Home Loan Interest Ratesin India 2026
Compare current home loan interest rates from 25+ banks and housing finance companies. Rates starting from 7.10% p.a. Find the best rate for your profile and save lakhs on interest.
Last Updated: April 2026
Current Home Loan Interest Rates in India (April 2026)
Home loan interest rates in India currently range from 6.85% to 10.25% p.a. across major banks and housing finance companies. Bank of Baroda offers the lowest rate at 6.85%, followed by Union Bank of India and Central Bank of India at 7.35%. Among private banks, ICICI Bank starts at 7.70% and HDFC Bank at 7.90%. Rates are floating (linked to the RBI repo rate of 6.00%) and vary based on CIBIL score, loan amount, property type, and borrower profile. A CIBIL score of 750+ qualifies for the lowest rates. For a ₹50 lakh loan at 8.5% over 20 years, the monthly EMI is ₹43,391; at 7.10%, the EMI drops to ₹39,066 — a saving of ₹10.38 lakhs over the tenure. Compare personalised rates from 90+ lenders on MoneyKarma in 60 seconds with zero fees.
Home Loan Interest Rates — All Banks
Rates listed are floating rates (linked to repo rate) applicable for salaried borrowers with a CIBIL score of 750+. Actual rates may vary based on your profile.
| Lender | Interest Rate | Max Loan Amount | Max Tenure | Processing Fee |
|---|---|---|---|---|
| Union Bank of India | 7.35% – 12.65% | ₹5,00,00,000 | 30 years | 0.5% |
| Central Bank of India | 7.35% – 9.25% | ₹5,00,00,000 | 30 years | 0.5% |
| Canara Bank | 7.40% – 10.25% | ₹5,00,00,000 | 30 years | 0.5% |
| Bank of Baroda | 7.45% – 8.65% | ₹5,00,00,000 | 30 years | 0.25% |
| Bajaj Housing Finance | 7.49% – 17.00% | ₹15,00,00,000 | 32 years | 1% |
| ICICI Bank | 7.70% – 9.00% | ₹5,00,00,000 | 30 years | 0.5% |
| HDFC Bank | 7.90% – 8.70% | ₹10,00,00,000 | 30 years | 0.5% |
| Indian Bank | 7.90% – 8.40% | ₹5,00,00,000 | 30 years | 0.23% |
| Kotak Mahindra Bank | 7.99% – 9.45% | ₹5,00,00,000 | 20 years | 0.5% |
| Punjab National Bank | 8.00% – 10.25% | ₹5,00,00,000 | 30 years | 0.35% |
| AU Small Finance Bank | 8.00% – 16.00% | ₹5,00,00,000 | 30 years | 1.5% |
| Aditya Birla Housing Finance | 8.00% – 14.75% | ₹5,00,00,000 | 30 years | 1% |
| LIC Housing Finance | 8.15% – 10.75% | ₹5,00,00,000 | 30 years | 0.5% |
| State Bank of India | 8.25% – 9.20% | ₹5,00,00,000 | 30 years | 0.35% |
| UCO Bank | 8.35% – 10.00% | ₹10,00,00,000 | 30 years | 0.5% |
| Indian Overseas Bank | 8.40% – 10.50% | ₹5,00,00,000 | 30 years | 0.5% |
| Axis Bank | 8.75% – 9.15% | ₹5,00,00,000 | 30 years | 0.5% |
| IDFC First Bank | 8.85% – 10.25% | ₹5,00,00,000 | 30 years | 3% |
| Yes Bank | 9.40% – 10.25% | ₹5,00,00,000 | 35 years | 2% |
| SMFG India Credit | 10.00% – 11.00% | ₹5,00,00,000 | 30 years | 3% |
Rates are indicative and subject to change. Check with the lender for the latest applicable rates.
How Home Loan Interest Rates Work in India
Floating Rate
Floating rates are linked to the RBI repo rate and change when the repo rate is revised. Most banks use the External Benchmark Lending Rate (EBLR) system where your rate equals Repo Rate + Bank Spread. Currently, the RBI repo rate is 6.00%. Floating rates offer lower starting rates and benefit borrowers when rates fall. Over 95% of new home loans in India are on floating rates.
Fixed Rate
Fixed rates remain unchanged for a set period (usually 2 to 5 years), giving you EMI predictability. After the fixed period, the loan typically converts to a floating rate. Fixed rates are usually 1–2% higher than floating rates. They suit borrowers who prioritise budget certainty or expect interest rates to rise significantly.
RBI Repo Rate and Your Home Loan
The Reserve Bank of India's repo rate directly influences your floating home loan rate. When the RBI cuts the repo rate, banks are required to pass on the benefit to borrowers within three months under the EBLR framework. This makes floating-rate home loans more transparent and responsive to monetary policy changes than earlier MCLR-linked loans.
What Determines Your Home Loan Interest Rate?
Your actual interest rate depends on several personal and financial factors. Understanding these helps you negotiate a better deal.
CIBIL / Credit Score
The single biggest factor. A score of 750+ unlocks the lowest rates. Scores below 700 may attract 0.5%–1.5% higher interest or outright rejection by some lenders.
Loan Amount & LTV Ratio
Larger loans (above Rs 75 lakh) may carry higher rates. A lower Loan-to-Value ratio (larger down payment) reduces lender risk and can lower your rate.
Employment Type
Salaried employees at reputed companies get preferential rates. Self-employed borrowers may pay 0.10%–0.25% more due to perceived income variability.
Property Type & Location
Ready-to-move properties and those in approved projects attract lower rates. Under-construction and non-metro properties may carry a small premium.
Lender's Base Rate (EBLR/MCLR)
Each bank sets its own spread over the repo rate. Public sector banks typically offer lower spreads than private banks or NBFCs.
Existing Relationship
Holding a salary or savings account with the lender can earn you a 0.05%–0.15% discount. Some banks offer special rates for existing home loan customers transferring balances.
EMI Examples at Current Rates (Rs 50 Lakh Loan)
See how different interest rates affect your monthly EMI and total interest paid on a Rs 50 lakh home loan over 20 years.
| Interest Rate | Monthly EMI | Total Interest | Total Payment |
|---|---|---|---|
| 7.10% | ₹39,066 | ₹43,75,840 | ₹93,75,840 |
| 7.25% | ₹39,519 | ₹44,84,560 | ₹94,84,560 |
| 7.50% | ₹40,280 | ₹46,67,200 | ₹96,67,200 |
| 8.00% | ₹41,822 | ₹50,37,280 | ₹1,00,37,280 |
| 8.50% | ₹43,391 | ₹54,13,840 | ₹1,04,13,840 |
EMI calculated using reducing balance method. Actual EMI may vary. Use our EMI calculator for exact figures.
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Frequently Asked Questions
Common questions about home loan interest rates in India
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