Table of Contents
- Latest Home Loan Interest Rates of All Banks (Comparison ...
- Quick Comparison: Banks Ranked by Lowest Interest Rate
- Public Sector Bank Home Loan Interest Rates
- Private Bank Home Loan Interest Rates
- Housing Finance Companies
- Lowest Home Loan Interest Rates in India
- Fixed vs Floating Interest Rates
- Repo Linked Home Loan Rates
- Women Home Loan Benefits
- Eligibility Criteria
- Documents Required
- Processing Fees & Other Charges
- EMI Calculator
- Sample EMI Table
- Tax Benefits
- Home Loan Balance Transfer
- Top-Up Loan
- Tips to Get Lower Interest Rates
- How to Compare Home Loans
- Why Compare Home Loans on BankerMart?
- Frequently Asked Questions (FAQs)
- Conclusion
Buying a home is one of the most decisions you'll ever make. The interest rate on your home loan directly impacts your monthly budget and the total amount you repay over the loan's lifetime. Even a small difference in the rate can translate into lakhs of rupees saved or spent.
With the Reserve Bank of India maintaining the repo rate at 5.25 percent, home loan rates across banks remain competitive, making this an excellent time to secure a housing loan . In a significant move, Bank of Maharashtra has slashed its home loan rate to a market-leading 7.00% p.a. with zero processing fees as part of its \"Monsoon Dhamaka\" limited-period offer .
This comprehensive guide provides a complete comparison of home loan interest rates from all major banks and housing finance companies in India as of August 2026. Whether you are a salaried employee, self-employed professional, or NRI, this guide will help you find the best home loan deal for your needs.
Latest Home Loan Interest Rates of All Banks (Comparison Table)
The table below provides a comprehensive comparison of home loan interest rates, processing fees, maximum tenure, Loan-to-Value (LTV) ratio, and women borrower benefits across major banks and NBFCs in India. Rates are indicative and subject to change.
| Bank / NBFC | Starting Interest Rate (p.a.) | Processing Fee | Maximum Tenure | Maximum LTV | Women Benefit |
|---|---|---|---|---|---|
| Bank of Maharashtra | 7.00% (Limited Period Offer) | 0% (Limited Period) | 30 years | 90% | 0.05% Concession |
| UCO Bank | 7.00% – 9.25% | 0.50% of the loan amount | 30 years | 90% | 0.05% Concession |
| Bank of India | 7.10% – 10.00% | 0.25% (Min ₹1,500 – Max ₹20,000) | 30 years | 90% | 0.05% Concession |
| Central Bank of India | 7.10% – 8.75% | 0.50% (Max ₹20,000) | 30 years | 90% | 0.05% Concession |
| Canara Bank | 7.15% – 10.00% | 0.25% of the loan amount | 30 years | 90% | 0.05% Concession |
| Indian Bank | 7.15% – 8.55% | 0.23% – 0.50% | 30 years | 90% | 0.05% Concession |
| Union Bank of India | 7.15% – 9.35% | 0.50% (Max ₹15,000 + GST) | 30 years | 90% | 0.05% Concession |
| Bank of Baroda | 7.20% – 8.95% | Min ₹8,500 – Max ₹25,000 | 30 years | 90% | 0.05% Concession |
| IOB | 7.20% – 8.30% | 0.50% of the loan amount | 30 years | 90% | 0.05% Concession |
| South Indian Bank | 7.20% onwards | 0.50% (Max ₹10,000) | 30 years | 90% | Available |
| Punjab & Sind Bank | 7.30% – 10.70% | 0.50% (Min ₹10,000 – Max ₹2 lakh) | 30 years | 90% | 0.05% Concession |
| Federal Bank | 7.35% – 9.25% | 0.5% (Max ₹7,500) | 30 years | 90% | 0.05% Concession |
| IDBI Bank | 7.40% – 11.90% | 0.50% of the loan amount + GST | 30 years | 90% | 0.05% Concession |
| ICICI Bank | 7.50% onwards | 0.25% – 0.50% + GST | 30 years | 90% | 0.05% Concession |
| Karnataka Bank | 7.49% – 11.72% | 0.25% of loan amount | 30 years | 90% | Available |
| Kotak Mahindra Bank | 7.60% onwards | Up to 2% (Zero online) | 30 years | 90% | Available |
| PNB Housing Finance | 7.50% onwards | Up to 0.25% (Max ₹15,000) | 30 years | 90% | Available |
| ICICI Home Finance | 7.50% onwards | 0.25% – 0.50% | 30 years | 90% | Available |
| LIC Housing Finance | 7.15% onwards | 0.25% (Max ₹15,000 + GST) | 30 years | 90% | Available |
| Bajaj Housing Finance | 7.25% onwards | 1.00% – 2.00% | 32 years | 90% | Available |
