 "December home loan rates start at 7.35%: Check latest lender offers here")
Homebuyers will get stable mortgage pricing in December, as most large banks keep starting loan rates in the 7.30–8 per cent range. Public-sector banks offer the lowest entry-level rates, according to data compiled by BankBazaar.com. Private banks and housing finance companies (HFCs) show wider spreads depending on credit score, loan amount and customer profile.
Public-sector banks
State-owned lenders remain the most competitive for borrowers with strong credit histories.
Highlights from BankBazaar.com:
State Bank of India is offering 7.50–8.95 per cent rates across all loan slabs.
Bank of Baroda begins at 7.45 per cent, rising up to 9.25–9.50 per cent depending on loan size.
Union Bank of India and Bank of India start at 7.35 per cent, although both go up to 10 per cent or more for riskier profiles.
Punjab National Bank is quoting 7.45–9.35 per cent, while Canara Bank ranges from 7.40 to 10.25 per cent.
UCO Bank, Indian Bank and Central Bank of India keep the entry point at 7.35–7.40 per cent with moderate upper bands.
Some lenders also offer small concessions. For example, UCO Bank provides additional reductions of 5–10 basis points for women borrowers and takeover loans. Other banks extend minor discounts for customers maintaining salary accounts or opting for bundled insurance.
Private bank and HFC rates
Private-sector banks continue to charge higher average rates due to tighter risk pricing.
According to BankBazaar.com:
HDFC Bank and ICICI Bank start at 7.90 per cent and 7.65 per cent.
Kotak Mahindra Bank, HSBC and South Indian Bank begin at 7.70–7.80 per cent.
Some lenders such as Axis Bank, Federal Bank and Karur Vysya Bank display broader ranges, touching double digits for weaker credit profiles.
Bandhan Bank shows one of the widest spreads, going up to 15 per cent in some cases.
Housing finance companies remain competitive at the entry level
HFCs are broadly aligned with bank pricing at the lower end:
LIC Housing Finance, ICICI Home Finance and Bajaj Housing Finance start around 7.45–7.50 per cent.
Tata Capital, Aditya Birla Capital and Godrej Housing Finance offer starting rates from 7.75 to 7.75 per cent.
Higher-risk borrowers may see rates rising beyond 10 per cent, particularly with lenders such as PNB Housing Finance or SMFG India Home Finance.
Home loan rates in December
| Name of Lender | Loan Amount (Rs) | ||
| Upto 30 Lakh | Above 30 Lakh & Upto 75 Lakh | Above 75 Lakh | |
| PUBLIC SECTOR BANKS | |||
| State Bank of India | 7.50-8.95 | 7.50-8.95 | 7.50-8.95 |
| Bank of Baroda | 7.45-9.25 | 7.45-9.25 | 7.45-9.50 |
| Union Bank of India* | 7.35-10.00 | 7.35-10.00 | 7.35-10.00 |
| Punjab National Bank | 7.50-9.35 | 7.45-9.25 | 7.45-9.25 |
| Bank of India | 7.35-10.10 | 7.35-10.10 | 7.35-10.35 |
| Canara Bank** | 7.50-10.25 | 7.45-10.25 | 7.40-10.15 |
| UCO Bank*** | 7.40-9.50 | 7.40-9.50 | 7.40-9.50 |
| Bank of Maharashtra | 7.35-10.15 | 7.35-10.15 | 7.35-10.15 |
| Punjab and Sind Bank | 7.55-10.95 | 7.55-10.95 | 7.55-10.95 |
| Indian Overseas Bank | 7.35 onwards | 7.35 onwards | 7.35 onwards |
| Indian Bank | 7.40-9.40 | 7.40-9.40 | 7.40-9.40 |
| Central Bank of India | 7.35-9.40 | 7.35-9.40 | 7.35-9.40 |
| PRIVATE SECTOR BANKS | |||
| Kotak Mahindra Bank | 7.70 onwards | 7.70 onwards | 7.70 onwards |
| ICICI Bank | 7.65 onwards | 7.65 onwards | 7.65 onwards |
| Axis Bank | 8.35-11.90 | 8.35-11.90 | 8.35-9.35 |
| HSBC Bank | 7.70 onwards | 7.70 onwards | 7.70 onwards |
| South Indian Bank | 7.80 onwards | 7.80 onwards | 7.80 onwards |
| Karur Vysya Bank | 8.50-10.90 | 8.50-10.90 | 8.50-10.90 |
| Karnataka Bank | 7.30-11.68 | 7.30-11.68 | 7.30-11.68 |
| Federal Bank | 8.75 onwards | 8.75 onwards | 8.75 onwards |
| Tamilnad Mercantile Bank | 8.15-9.50 | 8.15-9.50 | 8.15-9.50 |
| Bandhan Bank | 8.41-15.00 | 8.41-12.58 | 8.41-12.58 |
| RBL Bank | 8.20 onwards | 8.20 onwards | 8.20 onwards |
| CSB Bank | 8.30 onwards | 8.30 onwards | 8.30 onwards |
| HDFC Bank | 7.90 onwards | 7.90 onwards | 7.90 onwards |
| City Union Bank | 8.25-9.50 | 8.50-10.00 | 8.75-10.50 |
| HOUSING FINANCE COMPANIES (HFCs) | |||
| LIC Housing Finance | 7.50 onwards | 7.50 onwards | 7.50 onwards |
| Bajaj Housing Finance | 7.45 onwards | 7.45 onwards | 7.45 onwards |
| Tata Capital | 7.75 onwards | 7.75 onwards | 7.75 onwards |
| PNB Housing Finance | 8.25-11.50 | 8.25-11.50 | 8.25-10.85 |
| GIC Housing Finance | 8.20 onwards | 8.20 onwards | 8.20 onwards |
| SMFG India Home Finance | 10.00 onwards | 10.00 onwards | 10.00 onwards |
| Sammaan Capital (Formerly Indiabulls Housing Finance) | 8.75 onwards | 8.75 onwards | 8.75 onwards |
| Aditya Birla Capital | 7.75 onwards | 7.75 onwards | 7.75 onwards |
| ICICI Home Finance | 7.50 onwards | 7.50 onwards | 7.50 onwards |
| Godrej Housing Finance | 7.75 onwards | 7.75 onwards | 7.75 onwards |
| *Extra interest rate concession of 0.05% to borrowers opting for insurance policy. **Under CRG-Prime, CRG-1 & CRG-2, additional 5 bps concession for takeover/ready to move HL proposals & for salaried employees maintaining salary a/c with the bank. ***Additional concession of 0.05% & 0.10% for women borrowers & takeover loans, respectively. | |||
| Rates as of 3rd Dec 2025 | |||
| Source: Paisabazaar.com | |||
What this means for borrowers
The December data shows that borrowers with strong credit scores continue to access attractive rates below 8 per cent, particularly from major public sector banks. However, spreads widen sharply for higher loan amounts or weaker credit profiles. With policy rates currently stable, home loan pricing is unlikely to shift materially in the near term, but borrowers should still compare lender-wise spreads and check for any concessions based on occupation, gender or existing banking relationships.