Home loan rates: PSU banks' rates cheaper, private lenders start at 7.70%

Private banks are typically quicker in deciding about loan applications and may offer loan bundled packages

For homebuyers, the cost of borrowing is a key concern. State-owned banks’ rates are as low as 7.35 per cent and their private peers’ terms are upwards of 7.70 per cent, according to Paisabazaar.com (data as of September 24).

 

Public-sector banks' home loan rate

Large state-owned lenders dominate the affordable end of the home loan market.

 

Union Bank of India, Bank of India, Indian Overseas Bank and Central Bank of India offer the lowest starting rates at 7.35 per cent.

 

• State Bank of India, India’s largest lender, offers loans between 7.50 per cent and 8.95 per cent across loan slabs.

• Punjab and Sind Bank is on the higher side, with rates beginning at 7.55 per cent, going up to 10.75 per cent.

 

Some state-owned banks offer concessions to women, customers who have salary accounts, and for takeover loans.

 

Private banks

Private-sector banks typically charge higher rates than their state-owned lenders.

 

• Kotak Mahindra Bank, ICICI Bank, HSBC, and HDFC Bank’s rates start at 7.70-7.99 per cent.

• Axis Bank has a wide spread, ranging from 8.35 per cent up to 11.90 per cent.

• Bandhan Bank stands out for its steep upper range, with rates going up to 15 per cent.

 

Private banks are often quicker in approvals and offer customised loan packages, which appeal to salaried professionals in metros.  Calculate EMI: EMI Calculator Tool

 

Housing finance companies

Housing finance companies, which cater to niche segments, have a broader spread of rates:

 

• LIC Housing Finance, Bajaj Housing Finance and ICICI Home Finance’s rates start 7.45-7.50 per cent. 
• Others like PNB Housing Finance and Godrej Housing Finance begin around 8.25–8.55 per cent, going up to 10.85 per cent or more. 
• SMFG India Home Finance is the costliest, starting at 10 per cent.

 

Latest home loan rates in September 

 

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	8.19-10.74	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 (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 24th September 2025
Source: Paisabazaar.com

 

What borrowers should keep in mind

 

While interest rate is the biggest factor, borrowers should also check: 

• Processing fees and foreclosure charges. 
• Special concessions for women or salaried borrowers. 
• Whether the rate is fixed or floating.