Buying a home in India in 2026 means borrowing into an unusually quiet interest rate market. The RBI cut the repo rate to 5.25% in December 2025 and has not moved it since — including at the Monetary Policy Committee meeting that concluded this morning, 5 August 2026. Banks have finished passing that cut through, which means the cheapest home loans in the country now start at 7.10% p.a., and the gap between the best and worst rate you might be offered has never mattered more.
This guide sets out the latest housing loan interest rates from 17 leading banks and the major housing finance companies — SBI, HDFC Bank, ICICI, Bank of Baroda, PNB, Canara Bank and the rest — along with processing fees, scheme-level pricing where lenders publish it, and what actually determines which end of a lender's range you land on.
Quick Summary
Updated 5 August 2026- Rates have been flat since December 2025. This is a stable market, not a falling one — waiting for a cheaper EMI is not a plan.
- Public sector banks still undercut private banks by roughly 40–65 basis points at the entry level.
- A CIBIL score of 750+ is the effective price of admission to any sub-7.5% quote; 800+ gets you the headline number.
- Most lenders give women borrowers a 5 bps concession, and several add 5–10 bps for takeovers or linked insurance.
- Every "onwards" rate is a best-case number. Yes Bank tops out at 13.60% and Kotak at 13.30%.
- Floating-rate loans carry no prepayment penalty by RBI rule. Fixed-rate loans typically carry a 2% foreclosure charge.
Eighteen months of the repo rate
Four cuts through 2025 took the repo rate from 6.50% to 5.25%. It has not moved since — five consecutive holds, including this morning's.
- Rate cut
- Held unchanged
- Current — 5 August 2026
Every lender's floor and ceiling on one scale
Each bar runs from a lender's published starting rate to its top rate. A short bar means predictable pricing. A long one means your credit profile decides almost everything.
- 7%
- 8%
- 9%
- 10%
- 11%
- 12%
- Bar colour = the lender's own brand colour
- Faded end = "onwards", no published ceiling
Where the 30 lenders cluster
Counting every bank and housing finance company in this guide that publishes a starting rate. The market is densely packed below 8%.
Nearly half of all lenders start below 7.50%. The spread that matters is not between lenders but within them — the same bank can quote you 7.25% or 10.50% depending on your credit file.
Housing loan interest rates by lender
Select a bank to see its current rates, scheme-level pricing, EMI figures and charges. Each tab is colour-coded to that bank's own brand.
State Bank of India
India's largest home loan lender, and the one that publishes its scheme-level pricing most openly.
SBI prices every home loan off its External Benchmark Lending Rate, currently 7.90%, then adds or subtracts a spread based on your CIBIL score, loan size and LTV. The regular home loan band is 7.25% to 8.55% — one of the tightest spreads of any major lender, which is precisely why SBI remains the default choice for borrowers who do not want their rate to hinge on a credit-bureau technicality.
Scheme-wise interest rates
| SBI Home Loan Scheme | Interest Rate (p.a.) |
|---|---|
| Home Loan (Regular) | 7.25% – 8.55% |
| Home Loan Maxgain (Overdraft) | 7.75% – 9.05% |
| Top-Up Loan | 7.75% – 10.50% |
| Top-Up Loan (Overdraft) | 8.25% – 11.00% |
| Loan Against Property (P-LAP) | 8.95% – 10.50% |
| Reverse Mortgage Loan (RML) | 10.30% |
| YONO Insta Home Top-Up Loan | 8.10% |
| Prevailing External Benchmark Lending Rate (EBLR) | 7.90% |
Concessions and premiums
- Women borrowers: 5 bps concession, subject to a minimum of the prevailing EBLR.
- Non-salaried borrowers with CIBIL below 825: additional 10 bps premium on home loans and home top-up loans, effective 20 May 2026.
- High LTV: 10 bps premium on loans up to ₹30 lakh where LTV is above 80% and up to 90%.
- Overdraft category: top-up loans are not available on amounts above ₹2 crore or below ₹20 lakh.
Fees and key terms
- Processing fee: 0.35% of the loan amount (min ₹2,000, max ₹10,000) plus applicable taxes.
- Prepayment / foreclosure charges: Nil.
- Maximum tenure: 30 years. Eligible age: 18 to 70 years.
- Rate type: Floating, reset in line with RBI repo rate revisions.
- Other schemes: Flexipay, Tribal Plus, Pre-Approved Loan (PAL), Realty, NRI Home Loan, CRE Home Loan, Shaurya and Suraksha.
Rates effective July 2026. The PMAY Credit Linked Subsidy Scheme closed on 31 March 2024; PMAY-U 2.0 does not include an interest subsidy component.
HDFC Bank
The widest rate band of any major lender — a 5.45 percentage point spread from floor to ceiling.
HDFC Bank benchmarks its home loans to its internal Retail Prime Lending Rate (RPLR, currently 18.55% for housing) rather than directly to the repo rate, and prices aggressively off it. The published range runs from 7.75% to 13.20% p.a. That top figure is not a typo — it is what risk-based pricing looks like when a lender is willing to lend to thin-file and low-score borrowers at a price. Your CIBIL score does more work here than at any public sector bank.
