Home loans at 7.35%-15% as Nov ends: Check what lenders are offering

Rate gaps are wide, with state-owned banks offering the most competitive terms

With the year drawing to a close, prospective homebuyers are reviewing borrowing costs. Home loan rates have been largely stable through November, but the spread between the lowest and highest rates across lenders continues to be substantial. Data shared by Paisabazaar.com shows that public-sector banks (PSBs) offer the most competitive starting rates, while some private lenders and housing finance companies (HFCs) continue to operate at higher bands.

 

Public banks

 

Most large public sector banks continue to price their home loans in the 7.35–10 per cent range, depending on the borrower profile, loan slab and credit score.

 

Highlights based on Paisabazaar.com data:

 

 

• Union Bank of India and Bank of Maharashtra start at 7.35 per cent, one of the lowest in the market across all loan slabs.

• State Bank of India, the country’s largest home loan lender, prices its deals at 7.50–8.95 per cent.

• Punjab National Bank offers rates from 7.45–9.35 per cent, with slightly lower starting rates for loans above Rs 30 lakh.

• Many PSBs, including UCO Bank and Canara Bank, offer additional concessions for women borrowers, takeover loans or customers holding salary accounts with the bank.

 

For borrowers with strong credit profiles, PSBs remain the most cost-effective option, especially for larger loan tenures where every basis point matters.

 

Private banks

Private banks quote higher overall ranges with more variation tied to risk assessment.

 

• ICICI Bank and Kotak Mahindra Bank start at 7.65–7.70 per cent, broadly aligning with PSB entry points.

• HDFC Bank begins at 7.90 per cent, followed by South Indian Bank and HSBC at 7.70 per cent onwards.

• Some lenders show the widest spreads: Axis from 8.35 to 11.90 per cent, and Bandhan from 8.41 to 15 per cent depending on risk category and loan size.

 

These wider bands reflect the more granular credit-based pricing used by private banks.

 

Housing finance companies

Among HFCs, starting rates are attractive but upper limits tend to be higher.

 

• LIC Housing Finance, Bajaj Housing Finance, and ICICI Home Finance begin at 7.45–7.50 per cent.

• Tata Capital and Aditya Birla Capital start at 7.75 per cent onwards.

• PNB Housing Finance carries one of the broader ranges at 8.25–11.50 per cent.

• SMFG India Home Finance is positioned on the higher side, starting at 10 per cent.

 

Borrowers choosing HFCs should review processing charges and reset policies, which may vary significantly from banks.

 

What borrowers should do now

With rates unlikely to ease sharply in the near term, borrowers should:

 

• Compare offers across PSBs, private banks and HFCs.

• Factor in concessions available for women, salaried applicants or takeover loans.

• Prioritise lenders with transparent reset cycles and lower ancillary charges.

 

For now, PSBs continue to offer the most attractive entry rates, but the right choice still depends on the borrower’s credit profile and servicing capacity.