| Aditya Birla Housing Finance | 7.75% onwards | 1.00% | 30 years | 90% | Available |
| L&T Finance | 8.75% – 12.50% | 1.00% | 25 years | 90% | Available |
| Tata Capital | 8.80% onwards | 2.00% | 30 years | 90% | Available |
| Shriram Housing Finance | 8.41% onwards | 0.50% of loan amount + GST | 30 years | 90% | Available |
| Axis Bank | 8.00% – 9.10% | Up to 1% (Min ₹10,000) | 30 years | 90% | 0.05% Concession |
| State Bank of India (SBI) | 7.25% – 8.55% | 0.35% (Min ₹3,000 – Max ₹12,000 + GST) | 30 years | 90% | 0.05% Concession |
| Punjab National Bank (PNB) | 7.25% – 9.10% | 0.35% (Min ₹2,500 – Max ₹15,000) | 30 years | 90% | 0.05% Concession |
| HDFC Bank | 7.75% – 13.20% | Up to 0.50% (Min ₹4,000) | 30 years | 90% | 0.05% Concession |
| Yes Bank | 8.65% onwards | Up to 2.00% | 35 years | 90% | Available |
| AU Small Finance Bank | 8.00% – 16.00% | 1.50% | 30 years | 90% | Available |
| IDFC First Bank | 8.85% onwards | Up to 3.00% | 30 years | 90% | Available |
| RBL Bank | 9.00% onwards | 1.00% | 25 years | 90% | Available |
Note: Floating interest rates may be subject to revision after a specified tenure depending on the bank's terms and conditions . For some banks, the starting rate is applicable only for borrowers with a high CIBIL score (typically 750+) .
Quick Comparison: Banks Ranked by Lowest Interest Rate
Here's a quick ranking of lenders by their starting interest rate to help you identify the most affordable options:
Public Sector Bank Home Loan Interest Rates
Public sector banks (PSBs) in India are offering highly competitive interest rates, with many starting in the 7.00% – 7.25% range. This makes them an attractive option for borrowers seeking affordable home loans.
State Bank of India (SBI) Home Loan Interest Rate
Bank of Baroda Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.20% – 8.95% p.a. |
| Processing Fee | Min ₹8,500 – Max ₹25,000 |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
| Women Concession | 0.05% concession available |
Canara Bank Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.15% – 10.00% p.a. |
| Processing Fee | 0.25% of the loan amount |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
| Women Concession | 0.05% concession available |
Punjab National Bank (PNB) Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.25% – 9.10% p.a. |
| Processing Fee | 0.35% (Min ₹2,500 – Max ₹15,000) |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
| Women Concession | 0.05% concession available |
Union Bank of India Home Loan Interest Rate
Indian Bank Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.15% – 8.55% p.a. |
| Processing Fee | 0.23% – 0.50% of the loan amount |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
| Women Concession | 0.05% concession available |
Bank of India Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.10% – 10.00% p.a. |
| Processing Fee | 0.25% (Min ₹1,500 – Max ₹20,000) |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
| Women Concession | 0.05% concession available |
Bank of Maharashtra Home Loan Interest Rate
Central Bank of India Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.10% – 8.75% p.a. |
| Processing Fee | 0.50% (Max ₹20,000) |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
| Women Concession | 0.05% concession available |
UCO Bank Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.00% – 9.25% p.a. |
| Processing Fee | 0.50% of the loan amount |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
| Women Concession | 0.05% concession available |
Punjab & Sind Bank Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.30% – 10.70% p.a. |
| Processing Fee | 0.50% (Min ₹10,000 – Max ₹2 lakh) |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
Private Bank Home Loan Interest Rates
Private sector banks offer competitive rates along with faster processing and better digital experiences. However, their starting rates are generally slightly higher than the top PSU banks.
