Owning a home is a major life goal for many, but with property prices continuously rising, a home loan becomes essential for most buyers. One of the most important aspects to consider while applying is the home loan interest rates, as it directly impacts your EMI and total repayment cost.
In India, leading banks and housing finance companies offer varying home loan interest rates, depending on your credit score, income, loan amount, and tenure. Comparing the latest home loan interest rates not only helps you find the most affordable deal but also ensures better financial planning.
🏦 Home Loan Interest Rates – July 2025 (Updated)
Here is a comparison of interest rates from leading banks and housing finance institutions in India:
| Bank Name | Interest Rate (p.a.) | Loan Amount | Processing Fee | Loan Tenure |
|---|---|---|---|---|
| SBI | 7.50% to 8.70% | From ₹5 lakh and goes up to ₹15 crore | 0.35% of the loan amount. | Up to 30 years |
| HDFC Bank | 8.45% to 9.70% | Min ₹3 lakh – Max ₹30 crore. | Up to 0.50% of the loan amount. | Up to 30 years |
| ICICI Bank | 8.65% – 11.80% | Min ₹5 lakh to a Max of ₹5 crore | 0.5% to 2% of the loan amount or ₹3,000 minimum. | Up to 30 years |
| Axis Bank | 8.75% – 12.80% | Min ₹3 lakh – Max ₹5 crores. | Up to 1% of the loan amount, with a minimum of ₹10,000, plus applicable GST. | Up to 30 years |
| LIC Housing Finance | 8.00% – 10.25% | Min ₹1 Lakh – Max ₹15 Crores | 0.25% of the loan amount, with a maximum of ₹15,000 plus GST. | Up to 30 years |
| Kotak Mahindra Bank |
8.20% – 9.25% | Min of ₹10 lakh to a Max of ₹40 crores. | 0.50% to 1% of the loan amount. | Up to 25 years. |
| Bank of Baroda |
7.50% – 9.20% | Min ₹1 lakh – Max of Rs. 20 crores. | 0.50% of the loan amount: Minimum: Rs 8,500 (Upfront) Maximum: Rs 15,000. | Up to 30 years |
| Punjab National Bank (PNB) |
7.50% – 10.85% | Min ₹2 lakh – Max ₹5 Crore. | 0.35% of the loan amount (₹2,500 minimum, ₹15,000 maximum). | Up to 30 years |
| Canara Bank | 7.40% – 11.50% | Min ₹5 lakh – Max ₹10 crore. | 0.50% of the loan amount, with a minimum of ₹100 and a maximum of ₹500. | From 1 year up to 30 years |
| Union Bank of India |
8.10% – 12.65% | Min ₹50 lakh – Max Up to ₹10 crores. | 0.50% of the loan amount, with a maximum of ₹15,000 plus GST. | Up to 30 years |
| Bank of India | 8.40% – 10.85% | Min ₹5 lakh – Max can go above ₹₹5 crore | 0.25% of the loan amount, minimum of ₹1,500 and a maximum of ₹20,000. | Up to 30 years |
| UCO Bank | 7.60% – 9.00% | From ₹2 lakh (minimum) to ₹15 crore (maximum) | Between 0.10% to 0.25% of the loan amount. | Up to 30 years |
| Yes Bank | 9.00% – 12.00% | Ranging from ₹10 lakh to ₹10 crores. | 1.5% of the loan amount or Rs. 10,000, whichever is higher, plus applicable GST. | Up to 30 years |
| Bandhan Bank | 8.40% – 13.25% | Ranging From ₹50,000 to ₹5 crore. | Up to 1% of the loan amount | Up to 30 years |
*Note: Rates are subject to change. Check with the bank before applying.
🧾 Want to Know If You’re Eligible for a Home Loan?
Before getting excited about interest rates, it’s smart to first check your eligibility. Lenders consider key factors such as your monthly income, age, ongoing EMIs, and credit score before approving your home loan application.
Understanding your eligibility upfront can help you:
- Avoid rejection by applying within your qualified loan range
- Plan your finances better and choose the right tenure
- Boost your chances by adding a co-applicant if needed
🎯 Curious to see how much home loan you can get?
👉 Check our Home Loan Eligibility Here – It’s free, fast, and 100% online.
| Home Loan Calculator | Home Loan Eligibility |
💡 Key Factors Influencing Home Loan Interest Rates
Understanding what affects home loan interest rates can help you secure better offers and plan your finances wisely:
- Credit Score: Having a score over 750 can help you get better loan rates.
- Loan Amount & Tenure: Larger loan amounts or longer repayment periods may lead to higher interest rates.
- Income & Employment Status: Salaried individuals often receive more favorable home loan interest rates compared to self-employed applicants.
- Repo Rate Changes: RBI repo rate changes can affect floating loan rates.
🧮 Calculate Your EMI in Seconds
Want to know your monthly repayment? Use our free Home Loan EMI Calculator to quickly estimate your EMIs based on your loan amount, tenure, and the prevailing home loan interest rates.
✅ Why Comparing Home Loan Interest Rates is Essential
- Secure the most affordable rate and reduce your total interest by lakhs.
- Compare processing fees and hidden charges.
- Find loans with flexible repayment options.
- Avoid unnecessary rejections by knowing eligibility.
📋Essential Documents Needed to Apply for a Home Loan
To process your home loan smoothly, prepare these documents:
- PAN Card and Aadhaar Card
- Income Proof (ITR/Form 16)
- Bank statements for the last 6 months
- Property-related documents
- Employment proof (especially for salaried applicants)
🤔 Fixed vs Floating Interest Rates – What’s the Difference?
| Fixed Rate | Floating Rate |
|---|---|
| Better for long-term planning | Can save if rates fall |
| Higher than floating | Lower starting rate |
| Stable payments | Risk of increase over time |
| A prepayment penalty may apply | Usually no prepayment penalty |
📝 Top 5 FAQs on Home Loan Interest Rates
Q1. How can I save money on home loan interest?
Ans: Make timely payments, consider shorter tenures, and explore balance transfers for better rates.
Q2.How does the interest rate on a home loan impact my monthly EMI?
Ans: A higher home loan interest rate increases your EMI while a lower rate reduces it, impacting your monthly budget.
Q3. What is a home loan balance transfer?
Ans: It lets you switch your loan to a lender with lower rates, reducing your EMI and total interest paid.
Q4. Should I choose fixed or floating interest rates?
Ans: Fixed rates offer stable EMIs, while floating rates can change with market conditions, potentially lowering your EMI.
Q5. Can I negotiate a better home loan interest rates with my lender?
Ans: Yes, lenders may offer lower home loan interest rates based on your credit score, income, and relationship with the bank.
Explore Our Loan Calculators & Interest Rate Guides
Want to understand your loans better? Explore our range of calculators and interest rate guides to manage your finances smartly:
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