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Home Loan Interest Rates

Home loan interest rates in India currently start from 7.10% p.a. The home loan interest rate depends on multiple factors and the lender’s internal risk assessment, with most home loans being linked to RBI-mandated external benchmarks (repo rate). Since even a small difference in this rate can significantly increase the total interest payable over the tenure, borrowers should compare rates offered by multiple banks and housing finance companies (HFCs) before applying.

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Current Home Loan Interest Rates Offered by Top Banks & HFCs – January 2026

Latest home loan interest rates by top banks and HFCs are mentioned in the table below:

Name of Lender Interest Rates#
Axis Bank 7.20%* p.a.
Bajaj Housing Finance 7.15% p.a.
Bank of India 7.10% p.a.
Canara Bank 7.15% p.a.
Easy Home Finance 8.99% p.a.
Federal Bank 8.75% p.a.
Godrej Housing Finance 7.75% p.a.
HDFC Bank 7.20%* p.a.
HDFC Sales Pvt. Ltd. 7.20%* p.a.
Home First Finance 8.00% p.a.
ICICI Bank 7.50%* p.a.
IDBI Bank 7.35% p.a.
IDFC FIRST Bank 8.85% p.a.
India Shelter Home Loan 8.43% p.a.
Jio Housing Finance 8.20% p.a.
L&T Finance Limited 7.65%* p.a.
Piramal Capital Housing Finance 9.99% p.a.
PNB Housing Finance 7.20%* p.a.
Punjab & Sind Bank 7.30%
Punjab National Bank 7.20% p.a.
RBL Bank 8.20% p.a.
Sammaan Capital (Formerly known as Indiabulls Housing Finance) 8.75% p.a.
Shubham Housing Finance 10.45% p.a.
State Bank of India 7.25% p.a.
Tata Capital Housing Finance 7.75% p.a.

*when applied through Paisabazaar Home loan interest rates as of 9th January 2026

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HDFC Bank
Min Loan Amt. ₹15L
Rate of Interest7.2% - 13.2%
Tenure uptoUpto 30 Years
Processing Fee₹ 10,000
Axis Bank
Min Loan Amt. ₹30L
Rate of Interest8.35% - 11.90%
Tenure uptoUpto 30 Years
Processing Fee₹ 14,000
IDFC First Bank
Max Loan Amt.Upto ₹10Cr
Rate of Interest8.85% - 18%
Tenure uptoUpto 30 Years
Processing FeeUpto 3%

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Step 5: Compare offers and apply for the best-suited loan.

Home Loan Interest Rates Offered by Other Banks & HFCs

Name of the Lender Interest Rates (p.a.)
Up to Rs. 30 Lakh Rs. 30 Lakh to Rs. 75 Lakh Above Rs. 75 Lakh
Public Sector Banks
Bank of Baroda 7.45% – 9.25% 7.45% – 9.25% 7.45% – 9.50%
Bank of India 7.10% – 10.00% 7.10% – 10.00% 7.10% – 10.00%
Bank of Maharashtra 7.10% – 9.90% 7.10% – 9.90% 7.10% – 9.90%
Central Bank of India 7.10% – 9.15% 7.10% – 9.15% 7.10% – 9.15%
Indian Bank 7.15% – 9.55% 7.15% – 9.55% 7.15% – 9.55%
Indian Overseas Bank 7.10% onwards 7.10% onwards 7.10% onwards
UCO Bank 7.40% – 9.50% 7.40% – 9.50% 7.40% – 9.50%
Union Bank of India 7.15% – 9.50% 7.15% – 9.50% 7.15% – 9.50%
Private Sector Banks
Bandhan Bank 8.41% – 12.58% 8.41% – 12.58% 8.41% – 12.58%
Dhanlaxmi Bank 8.60% onwards 8.60% onwards 8.60% onwards
Karnataka Bank 7.30% – 11.68% 7.30% – 11.68% 7.30% – 11.68%
Karur Vysya Bank 8.50% – 10.65% 8.50% – 10.65% 8.50% – 10.65%
South Indian Bank 7.80% onwards 7.80% onwards 7.80% onwards
Tamilnad Mercantile Bank 7.90% – 9.30% 7.90% – 9.30% 7.90% – 9.30%
Housing Finance Companies (HFCs)
Aditya Birla Capital 7.75% onwards 7.75% onwards 7.75% onwards
Cent Bank Home Finance Limited 10.00% onwards 10.00% onwards 10.00% onwards
GIC Housing Finance 8.20% onwards 8.20% onwards 8.20% onwards
ICICI Home Finance 7.50% onwards 7.50% onwards 7.50% onwards
LIC Housing Finance 7.15% onwards 7.15% onwards 7.15% onwards
Repco Home Finance 10.10% onwards 10.10% onwards 10.10% onwards
Foreign Banks
HSBC India 7.70% onwards 7.70% onwards 7.70% onwards
Standard Chartered Bank 7.99% onwards 7.99% onwards 7.99% onwards

