As of November 2025, the Indian home loan market is highly competitive, driven by anticipatory action from banks ahead of the Reserve Bank of India’s (RBI) next policy review. Prospective homebuyers can find interest rates as low as 7.35% per annum.
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A group of public sector banks (PSBs) are offering the most competitive entry rates:
- Bank of India (BoI): Starts at 7.35% (range up to 12.15% p.a.). BoI offers terms up to 30 years.
- Central Bank of India: Starts at 7.35% (range up to 9.40% p.a.). Offers loans covering up to 90% of the property value with a processing fee of 0.50% of the loan amount.
- Bank of Maharashtra
- Indian Overseas Bank
2. Rates from Other Major Lenders
Other large national and private banks follow closely, with rates heavily dependent on the borrower’s credit profile (CIBIL score).
| Bank Category | Bank Name | Starting Rate (p.a.) | Full Rate Range (p.a.) |
| Public Sector | Canara Bank | 7.40% | Not specified |
| Bank of Baroda | 7.45% | 7.35% onwards | |
| State Bank of India (SBI) | 7.50% | 7.50% to 10.75% | |
| Punjab National Bank (PNB) | 8.25% | 8.25% to 10.65% | |
| Private/MNC | HSBC Bank | 7.70% | 7.70% to 12.75% |
| HDFC Bank | 7.90% | 7.90% to 13.20% | |
| Axis Bank | 8.35% | 8.35% to 11.90% | |
| ICICI Bank | 8.75% | 8.75% to 11.80% |
3. Key Details by Bank
- SBI: Rates are linked to the RBI’s External Benchmark Rate (EBLR), which went into effect on August 1, 2025.
- Bank of Baroda: Offers loan terms up to 30 years, loans up to ₹10 crore, and does not levy prepayment fees for loans with a variable rate.
- HDFC Bank: Provides loans up to 90% of the property value.
4. RBI Policy Context
The current focus on lower rates is set against the backdrop of the upcoming RBI policy review. Since most home loans are now linked to external benchmarks (like the Repo Rate), any decision by the RBI to cut the policy rate would likely result in a near-immediate reduction in floating home loan interest rates for both new and existing borrowers.
