Home loan rate in August starts from 7.35%: Check banks' offerings here

August home loan rates remain steady, with Union Bank, Bank of India and other PSU lenders offering the lowest starting point at 7.35%.

Home loan interest rates stayed broadly stable in August 2025, offering some relief to borrowers grappling with high EMIs over the past two years. According to data compiled by Paisabazaar.com, rates continue to start as low as 7.35 per cent among leading public sector lenders, while most private banks and housing finance companies (HFCs) are offering loans at upwards of 7.70 per cent.

 

Public banks keep rates competitive

Public sector banks remain the first choice for cost-conscious borrowers. Union Bank of India, Bank of India, Central Bank of India and Indian Overseas Bank are currently offering the lowest starting rates of 7.35 per cent, across different loan slabs. State Bank of India (SBI), the country’s largest lender, is keeping its home loan rates between 7.50 and 8.95 per cent, without much change from July.  Calculate EMI: EMI Calculator Tool

 

 

Borrowers opting for women-centric concessions or those transferring existing loans may also get additional discounts at select banks such as UCO Bank and Canara Bank.

 

Public bank home loan rate in August

 

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	7.45 onwards	7.45 onwards	7.45 onwards
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 banks start higher

 

Among private banks, Kotak Mahindra Bank is offering loans from 7.99 per cent, while ICICI Bank and HSBC begin at 7.70 per cent. HDFC Bank, one of the largest players in the retail home loan segment, has set its entry rate at 7.90 per cent. However, several lenders such as Axis Bank and Bandhan Bank have higher spreads, with maximum rates touching 12–15 per cent depending on the borrower’s profile.

 

Private bank home loan rate in August

 

Name of Lender	Loan Amount (Rs)
	Upto 30 Lakh	Above 30 Lakh & Upto 75 Lakh	Above 75 Lakh
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	7.95-10.90	7.95-10.90	7.95-10.90
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 more expensive

 

HFCs are generally quoting higher rates compared to banks. While Bajaj Housing Finance is among the more competitive with starting rates of 7.35 per cent, many players such as PNB Housing Finance, Aditya Birla Capital, and Godrej Housing Finance have entry levels of 8.20–8.55 per cent. Smaller NBFC-HFCs like SMFG India Home Finance continue to remain the costliest, with rates beginning at 10 per cent.

 

Housing finance company home loan rate in August

 

Name of Lender	Loan Amount (Rs)
	Upto 30 Lakh	Above 30 Lakh & Upto 75 Lakh	Above 75 Lakh
HOUSING FINANCE COMPANIES (HFCs)
LIC Housing Finance	7.50 onwards	7.50 onwards	7.50 onwards
Bajaj Housing Finance	7.35 onwards	7.35 onwards	7.35 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 20th August 2025
Source: Paisabazaar.com

 

What does it mean for borrowers?

 

For borrowers, the relative stability of rates in August is positive, but affordability remains stretched for those who took large loans in the past three years. Financial planners advise:

 

·  Compare across lenders: Even a 25–50 basis point difference can cut EMI burden significantly over a 15–20 year tenure. 

 

·  Look for concessions: Women borrowers, salaried employees with salary accounts in the lending bank, or those opting for balance transfers can get better deals.

 

Factor in add-ons: Some banks offer small discounts when borrowers buy bundled insurance policies.