Home Loan Interest Rates 2026: Compare All Banks in India

Home loan interest rates in India typically range from 7.10% to 13.00%+ p.a. As of June 2026. Public sector banks often offer the lowest starting rates, with some beginning at 7.10% p.a. For eligible borrowers. A CIBIL score of 750 or above is for securing the most competitive rates.

Parameter	Details (As of June 2026)
Average Annual Home Loan Rate (2013-2023)	8.82%
Current RBI Repo Rate	5.25% (April 2026, unchanged as per MPC meeting April 8, 2026)
Lowest Starting Home Loan Interest Rate	7.10% p.a. (offered by select public sector banks)
Typical Home Loan Interest Rate Range	7.10% – 13.00%+ p.a.
CIBIL Score for Lowest Rates	750 or above
Fixed Home Loan Rates (Starting)	9.50% p.a. Or higher (April 2026)
Floating Home Loan Rates (Self-Employed)	7.70% p.a. (starting)
Interest Rate Concessions for Women Borrowers	0.05% to 0.50% (for women borrowers or joint applications)
Home Loan Coverage for Property Value	Up to 90% (for purchasing land or plots)
Home Loan Transfer Completion Time	15-30 days (most lenders)
Processing Fees (Typical Range)	0.25% to 1% of the loan amount
Prepayment Charges on Floating-Rate Loans	Cannot levy for non-business purposes to individuals (per RBI Directions 2025, effective Jan 1, 2026)
Standing Deposit Facility (SDF) Rate	5.00% (RBI MPC, April 8, 2026)
Marginal Standing Facility (MSF) / Bank Rate	5.50% (RBI MPC, April 8, 2026)
SBI’s EBLR (External Benchmark Lending Rate)	7.90% (Repo Rate 5.25% + Spread 2.65%, April 2026)

The RBI’s repo rate directly influences floating home loan rates, with banks typically adjusting their rates within three months of any RBI policy change. Economic factors like inflation and employment levels also play a role in setting base interest rates.

Bank-Wise Home Loan Interest Rates (2026)

Home loan interest rates in India typically range from 7.10% to 13.00%+ p.a. As of June 2026. Public sector banks often offer the lowest starting rates, with some beginning at 7.10% p.a. For eligible borrowers with strong CIBIL scores of 750 or above.

Bank Name	Starting Interest Rate (p.a.)	Salaried (Min)	Self-Employed (Min)	CIBIL Score Requirement
Bank of Baroda	6.85% (April 2026)	Not specified	Not specified	750 or above
Kotak Mahindra Bank	Not specified	Age 18-60 years	Age 18-65 years	Not specified

The actual interest rate offered depends on factors like your CIBIL score, loan amount, tenure, and the lender’s internal risk assessment policies.

Lowest Home Loan Interest Rates by Bank

As of June 2026, several public sector banks offer the lowest home loan interest rates, starting from 7.10% p.a. For eligible borrowers. A CIBIL score of 750 or above is typically required to access these preferential rates from most lenders.

Bank Name	Lowest Rate (p.a.)	Borrower Type	Key Feature
Bank of Baroda	6.85% (April 2026)	All	Lowest rate among all banks, free accident insurance on all loans.
Bank of India	7.10%	All	Competitive starting rate, among public sector banks.
Central Bank of India	7.10% (April 2026)	All	Competitive rate among public sector banks.
Indian Overseas Bank	7.10% (April 2026)	All	Competitive rate among public sector banks.
Bank of Maharashtra	7.10%	All	Among lenders offering lowest rates.
Union Bank of India	7.35% (starting)	All	Among top 5 banks with best home loan rates.
State Bank of India (SBI)	7.25% (2026)	All	Rates linked to repo rate, wide reach and trust.
Bajaj Finserv	7.25% (June 2026)	Salaried	Attractive floating rates for self-employed starting at 7.70% p.a.
ICICI Bank	7.50% (2026)	All	Rates linked to repo rate, valid till May 31, 2026.
HDFC Bank	7.75% (June 2026)	All	Offers Adjustable and Trufixed loan options.
Federal Bank	9.00% – 9.50%	All	Processing time within 1 month for loans up to ₹18 lakh.
LIC Housing Finance	8.80%	All	Low document submission for loans up to ₹27 lakh for 20 years.

These rates are indicative and can vary based on the borrower’s CIBIL score, loan amount, tenure, and employment type. Always verify the latest rates directly with the bank.

Fixed Vs. Floating Interest Rates

Choosing between fixed and floating home loan interest rates impacts your monthly EMI and overall loan cost. As of June 2026, floating rates typically start lower, around 7.10% p.a. From public sector banks, while fixed rates generally begin at 9.50% p.a. Or higher.

