Home Loan Interest Rates: A Comprehensive Comparison of Bank and Housing Finance Company Offers
Home Loan Interest Rates: A Crucial Factor in Determining the Cost of Buying a House
Home loan interest rates play a significant role in determining the overall cost of buying a house, especially as these loans typically run for long tenures of 15 to 30 years. Even a marginal difference in lending rates can lead to substantial savings or higher repayment burdens over time.
Borrowers should compare multiple lenders before finalising a loan to secure the most affordable borrowing option, taking into account factors such as credit score, repayment capacity, employment profile, and loan amount. Home loan rates are linked to the Reserve Bank of India's (RBI) monetary policy, which has kept the repo rate unchanged at 5.25 percent in its latest monetary policy review.
Comparison of Home Loan Rates Offered by Various Financial Institutions (As of May 20, 2026)
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| Financial Institution | Interest Rate Range |
|---|---|
| State Bank of India | 7.25% to 8.95% |
| Bank of Baroda | 7.20% to 9% |
| Union Bank of India | 7.15% to 9.60% |
| Punjab National Bank | 7.25% to 9.25% |
| Bank of India | 7.10% to 10% |
| Canara Bank | 7.25% to 10% |
| Kotak Mahindra Bank | 7.60% |
| ICICI Bank | 7.50% |
| Axis Bank | 8.00% to 11.90% |
| HSBC Bank | 7.45% |
| South Indian Bank | 7.20% |
| Karur Vysya Bank | 8.50% to 10.65% |
| LIC Housing Finance | 7.15% |
| Bajaj Housing Finance | 7.25% |
| Tata Capital | 8.00% |
| PNB Housing Finance | 7.50% |
| GIC Housing Finance | 8.20% |
| SMFG India Home Finance | 9.35% |
Borrowers with high credit scores, usually 800 and above, are more likely to qualify for the lowest home loan interest rates. The applicable rate can also vary based on whether the applicant is salaried or self-employed.
Investor Takeaway
Compare multiple lenders before finalising a loan to secure the most affordable borrowing option.
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