For millions across India, homeownership is not merely a financial goal,it is a defining life milestone. In a rapidly evolving real estate landscape, purchasing a home represents stability, long-term security, and a sense of accomplishment.
Selecting the right lender and understanding applicable interest rates becomes critical. Home loan interest rates vary significantly across financial institutions, and even a marginal difference in rate can translate into substantial savings or additional costs over the tenure of the loan.
Read on to know more about the top 10 banks offering the most affordable home loan interest rates in India for 2025.
Before we look at the latest home loan rates offered by top banks, it’s important to first understand how these interest rates are set and what factors influence them.
| Certain public sector banks provide home loan rates beginning at 8.1%, and a 25-bps reduction in the repo rate could potentially lower these rates to below 8%. |
Top 10 Banks for Home Loan Interest Rates in India
It is important to select the right lender when applying for a home loan, as even a minor difference in interest rates can significantly impact your overall repayment. Below is a list of the top 10 banks in India offering competitive home loan interest rates in 2025, along with their associated processing fees, to help you make an informed borrowing decision.
| Bank Name | Interest Rate | Processing Fee |
| Bank of Maharashtra | 7.85% p.a. | 0.25% of the loan + GST |
| State Bank of India | 8.00% p.a. | 1.50% of the loan amount + GST |
| Central Bank of India | 8.15% – 9.50% p.a. | 0.50% of the loan amount |
| Bank of India | 8.00% – 10.60% p.a. | 0.25% of the loan amount |
| Canara Bank | 7.90% – 11.00% p.a. | 0.50% of the loan amount |
| HDFC Bank | 8.50% p.a. | 1.50% of the loan amount |
| ICICI Bank | 8.75% p.a. | 2% of the loan amount |
| Union Bank of India | 8.35% – 12.65% p.a. | 0.50% – 2% of the loan amount |
| Axis Bank | 14.00% p.a. | 1% of the loan amount |
| Bank of Baroda | 8.40% p.a. | 0.50% of the loan amount |
| AU Bank | 8% p.a | 2% of the loan amount |
Note: The following data is accurate as of the publication date. Home loan interest rates can change based on RBI’s policies, bank discretion, or your individual credit profile. Always check with the bank before making a final decision.
Key Highlights of Top Banks for Home Loan
Let’s go through the key highlights of banks with the best home loan offerings from below:
Bank of Maharashtra Home Loan
Key features:
• Interest Rates: Salaried from 7.85% p.a., self-employed from 7.95% p.a.
• Loan Amount: Up to ₹15 lakhs (rural), ₹25 lakhs (semi-urban).
• Loan Tenure: Up to 30 years or borrower age 75.
• Processing Fees: Up to 0.25% (max ₹25,000).
• Eligibility: Loan amount is limited by deduction norms, LTV, and request.
State Bank of India Home Loan
Key features:
• Interest Rates: Salaried at 8.00% p.a.; self-employed from 9.25% to 10.45% p.a.
• Loan Amount: As per eligibility.
• Loan Tenure: Up to 30 years.
• Processing Fees: 1.5% of the loan amount.
• Eligibility: Age 18-70, Indian, salaried/self-employed, LTV 80-90%.
Central Bank of India Home Loan
Key features :
• Interest Rates: Start from 8.15% p.a. onwards, varying by scheme and credit score.
• Loan Amount: Based on eligibility and property value (up to 90% for loans up to ₹30 lakhs).
• Loan Tenure: Up to 30 years.
• Processing Fees: Up to 0.50% of the loan amount (maximum ₹20,000 + GST) may be waived under specific offers.
• Eligibility: Resident Indians & NRIs (salaried/self-employed), age 18+, satisfactory credit score and repayment capacity.
Bank of India Home Loan
Key features:
• Interest Rates: Start from 8.00% p.a. onwards.
• Loan Amount: Up to ₹5 crores, or up to 90% of the property’s market value.
• Loan Tenure: Up to 30 years.
• Processing Fees: 0.25% of the loan amount (min ₹1,500, max ₹20,000).
• Eligibility: Resident Indians, NRIs, PIOs; salaried/self-employed/professionals; Age 18-70 years.
Canara Bank Home Loan
Key features:
• Interest Rates: Start from 7.90% p.a. onwards.
• Loan Amount: Based on income (e.g., up to 6 times annual income).
• Loan Tenure: Up to 30 years.
• Processing Fees: 0.50% of the loan amount (min ₹1,500, max ₹10,000).
• Eligibility: Resident Indians & NRIs, salaried/self-employed/agriculturists, minimum age 21, satisfactory credit score.
HDFC Bank Home Loan
Key features:
• Interest Rates: Start from 8.50% p.a. onwards.
• Loan Amount: Based on eligibility and property value, up to 90% of property cost for loans up to ₹30 lakhs.
• Loan Tenure: Up to 30 years.
• Processing Fees: Up to 0.50% of the loan amount (min ₹3,300) for salaried/self-employed professionals; higher for others.
• Eligibility: Resident Indians, NRIs, salaried (min. ₹10,000/month) & self-employed (min. ₹2 lakhs/annum), and age of 21-65 years.
ICICI Bank Home Loan
Key features:
• Interest Rates: Start from 8.75% p.a. onwards.
• Loan Amount: Based on eligibility.
• Loan Tenure: Up to 30 years.
• Processing Fees: Up to 2% of the loan amount (minimum ₹3,000), plus GST.
• Eligibility: Indian residents & NRIs, salaried (min ₹25,000/month) & self-employed (min ₹30,000/month), age 21-70 years, satisfactory credit score. Loan-to-value ratio up to 90% for loans up to ₹30 lakhs.
Union Bank of India Home Loan
Key features:
• Interest Rates: Start from 8.10% p.a. onwards.