Feature	Fixed Rate	Floating Rate
Interest Rate Fluctuation	Remains consistent throughout the loan tenure, no variability in interest charges.	Fluctuates over time based on market conditions or benchmark rates (e.g., RBI repo rate, MCLR).
Initial Interest Rate	Typically 1.5% to 2% higher than floating rates, or between 9.50% and 11% (2026).	Generally offered at a lower rate than fixed-rate home loans, ranging from 7.10% to 7.50% for public sector banks (2026) and 7.80% to 8.50% for private lenders (2026).
EMI Stability	EMIs remain constant over the entire repayment period, offering stability and predictability in monthly budgeting.	EMIs may increase or decrease during the loan tenure as the interest rate changes.
Market Rate Changes	Borrower does not benefit if market rates drop, but is shielded if rates rise.	Borrower benefits if market rates drop, but EMIs increase if rates rise.
Prepayment Penalties	Often comes with prepayment penalties (e.g., 2% plus taxes on principal outstanding for fixed-rate loans).	Allows for penalty-free prepayments for individuals on floating-rate loans for non-business purposes, per RBI’s 2025 directions.
Risk Bearing	Lenders take on the ‘interest rate risk’.	Borrower bears the ‘interest rate risk’.

Floating rates are linked to external benchmarks like the RBI repo rate, offering potential savings if rates fall, risk if they rise. Fixed rates provide payment certainty, shielding borrowers from market volatility.

Factors Affecting Home Loan Rates

Several factors influence the home loan interest rate a borrower receives in India. Lenders assess various aspects of an applicant’s financial profile and the loan itself. As of June 2026, typical home loan rates range from 7.10% to 13.00%+ p.a., with specific rates determined by these factors.

• Credit Score: A CIBIL score of 750 or above generally qualifies borrowers for the lowest interest rates. Lenders view high scores as indicative of responsible repayment behavior.
• Loan Amount: Interest rates can vary based on the loan amount. Some banks offer different rates for loans up to ₹30 lakh, between ₹30 lakh and ₹75 lakh, and above ₹75 lakh.
• Loan-to-Value (LTV) Ratio: The LTV ratio, or the percentage of the property’s value financed by the loan, impacts rates. A lower LTV (higher down payment) often results in better rates due to reduced risk for the lender.
• Applicant’s Employment Type: Salaried individuals often receive slightly lower rates compared to self-employed individuals. For example, Kotak Mahindra Bank charges 0.5% processing fee for salaried vs. 1% for self-employed.
• Income Stability: A steady and verifiable income source is . Lenders like Canara Bank require salaried individuals to have a minimum of 2 years of continuous service.
• Property Location and Type: The location, age, and other risk factors associated with the property itself can influence the interest rate. Lenders assess the marketability and condition of the collateral.
• Gender of Applicant: Many banks offer interest rate concessions, typically ranging from 0.05% to 0.50%, for women borrowers or joint applications with women co-applicants.
• Relationship with Lender: Existing customers with a strong banking relationship may sometimes receive preferential interest rates or processing fee waivers from their primary bank.

Understanding these factors helps borrowers optimize their application to secure the most favorable home loan interest rates available in 2026.

How to Get the Lowest Home Loan Rate

Securing the lowest home loan interest rate in India requires strategic planning and a strong financial profile. As of June 2026, rates start from 7.10% p.a. For eligible borrowers with excellent credit scores from select public sector banks.

Optimising your application can significantly reduce your overall interest burden over the loan tenure.

• Maintain a High CIBIL Score: A CIBIL score of 750 or above is for unlocking the most competitive home loan rates. Lenders view high scores as an indicator of low credit risk.
• Increase Your Down Payment: Paying a larger down payment reduces the loan amount, lowering the lender’s risk and potentially qualifying you for a better interest rate. Banks typically cover up to 90% of the property value for land or plot purchases.
• Opt for Floating Interest Rates: Floating rates often start lower than fixed rates and can decrease if the RBI repo rate falls. For instance, the RBI repo rate was 5.25% in April 2026, following a 25 basis point cut in December 2025.
• Compare Multiple Lenders: Always compare offers from various banks and Housing Finance Companies (HFCs). Public sector banks like Indian Overseas Bank, Bank of Maharashtra, and Central Bank of India offer rates starting around 7.10% p.a. As of June 2026.
• Negotiate with Your Bank: If you have a long-standing relationship with your bank, a strong credit history, and a good income, you may be able to negotiate for a lower interest rate or reduced processing fees.
• Consider a Balance Transfer: If you have an existing home loan at a higher rate, transferring IT to a new lender offering a lower rate can save you money. Be aware of processing fees and other administrative charges, which can range from 0.5% to 1% of the outstanding amount.
• Apply with a Woman Co-Applicant: Many lenders offer interest rate concessions, typically ranging from 0.05% to 0.50%, for home loans applied for by women borrowers or jointly with a woman co-applicant.