HDFC Bank Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.75% – 13.20% p.a. |
| Processing Fee | Up to 0.50% (Min ₹4,000) |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
| Women Concession | 0.05% concession available |
ICICI Bank Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.50% onwards |
| Processing Fee | 0.25% – 0.50% + GST |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
| Women Concession | 0.05% concession available |
Axis Bank Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 8.00% – 9.10% p.a. |
| Processing Fee | Up to 1% (Min ₹10,000) |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
| Women Concession | 0.05% concession available |
Kotak Mahindra Bank Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.60% onwards |
| Processing Fee | Up to 2% (Zero for online applications) |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
Federal Bank Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.35% – 9.25% p.a. |
| Processing Fee | 0.5% (Max ₹7,500) |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
IDBI Bank Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.40% – 11.90% p.a. |
| Processing Fee | 0.50% of the loan amount + GST |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
Yes Bank Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 8.65% onwards |
| Processing Fee | Up to 2.00% |
| Maximum Tenure | Up to 35 years |
| Maximum LTV | Up to 90% |
South Indian Bank Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.20% onwards |
| Processing Fee | 0.50% (Max ₹10,000) |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
Karnataka Bank Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.49% – 11.72% p.a. |
| Processing Fee | 0.25% of loan amount |
| Maximum Tenure | Up to 30 years |
| Maximum LTV | Up to 90% |
RBL Bank Home Loan Interest Rate
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 9.00% onwards |
| Processing Fee | 1.00% |
| Maximum Tenure | Up to 25 years |
| Maximum LTV | Up to 90% |
Housing Finance Companies
Housing Finance Companies (HFCs) are specialised non-banking financial institutions that focus exclusively on home loans. They often offer competitive rates and flexible terms.
LIC Housing Finance
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.15% onwards |
| Processing Fee | 0.25% (Max ₹15,000 + GST) |
| Maximum Tenure | Up to 30 years |
PNB Housing Finance
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.50% onwards |
| Processing Fee | Up to 0.25% (Max ₹15,000) |
| Maximum Tenure | Up to 30 years |
Bajaj Housing Finance
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.25% onwards |
| Processing Fee | 1.00% – 2.00% |
| Maximum Tenure | Up to 32 years |
Aavas Finance
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 10% – 19% p.a. |
| Processing Fee | Up to 2% + GST |
| Maximum Tenure | Up to 30 years |
Aditya Birla Housing Finance
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 7.75% onwards |
| Processing Fee | 1.00% |
| Maximum Tenure | Up to 30 years |
L&T Finance
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 8.75% – 12.50% p.a. |
| Processing Fee | 1.00% |
| Maximum Tenure | Up to 25 years |
Tata Capital Housing Finance
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 8.80% onwards |
| Processing Fee | 2.00% |
| Maximum Tenure | Up to 30 years |
Shriram Housing Finance
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 8.41% onwards |
| Processing Fee | 0.50% of loan amount + GST |
| Maximum Tenure | Up to 30 years |
GIC Housing Finance
| Feature | Details |
|---|---|
| Interest Rate (Floating) | 8.80% onwards |
| Processing Fee | ₹2,500 + GST |
| Maximum Tenure | Up to 30 years |
Lowest Home Loan Interest Rates in India
As of August 2026, the lowest home loan interest rates in India are being offered by:
Note: Bank of Maharashtra's 7.00% p.a. rate is part of a limited-period \"Monsoon Dhamaka\" offer. Regular rates may be higher. Always verify current rates on the official bank website .
