Home Loan Rate Comparison June 2026: SBI, HDFC, ICICI, Central Bank and All Banks

Applying for a home loan in June 2026? You are not alone. This is the season when families plan their dream homes. Schools are closed, the weather is warm, and builders launch new projects. But before you sign any paper, you need to know one thing clearly – which bank is giving the lowest interest rate right now.

This guide compares all major banks including Central Bank of India. You will see the latest rates, processing fees, and hidden charges. We also explain how your CIBIL score changes the rate you get. And we clear the confusion between fixed and floating interest rates. No complicated terms. Just straight facts for June 2026.

Home Loan Interest Rates June 2026 – Complete Bank-wise Table

The table below shows the latest floating interest rates for home loans in June 2026. These rates are updated as of the first week of June 2026 based on bank announcements and verified sources.

| Bank Name | Loan up to ₹30 Lakh | ₹30-75 Lakh | ₹75 Lakh+ | Processing Fees |

| State Bank of India | 7.25% – 8.45% | 7.25% – 8.45% | 7.25% – 8.45% | 0.35% (Min ₹2,000, Max ₹10,000) |

| HDFC Bank | 7.75% – 13.20% | 7.75% – 13.20% | 7.75% – 13.20% | 0.50% or ₹3,000 (whichever is higher) |

| ICICI Bank | 7.50% onwards | 7.50% onwards | 7.50% onwards | 0.50% of loan amount |

| Bank of Baroda | 7.20% – 8.95% | 7.20% – 8.95% | 7.20% – 8.95% | 0.25% – 0.50% (₹8,500 – ₹25,000) |

| Punjab National Bank | 7.25% – 9.10% | 7.20% – 9.10% | 7.20% – 9.0% | 0.35% (₹2,500 – ₹15,000) |

| Canara Bank | 7.15% – 10.00% | 7.10% – 10.00% | 7.05% – 9.90% | 0.25% (Min ₹1,500, Max ₹20,000) |

| Bank of India | 7.10% – 10.00% | 7.10% – 10.00% | 7.10% – 10.00% | 0.35% (₹3,500 – ₹30,000) |

| Union Bank of India | 7.15% – 9.25% | 7.15% – 9.25% | 7.15% – 9.25% | 0.50% (Max ₹15,000) |

| Indian Bank | 7.15% – 8.55% | 7.15% – 8.55% | 7.15% – 8.55% | 0.25% – 1% (₹1,500 – ₹15,000) |

| Central Bank of India | 7.10% – 9.70% | 7.10% – 9.70% | 7.10% – 9.70% | 0.35% (Min ₹1,500, Max ₹10,000) |

| Axis Bank | 8.00% – 9.10% | 8.00% – 9.10% | 8.00% – 9.10% | Up to 2% (Min ₹10,000) |

| IDBI Bank | 7.35% – 11.95% | 7.35% – 11.95% | 7.35% – 11.95% | ₹10,000 – ₹17,500 |

| Kotak Mahindra Bank | 7.60% onwards | 7.60% onwards | 7.60% onwards | Contact Bank |

| Yes Bank | 8.65% onwards | 8.65% onwards | 8.65% onwards | 1% of loan amount |

Important Note: The rates mentioned above are floating interest rates. They change when RBI changes the repo rate. The final rate you get also depends on your CIBIL score, loan amount, and employer profile.

How Much Have Rates Changed Since Last Year (2025)?

In 2025, the average home loan rate for a borrower with a good credit score was around 8.50% to 9.00%. In June 2026, the starting rates have dropped. Several banks now offer rates as low as 6.70% for their best customers.

Year-on-Year Rate Comparison (2025 vs June 2026)

| Bank | Average Rate in 2025 | Rate in June 2026 | Change |

| SBI | 8.50% – 9.65% | 7.25% – 8.45% | ↓ 1.25% lower |

| HDFC | 9.40% – 9.95% | 7.75% – 13.20% | ↓ 1.65% lower (starting rate) |

| ICICI | 8.75% – 10.05% | 7.50% onwards | ↓ 1.25% lower |

| Bank of Baroda | 8.40% – 10.60% | 7.20% – 8.95% | ↓ 1.20% lower |

| Central Bank of India | 8.60% – 10.20% | 7.10% – 9.70% | ↓ 1.50% lower |

What this means for you: If you take a ₹50 lakh loan for 20 years, even a 1% lower rate saves you nearly ₹3,500 per month in EMI. Over the full loan term, your total saving can cross ₹8 lakh. So yes, June 2026 is a good time to apply.

