 "Home loan rates starting from 7.35%: Here are the top offers")
As home loan rates continue to stabilise after a long phase of monetary tightening, borrowers have reason to take a closer look at the latest offers before locking in a deal. According to data compiled by Paisabazaar.com, both public and private sector lenders, as well as housing finance companies (HFCs), are offering competitive interest rates starting from 7.35 per cent onwards for eligible borrowers.
Public sector banks keep rates competitive
Among public sector lenders, Bank of Baroda and Union Bank of India are offering some of the most attractive rates, starting at 7.35-7.45 per cent, depending on the loan amount and borrower profile. State Bank of India (SBI), the largest mortgage lender in the country, has maintained rates between 7.50 per cent and 8.95 per cent across loan slabs.
Borrowers may also find lower rates at Bank of India and Central Bank of India, both beginning from 7.35 per cent. Some banks, such as UCO Bank and Canara Bank, offer additional concessions—typically around 0.05–0.10 per cent—for women borrowers or those opting for takeover loans.
Private banks widen the range
In the private sector, interest rates are slightly higher on average but remain attractive for salaried applicants with good credit scores. HDFC Bank and ICICI Bank are currently among the top options, offering rates starting from 7.70-7.90 per cent.
Kotak Mahindra Bank, HSBC, and South Indian Bank also have similar entry rates from 7.70-7.99 per cent, while Axis Bank’s range extends up to 11.90 per cent, depending on risk profile and loan-to-value ratio. Borrowers seeking flexibility can compare these rates carefully, as spreads tend to widen for self-employed or high-value loans.
Housing finance firms offer stiff competition
Housing finance companies (HFCs) are not far behind. Bajaj Housing Finance and LIC Housing Finance are offering loans starting from 7.45–7.50 per cent, which is comparable to top banks. ICICI Home Finance and Aditya Birla Capital have also aligned their rates near 7.50–7.75 per cent, aiming to attract salaried customers.
At the higher end, PNB Housing Finance and SMFG India Home Finance are quoting rates of up to 11-12 per cent, reflecting the risk pricing for lower credit profiles.
| 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 | 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 29th October 2025 | |||
| Source: Paisabazaar.com | |||
What borrowers should do
Experts advise borrowers to:
Compare effective interest rates and processing fees before choosing a lender.
Check for special discounts offered to women or existing salary account holders.
Opt for floating-rate loans, as policy rates could soften if inflation remains under control.