Home loan in mid-Jan 2026: Interest rates range from 7.10% to 12.58%

Rates stay competitive across banks and housing finance companies, led by public sector lenders

Home loan interest rates continue to remain competitive across banks and housing finance companies (HFCs) in mid-January 2026, offering some relief to prospective homebuyers and existing borrowers looking to refinance. 

According to data compiled by Paisabazaar.com, home loan rates currently start at 7.10 per cent and can go beyond 12 per cent for certain borrower categories and lenders. The final rate offered depends on several factors such as income stability, credit score, loan amount, and whether the borrower is salaried or self-employed.

 

Public sector banks

 

Public sector banks (PSBs) continue to offer the most attractive entry-level rates. Several PSBs have starting rates clustered between 7.10 per cent and 7.25 per cent across loan slabs.

 

 

State Bank of India, the country’s largest lender, is offering home loans in the range of 7.25–8.70 per cent, irrespective of loan size. Bank of India, Bank of Maharashtra, Central Bank of India and Indian Overseas Bank are offering loans starting from 7.10 per cent, according to Paisabazaar.com.

 

Union Bank of India and UCO Bank have starting rates of 7.15 per cent, while Punjab National Bank’s rates begin at 7.20 per cent for loans above ₹30 lakh. However, the upper end of PSB rates can go up to 10-10.70 per cent for borrowers with weaker credit profiles.

 

Private banks

 

Private sector banks charge relatively higher interest rates. Fewer lenders are offering rates below 7.50 per cent. ICICI Bank and HSBC Bank are offering home loans starting from 7.45 per cent, while Kotak Mahindra Bank’s rates begin at 7.70 per cent.

 

HDFC Bank’s starting rate stands at 7.90 per cent, while Axis Bank’s rates range from 8.35 per cent to as high as 11.90 per cent, depending on the loan amount and borrower profile.

 

Smaller private banks such as Bandhan Bank and Karnataka Bank are among the costlier options, with rates extending beyond 11 per cent.

 

Housing finance companies 

 

Among HFCs, LIC Housing Finance and Bajaj Housing Finance are offering some of the lowest rates, starting at 7.15 per cent across loan amounts. Tata Capital and ICICI Home Finance are offering loans from 7.50 per cent onwards.

 

However, some specialised lenders remain expensive.

 

SMFG India Home Finance is offering loans from 10 per cent onwards, while Sammaan Capital (formerly Indiabulls Housing Finance) has starting rates of 8.75 per cent, as per Paisabazaar.com data.    

Name of Lender	Loan Amount (Rs)
	Upto 30 Lakh	Above 30 Lakh - 75 Lakh	Above 75 Lakh
PUBLIC SECTOR BANKS
State Bank of India	7.25-8.70	7.25-8.70	7.25-8.70
Bank of Baroda	7.20-9.00	7.20-9.00	7.20-9.25
Union Bank of India*	7.15-9.50	7.15-9.50	7.15-9.50
Punjab National Bank	7.25-9.10	7.20-9.00	7.20-9.00
Bank of India	7.10-10.00	7.10-10.00	7.10-10.25
Canara Bank**	7.25-10.00	7.20-10.00	7.15-9.90
UCO Bank***	7.15-9.25	7.15-9.25	7.15-9.25
Bank of Maharashtra	7.10-9.90	7.10-9.90	7.10-9.90
Punjab and Sind Bank	7.30-10.70	7.30-10.70	7.30-10.70
Indian Overseas Bank	7.10 onwards	7.10 onwards	7.10 onwards
Indian Bank	7.15-9.55	7.15-9.55	7.15-9.55
Central Bank of India	7.10-9.15	7.10-9.15	7.10-9.15
PRIVATE SECTOR BANKS
Kotak Mahindra Bank	7.70 onwards	7.70 onwards	7.70 onwards
ICICI Bank	7.45 onwards	7.45 onwards	7.45 onwards
Axis Bank	8.35-11.90	8.35-11.90	8.35-9.35
HSBC Bank	7.45 onwards	7.45 onwards	7.45 onwards
South Indian Bank	7.80 onwards	7.80 onwards	7.80 onwards
Karur Vysya Bank	8.50-10.65	8.50-10.65	8.50-10.65
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	7.90 - 9.30	7.90 - 9.30	7.90 - 9.30
Bandhan Bank	8.41-12.58	8.41-12.58	8.41-12.58
RBL Bank	8.20 onwards	8.20 onwards	8.20 onwards
CSB Bank	8.05 onwards	8.05 onwards	8.05 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	7.15 onwards	7.15 onwards	7.15 onwards
Bajaj Housing Finance	7.15 onwards	7.15 onwards	7.15 onwards
Tata Capital	7.50 onwards	7.50 onwards	7.50 onwards
PNB Housing Finance	7.90 onwards	7.90 onwards	7.90 onwards
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 14th Jan 2026
Source: Paisabazaar.com