• Loan Amount: Based on eligibility and up to 90% of property cost for loans up to ₹30 lakhs.
• Loan Tenure: Up to 30 years.
• Processing Fees: 0.50% of the loan amount (maximum ₹15,000 + GST).
• Eligibility: Resident Indians & NRIs, salaried/self-employed/agriculturists, age 18-75 years, satisfactory credit score and repayment capacity
Axis Bank of India
Key features:
• Interest Rates: Start from 8.75% p.a. onwards.
• Loan Amount: Based on income and property value, minimum ₹3 lakhs, maximum up to ₹5 crores.
• Loan Tenure: Up to 30 years.
• Processing Fees: Up to 1% of the loan amount (minimum ₹10,000) + GST.
• Eligibility: Resident Indians & NRIs, salaried (age 21-60) & self-employed (age 21-65), minimum income criteria, satisfactory credit score. LTV based on loan amount (e.g., 90% for up to ₹30 lakhs).
Bank of Baroda Home Loan
Key features:
• Interest Rates: Start from 8.00% p.a. onwards.
• Loan Amount: Up to ₹20 Crores (depending on the city), with LTV up to 90% for loans up to ₹30 Lakhs.
• Loan Tenure: Up to 30 years.
• Processing Fees: Up to 0.50% of the loan amount (Min ₹8,500, Max ₹25,000) + GST.
• Eligibility: Resident Indians, NRIs, PIOs; salaried/self-employed; minimum age 21 years; satisfactory credit score.
AU Bank Home Loan
Key features:
• Interest Rates: Start from 8.00% p.a. and can go up to 22.00% p.a.
• Loan Amount: Starting at ₹2 lakhs, with a maximum of up to ₹5 crores.
• Loan Tenure: Up to 30 years for salaried and 20 years for self-employed.
• Processing Fees: Up to 2% of the loan amount.
• Eligibility: Indian resident, minimum age 18, maximum age 70 at maturity. Minimum loan tenure: 1 year.
Understanding Home Loan Interest Rates
A home loan interest rate is the cost of borrowing, expressed as a percentage of your loan amount.
Types of Interest Rates:
• Fixed Rate: Remains constant throughout the loan tenure. Predictable EMIs, but no benefit from falling market rates.
• Floating Rate: Linked to benchmarks like the RLLR. EMIs may decrease if RBI lowers repo rates but can rise if rates increase.
Factors That Influence Home Loan Interest Rates
We all know that home loan interest rates aren’t the same for everyone. Here’s what makes the difference:
• Borrower’s Credit Score (CIBIL Score):
A high score (750+) signals financial discipline, which banks reward with lower rates.
• Loan Amount and Loan-to-Value (LTV) Ratio:
The more you borrow compared to the property’s value, the riskier the loan. Higher LTVs might carry slightly higher rates.
• Loan Tenure:
Longer tenures often have slightly higher rates. However, shorter loans mean bigger EMIs.
• Type of Lending Institution:
Public sector banks usually offer lower rates, but private banks may offer quicker processing and better service. Housing Finance Companies (HFCs) can be a middle ground.
• Promotional Offers and Customer Loyalty:
Introductory rates, festive discounts, and relationship pricing can work in your favour—especially if you’re an existing customer with a good banking history.
Conclusion
Choosing a home loan is not just about the lowest interest rate. It’s about the total cost, service quality, flexibility, and long-term convenience. As you move closer to purchasing your home in 2025, take the time to assess all available options, compare banks, read the fine print, and—most importantly—choose what works for your specific needs.
Download Personal Loan App
Get a loan instantly! Best Personal Loan App for your needs!!
Looking for an instant loan? Buddy Loan helps you get an instant loan from the best-verified lenders. Download the Buddy Loan App from the Play Store or App Store and apply for a loan now!
Download the Buddy Loan app now!
Get the free Buddy Loan app on your phone
Frequently Asked Questions
Q: Which bank offers the best home loan interest rate?
As of April 2025, Central Bank of India, Union Bank of India, and Bank of Maharashtra offer the lowest home loan interest rates starting from 7.85% p.a., subject to eligibility criteria.
Q: Which bank gives a 100% home loan in India?
Most banks in India finance up to 75%-90% of the property’s value; 100% financing is rare and typically not offered by major banks.
Q: Which bank is better for a home loan?
Banks like State Bank of India (SBI), HDFC, and Bank of Baroda are considered reliable for home loans due to competitive rates and customer service.
Q: Which bank has the lowest interest rate on a house?
Currently, Central Bank of India, Union Bank of India, and Bank of Maharashtra offer home loan interest rates starting from 7.85% p.a.
Q: Which bank gives 8% interest rate for home loan?
Banks like HDFC offer home loan interest rates starting at 8.70% p.a., depending on the applicant’s credit profile.
Q: What are bank home loan interest rates after the repo rate cut?
Following the repo rate cut, banks have adjusted their home loan interest rates accordingly; for instance, SBI’s rates now start from 8.25% p.a.
Q: What is the current SBI home loan rate?
SBI offers home loan interest rates ranging from 8.25% to 9.20% p.a., based on the applicant’s creditworthiness.
Q: What is HDFC home loan interest rate?
HDFC’s home loan interest rates start from 8.70% p.a. for adjustable-rate loans, varying with the applicant’s credit score and loan amount.
Q: Which bank is perfect for a home loan?
The ideal bank for a home loan depends on individual requirements; however, SBI, HDFC and Bank of Baroda are popular choices due to their competitive rates and services.
Q: How to ask a bank to reduce the interest rate?
You can request your bank to reduce the interest rate by submitting a formal application, highlighting your good repayment history and referencing lower rates offered to new customers.
