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Interest Rates

Mortgage Loan Interest Rates in India: Home Loan and LAP Rates

Mortgage loan rates in India start at 7.15% for home loans and about 8.30% for loans against property, per lender rate cards on 17 Sep 2026.

RM

Written by Rohan Mehta

Updated on 17 September 2026·7 min read

On this page8 sections
Credsir Interest Rates guide cover with a house icon

Mortgage loan interest rates in India start at 7.15% a year for home loans and at about 8.30% for loans against property, based on lender rate cards checked on 17 September 2026. Your rate depends on the lender, your credit score, the loan size and the tenure. Most floating rates are linked to the RBI repo rate, which is 5.25%.

Key facts

Item Position on 17 September 2026
RBI policy repo rate 5.25%, cut from 5.50% on 5 December 2025
Next RBI rate decision MPC meeting of 5 to 7 October 2026
Home loan rates, 12 lenders tracked 7.15% to 13.20%
Loan against property, 6 banks checked 8.30% to 12.75% floating
Rate type on most new loans Floating, linked to an external benchmark such as the repo rate
Prepayment charge on floating-rate loans to individuals, non-business use Nil, for loans sanctioned or renewed from 1 January 2026

Updated 17 Sep 2026 · Lender rate pages, checked individually

What a mortgage loan means in India

In India, a mortgage loan is any loan secured by property. It comes in two main forms. A home loan pays for buying or building a house, and the house itself is the security. A loan against property (LAP), which banks often call a mortgage loan, lets you borrow against a home or shop you already own, for almost any purpose.

Home loans carry lower rates because the purpose is housing. Loans against property cost more and usually run for shorter terms. Bank of Baroda’s mortgage loan card, for example, covers tenors up to 10 years at its base rates.

Home loan interest rates by lender

Lender Type Rate range Benchmark
Canara Bank Public sector bank 7.15% to 10.00% Repo-linked (RLLR)
LIC Housing Finance Housing finance company 7.15% to 10.15% LHPLR-linked
Union Bank of India Public sector bank 7.15% to 9.35% Repo-linked (EBLR)
Bank of Baroda Public sector bank 7.20% to 8.95% Repo-linked (EBLR)
Bajaj Housing Finance Housing finance company 7.25% to 10.25% BHFL floating reference rate
Punjab National Bank Public sector bank 7.25% to 9.15% Repo-linked (RLLR)
State Bank of India Public sector bank 7.25% to 8.55% Repo-linked (EBLR)
Kotak Mahindra Bank Private bank 7.60% to 9.50% Repo-linked (EBLR)
HDFC Bank Private bank 7.75% to 13.20% Repo-linked (EBLR)
Axis Bank Private bank 8.00% to 9.10% Repo-linked (EBLR)
Tata Capital Housing Housing finance company 8.00% to 13.00% PLR-linked
ICICI Bank Private bank 8.50% to 9.65% Repo-linked (EBLR)

On a ₹50 lakh loan over 20 years, 7.15% means an EMI of ₹39,216 and total interest of ₹44,11,939. Our home loan interest rates page tracks these lenders with fees and tenures.

Loan against property interest rates

Bank Floating rate How it is set
HDFC Bank 8.30% to 12.75% Repo rate 5.25% plus 3.05% to 7.50%
Bank of Baroda 8.90% to 11.50% BRLLR 7.90% plus 0.25% strategic premium plus 0.75% to 3.35%, by risk rating; tenor up to 10 years, loans up to ₹7.5 crore
Canara Bank 9.05% to 11.55% RLLR 8.00% plus a risk premium by credit risk grade and security cover
Punjab National Bank From 9.05% RLLR plus spread; 9.25% to 12.05% on term loans with security up to 200% of the loan, by credit score and tenure
State Bank of India 10.30% to 11.20% 1-year MCLR (8.70% from 15 Sep 2026) plus 1.60% to 2.50%, by loan size
ICICI Bank 10.60% to 12.25% Repo-linked, by loan size and borrower segment; card valid to 30 Sep 2026

Fixed rates cost more. HDFC Bank’s fixed LAP range is 11.80% to 13.30% and above, and Bank of Baroda charges 2% over its floating rate for a fixed rate. See our guide to loan against property for eligibility and uses.

For a ₹25 lakh LAP over 10 years, the EMI is ₹30,730 at 8.30% and ₹35,149 at 11.50%. Total interest rises from ₹11,87,558 to ₹17,17,863.

What decides your mortgage loan rate

ItemDetails
Benchmark.Floating retail loans must be linked to an external benchmark, and most banks use the repo rate. The rate resets at least once every three months.
Credit score.PNB’s LAP rate rises from 9.25% for a score above 800 to 11.55% for a score of 681 to 699, on loans of up to 10 years.
Loan size.ICICI Bank charges less on larger LAP loans: 11.10% to 11.75% up to ₹50 lakh, and 10.60% to 11.25% above ₹1 crore, for its lower-rate segment.
Tenure.Bank of Baroda adds 0.25% for mortgage loans longer than 10 years.
Security cover.Canara Bank charges less when the property is worth more than three times the loan.
Borrower type.ICICI Bank prices self-employed borrowers outside the priority sector 0.50% higher.

Housing finance companies also face loan-to-value caps under RBI’s Directions, 2025: no more than 90% of the property value for loans up to ₹30 lakh, 80% above ₹30 lakh up to ₹75 lakh, and 75% above ₹75 lakh.

How to compare mortgage loan offers

  1. Check your credit score, since it sets the slab you fall into.
  2. Decide between a home loan and a LAP based on what the money is for.
  3. Open each lender’s current rate card and find the rate for your score, loan size and tenure.
  4. Ask for the Key Facts Statement, which lists the rate, fees and all charges.
  5. Compare processing fees and any insurance the lender asks you to buy.
  6. Work out the EMI for each offer with our EMI calculator.

On floating-rate loans taken by individuals for non-business use, lenders cannot charge for prepayment on loans sanctioned or renewed from 1 January 2026. A LAP used for business can still carry a charge; HDFC Bank, for instance, charges 2.5% of the principal prepaid in that case.

Frequently asked questions

What are mortgage loan interest rates in India now?

Home loans at the 12 lenders we track start between 7.15% and 8.50%. Loans against property at six major banks start between 8.30% and 10.60%, as of 17 September 2026.

Is a mortgage loan the same as a home loan?

Both are secured by property. In Indian banking, “mortgage loan” usually means a loan against property you already own, while a home loan funds a purchase or construction.

Why is a loan against property costlier than a home loan?

The money can be used for any purpose, including business, so lenders price it as a higher-risk loan than a housing loan.

Will mortgage rates fall in October 2026?

The RBI’s Monetary Policy Committee meets from 5 to 7 October 2026. Repo-linked loans change only if the repo rate changes, at the next reset date.

Which lender has the lowest mortgage loan interest rate?

Among the lenders we track, Canara Bank, LIC Housing Finance and Union Bank of India have the lowest advertised home loan rate, 7.15%. For LAP, HDFC Bank’s card starts lowest at 8.30%. Only borrowers with top credit profiles get these rates.

Are fixed-rate mortgages available in India?

Yes, but they cost more and are less common. Many are fixed only for a few years before switching to floating.

Do these rates apply to US mortgages?

No. This page covers Indian lenders only. US 15-year and 30-year fixed mortgage rates follow a different market.

Sources

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Compare interest rates, processing fees and eligibility across every lender in India — home loans, personal loans, gold loans, car loans, education loans and business credit. All-in cost, not just the teaser rate.

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