders consider when reviewing their applications.

It needs to be noted that low interest rates usually come with strict home loan eligibility conditions. Here are the factors that lenders consider while determining your eligibility and the home loan interest rate offered:

1. Credit Score

Your credit score is a numerical representation of your credit history. People who have paid their EMIs and credit card bills in full, on time, and have not relied heavily on credit in the past are likely to have a good credit score.

  • If your credit score from CIBIL and other bureaus is 730 and above, lenders will look at you favourably for a home loan.
  • Also, banks and HFCs are using the credit score of home loan applicants to decide their home loan interest rates.
  • Since a high credit score reflects responsible credit behaviour and financial discipline, many banks and HFCs offer home loans at lower interest rates to applicants with high credit scores.
  • Those who have no or low credit scores can improve their credit scores by availing secured credit cards.

2. Home Loan Types

Home loan interest rates also differ as per the type of home loan. Regular home loans have standard rates while their counterparts such as Plot Loans or NRI Home Loans usually have higher interest rates.

3. Income and Employment

When evaluating your home loan eligibility, lenders also take into account your income, type of employment and your employer’s profile. Home loan applicants employed in government or public sector undertakings or working in large and/or reputed private sector organisations are usually preferred by lenders due to their higher job/income certainty.

Hence, lenders offer lower home loan interest rates to such applicants. On the other hand, home loan applicants with irregular or insufficient income might find it hard to get home loans at lower interest rates.

4. Loan Amount

The loan amount you wish to borrow can also affect the rate at which you get a home loan. Home loans of up to Rs 30 lakh usually have lower interest rates than home loans of higher amounts. To get a lower home loan interest rate, one should try to make the maximum possible down payment. This will not only reduce the overall loan burden but can also help them get a lower rate of interest on their loan.

5. Type of Home Loan Interest Rate

The type of interest rate you choose for your home loan will determine the rate at which you will repay your lender. In the case of fixed-rate home loans, EMIs remain the same for the entire loan period. Floating rates, on the other hand, change as per change in their lending rate such as Repo Linked Lending Rate (RLLR).

Lenders usually charge higher interest rates on home loans offered on fixed interest rates due to the higher interest rate risk involved with fixed-rate home loans.

Types of Home Loan Interest Rate

Depending on the interest rate, a home loan is of three types, fixed-rate, floating rate and hybrid.

Fixed Rate Loans

The fixed interest rate remains the same throughout the loan tenure, keeping the home loan EMI constant. It is better to apply for a home loan at a fixed interest rate when the current home loan interest rate is quite low and is expected to increase in the future.

Floating Rate Loans

Floating interest rate, also known as the variable rate of interest, is subject to the current market lending rates; and thus, they may change during the loan tenure. The home loan EMIs will increase or decrease as per the interest rate movement.

Hybrid Loans

Hybrid rate home loans are a mix of fixed-rate and floating rate home loans. These will initially have a fixed interest rate for a fixed period, after which it will convert into a floating interest rate. Such home loans are best suited for people who have taken a loan at a lower fixed rate and are planning to prepay or foreclose it before the floating rate kicks in.

FAQs on Home Loan Interest Rate

What is the current home loan interest rate?

The current home loan interest rates start from 7.85% p.a. depending on the lender and applicant’s credit profile.

Which bank offers the best home loan interest rate?

Union Bank of India, Bank of Maharashtra and Central Bank of India offer the lowest home loan interest rates starting from 7.90% p.a. For most consumers, the lender offering the best home loan interest rates will be the same as the lender offering the lowest home loan interest rate. However, lenders set home loan interest rates for their loan applicants based on their credit risk assessment.

Does RBI’s repo rate directly affect my home loan interest rate?

Floating rate home loans linked to repo rate as the external benchmark change in accordance to repo rate changes and their interest rate reset dates. Changes in repo rate would also affect home loan interest rates linked to internal benchmarks and other external benchmarks, with or without time lag, depending on various internal and market factors.

Which home loan interest rate is better – floating or fixed?

Some lenders offer home loans at fixed interest rates and those that offer fixed rate home loans charge higher interest rates. Moreover, as the home loan tenure is up to 30 years, a home loan borrower will experience several changes in the interest rate cycle during his loan tenure. This makes it difficult for any borrower to repay his home loan as per the interest rate cycle.

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