Home loan interest rates as of 2nd January 2026

What are Home Loan Interest Rates?

  • Home loan interest rate is the percentage at which additional funds are charged by a lender on the amount borrowed to purchase, construct or renovate a house.
  •  It is a key factor that determines your monthly EMIs and overall cost of credit repaid over the loan tenure.
  • The home loan interest rate applicable depends on multiple factors such as credit score, loan amount, loan tenure, employment type (salaried or self-employed), income stability, and the lender’s internal risk assessment.
  • Most home loans are linked to RBI-mandated external benchmarks like the repo rate.

Why Compare Home Loan Interest Rates on Paisabazaar?

  • Paisabazaar shows curated home loan offers from multiple lenders, all in one place.
  • You can see home loan interest rates based on your credit score on Paisabazaar.
  • You can also see pre-approved home loan offers you are eligible for.
  • It also displays the processing fees, maximum loan amount, EMI, loan process and documents required during the loan application.

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Types of Home Loan Interest Rates

Depending on the types of interest rates, home loans can be categorised into three types - fixed rate, floating rate and hybrid.

Fixed-Rate Home Loans

  • The interest rate remains the same throughout the loan tenure, keeping the home loan EMI constant.
  • It is better to apply 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 Home Loans

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

Hybrid Home Loans

  • Hybrid rate home loans are a mix of fixed-rate and floating-rate home loans.
  • They initially have a fixed interest rate for a fixed period, after which it converts into a floating interest rate.

How are Home Loan Interest Rates Determined?

Home loan interest rates depend on numerous factors pertaining to external benchmarks, borrower’s profile and lender policies. Below are the key factors that help determine home loan interest rates:

External Benchmark Rates and RBI Policies – Floating-rate home loans are linked to the RBI’s repo rate, and when it changes, the interest on floating-type home loans is adjusted automatically.

Borrower’s Credit Profile – A high credit score and a clean repayment record help an applicant qualify for lower home loan interest rates.

Repayment Capacity and Income Stability – Stable employment and eligible income help get loans at a lower rate. The EMI/NMI ratio is also assessed while evaluating a home loan application.

Loan Amount and Tenure – Larger amounts and tenure attract a relatively higher interest rate owing to the higher risk exposure.

Interest Rate Type – Floating-rate home loans are offered at a lower rate than fixed-rate home loans.

Property Details – Home loan interest rates also depend on the location, age and other risk factors related to the property.

Lender’s Internal Policy – Every lender, be it a bank or HFC, implements internal policies based on the risk-level of the application, which impacts the interest rates.

How Interest Rates Affect Your Home Loan EMIs

  • Home loan interest rates, fixed or floating-type, have direct impact on your EMIs and may increase or decrease your overall cost of credit:
  •  Low interest rate will help you pay lower EMIs whereas the EMI amount increases in case of higher interest rates.
  •  EMI is not impacted in case of fixed-rate loans throughout the loan tenure.
  •  In case of floating-rate home loans, interest rate and EMIs are relatively lower than fixed-rate loans.
  •  When repo rates change, interest rates also change in case of floating-type home loans.

Why Comparing Interest Rates Matters before Applying?

It is advisable to compare interest rates across lenders before applying for a home loan. Prospective borrowers can either visit the official websites of banks and HFCs or visit Paisabazaar to compare the interest rates of various lenders all in one place. Comparing interest rates before applying for a home loan is important for the following reasons:

  • Avoid High Loan Cost: You can opt for a lender offering a lower interest rate and eventually save on your EMIs and interest cost.
  • EMI Planning: Knowing the interest rates and other charges beforehand can help you plan your EMIs within your budget without compromising on your crucial financial goals.

