Home loan rates at 7.35-15% in festival season: Check offers in Oct
Lenders trim interest rates and offer benefits during Diwali, leading to spurt in real estate activity
 "Home loan rates at 7.35-15% in festival season: Check offers in Oct")
People planning to buy homes and property investors are tracking loan interest rates, which lenders usually trim for Diwali. Real estate picks up in the festival season as banks and housing finance companies (HFCs) offer competitive rates and special schemes to borrowers.
Home loan rates in October
According to data from Paisabazaar.com, home loan rates in October continue to hover in the 7.35–10.75 per cent range for most lenders, depending on the loan amount and type of borrower. Public-sector banks offer some of the lowest starting rates, while private banks and HFCs maintain a broader range, with certain lenders offering discounts or special concessions.
Key highlights:
Lowest rates: Union Bank of India, Bank of India, and Central Bank of India offer rates starting at 7.35 per cent.
Public sector banks’ rates range from 7.35 per cent to 10.75 per cent.
Private banks: Rates start from about 7.70 per cent, with some going up to 15 per cent for specific loan categories.
HFCs: Start rates typically range from 7.45 per cent to 8.75 per cent, with variations based on loan amount and tenure.
Here’s the detailed October 2025 home loan rate chart
| 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 | |||
| 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 | 8.50-10.90 | 8.50-10.90 | 8.50-10.90 |
| Karnataka Bank | 8.21-10.76 | 8.21-10.76 | 8.21-10.76 |
| 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 | 8.25 onwards | 8.25 onwards | 8.25 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 8th October 2025 | |||
| Source: Paisabazaar.com | |||
Why rates matter now
With Diwali just around the corner, many buyers consider this an auspicious time to invest in property. Attractive interest rates can significantly impact EMIs, and even a small difference in rates can translate into substantial savings over a long loan tenure.
For example: a home loan of Rs 50 lakh at 7.5 per cent for 20 years would mean monthly EMIs of around Rs 40,800, whereas the same loan at 8.5 per cent would push EMIs closer to Rs 43,000, a difference of nearly Rs 25,000 per year.
Tips for borrowers this season
- Compare rates across lenders rather than going with the first offer.
- Check for additional benefits such as processing fee waivers or rate concessions for salaried borrowers.
- Consider the loan tenure carefully, longer tenures reduce EMIs but increase total interest paid.
- Lock in rates if you expect them to rise further post-festival season.