Fixed vs Floating Interest Rates
Floating Rate (Recommended)
What It Is: The interest rate fluctuates with changes in the RBI's repo rate.
Pros: Lower starting rates, transparency, and benefit from rate cuts.
Cons: EMIs can increase if rates rise.
Best For: Most home loan borrowers.
Fixed Rate
What It Is: The interest rate remains constant throughout the loan tenure.
Pros: EMIs remain predictable and stable.
Cons: Usually higher than floating rates; you don't benefit from rate cuts.
Best For: Borrowers who prefer payment certainty.
Note: Some banks allow fixed rates only for a definite period; thereafter, prevailing floating rates apply .
Repo Linked Home Loan Rates
Since the introduction of the external benchmark regime by the RBI, most banks have linked their floating home loan rates to the repo rate. The current repo rate stands at 5.25% as of the latest RBI monetary policy review .
How It Works:
Your home loan interest rate = Repo Rate + Bank's Spread
Any change in the repo rate directly impacts your loan rate.
Current RLLR (Repo Linked Lending Rate) of Major Banks:
| Bank | RLLR (Approx.) |
|---|---|
| State Bank of India | 8.70% (1-Year MCLR) |
| HDFC Bank | 8.35% (1-Year MCLR) |
| Punjab National Bank | 8.75% (1-Year MCLR) |
| Canara Bank | 8.75% (1-Year MCLR) |
| Bank of Baroda | 8.70% (1-Year MCLR) |
Note: The actual home loan rate offered is typically RLLR plus a spread based on your credit profile.
Women Home Loan Benefits
Many banks offer special benefits to women borrowers:
Interest Rate Concession: Most banks offer a 0.05% concession on the applicable interest rate for women applicants.
Processing Fee Waiver: Under certain offers (like Bank of Maharashtra's Monsoon Dhamaka), processing fees are waived.
Joint Ownership Benefits: Adding a woman co-applicant can improve overall eligibility and qualify the application for the 0.05% interest concession.
Tax Benefits: Women homeowners are eligible for the same tax deductions on home loan interest (Section 24) and principal repayment (Section 80C).
Banks Offering Women Concessions:
Bank of Maharashtra, SBI, HDFC Bank, ICICI Bank, Axis Bank, Bank of Baroda, Canara Bank, PNB, Union Bank of India, and most public sector banks offer a 0.05% concession .
Eligibility Criteria
Eligibility criteria vary by bank, but here are the general requirements:
| Criteria | Salaried Individuals | Self-Employed Individuals |
|---|---|---|
| Age | 21 - 60 years | 21 - 65/75 years |
| Minimum Income | ₹1.8 Lakh – ₹3 Lakh per annum | ₹1.8 Lakh – ₹3 Lakh per annum |
| Employment Stability | Minimum 1-3 years in current job | Minimum 3 years of business continuity |
| Minimum CIBIL Score | 725+ (Recommended for best rates) | 725+ (Recommended for best rates) |
| FOIR | Up to 50-60% of monthly income | Up to 50-60% of monthly income |
Eligibility by Salary
Here's an approximate guide to how much loan you may be eligible for based on your monthly income:
| Monthly Income (₹) | Approx. Eligible Loan (20-year tenure) |
|---|---|
| 50,000 | ₹30-35 Lakh |
| 75,000 | ₹45-55 Lakh |
| 1,00,000 | ₹60-75 Lakh |
| 1,50,000 | ₹90-110 Lakh |
| 2,00,000 | ₹120-140 Lakh |
Documents Required
Salaried Individuals
| Category | Documents |
|---|---|
| Identity Proof | Aadhaar, PAN Card, Passport, Voter ID |
| Address Proof | Aadhaar, Passport, Voter ID, Utility Bill |
| Income Proof | Last 3 months' salary slips, Form 16, last 2 years' ITR, 6 months' bank statements |