Indicative rates by CIBIL score
| CIBIL Score Range | Likely Positioning | Interest Rate (p.a.) |
|---|---|---|
| 800 and above | Best pricing | 7.75% – 8.50% |
| 750 – 799 | Strong | 8.50% – 9.50% |
| 700 – 749 | Acceptable | 9.50% – 11.00% |
| Below 700 | Constrained | Up to 13.20% |
Rate types
- Adjustable Rate Home Loan (ARHL): floating, linked to HDFC's RPLR, which moves with the bank's own review cycle rather than automatically with the repo rate.
- TruFixed Loan: fixed for the first two years, then converts automatically to the prevailing adjustable rate.
- MCLR: the one-year MCLR was revised to 8.40% effective 8 June 2026, relevant to older MCLR-linked loans.
Fees and key terms
- Processing fee: up to 0.50% of the sanctioned amount (min ₹3,000, max ₹50,000) plus GST. Higher slabs apply on some non-standard products.
- Maximum loan amount: up to ₹10 crore. Tenure: up to 30 years.
- Eligibility: a CIBIL score of 720–750 is generally the minimum considered; 750+ preferred for competitive pricing.
- Prepayment: Nil on floating-rate loans to individuals. Charges may apply on fixed-rate loans.
- Loan types: regular, balance transfer, top-up, plot loans, rural housing, home renovation and extension.
ICICI Bank
The cheapest entry point among large private banks, with repo-linked pricing and tiered loan slabs.
ICICI Bank's published home loan rates start at 7.50% p.a. and are linked directly to the repo rate, with tiered slabs by loan amount and separate pricing for salaried and self-employed borrowers. Marketplace listings put the working band at roughly 7.50% to 9.80% for standard loans, extending higher for self-employed applicants and loan-against-property products.
Rate structure
| Category | Basis | Interest Rate (p.a.) |
|---|---|---|
| Standard home loan — salaried | Repo-linked, tiered by loan slab | 7.50% – 9.65% |
| Standard home loan — self-employed | Repo-linked, tiered by loan slab | 7.65% – 9.80% |
| Balance transfer | Repo-linked | From 8.90% |
| Fixed rate home loan | Fixed for chosen tenure | Quoted on profile |
| Loan Against Property / NRP / LRD | Repo-linked, tiered by amount | Quoted on profile |
Fees and key terms
- Processing fee: 0.50% of the loan amount plus applicable taxes.
- Tenure: up to 30 years. Age: 21–65 for salaried, 21–70 for self-employed.
- Minimum income: ₹25,000 per month for salaried applicants.
- Prepayment: Nil on floating-rate home loans, land loans and home improvement loans. 2% plus taxes on outstanding principal for fixed-rate top-up loans.
- Delayed payment: 2% per month on the overdue amount.
- LTV: up to 90% of property value for borrowers with a credit score of 750 and above.
Bank of Baroda
BRLLR-linked pricing with both floating and fixed options, and a spread driven almost entirely by CIBIL score.
Bank of Baroda prices its Baroda Home Loan off the Baroda Repo Linked Lending Rate, with the effective rate landing between 7.45% and 10.20% p.a. depending on your credit score and loan limit. Some distribution channels quote a floor as low as 7.20% on promotional terms, so it is worth asking. Fixed-rate options are available at a premium over the floating card rate.
Rate structure
| Product | Rate Type | Effective Rate (p.a.) |
|---|---|---|
| Baroda Home Loan (Non-Staff) | Floating, BRLLR-linked | 7.45% – 10.20% |
| Baroda Home Loan (Non-Staff) | Fixed | Premium over floating |
| Baroda Top-Up Loan | Floating | Home loan rate + spread |
| Baroda Yoddha Home Loan (defence) | Floating, concessional | Quoted on profile |
| Baroda Home Loan to Govt. Employees | Floating, concessional | Quoted on profile |
Key terms
- Loan amount: ₹10 lakh to ₹10 crore. Tenure: 5 to 30 years.
- Rate drivers: loan limit and CIBIL score. A risk premium applies for borrowers without credit insurance.
- Prepayment: Nil on floating-rate loans to individuals.
- Repayment capacity: total deductions including the proposed EMI are capped as a percentage of net monthly income, rising with income band.
Punjab National Bank
One of the tightest public sector bands, with a dedicated concessional scheme for government employees.
PNB home loans are priced off the Repo Linked Lending Rate — currently 8.15% p.a. — plus a Bank Spread Premium of 0.20%, with concessions and premiums layered on according to CIBIL score, loan amount and loan-to-value ratio. The effective range runs from 7.20% to 9.30% p.a. for floating-rate loans, making PNB one of the more predictable large PSU lenders. Fixed-rate options are offered at roughly 100 basis points above the floating card rate.
