If you are thinking of buying a house and planning to take a home loan, this is the best time to check which banks are offering low interest rates. After RBI’s recent decisions on repo rates, many public and private banks have revised their home loan interest rates. Some banks have cut interest rates by up to 0.25%, making loans a little cheaper for new borrowers.
In this article, we bring you the latest home loan interest rates offered by top public sector banks, private banks, and housing finance companies (HFCs). These rates are based on the loan amount categories of up to Rs. 30 lakh, between Rs. 30-75 lakh, and above Rs. 75 lakh. Knowing these details can help you choose the most affordable option for your dream home.
Latest Home Loan Interest Rates (April 2025)
Public Sector Banks
| Bank | Up to Rs. 30 Lakhs | Rs. 30-75 Lakhs | Above Rs. 75 Lakhs |
| State Bank of India | 8.00% – 9.15% | 8.00% – 9.15% | 8.00% – 9.15% |
| Bank of Baroda | 8.40% – 10.15% | 8.40% – 10.15% | 8.40% – 10.40% |
| Punjab National Bank | 8.05% – 9.85% | 8.05% – 9.75% | 8.00% – 9.75% |
| Union Bank of India | 7.85% – 10.25% | 7.85% – 10.40% | 7.85% – 10.40% |
| Canara Bank | 8.00% – 10.75% | 7.95% – 10.75% | 7.90% – 10.65% |
| Bank of India | 8.00% – 10.35% | 8.00% – 10.35% | 8.00% – 10.60% |
Private Sector Banks
| Bank | Up to Rs. 30 Lakhs | Rs. 30-75 Lakhs | Above Rs. 75 Lakhs |
| HDFC Bank | From 8.70% | From 8.70% | From 8.70% |
| Kotak Mahindra Bank | From 8.65% | From 8.65% | From 8.65% |
| ICICI Bank | From 8.75% | From 8.75% | From 8.75% |
| Axis Bank | 8.75% – 12.80% | 8.75% – 12.80% | 8.75% – 9.65% |
| Karnataka Bank | 8.94% – 11.06% | 8.94% – 11.06% | 8.94% – 9.59% |
| Federal Bank | From 8.55% | From 8.55% | From 8.55% |
| Bandhan Bank | 8.91% – 15.00% | 8.91% – 13.08% | 8.91% – 13.08% |
| RBL Bank | From 9.00% | From 9.00% | From 9.00% |
Housing Finance Companies (HFCs)
| HFC | Up to Rs. 30 Lakhs | Rs. 30-75 Lakhs | Above Rs. 75 Lakhs |
| LIC Housing Finance | From 8.25% | 8.25% | 8.25% |
| Bajaj Housing Finance | From 7.99% | From 7.99% | From 7.99% |
| PNB Housing Finance | 8.50% – 14.50% | 8.50% – 14.50% | 8.50% – 11.45% |
| GIC Housing Finance | From 8.80% | From 8.80% | From 8.80% |
| ICICI Home Finance | From 9.30% | From 9.30% | From 9.30% |
Why Comparing Home Loan Rates is Important
Home loans are a long-term commitment, often lasting up to 20 years. Even a small difference in the interest rate can save you lakhs of rupees in the long run. Therefore, it is very important to compare all available options before finalising the lender.
Here are some key points to consider when choosing a home loan:
1. Interest Rate Type
Most banks offer floating interest rates, which change with the repo rate. Fixed rates remain the same throughout the loan tenure.
2. Loan Tenure
The tenure you choose will impact your EMI. A longer tenure means lower EMIs but more interest paid over time.
3. Processing Fees
Apart from interest, banks also charge processing fees. Some banks offer discounts or waive this fee during special periods.
4. Prepayment Charges
Check if there are any penalties for making part prepayments or closing the loan early.
5. Customer Service
Good customer service can make the entire loan process smoother. Read reviews or talk to existing customers before making a choice.
How RBI’s Rate Cuts Affect Your Home Loan
When RBI reduces the repo rate, banks usually lower their lending rates too. This means your loan EMI can become cheaper if you are on a floating rate. However, not all banks pass on the full benefit immediately. So, keep checking with your bank and consider switching your loan to another lender if better rates are available.
Tips to Get Better Home Loan Deals
- Maintain a good credit score (750+)
- Keep all documents ready for faster approval
- Try to make a higher down payment
- Choose a bank with no hidden charges
- Look for festive offers or special discounts
Source: Latest data compiled from Paisabazaar.com and bank websites as of April 2025
