 "From public to pvt banks, Sept home loan rates range from 7.35% to 10.75%")
For Indian households managing large equated monthly instalments (EMIs), home loan interest rates remain one of the most critical cost factors. As of September 3, public and private sector banks, along with housing finance companies (HFCs), are offering a wide range of rates, according to data from Paisabazaar.com.
Public sector banks: Competitive starting rates
Public sector banks continue to offer some of the most affordable options, especially for smaller ticket sizes:
· State Bank of India (SBI): 7.50–8.95 per cent across all loan slabs.
· Union Bank of India: Among the lowest entry points at 7.35 per cent, though rates can go up to 10 per cent.
· Bank of India and Bank of Maharashtra: Starting at 7.35 per cent, with upper bands extending above 10 per cent.
· Punjab & Sind Bank: One of the highest ranges, going up to 10.75 per cent.
Additional concessions apply in some cases, such as reduced rates for women borrowers, takeover loans or those opting for linked insurance policies.
| 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 | 7.55-10.75 | 7.55-10.75 | 7.55-10.75 |
| 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: Wider spreads
Private lenders show a broader spread of rates, with some starting low, but climbing higher depending on borrower profile:
· ICICI Bank and HSBC: 7.70 per cent onwards.
· HDFC Bank: 7.90 per cent onwards.
· Axis Bank: Wider band of 8.35–11.90 per cent, depending on eligibility.
· Bandhan Bank: Among the costliest, with rates stretching up to 15 per cent.
These banks often factor in credit scores, job stability, and income profiles more aggressively while pricing loans.
| Name of Lender | Loan Amount (Rs) | ||
| Upto 30 Lakh | Above 30 Lakh & Upto 75 Lakh | Above 75 Lakh | |
| PRIVATE SECTOR BANKS | |||
| Kotak Mahindra Bank | 7.99 onwards | 7.99 onwards | 7.99 onwards |
| ICICI Bank | 7.70 onwards | 7.70 onwards | 7.70 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 | 7.75 onwards | 7.75 onwards | 7.75 onwards |
| Karur Vysya Bank | 7.95-10.90 | 7.95-10.90 | 7.95-10.90 |
| Karnataka Bank | 8.19-10.74 | 8.19-10.74 | 8.19-10.74 |
| 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 | 9.39-11.08 | 9.39-11.08 | 9.39-11.08 |
| 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: Mixed picture
HFCs also remain active players in the housing loan market.
· LIC Housing Finance and ICICI Home Finance: 7.50 per cent onwards.
· Bajaj Housing Finance: Slightly lower at 7.45 per cent onwards.
· PNB Housing Finance: Wider band of 8.25–11.50 per cent.
· SMFG India Home Finance: One of the highest entry levels at 10 per cent onwards.
| Name of Lender | Loan Amount (Rs) | ||
| Upto 30 Lakh | Above 30 Lakh & Upto 75 Lakh | Above 75 Lakh | |
| 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 | 8.25 onwards | 8.25 onwards | 8.25 onwards |
| ICICI Home Finance | 7.50 onwards | 7.50 onwards | 7.50 onwards |
| Godrej Housing Finance | 8.55 onwards | 8.55 onwards | 8.55 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 September 2025 | |||
| Source: Paisabazaar.com | |||
What does this mean for borrowers?
For homebuyers and existing borrowers, the spread of rates shows why loan shopping matters:
· Even a difference of 0.25–0.50 percentage points can translate into thousands of rupees in yearly interest costs.
· Public sector banks remain strong options for conservative borrowers, while private banks may suit those with stronger credit profiles.
· HFCs could offer faster processing but often at higher bands.
With EMIs already straining many household budgets, financial planners advise comparing not just rates but also linked conditions such as insurance tie-ups, tenure flexibility, and concession schemes.