 "September home loan rates: SBI, BoB start from 7.35%, see full list")
State-owned lenders offer the lowest home loan rates in September, as private banks and housing finance companies keep their terms largely unchanged, according to data from Paisabazaar.com.
PSU banks’ rates
Annual interest rates of public sector banks (PSU) start at 7.35-7.55 per cent, continuing the lenders reputation of offering the most affordable options to homebuyers.
Union Bank of India is the most competitive, with rates starting at 7.35 per cent across ticket sizes.
State Bank of India, Punjab National Bank, and Canara Bank are offering rates starting at 7.50 per cent, subject to customer profile and loan type.
Women borrowers get additional concessions of up to 0.10 per cent at UCO Bank and Canara Bank.
Private banks’ rates higher
Private-sector banks’ interest rates are largely in the 7.70-8.35 per cent range, higher than that of PSUs.
ICICI Bank and HSBC offer loans at 7.70 per cent interest, while HDFC Bank is more competitive at 7.90 per cent.
Axis Bank is on the higher side, starting at 8.35 per cent.
Among housing finance companies (HFCs):
LIC Housing Finance and ICICI Home Finance are starting at 7.50 per cent onwards, matching public sector peers.
PNB Housing Finance is priced higher, with rates in the 8.25–11.50 per cent range.
Why rates matter now
With the Reserve Bank of India keeping repo rates unchanged, most lenders have been maintaining stable home loan rates. For borrowers, this is a good time to reassess their loans and check whether refinancing could bring savings.
Even a 0.25 per cent reduction on a Rs 50 lakh loan over 20 years can save borrowers over Rs 3 lakh in interest.
Bank Current home loan rates (as of 17 September 2025), Check List Here
| 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 17th September 2025 | |||
| Source: Paisabazaar.com | |||
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