Skip to content
CredsirCredsir
Ranked

Best Home Loans in India

On the numbers we hold, the public sector banks are cheapest — Bank of Baroda and Punjab National Bank both advertise from 7.20%, against 7.75% at HDFC Bank and 8.00% at Axis.

Lowest advertised home loan rate
7.20% p.a.

Floor rate — for applicants above ~750 CIBIL at low LTV

as of 2026-08-15· Lender rate cardsreported
Lenders compared
12
RBI repo rate
5.25%
Unchanged, August 2026 MPC
Max tenure seen
32 years
Bajaj Housing Finance

But the headline rate is the smallest part of the decision: on a ₹50 lakh, 20-year loan, a 0.25% rate difference is worth about ₹1.7 lakh, while the difference between a lender that passes on repo cuts within a quarter and one that does not is worth several times that.

By Nishit Kumar, Founder & Editor
Updated 17 August 2026
LenderTypeInterest rateBenchmarkProcessing feeMax tenure
Bank of BarodaPSU Bank7.20% – 9.40%Repo-linked (EBLR)Up to 0.5%, often waived30 yrs
Punjab National BankPSU Bank7.20% – 9.45%Repo-linked (RLLR)0.35%, max ₹15,00030 yrs
State Bank of IndiaPSU Bank7.25% – 9.20%Repo-linked (EBLR)0.35%, min ₹2,00030 yrs
Union Bank of IndiaPSU Bank7.35% – 9.50%Repo-linked (EBLR)Up to 0.5%30 yrs
Canara BankPSU Bank7.40% – 9.55%Repo-linked (RLLR)0.5%, max ₹10,00030 yrs
ICICI BankPrivate Bank7.50% – 9.60%Repo-linked (EBLR)0.5% + GST30 yrs
LIC Housing FinanceHFC7.50% – 9.75%LHPLR-linkedUp to 0.25%30 yrs
Kotak Mahindra BankPrivate Bank7.60% – 9.50%Repo-linked (EBLR)Up to 0.5%25 yrs
Bajaj Housing FinanceHFC7.70% – 10.50%BHFL floating reference rateUp to 1%32 yrs
HDFC BankPrivate Bank7.75% – 9.65%Repo-linked (EBLR)Up to 0.5%, min ₹3,00030 yrs
Tata Capital HousingHFC7.75% – 10.75%PLR-linkedUp to 1%30 yrs
Axis BankPrivate Bank8.00% – 9.90%Repo-linked (EBLR)Up to 1%, min ₹10,00030 yrs

Data as of 15 Aug 2026Source: Lender rate cards and published comparisons, August 2026Pending issuer verification

Worth knowing.Advertised rates are the floor, offered to salaried applicants with a credit score above 750–800 and a low loan-to-value ratio. Housing finance companies benchmark to an internal PLR rather than the repo rate, so their cuts pass through more slowly. Always compare the all-in cost: processing fee, legal and valuation charges, and any bundled insurance the lender attaches.

Beyond the table

The single structural difference nobody explains is the benchmark. Banks must price floating retail loans off an external benchmark — in practice the repo rate — under RBI rules, so a policy cut reaches your EMI within one reset cycle. Housing finance companies are not bound by that mandate and price off an internal reference rate, which historically means cuts arrive slowly and rises arrive quickly. LIC Housing Finance and Bajaj Housing Finance are competitive on the advertised number and structurally worse on transmission.

Judge the all-in cost, not the rate. A 0.35% processing fee on ₹50 lakh is ₹17,500, and ₹20,650 once you add the 18% GST that almost no comparison site includes. Add legal and technical valuation charges, CERSAI registration, and — the expensive one — the loan protection insurance most lenders bundle at sanction and present as compulsory. It is not compulsory. A plain term insurance policy for the same cover typically costs a fraction of a single-premium credit protect plan, and unlike the bundled version it does not sit inside the loan accruing interest for twenty years.

