Home loan rates stable in August: Public banks at 7.35%, private at 7.70%

Public lenders like Union Bank and Bank of India offer the month's lowest home loan rates at 7.35%, while most private banks start higher

The Reserve Bank of India (RBI) has left the repo rate unchanged at 5.5 per cent in its latest policy review, which means that borrowing costs are unlikely to change in the near term, but borrowers should still compare rates to secure the best deal.

 

Here’s a snapshot of home loan interest rates in August 2025, compiled by Paisabazaar.com.

 

Public banks Home loan rate 

-Union Bank of India, Bank of India, Bank of Maharashtra, Central Bank of India: Starting at 7.35 per cent and going up to 10.10 per cent or more, depending on the borrower’s credit profile.

 

 

-State Bank of India, Punjab National Bank, Canara Bank: Starting at 7.45–7.50 per cent.

 

-Indian Overseas Bank, Indian Bank, UCO Bank: Starting from 7.35-7.40 per cent.

 

-Punjab & Sind Bank: 7.55 per cent onwards.

 

Some lenders offer concessional rates of 0.05-0.10 percentage points for women borrowers, those opting for linked insurance, or transferring an existing loan.

 

(Table: Public-sector banks’ home loan rates in August 2025)

 

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

 

*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.

 

Private banks home loan rate

-ICICI Bank: 7.70 per cent onwards.

 

-HDFC Bank: 7.90 per cent onwards.

 

-Kotak Mahindra Bank: 7.99 per cent onwards.

 

-South Indian Bank: 7.75 per cent onwards.

 

-Axis Bank: 8.35 per cent onwards, going up to 11.90 per cent in some cases.

 

-Bandhan Bank: 8.41 per cent onwards, with top rates touching 15 per cent.

 

-CSB Bank: 9.39–11.08 per cent.

 

Rates vary widely in this segment, with spreads reflecting borrower risk profiles and loan sizes.

 

(Table: Private-sector banks’ home loan rates in August 2025)

 

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 (HFCs) home loan rate

-Bajaj Housing Finance: 7.35 per cent onwards, the lowest among HFCs.

 

-LIC Housing Finance, ICICI Home Finance: 7.50 per cent onwards.

 

-PNB Housing Finance, Aditya Birla Capital, Godrej Housing Finance: 8.25–8.55 per cent.

 

-SMFG India Home Finance: 10 per cent onwards.

 

-Sammaan Capital (formerly Indiabulls Housing Finance): 8.75 per cent onwards.

 

Some HFCs cater to niche segments, which can mean higher starting rates due to credit risk factors.

 

(Table: Housing finance companies’ home loan rates in August 2025)

 

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 13th August 2025
Source: Paisabazaar.com

 

Tip for borrowers: Even small differences in interest rates can have a large impact on total repayment. Compare rates, check eligibility for special concessions, and consider switching if your current rate is significantly higher.