Rate structure
| Scheme | Benchmark | Interest Rate (p.a.) |
|---|---|---|
| PNB Home Loan (Standard) | RLLR 8.15% + BSP 0.20% ± spread | 7.20% – 9.30% |
| PNB Max Saver (Term Loan) | RLLR-linked | Spread above standard |
| PNB Max Saver (Overdraft) | RLLR-linked | Spread above standard |
| PNB Pride (Govt. employees, defence, pensioners) | RLLR-linked, concessional | Best available slab |
| Top-Up Loan (Term Loan / Overdraft) | RLLR + premium | Above home loan rate |
| Fixed rate option | Fixed | ≈100 bps above floating |
Key terms
- Loan amount: up to ₹5 crore. Tenure: up to 30 years.
- PNB Pride: covers permanent Central and State Government employees, paramilitary personnel, government pensioners and PSU employees.
- Prepayment: Nil on floating-rate loans.
- Rate drivers: CIBIL score band, loan amount and LTV ratio (≤80% versus 80–85%).
Canara Bank
Prices by internal credit risk grade rather than raw CIBIL bands, with better rates on larger loans.
Canara Bank uses a Credit Risk Grade system — CRG-Prime through CRG-4 — layered on top of sanctioned loan slabs, and unusually, its rates improve as the loan gets larger. The effective floating range is 7.15% to 10.00% p.a. Salaried employees of Central and State Government bodies, PSUs and large corporates maintaining salary accounts with Canara Bank qualify for additional concessions.
How Canara prices a home loan
- Credit Risk Grade: CRG-Prime and CRG-1 attract the deepest concession; CRG-4 sits at the top of the range.
- Sanctioned limit slabs: up to ₹50 lakh; above ₹50 lakh to ₹100 lakh; above ₹100 lakh to ₹250 lakh; above ₹250 lakh. Larger slabs carry larger concessions.
- Additional concession: available for takeover and ready-to-move proposals, and for salaried employees of Central/State Government, PSUs, MNCs and blue-chip corporates with a Canara Bank salary account.
- Commercial real estate: third unit priced above card rate; fourth and subsequent units higher again.
Key terms
- Loan amount: from ₹10 lakh. Tenure: up to 30 years, or until the borrower reaches 75 years of age, whichever is earlier.
- Margin: 10% for loans up to ₹30 lakh, 20% above ₹30 lakh to ₹75 lakh, 25% above ₹75 lakh. Properties over 10 years old require 25% across all amounts.
- Insurance: optional life cover via Canara Home Loan Secure, with the one-time premium financeable.
- Prepayment: Nil on floating-rate loans.
Central Bank of India
Joint holder of the lowest starting rate in the market, alongside Bank of India and Bank of Maharashtra.
Central Bank of India is one of three lenders currently anchoring the bottom of the Indian home loan market at 7.10% p.a. Its lending is organised around the Cent Home family of products, priced off the bank's Repo Based Lending Rate, with a separate concessional scheme aimed at women borrowers.
Scheme family
| Scheme | Purpose | Basis |
|---|---|---|
| Cent Home | Standard home purchase and construction | RBLR ± spread |
| Cent Grih Lakshmi | Concessional scheme for women borrowers | Repo + spread |
| Cent Home for 3rd / 4th House | Additional property purchase | RBLR + premium |
| Cent Home Double Plus | Home loan with additional facility | RBLR + premium |
| Cent Top Up | Top-up on an existing home loan | RBLR ± spread |
Eligibility and margin
- Minimum credit score: 700 across TransUnion CIBIL, Experian, Equifax and CRIF.
- Loan-to-value: 90% for loans up to ₹30 lakh; 80% above ₹30 lakh and up to ₹75 lakh; 75% above ₹75 lakh.
- Repairs, renovation and plot purchase: 75% financing, 25% margin.
- EMI/NMI ratio: capped on a sliding scale by net annual income, from 20% at the lowest income band up to roughly two-thirds at the highest.
- Sanctioned amount: determined by whichever is lower — the maximum LTV or the permitted EMI/NMI ratio.
Axis Bank
Higher entry point than its private peers, with a dedicated affordable housing product at the top of the range.
Axis Bank starts higher than ICICI, HDFC and Kotak, with floating-rate home loans running from 8.00% to 11.90% p.a. Pricing is repo-linked with a spread set by credit profile and loan variant. Fixed-rate loans sit substantially higher, and the Asha Home Loan — aimed at the affordable housing segment — occupies the upper end of the band by design.
Rate structure
| Loan Type | Category | Effective Rate (p.a.) |
|---|---|---|
| Floating Rate Home Loan | General, repo + spread | 8.00% – 11.90% |
| Fixed Rate Home Loan | All variants | Substantially higher |
| Asha Home Loan | Salaried | Upper end of band |
| Asha Home Loan | Self-employed | Up to 14.00% |
Fees and charges
- Processing fee: up to 1% of the loan amount or ₹10,000, whichever is higher, plus GST.