The rate you are actually offered is set by your credit band. Lenders publish tiered grids, and the gap between the top band and a 700-range score is routinely 50–100 basis points. On the same ₹50 lakh loan that is roughly ₹3 to ₹7 lakh over the full term. Check your score before you apply, not after — and if it is under 750, moving it up is worth more than shopping for a lender.

Your numbers

₹50 L
₹10,000₹50,00,000₹20 Cr
18.5%36
120 years30
Monthly EMI
₹43,391
  • Principal48%
  • Interest52%
Principal
₹50,00,000
Total interest
₹54,13,879
Total payable
₹1,04,13,879
Interest as % of principal
108.28%
Growth over time
₹0₹27.3 L₹54.7 L₹82 L₹1.09 CrYr 1Yr 4Yr 7Yr 10Yr 13Yr 16Yr 19Yr 20
ValueAmount you put in

What this means.Over 20 years you repay more in interest than you borrowed. Cutting the tenure or prepaying early changes this sharply.

View the full breakdown (20 rows) →
YearPrincipal paidInterest paidBalance
1₹99,511₹4,21,182₹49,00,489
2₹1,08,307₹4,12,387₹47,92,181
3₹1,17,881₹4,02,813₹46,74,300
4₹1,28,300₹3,92,394₹45,46,000
5₹1,39,641₹3,81,053₹44,06,359
6₹1,51,984₹3,68,710₹42,54,375
7₹1,65,418₹3,55,276₹40,88,957
8₹1,80,039₹3,40,655₹39,08,918
9₹1,95,953₹3,24,741₹37,12,965
10₹2,13,274₹3,07,420₹34,99,691
11₹2,32,125₹2,88,569₹32,67,566
12₹2,52,643₹2,68,051₹30,14,923
13₹2,74,974₹2,45,720₹27,39,949
14₹2,99,279₹2,21,415₹24,40,670
15₹3,25,733₹1,94,961₹21,14,937
16₹3,54,525₹1,66,169₹17,60,412
17₹3,85,862₹1,34,832₹13,74,550
18₹4,19,968₹1,00,726₹9,54,582
19₹4,57,090₹63,604₹4,97,492
20₹4,97,492₹23,202₹0

At ₹50,00,000 over 20 years, Bank of Baroda holds the lowest advertised floor on our board.

Only these figures travel with you.

See Bank of Baroda’s terms

Questions

Which bank actually gives the lowest home loan rate?

On the rate cards we track, Bank of Baroda and Punjab National Bank advertise the lowest floor at 7.20% p.a. That is the floor, not the offer: it applies to salaried applicants with a strong credit score and a low loan-to-value ratio. Your quote depends on your score band, income stability, employer category and the loan-to-value on the property.

Is a public sector bank or a private bank better for a home loan?

PSU banks generally price lower and pass repo cuts through predictably. Private banks are usually faster to sanction and better on service, and often win on convenience for self-employed applicants with complex income. Housing finance companies are the most flexible on eligibility but the least predictable on rate transmission, because they are not required to price off an external benchmark.

How much home loan can I get on my salary?

Most lenders cap total EMI obligations at 50–60% of net monthly income (the FOIR), and separately cap the loan at 75–90% of property value depending on ticket size. Both constraints apply, so the smaller one wins. The eligibility calculator on this page runs both.

Related reading

Sources

Every figure on this page is traced to the document it came from. Where a claim rests on a regulator or an institution’s own rate card, that is the link below — not a summary of it.

  1. [1]Monetary Policy Statement — policy repo rate— Reserve Bank of IndiaPrimaryas of 5 August 2026
  2. [2]Master Circular — Housing Finance: loan-to-value ratios and risk weights— Reserve Bank of IndiaPrimary
  3. [3]Home, personal, vehicle and education loan rate cards — August 2026— Lender published rate cardsas of 15 August 2026
Worth knowing.Rates, fees and terms change frequently and vary by applicant. Everything here is general information, not personalised advice. Confirm the current terms directly with the institution before you apply. How we research and rate.