Home loan rates in July: PSU banks start at 7.35%, private lenders at 7.90%

Customers should consider loan slabs and benefits when they are evaluating offers by lenders

For people planning to buy homes in the second half of the year, interest rates on home loans will be a key factor in determining affordability. Most banks and housing finance companies (HFCs) have held rates in July, but customers will find still find varying terms.

 

According to data from Policybazaar.com, public sector banks offer some of the most attractive rates, while private lenders and HFCs display a broader range.

 

Public sector banks: rates start from 7.35 per cent

 

Among public sector banks, Union Bank of India and Bank of India are offering the lowest starting rates at 7.35 per cent, applicable across loan slabs. State Bank of India (SBI) and Punjab National Bank (PNB) have home loan rates beginning at 7.50 per cent, with SBI maintaining uniform rates for loans up to Rs 30 lakh and even beyond Rs 75 lakh.

 

 

Borrowers looking for additional concessions can benefit from certain offers: Union Bank provides a 0.05 per cent interest rate discount for borrowers opting for an insurance policy. Similarly, UCO Bank offers extra concessions of 0.05 per cent-0.10 per cent for women applicants and takeover loans.

 

Below is a detailed table of rates offered by public sector banks

 

PUBLIC SECTOR BANKS

                       

 

Private sector banks: Wider rate bands

 

In the private banking space, rates start slightly higher. HDFC Bank and Kotak Mahindra Bank begin at 7.90 per cent and 7.99 per cent, respectively. ICICI Bank has rates starting from 8.00 per cent.

 

Borrowers should note the wider interest rate range among private lenders. For instance, Axis Bank’s home loan rates stretch from 8.35 per cent to 11.90 per cent, depending on the loan amount and borrower profile. Bandhan Bank shows the widest band, going as high as 15.00 per cent for loans up to Rs 30 lakh.

 

Below is a detailed table of rates offered by private sector banks

   

PRIVATE SECTOR BANKS

                             

 

Housing finance companies: Starting at 7.49 per cent

 

HFCs are also an option for borrowers, with some offering competitive rates. Bajaj Housing Finance has the lowest starting rate at 7.49 per cent, while LIC Housing Finance and ICICI Home Finance are at 7.50 per cent onwards.

 

However, rates at other HFCs vary significantly. PNB Housing Finance offers loans between 8.25 per cent and 12.35 per cent, and SMFG India Home Finance has rates from 10.00 per cent onwards.

 

Below is a detailed table of rates offered by housing finance companies

   

HFCs

                       

 

Key takeaway for borrowers

 

Homebuyers should compare lenders carefully, considering not just the interest rate but also factors like gender-based concessions, loan slabs, and add-on benefits such as insurance-linked discounts. With rates largely stable this month, it may be a good time for borrowers to lock in competitive terms before any upward revisions.

 

Rates as of July 16, 2025. Source: Policybazaar.com