- Prepayment: Nil on floating-rate loans. 2% of the amount prepaid on fixed-rate loans.
- Minimum loan amount: ₹30 lakh. Tenure: up to 30 years.
- Other charges: repayment instrument return, credit report issuance, duplicate statement or NOC, cheque swap, equitable mortgage (state-specific), home insurance and default penalties.
- Loan variants: Super Saver, QuikPay and Shubh Aarambh, each priced differently within the band.
Union Bank of India
Broad scheme range including a green housing product and PMAY-U 2.0 lending.
Union Bank prices its retail home loans off its External Benchmark Lending Rate, with concessions layered by CIC score band, borrower category and gender. Aggregator listings through 2026 have quoted a floor between 7.15% and 7.45% depending on channel and scheme, so the number you are offered will depend on which product you qualify for.
Scheme family
| Scheme | Who it is for | Pricing basis |
|---|---|---|
| Union Home | Standard purchase, repair and renovation | EBLR ± spread by CIC score |
| Union Home — Govt / PSU employees | Government and PSU staff, CIC 750+ | Best available slab |
| Union Home — CRE (RH) | Third and subsequent houses | Premium over standard |
| PMAY-U 2.0 Home Loan | Eligible PMAY Urban 2.0 beneficiaries | Same slab structure as Union Home |
| EWS / LIG / MIG Home Loan | Lower and middle income categories | EBLR + premium by CIBIL |
| Union Green Home | Certified green buildings | 10 bps concession on certification |
| Home Loan — Smart Save | Overdraft-linked home loan | EBLR + spread by CIBIL and LTV |
| Fixed rate (maximum 5 years) | Borrowers wanting certainty | Materially above floating |
Concessions and terms
- Women borrowers: concessional rate where the house is singly or jointly owned by a female borrower.
- Credit life insurance: 5 bps concession where the borrower assigns a credit, term or life policy in favour of the bank.
- Green certification: additional 10 bps concession on receipt of the required green building or project certificate.
- Loan amount: ₹5 lakh to ₹2 crore. Tenure: up to 30 years.
- Other charges: valuation, legal, stamp duty, CERSAI and memorandum registration at actuals.
IDFC FIRST Bank
The highest entry rate among major lenders, offset by large ticket sizes and long tenures.
IDFC FIRST Bank starts at 8.85% p.a. — roughly 175 basis points above the market floor — which makes it an expensive first choice but a workable option for borrowers whose profile or property does not fit a public sector bank's template. Loans run up to ₹10 crore over tenures of up to 30 years.
Highlights
- Interest rate: 8.85% p.a. onwards, EBR-linked.
- Loan amount: up to ₹10 crore. Tenure: up to 30 years.
- Processing charges: up to 3% of the loan amount — the highest among the banks in this guide.
- Top-up loans: same rate as the balance transfer, up to 100% of the transferred loan amount.
- Reset frequency: every three months for EBR-linked loans.
Charges to watch
- Foreclosure and part payment: Nil on floating-rate loans. Up to 2% of principal on fixed-rate loans.
- Switch fees: up to 2% of loan outstanding for rate repricing. Floating to fixed is cheaper than fixed to floating.
- Penal charges: 2% per month of the unpaid EMI or ₹300, whichever is higher, after a seven-day grace period.
- Cancellation and rebooking: 1% of the loan amount plus interest from disbursal, if within 30 days or the first EMI.
- Initial money deposit: up to ₹5,000, non-refundable, adjusted against the processing fee.
Kotak Mahindra Bank
Competitive floor, but the widest rate spread of any lender in this guide.
Kotak Mahindra Bank offers home loans from 7.70% p.a. for both salaried and self-employed borrowers, with the published band extending to 13.30% — a 5.6 percentage point spread that makes Kotak the most profile-sensitive lender on this list. Floating rates are linked to the External Benchmark Lending Rate.
Rate structure
| Customer Type | Rate Basis | Interest Rate (p.a.) |
|---|---|---|
| Salaried and self-employed | Floating, EBLR-linked | 7.70% – 13.30% |
| Existing customers switching to fixed | Fixed | Materially higher |
| Existing customers switching to floating | Prevailing EBLR-linked rate | Card rate applies |
Fees and charges
- Processing fee: up to 2% of the loan amount plus taxes, with an upfront non-refundable component adjusted before disbursement.
- Part payment — floating rate: free for individual borrowers using the loan for personal purposes, and for micro and small enterprises.
- Part payment — fixed rate: charges apply for individual borrowers above a threshold; free where the loan is ₹50 lakh or below.
- Switch fees: floating to floating is capped; floating to fixed is a flat fee; fixed to floating is charged per residual tenure.
- Self-service statements: free via mobile, net and WhatsApp banking; physical copies chargeable.
Indian Bank
A deep product range across floating and fixed, including NRI, plot and improvement loans.
Indian Bank starts at 7.40% p.a. on its floating-rate IB Home Loan and runs a notably wide product family — separate schemes for NRIs, takeovers, corporate entities, plot purchase, home improvement and top-ups, each with its own rate band. Fixed-rate options are available across most products at a premium.