| Employment Proof | Offer letter, appointment letter, or experience certificate |
Self-Employed Individuals
| Category | Documents |
|---|---|
| Identity Proof | Aadhaar, PAN Card, Passport, Voter ID |
| Address Proof | Aadhaar, Passport, Voter ID, Utility Bill |
| Income Proof | Last 3 years' ITR with computation, audited financials (P&L, Balance Sheet), 6 months' bank statements |
| Business Proof | Business registration certificate, GST registration, Shops and Establishment Act license |
Property Documents
Sale Agreement/Chain of title documents
Approved building plan (for construction/extension)
Receipts of payments made to the builder/seller
Encumbrance certificate
NOC from the builder/society
Processing Fees & Other Charges
| Charge Type | Typical Range |
|---|---|
| Processing Fee | 0% – 3% of loan amount |
| Legal & Technical Charges | ₹5,000 – ₹15,000 |
| Stamp Duty | As per state government regulations |
| MODT Charges | 0.1% – 1% of loan amount |
| Prepayment / Foreclosure Charges | NIL for floating-rate loans for individual borrowers |
EMI Calculator
Home Loan EMI Calculator
Live| 📊 Rate | 8.50% |
| ⏱️ Tenure | 20 years |
| 💰 Total Interest | ₹ 0 |
| 💵 Total Payment | ₹ 0 |
Amortization Schedule Monthly
| # | Date | EMI (₹) | Principal (₹) | Interest (₹) | Balance (₹) |
|---|---|---|---|---|---|
| Calculating... | |||||
An Equated Monthly Installment (EMI) is the fixed monthly amount you pay to the bank to repay your loan. It consists of two parts: the principal amount and the interest.
How is EMI Calculated?
The EMI is calculated using the following formula:
EMI = [P × r × (1+r)^n] / [(1+r)^n – 1]
Where:
P is the principal loan amount.
r is the monthly interest rate (annual rate divided by 12).
n is the total number of monthly installments.
Benefits of Using the BankerMart EMI Calculator
Quick and Accurate: Instantly calculate your EMI.
Financial Planning: Understand your monthly commitment.
Compare Scenarios: Adjust loan amount, rate, or tenure.
Free and Easy: No registration required.
Sample EMI Table
The table below provides indicative EMIs for various loan amounts and tenures, assuming a starting interest rate of 7.00% p.a. .
| Loan Amount (₹) | Tenure (Years) | Estimated EMI (₹) | Total Interest (₹) | Total Payment (₹) |
|---|---|---|---|---|
| 20,00,000 | 20 | 15,449 | 17,07,760 | 37,07,760 |
| 20,00,000 | 30 | 13,302 | 27,88,720 | 47,88,720 |
| 30,00,000 | 20 | 23,174 | 25,61,760 | 55,61,760 |
| 30,00,000 | 30 | 19,953 | 41,83,080 | 71,83,080 |
| 50,00,000 | 20 | 38,623 | 42,69,520 | 92,69,520 |
| 50,00,000 | 30 | 33,254 | 69,71,440 | 1,19,71,440 |
| 75,00,000 | 30 | 49,881 | 1,04,57,160 | 1,79,57,160 |
| 1,00,00,000 | 30 | 66,508 | 1,39,42,880 | 2,39,42,880 |
Note: These figures are indicative. Use the BankerMart Home Loan EMI Calculator for personalized calculations.
Tax Benefits
| Section | Deduction Type | Maximum Limit |
|---|---|---|
| Section 24(b) | Interest on Home Loan | Up to ₹2 Lakh per annum (Self-occupied) |
| Section 80C | Principal Repayment | Up to ₹1.5 Lakh per annum |
| Section 24(b) (Joint Ownership) | Interest on Home Loan | Each co-owner can claim up to ₹2 Lakh |
Key Points:
The property must be purchased/constructed within 5 years.
For rented property, the entire interest amount is deductible.
Stamp duty and registration charges are also deductible under Section 80C.
Home Loan Balance Transfer
Balance transfer allows you to transfer your existing home loan from one bank to another to avail of a lower interest rate.
