December home loan rates start at 7.35%: Check latest lender offers here

Public-sector banks offer the most competitive entry rates below 8% for borrowers with strong credit, while private banks and HFCs show wider pricing spreads based on risk profile

 

Homebuyers will get stable mortgage pricing in December, as most large banks keep starting loan rates in the 7.30–8 per cent range. Public-sector banks offer the lowest entry-level rates, according to data compiled by BankBazaar.com. Private banks and housing finance companies (HFCs) show wider spreads depending on credit score, loan amount and customer profile.

 

Public-sector banks

 

State-owned lenders remain the most competitive for borrowers with strong credit histories.

 

Highlights from BankBazaar.com:

 

State Bank of India is offering 7.50–8.95 per cent rates across all loan slabs.

 

Bank of Baroda begins at 7.45 per cent, rising up to 9.25–9.50 per cent depending on loan size.

 

 

Union Bank of India and Bank of India start at 7.35 per cent, although both go up to 10 per cent or more for riskier profiles.

 

Punjab National Bank is quoting 7.45–9.35 per cent, while Canara Bank ranges from 7.40 to 10.25 per cent.

 

UCO Bank, Indian Bank and Central Bank of India keep the entry point at 7.35–7.40 per cent with moderate upper bands.

 

Some lenders also offer small concessions. For example, UCO Bank provides additional reductions of 5–10 basis points for women borrowers and takeover loans. Other banks extend minor discounts for customers maintaining salary accounts or opting for bundled insurance.

 

Private bank and HFC rates

 

Private-sector banks continue to charge higher average rates due to tighter risk pricing.

 

According to BankBazaar.com:

 

HDFC Bank and ICICI Bank start at 7.90 per cent and 7.65 per cent.

 

Kotak Mahindra Bank, HSBC and South Indian Bank begin at 7.70–7.80 per cent.

 

Some lenders such as Axis Bank, Federal Bank and Karur Vysya Bank display broader ranges, touching double digits for weaker credit profiles.

 

Bandhan Bank shows one of the widest spreads, going up to 15 per cent in some cases.

 

Housing finance companies remain competitive at the entry level

 

HFCs are broadly aligned with bank pricing at the lower end:

 

LIC Housing Finance, ICICI Home Finance and Bajaj Housing Finance start around 7.45–7.50 per cent.

 

Tata Capital, Aditya Birla Capital and Godrej Housing Finance offer starting rates from 7.75 to 7.75 per cent.

 

Higher-risk borrowers may see rates rising beyond 10 per cent, particularly with lenders such as PNB Housing Finance or SMFG India Home Finance.

Home loan rates in December

 

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	7.55-10.95	7.55-10.95	7.55-10.95
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	7.70 onwards	7.70 onwards	7.70 onwards
ICICI Bank	7.65 onwards	7.65 onwards	7.65 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	7.80 onwards	7.80 onwards	7.80 onwards
Karur Vysya Bank	8.50-10.90	8.50-10.90	8.50-10.90
Karnataka Bank	7.30-11.68	7.30-11.68	7.30-11.68
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 3rd Dec 2025
Source: Paisabazaar.com

 

What this means for borrowers

 

The December data shows that borrowers with strong credit scores continue to access attractive rates below 8 per cent, particularly from major public sector banks. However, spreads widen sharply for higher loan amounts or weaker credit profiles. With policy rates currently stable, home loan pricing is unlikely to shift materially in the near term, but borrowers should still compare lender-wise spreads and check for any concessions based on occupation, gender or existing banking relationships.