Home loan rates in Dec start at 7.10%: Check best offers and terms

While property prices remain high, state-owned lenders are providing vital relief by holding interest rates at competitive levels

Home loan interest rates in December are largely unchanged from the previous month, offering relief to customers amid high property prices. Public-sector banks offer the most competitive starting rates, according to data compiled by Paisabazaar.com. Private banks and housing finance companies’ loans usually cost more but the companies usually offer easier purchase terms.

 

Interest rates depend on loan size and borrowers’ credit scores and salaries.

 

Public-sector banks

 

State-owned banks remain the most affordable option for borrowers with strong credit profiles. Several lenders are offering home loans starting close to 7.10 per cent per annum.

 

Among major lenders, State Bank of India is offering rates in the range of 7.25 to 8.70 per cent across loan slabs. Bank of Maharashtra, Central Bank of India and Bank of India have starting rates of 7.10 per cent. Punjab National Bank is offering home loans starting at 7.20 per cent for larger loan amounts, according to Paisabazaar’s data as of December 17.

 

Some banks also provide additional concessions. For instance, Canara Bank and UCO Bank offer small interest rate discounts for salaried customers, women borrowers, or those opting for loan takeover.

 

Private banks

 

Private banks generally charge higher interest rates, reflecting tighter credit filters and faster processing.

 

ICICI Bank and Kotak Mahindra Bank are offering home loans starting at 7.65 per cent and 7.70 per cent, respectively. HDFC Bank’s rates begin at 7.90 per cent. Axis Bank’s rates are significantly higher, ranging from 8.35 per cent to nearly 12 per cent depending on borrower risk.

 

Smaller private banks such as Federal Bank, Karnataka Bank, and City Union Bank have starting rates between 7.30 per cent and 8.75 per cent, with upper bands crossing 10 per cent in some cases.

 

Housing finance companies

 

Offers by housing finance companies (HFCs) target self-employed individuals and those with non-standard income profiles.

 

LIC Housing Finance and ICICI Home Finance are offering rates from 7.50 per cent, while Bajaj Housing Finance has a starting rate of 7.40 per cent. Tata Capital and Aditya Birla Capital are pricing loans from around 7.75 per cent. Higher-risk lenders such as SMFG India Home Finance are charging rates starting at 10 per cent.

 

What borrowers should keep in mind

 

• Lowest advertised rates apply only to borrowers with excellent credit scores
• Final rates depend on income stability, loan size, and property type
• Women borrowers and takeover cases may get small concessions
• Comparing offers across banks and HFCs can lead to meaningful savings over the loan tenure
• Borrowers should check the final applicable rate directly with lenders before applying.