Benefits:
Lower EMI
Reduced total interest cost
Potential savings of lakhs over the loan tenure
When to Consider:
If your existing loan has a higher interest rate than current market rates.
If you have improved your CIBIL score.
If you want to switch to a bank with better customer service.
Top-Up Loan
A top-up loan is an additional loan availed on top of your existing home loan.
Purpose: Renovation, extension, home improvement, wedding, education, medical expenses, etc.
Key Features:
Interest Rate: As per prevailing rates
Tenure: Co-terminus with the existing home loan
LTV: Up to 75% of property value
Tips to Get Lower Interest Rates
Improve Your CIBIL Score: A score of 750+ qualifies you for the best rates. Borrowers with high credit scores, usually 800 and above, are more likely to qualify for the lowest home loan interest rates .
Increase Your Down Payment: A larger down payment reduces the loan amount, making you a less risky borrower.
Maintain Stable Income: A consistent employment history or stable business income strengthens your application.
Reduce Your FOIR: Lower your existing obligations to improve your Fixed Obligation to Income Ratio.
Add a Co-Applicant: Adding a co-applicant with a stable income can strengthen your application.
Compare Multiple Banks: Use BankerMart to compare rates from different banks. Since banks and housing finance companies offer rates based on factors such as credit score, repayment capacity, employment profile, and loan amount, borrowers should compare multiple lenders before finalising a loan to secure the most affordable borrowing option .
Take Advantage of Special Offers: Look for limited-period offers like Bank of Maharashtra's Monsoon Dhamaka.
How to Compare Home Loans
When comparing home loan offers, consider these factors:
Interest Rate: The most important factor. Even a 0.10% difference can save lakhs over the loan tenure.
Processing Fee: Some banks offer zero processing fees as promotional offers.
Maximum Tenure: A longer tenure means lower EMIs but higher total interest.
Maximum LTV: A higher LTV means a lower down payment requirement.
Women Concession: Check if you are eligible for a concession.
Prepayment Charges: Floating-rate loans typically have zero prepayment charges.
Customer Service: Consider the bank's reputation for service and digital experience.
Why Compare Home Loans on BankerMart?
At BankerMart, we understand that finding the right home loan can be complex. Our platform is designed to empower you to make an informed decision.
Compare 20+ Banks & NBFCs: Instantly compare interest rates, processing fees, and features from India's leading lenders.
EMI Calculator: Calculate your monthly EMI quickly and accurately.
Eligibility Calculator: Check your eligibility for various banks in seconds.
Balance Transfer Calculator: See how much you can save by transferring your loan.
Transparent Comparisons: We provide clear, up-to-date information to help you choose the best option.
Expert Guides: Access comprehensive guides and articles to understand the finer details of the home loan process.
Frequently Asked Questions (FAQs)
1. Which bank is offering the lowest home loan interest rate in August 2026?
Bank of Maharashtra is currently offering the lowest home loan interest rate at 7.00% p.a. under its limited-period Monsoon Dhamaka offer, along with zero processing fees . UCO Bank also offers rates starting from 7.00% p.a. .
2. What is the current SBI home loan interest rate?
State Bank of India offers home loans starting from 7.25% p.a. (floating) .
3. What is the current HDFC Bank home loan interest rate?
HDFC Bank offers home loans starting from 7.75% p.a. (floating) .
4. What is the current ICICI Bank home loan interest rate?
ICICI Bank offers home loans starting from 7.50% p.a. (floating) .
5. What is the processing fee for a home loan?
Processing fees range from 0% to 3% of the loan amount. Bank of Maharashtra is currently offering zero processing fees under its Monsoon Dhamaka offer .
6. What is the maximum tenure for a home loan in India?
Most banks offer a maximum tenure of 30 years .
7. What is a good CIBIL score for a home loan?
A CIBIL score of 725 or above is recommended for best rates. Borrowers with scores of 750+ typically qualify for the lowest rates .
