The most recent data indicates that a number of lenders are now offering home loans with interest rates as low as 7%.
Banks, including Bank of Maharashtra, Central Bank of India, Indian Overseas Bank, and Bank of India, are reportedly offering the lowest rates as low as 7.35% annually as of November 2025.
Other large lenders, such as Canara Bank and State Bank of India (SBI), offer starting rates of around 7.40% and 7.50%, respectively. Some private sector banks, such as Axis Bank, report starting rates of about 8.35%, while HDFC Bank starts at roughly 7.90%.
Here’s a list of home loan rates of key banks ahead of the RBI policy:
Bank of India (BoI): 7.35% p.a. to 12.15% p.a.
Founded in 1906, Bank of India (BoI) is a government-owned bank that provides appealing home lending choices. BoI offers expedited house loan financing services with minimal paperwork. With loan terms of up to 30 years and interest rates ranging from 10.70% to 12.20% annually, BoI might be a good choice for anyone wishing to build their ideal house.
Bank of Baroda: 7.35% p.a. onwards
With terms of up to 30 years and simple repayment choices, the Bank of Baroda home loan interest rate starts at 7.45% per year. Bank of Baroda offers loans up to ₹10 crore, with processing costs as low as 0.25% of the total loan amount. The bank levies no prepayment fees for house loans with a variable rate.
State Bank of India (SBI): 7.50% p.a. to 10.75% p.a.
Depending on the borrower’s CIBIL score, scheme, and profile, the interest rates for SBI house loans in 2025 will range from 7.50% to 8.70% per year. The RBI repo-linked External Benchmark Rate (EBLR) serves as the benchmark for the current SBI home loan interest rate, which went into effect on August 1, 2025.
Punjab National Bank (PNB): 8.25% to 10.65% p.a.
Founded in 1894, Punjab National Bank (PNB) offers a range of home loan programs with competitive interest rates starting at 8.50% per year, whether you are looking to build your own home, buy a new one, or renovate an existing one.
PNB offers a simple option to achieve your goals with the PNB Home Loan, with loan amounts up to 90% of the cost of the home and interest rates ranging from 8.50% to 10.95% annually.
Central Bank of India: 7.35% to 9.40% p.a.
With home loans starting at 7.35% per annum, Central Bank of India is one of the biggest and oldest state-owned commercial banks in India. With loans covering up to 90% of the property value, flexible terms of up to 30 years, and interest rates ranging from 8.50% to 9.85% annually, the Central Bank of India is an ideal choice for prospective homeowners with their home loan objectives. The processing charge is 0.50% of the loan amount.
ICICI Bank: 8.75% to 11.80% p.a.
ICICI Bank offers a number of home loan options to assist you in becoming a homeowner with appealing interest rates starting at 8.75%. It is an excellent choice to take into account when selecting a house loan because it offers low interest rates between 9.00% and 10.05% annually and loan terms of up to 30 years.
Axis Bank: 8.35% to 11.90% p.a.
Axis Bank home loans make it simpler for you to fulfil your ambition of becoming a house owner by providing flexible terms and affordable interest rates, starting at 8.35% per year. Axis Bank offers a great chance to finance your ideal property with interest rates ranging from 8.75% p.a. to 9.15% p.a. and the choice of a loan term of up to 30 years.
HDFC Bank: 7.90% to 13.20% pa
With interest rates starting at 7.90% per year for loans up to 30 years, HDFC Home Loans provides eligible customers with affordable house loans. HDFC provides appealing programs with loan amounts up to 90% of the property value and interest rates ranging from 8.70% to 10.05% annually, particularly in light of the declining property values.
HSBC Bank: 7.70% to 12.75% p.a.
Home loans with competitive interest rates between 8.75% and 13.25% annually and loan terms up to 25 years are available from HSBC Bank India, a division of HSBC Holdings. HSBC simplifies home finance with speedy processing and resources. The Repo Linked Lending Rate (RLLR) of the bank is connected to the floating interest rates.