Product family
| Product | Rate Type | Positioning |
|---|---|---|
| IB Home Loan / NRI / Takeover | Floating | From 7.40% |
| IB Home Loan (CRE) | Floating | Premium over standard |
| Home Loan for EWS, LIG & MIG (Urban) | Floating | Premium over standard |
| Home Loan to Corporate Entity | Floating | Premium over standard |
| Plot Loan / Plot Loan (NRI) | Floating | Higher band |
| IB Home Improve | Floating | Higher band |
| IB Home Enrich | Floating | Mid band |
| IB Home Loan Plus | Floating | Mid band |
| Fixed rate equivalents | Fixed | Premium over floating |
- Loan amount: ₹5 lakh to ₹75 lakh on the core product. Tenure: up to 30 years.
- IB Home Loan Combo: concession on processing charges for linked vehicle, clean, pension and home improve loans.
- Prepayment: Nil on floating-rate loans.
Bank of India
Joint-lowest starting rate in the market, with an unusually granular CIBIL grid.
Bank of India ties its Star Home Loan family to its Repo Based Lending Rate and then applies a Business Strategy Discount that narrows sharply as credit scores fall. The result is the market's joint-lowest entry rate at 7.10% p.a., paired with a ceiling of 10.25% — meaning the CIBIL score you walk in with is worth more than three percentage points here.
Product family
| Product | Rate Type | Positioning |
|---|---|---|
| Star Home Loan | Floating, RBLR + CRP − BSD | From 7.10% |
| Star Smart Home Loan | Floating | Premium above ₹2 crore |
| Star Diamond Home Loan | Floating | Flat processing charge |
| Star Pravasi Home Loan (NRI) | Floating | Concessional for women |
| Star Top-Up Loan | Floating | Home loan rate + premium |
| Fixed rate option | Fixed for 5 years | Materially above floating |
- Additional discount: available for home loan takeovers, Central/State Government and PSU employees, and loans covered under credit life insurance.
- CRE-RH home loans: priced above the standard card rate.
- Loan amount: ₹5 lakh to ₹7.5 crore. Tenure: 3 to 30 years.
- Fixed rate loans: fixed for five years, after which the prevailing fixed or floating rate applies.
IndusInd Bank
Discloses an aggregate rate band rather than scheme-wise card rates.
IndusInd Bank prices home loans against the external benchmark lending rate in line with RBI guidelines. It does not publish scheme-wise card rates, but it does disclose an aggregate range: 7.60% to 10.00% p.a., with an average of 8.07% across sanctioned loans. That average is the useful number here — it tells you what a typical IndusInd borrower actually pays, rather than the best-case figure most lenders advertise. Within that band, your rate is set by monthly income, credit score, repayment capacity, job profile and employer profile.
Disclosed rate of interest and APR
| Measure | Minimum | Maximum | Average |
|---|---|---|---|
| Rate of Interest (ROI) | 7.60% | 10.00% | 8.07% |
| Annual Percentage Rate (APR) | 7.60% | 10.00% | — |
APR matching ROI at both ends indicates the bank is not loading material non-interest costs into the effective rate — the headline rate is close to what you actually pay, before processing fees.
Home loan highlights
| Particulars | Details |
|---|---|
| Interest Rate | 7.60% – 10.00% p.a. (average 8.07%) based on the external benchmark lending rate, per RBI guidelines |
| Loan Tenure | Up to 30 years |
| Processing Charges | Up to 1% of the loan amount (non-refundable) |
Loan-to-value ratio
| Loan Amount | Maximum LTV |
|---|---|
| Up to ₹30 lakh | Up to 90% |
| ₹30 lakh to ₹75 lakh | Up to 80% |
| Above ₹75 lakh | Up to 75% |
Processing charges
| Particulars | Rates |
|---|---|
| Processing charges (non-refundable) | Up to 1% of the loan amount |
Prepayment / foreclosure charges
| Particulars | Rates |
|---|---|
| Foreclosure / part prepayment charges | Nil for floating rate home loans |
Other charges related to IndusInd Bank home loans
| Particulars | Rates |
|---|---|
| Late payment charges | 2% per month on overdue amount or ₹100, whichever is higher |
| Bounce charges (cheque, ECS, SI, ACH) | ₹750 per instance |
| Non-refundable initial money deposit | Up to ₹2,500 |
| Non-refundable stamping charges | As per applicable state laws |
| Swapping charges (cheque, SI, ECS, ACH) | ₹500 per swap per instance |
| Duplicate repayment schedule charges | Nil |
| List of documents | Nil |
| Document copy charges | ₹500 for a copy of property documents |
| Collection charges (within municipal or city limits) | Nil |
| Repricing charges | Up to 0.5% of principal outstanding (min ₹5,000) |
| Swap of collateral or property | Nil |
| Rebooking of loans within 6 months | Nil due to change in property, collateral or borrowing structure |
| Loan cancellation charges | ₹1,000 plus franking or stamping at actuals |
| Non-compliance charges | 1% incremental pricing over the existing spread, plus taxes and statutory dues |
| Legal, repossession or incidental charges | At actuals |
- Free where most lenders charge: duplicate repayment schedules, list of documents, collateral swaps and rebooking within six months all carry no fee.