8. What is the LTV ratio for home loans?
The maximum LTV for home loans is 90% for loans up to ₹30 Lakh. For loans above ₹30 Lakh, LTV is up to 75-80% as per RBI guidelines .
9. Do banks charge prepayment penalties on home loans?
For floating-rate home loans, there are no prepayment or foreclosure charges for individual borrowers as per RBI guidelines. Fixed-rate loans may have charges.
10. What is a home loan balance transfer?
A home loan balance transfer allows you to transfer your existing home loan from one bank to another to avail of a lower interest rate and better terms.
11. Which bank offers the best home loan for women?
Most banks offer a 0.05% concession for women borrowers. Bank of Maharashtra offers this concession along with its market-leading 7.00% p.a. rate .
12. What is the repo rate currently?
The RBI repo rate is currently at 5.25% as per the latest monetary policy review .
13. What is the difference between floating and fixed interest rates?
Floating rates change with market conditions and are generally lower, while fixed rates remain constant throughout the tenure but are usually higher.
14. What documents are required for a home loan?
Identity proof, address proof, income proof (salary slips or ITR), bank statements, and property documents.
15. Can I get a home loan with a low CIBIL score?
Yes, but you may be offered a higher interest rate. For example, Bank of Maharashtra offers rates up to 9.90% for lower scores .
16. What tax benefits are available on home loans?
You can claim deductions on interest (Section 24) up to ₹2 Lakh and principal repayment (Section 80C) up to ₹1.5 Lakh per annum.
17. Which is better: PSU bank or private bank for home loan?
PSU banks generally offer lower interest rates, while private banks offer faster processing and better digital experiences. Choose based on your priorities.
18. What is the home loan interest rate for senior citizens?
Senior citizens may be eligible for special concessions. Contact the specific bank for details.
19. How can I get a lower home loan interest rate?
Improve your CIBIL score, increase your down payment, add a co-applicant, reduce existing debts, and compare multiple banks .
20. What is a top-up loan?
A top-up loan is an additional loan availed on top of your existing home loan for purposes like renovation, extension, or other needs.
21. Which housing finance company offers the lowest rate?
LIC Housing Finance offers rates starting from 7.15% p.a. , followed by Bajaj Housing Finance at 7.25% p.a. .
22. What is FOIR?
FOIR stands for Fixed Obligation to Income Ratio. It is the percentage of your gross monthly income that goes towards paying EMIs and other fixed obligations.
23. Can I apply for a home loan online?
Yes, most banks and NBFCs offer online application facilities.
24. What is the home loan interest rate for self-employed individuals?
Self-employed individuals generally have rates slightly higher than salaried individuals. For example, Bank of Maharashtra offers 7.00% for salaried and 7.10% for self-employed with high CIBIL scores .
25. Does Bank of Baroda offer women concessions?
Yes, Bank of Baroda offers a 0.05% concession for women borrowers .
26. What is the home loan interest rate for government employees?
Government employees may be eligible for special concessions. Check with the specific bank.
27. Can I get a home loan for a plot purchase?
Yes, most banks offer plot loans with a maximum tenure of 15 years.
28. What is the current Canara Bank home loan interest rate?
Canara Bank offers home loans starting from 7.15% p.a. (floating) .
29. What is the current Union Bank of India home loan interest rate?
Union Bank of India offers home loans starting from 7.15% p.a. (floating) .
30. How do I compare home loan interest rates effectively?
Use BankerMart's comparison tool to compare rates, processing fees, tenure, LTV, and features from 20+ banks and NBFCs in one place.
Conclusion
Home loan interest rates in India remain highly competitive as of August 2026, with Bank of Maharashtra leading the market at 7.00% p.a. with zero processing fees under its Monsoon Dhamaka offer . Public sector banks dominate the low-rate spectrum, while private banks offer faster processing and better digital experiences.
The key to finding the best deal is to compare multiple lenders before finalising your loan. Even a marginal difference in lending rates can lead to substantial savings over a 20-30 year tenure . Factors such as credit score, repayment capacity, employment profile, and loan amount significantly impact the final rate offered .
