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Interest Rates

Lowest Home Loan Interest Rate: Banks and Who Qualifies

The lowest bank home loan rate is 7.00% at Bank of Maharashtra for salaried borrowers with CIBIL 800+; Union Bank and Canara start at 7.15%.

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

The lowest home loan interest rate on a bank rate card is 7.00% a year, as of 17 September 2026. Bank of Maharashtra offers it to salaried borrowers with a CIBIL score of 800 or more. Union Bank of India and Canara Bank start at 7.15%, and you get these floor rates only with a top credit score and, at some banks, a larger loan.

Key facts

Item Position on 17 September 2026
Lowest card rate found 7.00%, Bank of Maharashtra (salaried, CIBIL 800 or more)
Next lowest 7.15%, Union Bank of India and Canara Bank
Score usually needed for the floor rate 800 or more at most banks checked; 825 or more at Union Bank
RBI repo rate 5.25% since 5 December 2025
Next RBI rate decision 7 October 2026
Rate type with the lowest starting rates Floating, linked to the repo rate or another external benchmark
Prepayment charge on these loans Nil for individuals borrowing for a non-business purpose

Lowest home loan rates and who qualifies

Bank Lowest rate Who gets it
Bank of Maharashtra 7.00% Salaried, CIBIL 800 or more; non-salaried pay 7.10%
Union Bank of India 7.15% CIBIL 825 or more, or government and PSU employees with 750 or more
Canara Bank 7.15% Women in the top risk grades on loans above ₹1 crore; others pay 7.20%
Bank of Baroda 7.20% Best slab by CIBIL score and loan size (BRLLR minus 0.70%)
Central Bank of India 7.20% Best slab by credit score (RBLR minus 1.05%)
Punjab National Bank 7.25% CIBIL 800 or more, loan above ₹30 lakh, loan-to-value 80% or less
State Bank of India 7.25% Starting rate on SBI’s rate page, from 1 April 2026
Kotak Mahindra Bank 7.60% Starting rate, salaried and self-employed
HDFC Bank 7.75% Repo rate plus the lowest spread of 2.50%
Axis Bank 8.20% Starting rate on the September 2026 page
ICICI Bank 8.50% Bottom of the standard card, valid to 30 September 2026

Our home loan interest rates page shows the full range at each lender, including the rates for weaker profiles.

What decides whether you get the lowest rate

Credit score

Your score decides which slab of the card you fall into. Bank of Maharashtra’s card for salaried borrowers shows the gap:

CIBIL score Rate
800 and above 7.00%
750 to 799 7.25%
725 to 749 7.70%
700 to 724 7.75%
650 to 699 8.35%
600 to 649 8.75%
Below 600 9.15%

On a ₹50 lakh loan over 20 years, 7.00% gives an EMI of about ₹38,765. At 7.75% the EMI is about ₹41,047, or roughly ₹2,280 more each month. These are our own calculations; see our page on the credit score needed for a home loan before you apply.

Loan size and down payment

Some banks price bigger loans lower. PNB charges 7.25% on loans above ₹30 lakh where the loan is 80% or less of the property value. Its best rate for smaller loans above that ratio is 7.40%. Canara Bank charges top-grade borrowers other than women 7.30% up to ₹50 lakh, 7.25% from ₹50 lakh to ₹1 crore and 7.20% above that.

Employment

Salaried borrowers usually pay a little less. At Union Bank, a 750–799 score gets 7.35% if you are salaried and 7.40% if you are not. Government and PSU staff get Union Bank’s floor rate of 7.15% with a score of 750 or more. Bank of Maharashtra charges them 7.15% with 700 or more, if the loan does not come through a direct selling agent.

Women borrowers

Canara Bank charges women 0.05 percentage point less in every slab. Union Bank gives the same cut in its 700–749 and 680–699 bands when the house is owned by a woman, singly or jointly. Bank of Maharashtra’s 0.05 point concession applies only to scores below 725, and never below its 7.10% floor.

How to get the lowest home loan rate

  1. Check your credit report and fix errors at least a few months before you apply.
  2. Pay down card balances and avoid new loan enquiries while you shop.
  3. Save for a larger down payment so the loan is 80% or less of the property value.
  4. Add a co-applicant with a strong score and income, or a woman owner where the bank offers a concession.
  5. Get written quotes from three or more banks for your exact score, loan size and tenure.
  6. Ask each bank to match the lowest quote, and ask for any processing fee waiver.
  7. Choose a floating rate linked to the repo rate, and check the spread in the sanction letter.

Does the RBI set home loan interest rates?

No. The RBI sets the policy repo rate, now 5.25%, and each bank adds its own spread. Under the RBI’s Interest Rates on Advances Directions, new floating-rate home loans must be linked to an external benchmark such as the repo rate. The rate must reset at least once every three months.

The credit risk part of the spread can change only if your credit assessment changes substantially. Other parts can change once every three years. Read the RBI rule on home loan prepayment for what lenders cannot charge you when you pay early.

Already paying a higher rate?

ItemDetails
Ask for a switch.Borrowers on MCLR or base rate can ask their bank to move to the external benchmark. Individuals who can prepay free get the switch without fees, apart from reasonable administrative or legal costs.
Ask for a lower spread.If your score has improved a lot since sanction, request a review in writing.
Move the loan.A balance transfer carries no prepayment charge on a floating-rate personal home loan. The new bank will charge its own fees, so compare total savings first. Our home loan balance transfer page covers the costs.

Frequently asked questions

What is the minimum home loan interest rate in India?

The lowest bank card rate we found on 17 September 2026 is 7.00%, at Bank of Maharashtra for salaried borrowers with a CIBIL score of 800 or more.

Which bank gives the lowest housing loan interest rate?

Bank of Maharashtra at 7.00%, followed by Union Bank of India and Canara Bank at 7.15%. The rate you get depends on your credit score, income type and loan size.

What is the lowest home loan interest rate for women?

Canara Bank charges women 7.15% in its top risk grades on loans above ₹1 crore, 0.05 point below other borrowers. Bank of Maharashtra and Union Bank give women a 0.05 point cut only in some lower score bands.

Are home loan rates lower in Mumbai?

The bank rate cards checked do not list separate rates by city. The card rate for a Mumbai borrower matches the rate elsewhere for the same score and loan, though the bank’s assessment of the property can change the final offer.

What is the RBI home loan interest rate?

The RBI does not set a home loan rate. It sets the repo rate, 5.25% since 5 December 2025, and banks add a spread to it.

Can I get the lowest rate with a CIBIL score of 750?

Usually not the very lowest. At Bank of Maharashtra a 750–799 score gets 7.25% against 7.00% for 800 and above.

Is a fixed-rate home loan cheaper?

Not at the banks checked. PNB’s fixed rate for a CIBIL score of 800 or more is 8.25% for up to 10 years, against 7.25% floating.

Sources

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