- Non-compliance pricing: failing to meet post-disbursement conditions adds a full percentage point to your spread — a steep and permanent penalty.
- Average matters more than minimum: at 8.07%, the typical IndusInd borrower pays roughly 47 bps above the bank’s own floor and nearly a full point above the cheapest public sector banks.
- Prepayment: Nil on floating-rate home loans, in line with RBI rules.
Yes Bank
The longest tenure in this guide at 35 years, and the highest published ceiling at 13.60%.
Yes Bank publishes a home loan range of 9.00% to 13.60% p.a., with differential pricing across its scheme range. That floor sits well above the market — roughly 190 basis points higher than the cheapest public sector banks — but the bank compensates with the most generous tenure on offer anywhere in this guide at 35 years, and a low income threshold that opens the door to borrowers other lenders turn away.
Home loan highlights
| Particulars | Details |
|---|---|
| Interest Rate | 9.00% – 13.60% p.a. |
| Loan Amount | ₹10 lakh – ₹10 crore |
| Loan Tenure | Up to 35 years |
| Processing Charges | Up to 2% or ₹10,000, whichever is higher, + GST |
| Minimum Income — Salaried | ₹20,000 per month |
| Minimum Income — Self-Employed | ₹4 lakh p.a. |
| Minimum Income — YES Khushi Home Loan | ₹9,000 per month |
Processing fee and other charges
| Particulars | Charges / Fee |
|---|---|
| Processing Fee | 1.5% or ₹10,000, whichever is higher ₹7,500 non-refundable if disbursal is not availed |
| Part-payment / Prepayment / Foreclosure | Nil for floating rate loans 2.5% on principal outstanding for fixed-rate loans |
| Late Payment / Penal Interest | 24% p.a. (2% per month on overdue instalments) |
| Additional Interest | 2% p.a. over the applicable rate on loan outstanding |
| Repayment Mode / Cheque Swap | ₹500 |
| Cheque Bounce / Return | ₹750 per instance |
| Statement of Account / Amortisation Schedule (email) | Nil |
| Statement of Account / Amortisation Schedule (physical or branch) | ₹100 per request |
| Prepayment Statement | ₹100 per request |
| Duplicate No Objection Certificate (NOC) | ₹100 per request |
| Loan Cancellation / Rebooking | ₹2,000 plus franking or stamping at actuals |
| Legal, Repossession & Incidental | At actuals |
| Document Retrieval (photocopy, scanning) | ₹500 |
| Switch — Floating to prevailing Fixed | 0.5% of outstanding loan amount |
| Switch — Fixed to prevailing Floating | 1% of outstanding loan amount |
| Conversion — Higher to lower Floating rate | 0.5% of outstanding loan amount |
| Conversion — Higher to lower Fixed rate | 1% of outstanding loan amount |
| EMI Cycle Date Change | ₹500 |
| Equitable Mortgage Creation / Stamp Duty | At actuals as per applicable state laws |
- YES Khushi Home Loan: the bank's affordable housing product, with a minimum income requirement of just ₹9,000 per month and minimal documentation.
- Switching between rate types is permitted only at the bank's discretion, and is charged at 0.5% to 1% of the outstanding amount depending on direction.
- Highest ceiling in this guide: at 13.60%, Yes Bank prices weaker credit profiles higher than any other lender covered here.
Federal Bank
The largest maximum ticket size in this guide at ₹15 crore, with competitive private-sector pricing.
Federal Bank prices home loans from 7.30% p.a., undercutting most of its private-sector peers, with a band extending to 10.75%. The final rate depends on the loan amount and the applicant's occupation profile. Loans go up to ₹15 crore over tenures of up to 30 years, or 20 years for NRI borrowers.
Loan products
| Product | Loan Amount | LTV / Tenure |
|---|---|---|
| Federal Bank Housing Loan | Up to ₹15 crore | Up to 85% / 30 yrs |
| Plot Purchase Loan | Up to ₹25 lakh | Up to 60% / 5 yrs |
| House Warming Loan (top-up) | Up to 5% of existing limit, max ₹2 lakh | Housing rate + 2% / 5 yrs |
Fees and charges
- Processing fee: 0.50% of the loan amount, within a floor and cap set by the bank.
- Prepayment: Nil for individuals on floating-rate loans. Charges apply for non-individuals, fixed-rate and overdraft facilities.
- Delayed repayment: 2% per month on the overdue portion, plus additional penal interest for SMA accounts.
- Switching between fixed and floating: 0.25% of the balance outstanding or drawing power, whichever is higher.
- CIBIL report and CERSAI charges: Nil.
