Home loan interest rates at major banks start at about 7.15%–7.25% a year: Canara Bank and Union Bank of India publish 7.15%, Bank of Baroda 7.20%, and SBI and PNB start at 7.25%. Most bank home loans track the RBI repo rate, which has been 5.25% since December 2025 and was held there on 5 August 2026.
The low end is a floor for borrowers with top credit scores. Which band you land in depends on who you are, not just which lender you pick.
| Home loan rates today | 7.15 – 13.20 % p.a. |
|---|---|
| What it means | Range across 12 lenders. The low end is a floor rate, not a typical offer. |
| Repo rate | 5.25% — Neutral stance |
| Next MPC | 7 Oct 2026 |
| Typical spread over repo | 190–250 bps |
as of 5 September 2026 · Lender rate pages, checked individually
| Lender | Rate p.a. | Processing fee | Max tenure | |
|---|---|---|---|---|
| Canara BankPublic sector bank | 7.20% – 10.25% | ₹20,000 | Upto 30 Years | |
| HDFC BankPrivate bank | 7.20% – 13.20% | ₹10,000 | Upto 30 Years | |
| PNB BankPublic sector bank | 7.20% – 9.10% | ₹20,000 | Upto 30 Years | |
| SBI BankPublic sector bank | 7.25% – 8.95% | ₹18,214 | Upto 30 Years | |
| Bajaj Housing FinanceHousing finance company | 7.30% – 10.80% | Upto 0.4% | Upto 32 Years | |
| IDBI BankPublic sector bank | 7.55% – 11.55% | ₹14,000 | Upto 30 Years | |
| ICICI BankPrivate bank | 7.65% – 9.80% | ₹10,000 | Upto 30 Years | |
| L&T FinanceNBFC | 7.65% – 18.00% | ₹10,000 | Upto 30 Years | |
| TATA HousingHousing finance company | 7.75% – 18.00% | ₹10,000 | Upto 30 Years | |
| Jio Housing FinanceHousing finance company | 8.20% – 18.00% | ₹10,000 | Upto 25 Years | |
| Axis BankPrivate bank | 8.35% – 11.90% | ₹14,000 | Upto 30 Years | |
| Federal BankPrivate bank | from 8.75% | ₹0 | Upto 30 Years | |
| IDFC First BankPrivate bank | 8.85% – 18.00% | Upto 3% | Upto 30 Years | |
| Piramal FinanceHousing finance company | 9.99% – 18.00% | ₹10,000 | Upto 30 Years | |
| Easy Home Finance LimitedHousing finance company | 10.80% – 18.00% | ₹50,000 | Upto 25 Years |
What to know
Which lender you end up with matters less than which rate band you land in, and that is set by your profile: our ranking of the best home loans starts from the same dated table, while home loan eligibility covers the income and LTV rules that decide the sanction. Put a rate and tenure into the EMI calculator to see what a 0.30 point difference is worth in rupees a month.
A repo-linked home loan is priced as repo plus a spread. With the repo at 5.25% and floors around 7.15%–7.20%, the best-case spread on offer is about 190–195 basis points. Your spread is fixed at sanction and does not improve as your credit score does — which is the mechanical reason a home loan balance transfer can be worth doing even when the market rate has not moved.
Reset timing is worth understanding before you take the loan. External benchmark loans reset at least quarterly, so a cut announced in October may not reach your EMI until the following quarter. Lenders typically hold the EMI constant and adjust the tenure instead. That is fine when rates fall; when they rise it silently extends your loan, occasionally past the age limit, at which point the lender raises the EMI without much warning. Ask which one your lender does by default, and ask in writing.
Frequently asked questions
What are the home loan interest rates of all banks today?
Published floors at major lenders are 7.15% at Canara Bank and Union Bank of India, 7.20% at Bank of Baroda and 7.25% at SBI and PNB, and ICICI Bank advertises from 8.50%. Housing finance company LIC Housing Finance starts at 7.15% for salaried borrowers with a CIBIL score of 825 or more. The table above lists the full range we track.
Which bank has the lowest home loan interest rate?
Among the banks we checked, Canara Bank and Union Bank of India publish the lowest floors at 7.15%; Bank of Baroda’s is 7.20% (its BRLLR of 7.90% minus 0.70%). Floors apply only to the strongest profiles, so compare the rate each lender actually sanctions you.
Will home loan rates fall further in 2026?
We do not forecast rates and would not trust anyone who does. What we can say is factual: the repo rate is 5.25% with a neutral stance, and the next MPC meeting runs from 5 to 7 October 2026. If a cut comes, repo-linked loans at banks reprice within a quarter, while housing finance company loans priced off an internal reference rate may not reprice at all.
Why is my rate higher than the rate advertised on this page?
Advertised rates are floors. They assume a salaried applicant with a credit score in the top band, a low loan-to-value ratio, and often a specific loan size. Self-employed income, a score below roughly 750, a higher LTV or a smaller ticket size each add to the spread.
What is EBLR and how is it different from MCLR?
EBLR is the external benchmark lending rate — in practice the repo rate plus the bank spread — and RBI requires banks to price new floating-rate retail loans off an external benchmark. MCLR is an older internal cost-of-funds benchmark that passes policy changes on more slowly; the choice between benchmarks is a separate question from fixed versus floating. If you are still on MCLR or a base rate, ask your bank to convert; it usually costs a small fee and it is almost always worth it.
Sources
- Reserve Bank of India — Minutes of the MPC meeting, 3–5 August 2026 — policy repo rate (primary source) — as of 5 September 2026
- Lender published rate cards — as of 5 September 2026
- Monetary policy and MPC meeting schedule 2026-27 — Reserve Bank of India (checked 17 Sep 2026)
- Retail loans interest rates — Bank of Baroda (checked 17 Sep 2026)
- Home loan interest rates — State Bank of India (checked 17 Sep 2026)
- Interest rates on retail advances — Punjab National Bank (checked 17 Sep 2026)
- Home loan interest rates — ICICI Bank (checked 17 Sep 2026)
- Home loan interest rates — LIC Housing Finance (checked 17 Sep 2026)
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