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Interest Rates

Mortgage Refinance Rates in India: Home Loan Balance Transfer Rates

Home loan refinance (balance transfer) rates at 12 Indian lenders start between 7.15% and 8.50% as of 17 September 2026.

VD

Written by Vikram Desai

Updated on 17 September 2026·6 min read

On this page7 sections
Credsir Interest Rates guide cover with a house icon

In India, mortgage refinancing is done through a home loan balance transfer, where a new lender pays off your existing loan. Floating refinance rates at the 12 lenders we track start between 7.15% and 8.50% a year, as of 17 September 2026. Switching from 9.00% to 8.00% on ₹40 lakh with 15 years left cuts the EMI by ₹2,345 and saves about ₹4.22 lakh in interest.

Key facts

Item Position on 17 September 2026
What refinancing is called in India Home loan balance transfer or takeover
Lowest starting rate we track 7.15% (Canara Bank, LIC Housing Finance, Union Bank of India)
RBI policy repo rate 5.25%; next policy meeting 5–7 October 2026
Reset on repo-linked loans At least once every three months
Foreclosure charge, floating-rate home loan to an individual Nil
Processing fee at the new lender From 0.25% to 3% of the loan, often with caps, plus GST

Home loan refinance rates by lender

Updated 17 Sep 2026 · Lender rate pages, checked individually. These are advertised floating rates. The rate you get depends on your credit score, income, loan size and property.

Lender Type Floating rate Processing fee Benchmark
Canara Bank Public sector bank 7.15% – 10.00% 0.50%, min ₹1,500, max ₹10,000 + GST Repo-linked (RLLR)
LIC Housing Finance Housing finance company 7.15% – 10.15% Up to 0.25% LHPLR-linked
Union Bank of India Public sector bank 7.15% – 9.35% 0.50%, max ₹15,000 + GST Repo-linked (EBLR)
Bank of Baroda Public sector bank 7.20% – 8.95% 0.50% (₹8,500–₹15,000) up to ₹50 lakh; 0.25% (₹8,500–₹25,000) above Repo-linked (EBLR)
Bajaj Housing Finance Housing finance company 7.25% – 10.25% Up to 1% BHFL floating reference rate
Punjab National Bank Public sector bank 7.25% – 9.15% 0.35%, min ₹2,500, max ₹15,000 Repo-linked (RLLR)
State Bank of India Public sector bank 7.25% – 8.55% 0.35%, min ₹5,000, max ₹15,000 + GST (salaried) Repo-linked (EBLR)
Kotak Mahindra Bank Private bank 7.60% – 9.50% Up to 2% + taxes Repo-linked (EBLR)
HDFC Bank Private bank 7.75% – 13.20% Up to 0.5%, min ₹4,000 Repo-linked (EBLR)
Axis Bank Private bank 8.00% – 9.10% Up to 1% or ₹10,000, whichever is higher, + GST Repo-linked (EBLR)
Tata Capital Housing Housing finance company 8.00% – 13.00% Up to 3% + GST PLR-linked
ICICI Bank Private bank 8.50% – 9.65% 0.5% + taxes Repo-linked (EBLR)

Most lenders quote the same rate card for a takeover as for a new home loan, but some price transfers separately. Ask for the takeover rate in writing. Our home loan interest rates page tracks these lenders as their cards change.

When refinancing your home loan pays off

Compare what you save in interest against what the switch costs. The example below uses ₹40 lakh outstanding and 15 years left.

Rate Monthly EMI Total interest over 15 years
9.00% (current loan) ₹40,571 ₹33,02,719
8.00% (after refinance) ₹38,226 ₹28,80,695
7.25% (after refinance) ₹36,515 ₹25,72,613

A one-point cut saves ₹4,22,024 in interest. At SBI’s 0.35% fee, capped at ₹15,000, the processing charge on ₹40 lakh is ₹14,000 plus GST. Legal, valuation and stamp duty on the new mortgage add to that, and these vary by lender and state.

ItemDetails
Switch earlythe savings are largest when many years are left, because interest is front-loaded.
Ask your bank firstyour current lender may offer a lower rate for a conversion fee. Compare that fee with the full cost of moving.
Keep the tenurea transfer resets the loan, so do not stretch the term unless you mean to.

Run your own numbers in the balance transfer savings calculator.

How to refinance a home loan in India

  1. Get a statement of the outstanding principal and a list of documents held from your current lender.
  2. Check your credit report and fix any errors before you apply.
  3. Apply to the new lender for a balance transfer with KYC, income proof, the property papers and your loan account statement.
  4. Read the Key Facts Statement and sanction letter for the rate, benchmark, spread, fees and reset date.
  5. Ask your current lender for a foreclosure letter giving the exact payoff amount.
  6. The new lender pays the old lender directly. Collect your original property documents and a no-dues certificate from the old lender.
  7. Sign the new loan agreement and mortgage documents, and check that the old loan shows as closed on your credit report.

For eligibility and document lists by lender, see our home loan balance transfer guide.

Rules that protect you when you switch

ItemDetails
No foreclosure penaltysince 2014 RBI has barred banks from charging foreclosure or prepayment penalties on floating-rate term loans to individual borrowers.
2026 rulesthe RBI (Pre-payment Charges on Loans) Directions, 2025 apply to loans sanctioned or renewed from 1 January 2026. Lenders cannot charge for part or full prepayment of a floating-rate loan taken by an individual for non-business use. There is no lock-in, and it does not matter where the money comes from.
Rate resetsloans linked to an external benchmark such as the repo rate must be reset at least once every three months.
Disclosureany prepayment charge must be stated in the sanction letter, loan agreement and Key Facts Statement.

If a lender refuses to release documents or charges a fee it should not, complain to the lender first. After 30 days, or after an unsatisfactory reply, you can go to the RBI Ombudsman at cms.rbi.org.in under the Integrated Ombudsman Scheme, 2026, within 90 days.

Frequently asked questions

What are mortgage refinance rates in India?

They are the rates a new lender charges to take over your home loan. At the 12 lenders we track, floating rates start between 7.15% and 8.50% as of 17 September 2026.

How does mortgage loan refinancing work in India?

You apply for a balance transfer, the new lender pays off your old loan, and you repay the new lender at its rate. Your property documents move to the new lender.

Is there a penalty to refinance a floating-rate home loan?

No. Banks cannot charge foreclosure penalties on floating-rate term loans to individuals, and the 2026 Directions extend this to all regulated lenders for non-business loans.

How much lower should the new rate be?

There is no fixed rule. Work out the interest saved over the remaining tenure and subtract fees, legal and stamp duty costs. A cut of one percentage point on ₹40 lakh over 15 years saves about ₹4.22 lakh.

Can I refinance an education loan in India?

Yes, some banks take over education loans. SBI, for example, runs a Take-over of Education Loans scheme. Compare current rates on our education loan interest rates page.

Will refinance rates fall after the October 2026 RBI policy?

Nobody can say in advance. The repo rate is 5.25%, and the next decision is due after the 5–7 October 2026 meeting. Repo-linked loans pass on any change at their next reset.

Sources

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