September home loan rates: SBI, BoB start from 7.35%, see full list

State-owned lenders offer the lowest rate, while private banks and finance companies keep terms slightly higher

State-owned lenders offer the lowest home loan rates in September, as private banks and housing finance companies keep their terms largely unchanged, according to data from Paisabazaar.com.

PSU banks’ rates

 

Annual interest rates of public sector banks (PSU) start at 7.35-7.55 per cent, continuing the lenders reputation of offering the most affordable options to homebuyers.

 

Union Bank of India is the most competitive, with rates starting at 7.35 per cent across ticket sizes.

 

State Bank of India, Punjab National Bank, and Canara Bank are offering rates starting at 7.50 per cent, subject to customer profile and loan type.

 

 

Women borrowers get additional concessions of up to 0.10 per cent at UCO Bank and Canara Bank.

Private banks’ rates higher

 

Private-sector banks’ interest rates are largely in the 7.70-8.35 per cent range, higher than that of PSUs.

 

ICICI Bank and HSBC offer loans at 7.70 per cent interest, while HDFC Bank is more competitive at 7.90 per cent.

 

Axis Bank is on the higher side, starting at 8.35 per cent.

Among housing finance companies (HFCs):

 

LIC Housing Finance and ICICI Home Finance are starting at 7.50 per cent onwards, matching public sector peers.

 

PNB Housing Finance is priced higher, with rates in the 8.25–11.50 per cent range. 

Why rates matter now

 

With the Reserve Bank of India keeping repo rates unchanged, most lenders have been maintaining stable home loan rates. For borrowers, this is a good time to reassess their loans and check whether refinancing could bring savings.

 

Even a 0.25 per cent reduction on a Rs 50 lakh loan over 20 years can save borrowers over Rs 3 lakh in interest.

 

Bank Current home loan rates (as of 17 September 2025), Check List Here

 

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	7.50-9.35	7.45-9.25	7.45-9.25
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 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	8.50-10.90	8.50-10.90	8.50-10.90
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)
LIC Housing Finance	7.50 onwards	7.50 onwards	7.50 onwards
Bajaj Housing Finance	7.45 onwards	7.45 onwards	7.45 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 17th September 2025
Source: Paisabazaar.com