Processing Fees and Hidden Charges – Do Not Ignore Them

Many borrowers only look at the interest rate. That is a mistake. The processing fee and other charges also eat into your pocket. Here is a breakdown of what each bank charges.

Bank-wise Processing Fees (June 2026)

| Bank | Processing Fee | GST (18% extra) |

| State Bank of India | 0.35% (Min ₹2,000, Max ₹10,000) | Yes |

| HDFC Bank | 0.50% or ₹3,000 (whichever is higher) | Yes |

| ICICI Bank | 0.50% of loan amount | Yes |

| Bank of Baroda | 0.25% – 0.50% (₹8,500 – ₹25,000) | Yes |

| Punjab National Bank | 0.35% (₹2,500 – ₹15,000) | Yes |

| Canara Bank | 0.25% (Min ₹1,500, Max ₹20,000) | Yes |

| Union Bank of India | 0.50% (Max ₹15,000) | Yes |

| Central Bank of India | 0.35% (Min ₹1,500, Max ₹10,000) | Yes |

| Axis Bank | Up to 2% (Min ₹10,000) | Yes |

Other Charges You Must Know

Apart from processing fees, banks may charge you for these services:

| Service | Typical Charge |

| NOC or No Due Certificate | ₹500 |

| Copy of loan agreement | ₹500 |

| Photocopy of original property deeds | ₹1,000 |

| Foreclosure letter | ₹500 |

| Late payment penalty | 2% per month on overdue EMI |

| CERSAI charges (one time) | ₹60 for loans up to ₹5 lakh, ₹110 for above ₹5 lakh |

Smart tip: Ask the bank officer clearly – \"What is the total fee I have to pay from my pocket before disbursement?\" Some banks waive processing fees during festive offers. Do not hesitate to negotiate.

Your CIBIL Score Decides Your Rate – Here is How

Banks do not give the same rate to everyone. Your credit score is the biggest factor. Here is how different scores affect your interest rate in June 2026.

Interest Rate Based on CIBIL Score

| CIBIL Score Range | What Rate You Get | Approval Chances |

| 750 and above | Lowest rates (7.10% – 7.50%) | Very High |

| 700 to 749 | Moderate rates (7.50% – 8.50%) | High |

| 650 to 699 | Higher rates (8.50% – 10.00%) | Moderate |

| Below 650 | Very high rates or rejection | Low |

Example: Two people apply for a ₹40 lakh loan at SBI. One has a CIBIL of 780. He gets 7.25%. The other has a CIBIL of 680. He gets 8.45%. The difference in EMI over 20 years is nearly ₹3,000 every month.

How to Check Your CIBIL Score for Free

You can check your CIBIL score once a year for free on the official CIBIL website. Several bank apps also show your score at no cost. If your score is low, spend three to six months improving it before applying for a loan. Pay all credit card bills on time. Do not miss any EMI. Keep your credit usage below 30% of your limit.

Floating vs Fixed Interest Rate – Which One to Choose in June 2026?

This is the oldest confusion in home loans. Let us settle it once and for all.

Floating Interest Rate (Most Common)

A floating rate changes with the market. When RBI cuts the repo rate, your EMI goes down. When RBI increases the repo rate, your EMI goes up.

Current floating rates in June 2026: Start from 7.10% per annum

Who should choose floating rate?

- Salaried people with stable income

- Borrowers who can handle small EMI fluctuations

- Almost 90% of home loan borrowers pick floating rate

Advantage: Rates are lower than fixed rates. You benefit when RBI cuts rates.

Disadvantage: Your EMI can increase if RBI raises the repo rate.

Fixed Interest Rate

A fixed rate stays the same for the entire loan tenure or for a fixed period (usually 5 to 10 years). Your EMI never changes.

Current fixed rates in June 2026:

| Bank | Fixed Interest Rate |

| Punjab National Bank | 8.20% – 10.75% |

| Canara Bank | 8.50% – 10.75% |

| Bank of Baroda | 8.75% – 10.00% |

| ICICI Bank | 8.90% – 11.20% |

| Axis Bank | 14.00% |

| Central Bank of India | 8.85% – 10.50% |

Who should choose fixed rate?

- People who want absolute certainty in monthly budget

- Retired or near-retirement individuals

- Those who believe interest rates will rise sharply in future

Disadvantage: Fixed rates are usually 1.5% to 2% higher than floating starting rates. You do not benefit if RBI cuts rates.