- NRI eligibility: maximum age 55 at loan maturity; minimum monthly income ₹50,000.
Bank of Maharashtra
Joint-lowest entry rate, with concessional pricing for salaried government and PSU staff.
Bank of Maharashtra shares the market's lowest starting rate at 7.10% p.a. under its Maha Super Housing Loan, priced off the bank's Repo Linked Lending Rate. The deepest concessions go to salaried employees of Central and State Government bodies, PSUs and government-aided institutions applying directly rather than through a Direct Selling Agent.
Scheme family
| Scheme | Description | Pricing |
|---|---|---|
| Maha Super Housing Loan | Core home loan product | RLLR ± spread by CIBIL |
| Maha Super Flexi Housing Loan | Flexible repayment variant | Premium over core rate |
| Maha Super Green Building Loan | Certified green buildings | Concession, subject to floor |
| Housing Loan under Commercial Real Estate | CRE lending, tiered by amount | Core rate + premium |
| Maha Bank Top Up Loan | Top-up on existing home loan | Core rate + premium by CIBIL |
- Best pricing: reserved for salaried Central/State Government, PSU and government-aided institution employees with a minimum monthly salary threshold, applying outside DSA channels.
- Women borrowers: concession available at lower CIBIL bands, subject to a minimum floor rate.
- Green building: concession on the core rate, subject to the same floor.
- Loan amount: ₹10 lakh to ₹2 crore. Tenure: 3 to 30 years.
Housing finance companies
The top HFCs now match bank pricing outright. The rest price strictly for risk — and it shows.
| Lender | Tier | Interest Rate (p.a.) |
|---|---|---|
| LIC Housing Finance | Lowest | 7.15% – 10.00% |
| Bajaj Housing Finance | Lowest | 7.25% onwards |
| PNB Housing Finance | Mid | 7.50% onwards |
| L&T Finance | Mid | 7.65% onwards |
| Godrej Housing Finance | Mid | 7.65% onwards |
| Tata Capital Housing Finance | Mid | 7.75% onwards |
| Home First Finance | Higher | 8.00% onwards |
| Jio Housing Finance | Higher | 8.20% onwards |
| Sammaan Capital | Higher | 8.75% onwards |
| Easy Home Finance | Higher | 8.99% onwards |
| Piramal Capital Housing Finance | Higher | 9.99% onwards |
| Shubham Housing Finance | Higher | 10.45% onwards |
| India Shelter Finance | Higher | 10.50% onwards |
HFCs revise rates at their own discretion rather than strictly tracking the external benchmark, so repo rate cuts can take longer to reach you than they would at a bank.
What each bank's best rate costs you
Monthly EMI on a ₹50 lakh loan over 20 years, at every bank's published starting rate. The right-hand figure is the extra interest paid over the full term against the market's best rate of 7.10%.
Bar length is scaled from a ₹38,000 baseline so the differences are visible; bars are not proportional to zero. Colours follow each bank's brand.
₹50 lakh, 20 years — the price of a quarter point
Same loan, same tenure. Only the rate changes.
The right-hand figure is the extra interest paid over the full 20 years against the 7.10% baseline. Moving from 8.50% to 7.10% saves ₹10.38 lakh — which is why a balance transfer is worth costing out whenever the gap crosses roughly 0.75%.
EMI per lakh, by rate and tenure
Multiply by your loan amount in lakhs to get your EMI. A ₹65 lakh loan at 7.50% over 20 years is 65 × ₹806 = ₹52,390.
| Interest Rate | 10 years | 15 years | 20 years | 25 years | 30 years |
|---|---|---|---|---|---|
| 7.10% | ₹1,166 | ₹904 | ₹781 | ₹713 | ₹672 |
| 7.50% | ₹1,187 | ₹927 | ₹806 | ₹739 | ₹699 |
| 8.00% | ₹1,213 | ₹956 | ₹836 | ₹772 | ₹734 |
| 8.50% | ₹1,240 | ₹985 | ₹868 | ₹805 | ₹769 |
| 9.00% | ₹1,267 | ₹1,014 | ₹900 | ₹839 | ₹805 |
How much of your money is interest
On a ₹50 lakh loan over 20 years, interest overtakes principal somewhere around the 8% mark. Above that, you pay the bank more than you pay for the house.
The tenure trade-off
A ₹50 lakh loan at 7.10%. Stretching from 20 to 30 years cuts the EMI by ₹5,464 a month — and adds ₹27.2 lakh in interest.
| Tenure | Monthly EMI | Total Interest Paid |
|---|---|---|
| 10 years | ₹58,312 | ₹20.0 L |
| 15 years | ₹45,221 | ₹31.4 L |
| 20 years | ₹39,066 | ₹43.8 L |
| 25 years | ₹35,659 | ₹57.0 L |
| 30 years | ₹33,602 | ₹71.0 L |
What drives home loan interest rates?
- Credit score: the single biggest lever. A CIBIL score above 750 unlocks the advertised rate; 800+ gets the floor. Below 700, expect to be priced 100–200 bps higher at the same lender.