Note that even a 0.5% difference in interest rate can help you save substantially.

Bank vs HFCs - Interest Rate Comparison

  • Public Sector Banks, generally, offer home loans at lowest interest rates
  • Private Sector Banks offer home loans at relatively higher interest rates
  • HFCs offer a relatively higher interest rate to borrowers
  • As banks follow EBLR strictly, benefits of repo rate cuts are passed on to the borrowers quickly
  • HFCs revise their interest rates at their own discretion and thus the impact on rates may take longer to reflect
  • HFCs adhere to risk-based pricing strictly so the rates vary significantly for different applicants
  • In long term, bank home loans are more economical whereas cost of loans for HFCs can be higher.

How RBI Repo Rate Changes Affect Home Loan Rates

  • RBI lends to bank at repo rates and any variation in this rate impacts the retail lending rates
  • When RBI reduces the repo rate, banks also reduce home loan interest rates for floating-type home loans
  • An increase in the repo rate increases the cost of borrowing for banks and thus home loan interest rates also increase for floating-type home loans
  • Borrowers with fixed-rate home loans have almost no impact on their loan
  • Home loan borrowers benefit from repo rate cuts if their loan is linked with repo rate or EBLR.

How to Get the Lowest Home Loan Interest Rate

  • To be eligible for the lowest home loan interest rates, follow these points closely –
  • Maintain a high credit score, preferably above 750 to be eligible for the best home loan offer.
  • Keep your EMI/NMI ratio low as lenders prefer borrowers having this ratio below 50-55% after loan sanctioning.
  • Compare home loan offers from multiple lenders before applying for one.
  • A higher down payment reduces the lender’s risk so it can help get low rates.
  • A clean repayment record and stable income helps get a better loan offer.

Illustrative Example: Understanding Home Loan Interest Rates

Home loan interest rates vary across lenders. Even a slight difference in these rates can save big on borrowing costs. Let us understand this with an example.

Aman wanted to buy his dream home and was planning to borrow an amount of Rs. 50 lakh and repay it within 15 years. So he visited the Paisabazaar platform to compare interest rates and offers from various lenders. He shortlisted a few lenders and compared their EMIs and interest costs using a home loan EMI calculator. Post that, he selected the one offering the lowest borrowing cost. He was also eligible for a pre-approved home loan from HDFC Bank.

Let us see how the EMIs and total interest cost of the lenders he had opted for varied for different interest rates.

Bank/NBFC Interest Rate (p.a.) Monthly EMI Total Interest Payable Total Payment
HDFC Bank 7.90% Rs. 47,494 Rs. 35,48,993 Rs. 85,48,993
Axis Bank 8.35% Rs. 48,798 Rs. 37,83,701 Rs. 87,83,701
ICICI Bank 7.65% Rs. 46,778 Rs. 34,20,011 Rs. 84,20,011
Bajaj Housing Finance 7.15% Rs. 45,362 Rs. 31,65,117 Rs. 81,65,117
Bank of Baroda 7.20% Rs. 45,502 Rs. 31,90,421 Rs. 81,90,421
Bank of India 7.10% Rs. 45,221 Rs. 31,39,854 Rs. 81,39,854

Swipe to see more table data

How Interest Rates Affect Your Home Loan EMIs

Interest rate is directly related to the EMI and interest cost. The higher the interest cost, the higher will be the EMI and interest cost. Thus, the overall borrowing cost incurred also increases. On the contrary, a low interest rate results in lower EMIs, lower interest cost and eventually reduced borrowing cost provided your loan amount and tenure remain the same.

Let’s Take an Example: Rs. 20 Lakh Loan EMI at various Interest Rates

Interest Rate(p.a.) Loan Amount(Rs.) Tenure(years) EMI (Rs.) Total Interest Cost(Rs.)
7.10% 20 lakh 15 18,089 12,55,942
7.15% 20 lakh 15 18,145 12,66,047
7.90% 20 lakh 15 18,998 14,19,597
8.35% 20 lakh 15 19,519 15,13480
8.50% 20 lakh 15 19,695 15,45,062

It is quite evident here that when the loan amount and tenure are kept constant, the EMI and interest cost gradually increase with the increase in interest rate.