What RBI Rules Say About Prepayment

Here is an important RBI rule that saves you money. As per RBI guidelines, there are no prepayment charges on floating rate home loans for individual borrowers. You can pay extra money anytime or close the loan early without paying any penalty.

For fixed rate loans, prepayment charges may apply if you are borrowing from another bank to repay. But if you use your own savings, no charges apply in most cases.

Balance Transfer – Shift Your Existing Home Loan for a Better Rate

Do you already have a home loan from a few years ago? Your interest rate might be 9% or higher. In June 2026, you can transfer your loan to a bank offering lower rates. This is called a balance transfer.

How Balance Transfer Works

1. You find a new bank offering a lower rate

2. The new bank pays off your old loan

3. You start paying EMI to the new bank at the lower rate

Current Balance Transfer Rates (June 2026)

| Bank | Balance Transfer Rate |

| Bajaj Finserv | Starting at 7.30% p.a. |

| SBI | Starting at 7.30% p.a. |

| HDFC | Starting at 7.30% p.a. |

| ICICI | Starting at 7.35% p.a. |

| Central Bank of India | Starting at 7.10% p.a. |

Is Balance Transfer Worth It?

Do the math. If your existing loan is ₹30 lakh with 5 years remaining, and you are paying 9.5% interest, transferring to a 7.5% loan can save you over ₹1.5 lakh in interest. But check the processing fee and legal charges of the new bank. Sometimes the fees eat up the benefit.

Rule of thumb: If the rate difference is 1% or more and you have at least 3-4 years left on your loan, go for balance transfer.

Central Bank of India Home Loan – Special Features

Central Bank of India is a government-owned bank with a long history. It is one of the oldest public sector banks in the country. In June 2026, they are offering very competitive rates.

Key Highlights of Central Bank of India Home Loan

| Feature | Details |

| Interest Rate (Floating) | 7.10% – 9.70% p.a. |

| Processing Fee | 0.35% (Minimum ₹1,500, Maximum ₹10,000) |

| Maximum Loan Amount | No upper limit (subject to eligibility) |

| Maximum Tenure | 30 years |

| Prepayment Charges | Nil for floating rate loans (as per RBI rules) |

| Balance Transfer Facility | Available |

Who Should Apply at Central Bank of India?

- Borrowers looking for a very low processing fee (starts at just ₹1,500)

- People who prefer a government bank with wide reach

- Those taking smaller loan amounts (the low minimum fee helps here)

- Salaried and self-employed both can apply

Documents Required for Central Bank of India Home Loan

- KYC documents (Aadhaar, PAN, Voter ID, Passport)

- Latest three months salary slips for salaried applicants

- Last three years ITR for self-employed applicants

- Bank statements for last six months

- Property documents as per bank checklist

Top 6 Banks for Home Loan in June 2026 – Our Recommendation

After comparing all rates, fees, and customer service records, here are the best options this month.

1. State Bank of India (SBI)

- Best for: First-time buyers and large loan amounts

- Interest Rate: 7.25% – 8.45%

- Processing Fee: Lowest in industry at 0.35%

- Why choose SBI: Largest network, fastest rate transmission when RBI cuts rates, trusted government bank

2. Bank of Baroda

- Best for: Lowest starting rate

- Interest Rate: 7.20% – 8.95%

- Processing Fee: 0.25% – 0.50%

- Why choose Bank of Baroda: One of the lowest starting rates in June 2026, good for salaried customers

3. Central Bank of India

- Best for: Low processing fee and competitive rates

- Interest Rate: 7.10% – 9.70%

- Processing Fee: 0.35% (Min ₹1,500, Max ₹10,000)

- Why choose Central Bank of India: Very low minimum processing fee of just ₹1,500, starting rate as low as 7.10%, good for small and medium loan amounts

4. Canara Bank

- Best for: Low processing fee

- Interest Rate: 7.05% – 10.00%

- Processing Fee: 0.25% (as low as ₹1,500)

- Why choose Canara Bank: Very low processing fee, good for smaller loan amounts

5. Punjab National Bank (PNB)

- Best for: Balance transfer

- Interest Rate: 7.20% – 9.25%

- Processing Fee: 0.35%

- Why choose PNB: Good offers on balance transfer, wide branch network

6. HDFC Bank

- Best for: Quick approval and customer service

- Interest Rate: 7.30% – 13.20%

- Processing Fee: 0.50% or ₹3,000

- Why choose HDFC: Fast processing, good for salaried professionals in top companies

FAQs About Home Loan Rate Comparison June 2026

1. Which bank has the lowest home loan rate in June 2026?

Bank of Baroda, Bank of India, and Central Bank of India are offering starting rates as low as 7.10% to 7.20% for eligible borrowers with high CIBIL scores. SBI and Canara Bank also have very competitive rates around 7.15% to 7.25%.

