Buying a dream home is one of the biggest milestones in life. But with rising property costs, most individuals rely on home loans to make it a reality. That’s why finding the lowest home loan interest rate is crucial.
In India, top banks and housing finance companies offer competitive home loan rates based on factors such as applicant’s credit score, loan amount, and tenure. We help you compare the latest rates and choose the best option for your needs.
🏦 Home Loan Interest Rates – April 2025 (Updated)
Here is a comparison of interest rates from leading banks and housing finance institutions in India:
| Bank Name | Interest Rate (p.a.) | Processing Fee | Loan Tenure |
|---|---|---|---|
| SBI | 8.50% – 9.85% | 0.35% of the loan amount plus GST | Up to 30 years |
| HDFC | 8.75% onwards | Up to 0.50% or Rs.3,000 plus taxes, whichever is higher | Up to 30 years |
| ICICI Bank | 8.75% onwards | Details not specified | Up to 30 years |
| Axis Bank | 8.75% – 13.30% | Up to 1% or min. Rs.10,000 plus GST | Up to 30 years |
| LIC Housing Finance | 8.50% onwards | For amounts up to Rs.1 crore: 0.25% of the loan amount, max Rs.15,000 plus GST | Up to 30 years |
| Kotak Mahindra Bank | 8.75% onwards | Salaried: 0.5% plus taxes; Self-Employed/Commercial: 1.0% plus taxes | Up to 20 years |
| Bank of Baroda | 8.40% – 10.90% | No processing fee; discounted upfront fee | Up to 30 years |
| Punjab National Bank | 8.40% – 10.15% | Nil | Up to 30 years |
| Canara Bank | 8.40% – 11.25% | 0.50% of the loan amount | Up to 30 years |
| Union Bank of India | 8.30% – 10.90% | 0.50% of the loan amount | Up to 30 years |
*Note: Rates are subject to change. Check with the bank before applying.
💡 Factors Affecting Home Loan Interest Rates
- Credit Score: A score above 750 ensures better offers.
- Loan Amount & Tenure: Larger amounts or longer tenures may attract higher rates.
- Income & Employment Type: Salaried employees often get better rates.
- Repo Rate Changes: RBI’s changes to the repo rate can impact floating loan rates.
🧮 Calculate Your EMI Instantly
Use our Home Loan EMI Calculator to check your monthly installments. Enter your loan amount, interest rate, and tenure to get accurate results.
✅ Why Compare Home Loan Rates?
- Get the lowest rate and save lakhs in interest.
- Compare processing fees and hidden charges.
- Find loans with flexible repayment options.
- Avoid unnecessary rejections by knowing eligibility.
📋 Documents Required for Home Loan Application
- PAN Card, Aadhaar Card
- Income Proof (ITR/Form 16)
- Bank Statements (last 6 months)
- Property documents
- Employment Proof (for salaried individuals)
🤔 Fixed vs Floating Interest Rates
| Fixed Rate | Floating Rate |
|---|---|
| Fixed EMI throughout | EMI varies as per market |
| Higher than floating | Lower starting rate |
| Stable payments | Risk of increase over time |
📝 Frequently Asked Questions (FAQ)
Q1. What is the current home loan interest rate in India?
A. As of April 2025, rates start from 8.50% per annum and may vary by bank and applicant profile.
Q2. Which bank has the lowest home loan interest rate in 2025?
A. State Bank of India (SBI) and HDFC currently offer some of the most competitive rates.
Q3. Can I switch my home loan to another bank?
A. Yes, via a balance transfer, you can move your home loan to another lender offering a lower interest rate.