Swipe to see more table data

How to Lower Your Interest Cost through Home Loan Balance Transfer

Home loan balance transfer allows you to reduce your total cost of home loan by transferring your outstanding loan to another lender offering a lower interest rate. A balance transfer makes sense in the early stages of the loan tenure and when the difference in interest rate is in the range of 0.75% to 1%.

You should analyse the savings and compare the cost of migrating to the new lender. HLBT is considered as a new loan by a lender so the processing fee and administrative charges may also incur. Thus, switch to a new lender only when the savings are significant and worth the effort.

Government & Affordable Housing Schemes with Special Rates

  • Pradhan Mantri Awas Yojana (PMAY) offers subsidy to eligible borrowers effectively lowering the cost of loan.
  • Affordable housing for women come with relatively lower interest rates
  • Lenders offer special rates to borrowers who qualify for the EWS, LIG and MIG categories
  • Subsidies provided by the government are credited directly to the lender reducing the principal and EMI burden for the borrower.

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Step 1: Enter your mobile number in the application form.

Step 2: Verify using the OTP sent to your mobile number.

Step 3: Enter details related to your loan requirements.

Step 4: Provide your personal and employment details.

Step 5: Compare offers and apply for the best-suited loan.

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FAQs

Home loans start at 7.10% p.a. from many lenders.

Generally, public sector banks offer the lowest home loan interest rates.

The interest rate remains fixed for the loan tenure in case of fixed-rate home loans whereas, for floating-type home loans, interest rates depend on external benchmarks and may get changed when such benchmarks are impacted.

Home loan interest rates change only in case of floating-type loans when external benchmarks such as repo rates change.

A higher credit score show less risk for lenders and in turn, makes you eligible for a relatively lower interest rate.

A longer tenure does not necessarily mean higher rates but the overall interest outgo increases with an increase in the tenure.

A floating-type loan, generally, has a lower rate of interest. However, a fixed interest rate loan makes sense when the current rate is low and market scenarios predict the rise in external benchmarks leading to the rise in interest rate of floating-type loans in future.

When repo rate increases, the interest rate in case of floating-type loans increase and vice versa. However, the interest rate remains constant in case of fixed-type home loans even if the repo rate fluctuates.

Many lenders offer a concession of 10 to 25 basis points in the interest rate when the borrower/co-borrower is a woman.

You can compare home loan offers from multiple lenders at Paisabazaar and utilise the Home Loan EMI calculator to compare the interest rates, EMI payable and total cost of loan to make an informed decision.

Comparing various loan options at Paisabazaar helps you find out the best rates you are eligible for. You can use this information to negotiate with a preferred lender and get the best offer.

HFCs generally charge a higher home loan interest rate from borrowers.

As the repayment risk due to unstable income pattern is more in case of self-employed applicants, lenders usually charge a higher interest rate from self-employed borrowers than salaried applicants who have a relatively stable income.

A low processing fee reduces your overall cost of credit whereas a high processing fee may significantly increase your loan cost. Negotiating with the lender can help reduce the processing fee and keep your overall cost low.

Loan refinancing or home loan balance transfer makes sense early into the loan tenure when the interest outgo is high and when the interest offered on the HLBT is 0.75%-1% lower than the current interest rate. Since the balance transfer is considered a new loan, processing fee and other administrative charges also apply. So, you should consider all costs and compare them with the savings you would make after the reduced interest rate and opt for refinancing only when the difference is significant.

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Ended up taking an ICICI Home Loan and I think it was one of the best decisions I ever made. I thank Paisabazaar for helping me out and answering my questions with so much patience.

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Had a great experience with Paisabazaar

I have always heard my friends talking about how tedious it was for them to avail a home loan and decide the most suitable option. But with the help of Paisabazaar, I was able to compare several home loans and opt for the one that suited my needs. I am happy that I considered Paisabazaar for helping me.

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I had never thought that applying for a home loan could be so easy. The entire process was online and I didn’t have to go anywhere for application or documentation of my home loan. Paisabazaar experts helped me navigate through the process and later the bank collected my documents and everything was quick and seamless.

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