- External benchmark: floating-rate loans are repo-linked and reset automatically, typically quarterly. Older MCLR-linked loans move more slowly and often sit above current pricing.
- Employment profile: salaried borrowers, especially government and PSU employees, are consistently priced better than self-employed applicants.
- Loan-to-value ratio: a larger down payment reduces the lender's risk. Loans under 80% LTV price better than those pushing 90%.
- Loan amount: some lenders — Canara Bank notably — improve their rate as the loan gets larger. Others do the opposite.
- Lender type: public sector banks pass repo cuts through quickly under EBLR rules. HFCs revise at their own discretion.
Floating vs fixed rates in a flat market
With the repo rate unchanged for four consecutive meetings and most economists expecting no movement for the rest of 2026, the usual argument for fixing — protecting yourself against imminent hikes — is weak. Floating rates remain materially cheaper across every lender in this guide, often by a full percentage point or more, and they carry no prepayment penalty under RBI rules. Fixed-rate loans typically carry a 2% foreclosure charge during the fixed period.
The case for fixing is narrower than it looks: it suits borrowers who genuinely cannot absorb an EMI increase, and who are willing to pay a real premium for that certainty. For everyone else, floating plus a disciplined prepayment habit is the cheaper path — and switching later is possible at most lenders for a conversion fee of roughly 0.25% to 1% of the outstanding.
How to land at the bottom of the band
Get your CIBIL past 750
Every sub-7.50% quote in this guide assumes it. Below 700, the same lender will price you 100–200 bps higher.
Put the property in a woman's name
Most lenders shave 5 bps when the home is owned solely or jointly by a woman borrower. Small, but it compounds.
Lower your LTV
A bigger down payment cuts the lender's risk. SBI, for instance, adds 10 bps once LTV crosses 80% on smaller loans.
Compare the fee, not just the rate
Processing fees run from 0.25% to 3%. IDFC FIRST's 3% can wipe out a rate advantage entirely on a large loan.
Start with your own bank
Salary account holders and existing customers routinely get concessions that never appear on the published card rate.
Review the spread annually
Floating loans carry no prepayment penalty. If your rate is 0.75%+ above market, a balance transfer usually pays for itself.
The hidden costs of a home loan
Interest is not the only number that matters. Processing fees across the lenders in this guide range from 0.25% to 3% of the loan amount. On top of that sit legal and technical verification charges, stamp duty on the mortgage deed, CERSAI charges, valuation fees, documentation charges and — at several lenders — a risk premium if you decline credit life insurance. Together these can add 2–3% to the effective cost of your loan in year one.
- Processing fee: 0.25%–3%. Frequently negotiable, and periodically waived entirely during festival campaigns at public sector banks.
- Legal and technical verification: typically ₹5,000–₹15,000 depending on the lender and property.
- Stamp duty and registration: state-specific, borne entirely by the borrower.
- Conversion and switch fees: 0.25%–2% of outstanding principal if you later change rate type or reprice.
- Penal charges: commonly 2% per month on overdue amounts, after a short grace period.
- Insurance: optional at most lenders, but declining it can attract a small rate premium.
Always ask for a written all-in cost breakdown before you sign. A lender quoting 7.45% with a 1% fee can cost more in the first three years than one quoting 7.60% with a waiver.
Where home loan rates go from here
7.10% is the new 7.35%
Entry rates fell roughly 25 bps through 2026 as banks passed on the December cut. Bank of India, Bank of Maharashtra and Central Bank of India now anchor the bottom.
Ceilings have climbed
Risk-based pricing has widened. Yes Bank now tops out at 13.60%, with Kotak and HDFC both past 13% — a bigger penalty for a weak credit file than a year ago.
Flat through 2026
Most economists expect no further cuts this year, with inflation projected to rise near term. Waiting for a cheaper EMI is not a strategy.
The competitive story for the rest of 2026 is not about the RBI. It is about which lenders keep passing through the December cut and which quietly widen their spreads. Public sector banks currently hold a clear advantage at the entry level, but the private banks and top HFCs have closed most of the gap for borrowers with strong credit files — and they move faster on approvals.
Note on the data: rates shown are the starting and ceiling rates published by lenders and major loan aggregators as of August 2026, and reflect the RBI repo rate of 5.25% held on 5 August 2026. Where a lender publishes a detailed scheme-level grid, it is reproduced above; where a lender publishes only a range or an "onwards" figure, this guide says so rather than estimating. Actual pricing depends on your credit score, income, employment type, loan amount, tenure, LTV ratio and the lender's internal assessment, and aggregator figures occasionally differ by a few basis points from a bank's own card rate. The Yes Bank and IndusInd Bank schedules reproduced here are the lenders’ own published figures dated September 2025 and predate the December 2025 repo cut. Interest rates and charges are subject to change without notice. Always confirm the applicable rate, processing fee and charges directly with the lender before applying. This article is for information only and is not financial advice.