2. Are home loan rates expected to go down further in 2026?

RBI has kept the repo rate stable in recent months. If inflation remains under control, some experts expect a small rate cut by the end of 2026. But nothing is guaranteed. If you find a good rate now, it is better to lock it.

3. What is the difference between floating and fixed rate home loan?

A floating rate changes with the market. Your EMI can go up or down. A fixed rate stays the same for the entire loan. Floating rates are usually lower than fixed rates by 1.5% to 2%.

4. Can I get a home loan if my CIBIL score is 650?

Yes, but you will get a higher interest rate. Some banks may ask for a co-applicant or a larger down payment. Try to improve your score to 750+ before applying for the best rates.

5. What is the processing fee for Central Bank of India home loan?

Central Bank of India charges 0.35% of the loan amount. The minimum fee is ₹1,500 and the maximum is ₹10,000, plus 18% GST. This is one of the lowest minimum fees in the market.

6. Does RBI allow zero processing fee home loans?

RBI does not ban processing fees. But many banks offer zero processing fee during special promotions, especially in festival seasons. You can ask the bank to waive the fee, especially for large loan amounts.

7. How much home loan can I get on a ₹50,000 monthly salary?

Most banks approve a loan amount where your EMI does not exceed 40% to 50% of your monthly income. For a ₹50,000 salary, with a 7.5% interest rate and 20-year tenure, you can get approximately ₹35 lakh to ₹40 lakh.

8. What are the documents required for home loan balance transfer?

You need your existing loan statement, repayment track record, property documents already submitted to the current bank, KYC documents, and a no-objection certificate from your existing bank.

9. Is it better to take a home loan for 20 years or 30 years?

A 30-year loan gives you lower EMI but you pay more total interest. A 20-year loan has higher EMI but saves on interest. Choose based on your monthly cash flow. You can always prepay later without charges on floating rate loans.

10. Can women get lower home loan interest rates?

Some banks offer slightly lower rates for women borrowers, usually 0.05% to 0.10% lower. Many banks also have lower processing fees for women. Always mention if a woman is the primary applicant or co-owner to check for these benefits.

11. Is Central Bank of India a good choice for home loan?

Yes. It is a government bank with competitive rates. Their starting rate of 7.10% is among the lowest. Their minimum processing fee of ₹1,500 is also very affordable for small loan amounts.

12. How long does it take for a home loan to get approved?

It depends on the bank and your documents. SBI and HDFC usually take 5 to 10 working days if all papers are in order. Central Bank of India and other public sector banks may take 10 to 15 working days.

13. Can I apply for a home loan online without visiting the branch?

Yes, most banks including SBI, HDFC, ICICI, and Central Bank of India allow online applications. You can upload documents digitally. However, some banks may ask for physical signatures later.

14. What is the maximum home loan tenure allowed by banks?

Most banks offer a maximum tenure of 30 years. For senior citizens, the tenure may be shorter. Central Bank of India allows up to 30 years for eligible applicants.

15. Does RBI have any rule about home loan insurance?

RBI does not make insurance compulsory. But banks strongly recommend it. If you do not take insurance, your family will have to repay the loan if something happens to you. It is your choice.

H2: Final Words – Take Action This June

June 2026 is a good month for home loan borrowers. Rates are lower than last year. Several public sector banks including Central Bank of India are offering very competitive deals. Processing fees are reasonable. And RBI rules protect you from prepayment penalties on floating rate loans.

Before you apply, check your CIBIL score. Gather your salary slips and IT returns. Compare at least three banks. Do not just look at the interest rate – add the processing fee and other charges to find the true cost.

And remember, the lowest rate is not always the best deal if the customer service is poor or the loan approval takes too long. Choose a bank that is transparent and responsive.

Good luck with your new home. May your loan get approved fast and your dream home become a reality this June 2026. Bankermart is a zero fee service provider. We help you compare home loan rates from all banks. You pay nothing to us. The bank may charge its own processing fee, but Bankermart takes zero rupees from you.