Skip to content

Independent. Unsponsored. Built for India.

Live rates Repo rate 5.50% USD/INR ₹96.73 Gold 24K (10g) ₹1,49,430 All rates
Advertiser disclosure. Some links on this page are partner links. They never change our rankings. Read how

Credsir earns money when you apply for a product through some of the links on this site. That revenue funds the research. It does not buy a placement: our rankings come from a published scoring method that runs on the same data for every product, partner or not. Products we do not earn from appear in these lists whenever they win on the numbers — and several currently do.

Interest Rates

What Is Home Loan Interest Rate? Fixed, Floating and How It Changes

A home loan interest rate is the yearly charge on your loan. Most are floating and repo-linked; tracked lenders start at 7.15%–8.50%.

AS

Written by Aarav Sharma

Updated on 17 September 2026·6 min read

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

A home loan interest rate is the yearly price a bank or housing finance company charges on the amount you borrow, and it sets your EMI. In India most home loans carry a floating rate tied to the RBI repo rate, now 5.25%. Across the 12 lenders we track, floating rates start between 7.15% and 8.50% a year.

Key facts

Item Position on 17 September 2026
RBI policy repo rate 5.25%; next rate decision at the 5–7 October 2026 meeting
Floating home loan rates, 12 tracked lenders 7.15% to 8.50% at the lowest; up to 13.20% at the highest
Rate types Floating, fixed and hybrid (fixed for a few years, then floating)
How often floating rates reset At least once every three months on external-benchmark loans
Fixed-rate premium, example Bank of Baroda: fixed 8.90%–9.95% against floating 7.20%–8.95%
Prepayment charge on floating loans to individuals Nil for non-business loans
Switch to fixed at reset Lender’s choice since 1 October 2025; no longer compulsory

Updated 17 Sep 2026 · Lender rate pages, checked individually.

What makes up your home loan rate

A floating home loan rate has two parts.

  • Benchmark. Since October 2019, banks must link new floating retail loans to an external benchmark. Nearly all use the RBI repo rate. Bank of Baroda’s repo-linked lending rate, for example, is 7.90%.
  • Spread. The lender adds or subtracts a margin based on your credit score, loan size, loan-to-value ratio and job type. HDFC Bank prices home loans at the repo rate plus 2.50% to 7.95%, which gives 7.75% to 13.20%.

Under RBI rules, the credit-risk part of the spread can change only if your credit assessment changes substantially. Other parts can change once every three years. Housing finance companies such as LIC Housing Finance use their own reference rates instead of the repo rate.

Types of home loan interest rate

Type How it works Trade-off
Floating Moves with the benchmark at each reset Usually the lowest starting rate; EMI or tenure changes when the repo rate moves
Fixed for a period Rate locked for 2, 3, 5 or 10 years, then usually converts to floating Priced higher; protects you from rate rises during the fixed period
Fixed for the full term One rate for the whole loan Highest price; few lenders offer it
Hybrid Fixed for an initial period, floating after HDFC Bank’s TruFixed loan works this way

Fixed rate home loans in India

Fixed rates cost more than floating rates at the same lender. ICICI Bank’s fixed home loan rates, valid until 30 September 2026, show the pattern:

Fixed period ICICI Bank fixed rate
24 months 9.10% to 9.15%
37 months 8.90% to 9.15%
120 months 10.50% to 10.60%
Full term 10.90% to 11.20%

ICICI Bank’s floating range starts at 8.50%. Bank of Baroda sets its fixed rate at its repo-linked rate plus 1.00% to 2.05%, against floating spreads that start below that rate.

The gap adds up. On ₹50 lakh over 20 years, the EMI is ₹39,367 at Bank of Baroda’s lowest floating rate of 7.20% and ₹44,665 at its lowest fixed rate of 8.90%. Over the full term, that is ₹57,19,656 of interest against ₹44,48,192.

A fixed rate makes sense only if you expect rates to rise by more than the premium during the fixed period. Also check the prepayment terms: the RBI’s nil-charge rule covers floating-rate loans, so a fixed-rate loan may carry a foreclosure fee.

How home loan rates are revised

When the RBI changes the repo rate, repo-linked loans pick it up at their next reset, which must happen at least every three months. The rate on your loan also changes if your lender revises its spread under the rules above. Our explainer on how a repo rate change affects your EMI covers the reset timing.

A 0.50 percentage point rise matters. On ₹50 lakh over 20 years, the EMI moves from ₹39,519 at 7.25% to ₹41,047 at 7.75%. Total interest rises from ₹44,84,512 to ₹48,51,383.

At each reset, the RBI’s rules on EMI-based floating loans require the lender to:

  1. tell you the new rate and its effect on your EMI or tenure straight away;
  2. let you choose a higher EMI, a longer tenure or both, without negative amortisation;
  3. let you prepay in part or in full at any time;
  4. disclose any switching or service charges in the sanction letter and at the time of revision;
  5. send a quarterly statement showing principal and interest paid, EMIs left and the annualised rate.

Offering a switch to a fixed rate at reset became optional for lenders from 1 October 2025. Ask your lender whether it offers one and what it charges.

How to find your current home loan rate

  1. Check your credit score, because most rate cards are set by score band.
  2. Open the lender’s current rate card and find your slab by score, loan size and employment type.
  3. Ask for the Key Facts Statement, which shows the annual percentage rate including fees.
  4. Compare floating and fixed offers on total interest with the EMI calculator.
  5. If you already have a loan, compare your rate with new-customer rates; a floating loan can be moved without a prepayment charge.

For lender-by-lender figures, see home loan interest rates in different banks or our home loan interest rates tracker.

Frequently asked questions

What is the current ROI for a home loan?

Floating rates at the 12 lenders we track start between 7.15% and 8.50% a year as of 17 September 2026. Canara Bank, LIC Housing Finance and Union Bank of India start lowest, at 7.15%.

What is a fixed interest rate on a home loan?

A rate that stays the same for an agreed period, or the full term, whatever happens to the repo rate. It is usually priced higher than the lender’s floating rate.

Is a fixed rate home loan available in India?

Yes, from some lenders. ICICI Bank offers fixed periods of 24 months to the full term, and Bank of Baroda and HDFC Bank offer fixed or partly fixed options.

What are the types of home loan interest rate?

Floating, fixed and hybrid. Most borrowers in India take floating loans linked to the repo rate.

Are home loan interest rates different in Gujarat?

Banks publish national rate cards, so the rate depends on your profile rather than your state. Check the lender’s card for your score and loan size.

Will home loan rates be revised in October 2026?

Only if the RBI changes the 5.25% repo rate at its 5–7 October 2026 meeting. Repo-linked loans would then reset within three months.

Sources

Go deeper

Compare loans with live numbers

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.

Loans hub Best Home Loans in India

Related articles