By focusing on these key areas, you can significantly improve your chances of securing the most favourable home loan interest rate available in 2026.

Home Loan Balance Transfer: Savings

A home loan balance transfer allows you to shift your existing loan to a new lender, potentially securing a lower interest rate. This can significantly reduce your total interest paid and lower monthly EMIs over the remaining tenure. However, transfer costs like processing fees must be weighed against the potential savings.

Parameter	Details	Potential Savings
Purpose of Balance Transfer	Transferring an existing home loan from one bank or lender to another.	Lower interest rates, reduced EMIs, or improved loan terms, leading to a lesser overall cost of the loan.
Interest Rate Reduction	New lender offers a lower interest rate compared to the existing loan.	Significant reduction in total interest paid over the loan tenure and lower monthly EMIs.
EMI Management	Option to either reduce EMI while keeping tenure same, or reduce tenure while keeping EMI same.	Easier to manage monthly repayments or faster loan repayment.
Associated Costs	Processing fees (typically 0.5% to 1% of outstanding amount), legal and technical evaluation charges, potential prepayment penalties from existing lender.	Savings are realized only if the reduction in interest outweighs these transfer costs.
Top-up Loan Facility	Many lenders offer an additional top-up loan during the balance transfer.	Access to additional funds for home repairs, renovations, or other needs, often at the same competitive home loan interest rate.
Processing Fees (SBI)	0.35% to 0.50% of the loan amount.	Consider this cost against interest savings; for a ₹50 lakh loan, this is ₹17,500 to ₹25,000.
Processing Fees (Canara Bank)	Up to 0.50% of the loan amount, with a maximum of ₹10,000 and a minimum of ₹1,500.	A capped fee can make transfers more attractive for larger loan amounts.
Processing Fees (Union Bank of India)	0.50% of the loan amount, capped at ₹15,000 + GST.	The CAP limits the upfront cost, potential savings for high-value loans.
Preclosure Charges (Floating Rate Loan)	₹0 for individuals on floating rate loans for non-business purposes, as per RBI’s Pre-payment Charges on Loans Directions 2025.	No penalty from your existing lender for moving a floating-rate loan.
Preclosure Charges (Fixed Rate Loan)	2% plus applicable taxes on principal outstanding.	This fee must be factored into the overall cost-benefit analysis of transferring a fixed-rate loan.
Transfer Completion Time	Typically 15-30 days for most lenders.	A relatively quick process allows for faster realization of interest rate benefits.
CIBIL Score Impact	A CIBIL score of 750 or above is for securing the lowest rates from the new lender.	Higher credit scores directly translate to better interest rate offers and greater savings.

A balance transfer can lead to substantial savings, especially if your current interest rate is significantly higher than prevailing market rates. Always compare the new interest rate against all associated transfer fees to ensure a net benefit.

RBI Repo Rate Impact on Home Loans

The Reserve Bank of India (RBI) repo rate significantly influences home loan interest rates in India. As of April 2026, the RBI’s Monetary Policy Committee (MPC) maintained the repo rate at 5.25%, following a 25 basis point cut in December 2025. This benchmark rate directly impacts the floating interest rates offered by banks and Housing Finance Companies (HFCs).

Home loan interest rates are typically composed of a benchmark rate plus an additional spread set by the lender. Any revision in the RBI’s repo rate can directly affect a borrower’s EMI or loan tenure. For instance, SBI’s External Benchmark Lending Rate (EBLR) was 7.90% in April 2026, calculated as the Repo Rate (5.25%) plus a spread (2.65%).

The RBI’s MPC is scheduled to meet from June 3 to 5, 2026, to review monetary policy. Changes in the repo rate can lead to adjustments in home loan rates, with public sector banks often offering rates starting from 7.10% p.a. For eligible borrowers with high CIBIL scores (750+).

Key Takeaways

• The RBI repo rate, at 5.25% as of April 2026, directly influences floating home loan interest rates across Indian banks.
• Home loan interest rates are a sum of the RBI’s benchmark rate and a lender-specific spread, impacting EMIs and loan tenures.
• Public sector banks currently offer some of the lowest home loan rates, starting from 7.10% p.a. For borrowers with strong credit profiles.

Compare current home loan offers from various banks and check your eligibility to secure the most favorable rates for your financial needs.

Frequently Asked Questions (FAQs)

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Disclaimer: This article is general information, not financial advice. Interest rates, fees, and eligibility change frequently. Verify current details with the lender or regulator (RBI / SEBI) before deciding.