Lowest Home Loan Interest Rates in India (2026) — SBI, HDFC, ICICI & More
Updated · 8 options compared
On a 20-year home loan, even a 0.25% lower rate can save several lakh rupees. Most home loans in India are floating-rate and linked to the RBI repo rate, so the spread the bank charges over the benchmark is what you should negotiate.
Women borrowers, salaried applicants with 750+ CIBIL scores and borrowers who choose a smaller loan-to-value ratio usually get the lowest rates. Floating-rate home loans for individuals carry no prepayment or foreclosure penalty under RBI rules.
Quick comparison
| # | Name | Interest rate | Loan amount |
|---|---|---|---|
| 1 | Bank of Baroda Home Loan | 8.30% - 10.25% | Up to ₹10 Crore |
| 2 | HDFC Home Loan | 8.35% - 9.50% | Up to ₹10 Crore |
| 3 | LIC Housing Finance | 8.35% - 10.50% | Up to ₹10 Crore |
| 4 | SBI Home Loan | 8.40% - 9.65% | Up to ₹10 Crore |
| 5 | ICICI Home Loan | 8.40% - 9.75% | Up to ₹5 Crore |
| 6 | Axis Bank Home Loan | 8.50% - 9.85% | Up to ₹5 Crore |
| 7 | PNB Housing Finance | 8.50% - 11.00% | Up to ₹5 Crore |
| 8 | Kotak Mahindra Home Loan | 8.65% - 9.90% | Up to ₹5 Crore |
1.Bank of Baroda Home Loan
- Interest rate
- 8.30% - 10.25%
- Loan amount
- Up to ₹10 Crore
- Tenure
- Up to 30 years
- Processing fee
- ₹8,500 (inclusive of GST)
BoB offers one of the lowest base interest rates in the entire Indian market starting at just 8.30%. No processing fee for balance transfers makes it the top choice for refinancing your existing home loan from another bank. Government employee special schemes and PMAY linkage are strong advantages for eligible borrowers.
- One of the lowest base interest rates in India
- No processing fee for balance transfer
- Government employee special scheme available
2.HDFC Home Loan
- Interest rate
- 8.35% - 9.50%
- Loan amount
- Up to ₹10 Crore
- Tenure
- Up to 30 years
- Processing fee
- 0.50% or ₹3,000 (whichever is higher)
HDFC (now merged with HDFC Bank) remains the most trusted name in Indian home loans with rates starting at 8.35%. Approved project financing ensures faster disbursal, and flexible step-up and step-down EMI options help manage your cash flow over the long tenure. Special rates for HDFC salary account holders can bring the effective rate down even further.
- Approved project financing for faster disbursal
- Flexible EMI options — step-up & step-down
- Top-up loan available on existing home loan
3.LIC Housing Finance
- Interest rate
- 8.35% - 10.50%
- Loan amount
- Up to ₹10 Crore
- Tenure
- Up to 30 years
- Processing fee
- ₹10,000 - ₹15,000 + GST
Backed by LIC's unmatched brand trust in India, this lender offers the longest tenures with the lowest possible EMIs. The Griha Prakash scheme for plots plus construction is uniquely designed for those building their own home from scratch. Preferential rates for LIC policy holders and part-prepayment up to 25% of principal per year without charges make it very flexible.
- Backed by LIC — India's most trusted insurance brand
- Lowest EMI options with extended tenure
- Griha Prakash scheme for plots + construction
4.SBI Home Loan
- Interest rate
- 8.40% - 9.65%
- Loan amount
- Up to ₹10 Crore
- Tenure
- Up to 30 years
- Processing fee
- 0.35% (Min ₹2,000, Max ₹10,000)
India's largest home loan provider with the most competitive rates starting at just 8.40%. A special 0.05% concession for women borrowers and PMAY subsidy eligibility make it the go-to choice for first-time home buyers. No pre-payment penalty on floating rate and doorstep documentation service add real convenience.
- No pre-payment penalty on floating rate
- Special rates for women borrowers (0.05% concession)
- Balance transfer facility available
5.ICICI Home Loan
- Interest rate
- 8.40% - 9.75%
- Loan amount
- Up to ₹5 Crore
- Tenure
- Up to 30 years
- Processing fee
- 0.50% - 1.00% + GST
ICICI offers instant in-principle approval online, giving you quick clarity on your eligibility before you start house hunting. Balance transfer with top-up at lower rates is a strong option if you are currently paying a higher rate at another bank. Quick 72-hour processing for salaried applicants and special rates for women co-applicants add significant value.
- Instant in-principle approval online
- Balance transfer with top-up at lower rates
- Part-prepayment allowed without penalty
6.Axis Bank Home Loan
- Interest rate
- 8.50% - 9.85%
- Loan amount
- Up to ₹5 Crore
- Tenure
- Up to 30 years
- Processing fee
- Up to 1.00% + GST
Axis's Shubh Aarambh scheme offers specifically lower rates for first-time home buyers entering the property market. No pre-closure or part-prepayment charges on floating rate loans give you complete flexibility to reduce your burden. Property search assistance in select cities is a unique, helpful service not many banks provide.
- No pre-closure or part-prepayment charges on floating rate
- Doorstep document collection service
- Shubh Aarambh scheme for first-time buyers (lower rates)
7.PNB Housing Finance
- Interest rate
- 8.50% - 11.00%
- Loan amount
- Up to ₹5 Crore
- Tenure
- Up to 30 years
- Processing fee
- Up to 0.50% + GST
PNB Housing stands out for self-employed borrowers with its bank statement program that does not require ITR filing. Loans for both under-construction and ready-to-move properties with a top-up facility up to ₹50 Lakh add flexibility. Quick processing for pre-approved builder projects significantly speeds up the disbursal timeline.
- Special rates for self-employed via bank statement program
- Loans for under-construction & ready properties
- Top-up loan up to ₹50 Lakh
8.Kotak Mahindra Home Loan
- Interest rate
- 8.65% - 9.90%
- Loan amount
- Up to ₹5 Crore
- Tenure
- Up to 25 years
- Processing fee
- 0.50% + GST
Kotak's fully paperless digital application process makes it the most convenient option for tech-savvy borrowers today. Instant eligibility check online saves you from unnecessary branch visits and paperwork. No hidden charges and a transparent fee structure build trust, especially important for first-time home buyers.
- Digital application process — fully paperless
- Instant eligibility check online
- Balance transfer facility with top-up
How we chose
- Sorted by lowest advertised starting rate.
- Processing fee, maximum tenure and loan-to-value ratio shown alongside.
CardKhoj is independent and does not earn commission from banks. Rates and fees change often — always confirm the latest terms on the bank's official website before applying.
Frequently asked questions
Which bank has the lowest home loan interest rate?
Public sector banks such as Bank of Baroda and SBI, along with HDFC Bank and LIC Housing Finance, usually offer the lowest starting rates. The exact rate depends on your credit score, loan amount and income.
Should I choose a fixed or floating home loan rate?
Most borrowers choose floating because it is cheaper today, falls when the RBI cuts rates and has no prepayment penalty. Fixed rates are typically 1–2% higher and often reset after a few years anyway.
How much home loan can I get on my salary?
Banks generally keep total EMIs within 50–60% of your net monthly income. As a rough guide, a salary of ₹50,000 a month supports a loan of about ₹25–30 lakh over 20 years. Use our loan eligibility calculator for an estimate.