Home loan interest rates in India
Home loan rates in India today start around 8.35% p.a. and go up to 10% for higher-risk profiles. Public-sector banks tend to publish the lowest starting rates; private banks compete on speed and service. Here's the current rate map.
By Aditi Menon·Editor-in-Chief·reviewed by editor
Last updated: 15 June 2025
Interest rate comparison
| Bank | Starting rate | Rate benchmark | Processing fee |
|---|---|---|---|
| SBI | 8.50% p.a. | EBLR + spread | 0.35% (₹10k cap) |
| ICICI Bank | 8.60% p.a. | Repo + spread | 0.50-1% |
| HDFC Bank | 8.75% p.a. | Repo + spread | Up to 0.50% (often ₹3k promo) |
| PNB | 8.40% p.a. | RLLR + spread | 0.35% |
| Bank of Baroda | 8.40% p.a. | EBLR + spread | 0.50% |
| Axis Bank | 8.75% p.a. | Repo + spread | Up to 1% |
| Kotak Mahindra | 8.70% p.a. | Repo + spread | Up to 0.50% |
| LIC HFC | 8.50% p.a. | LHPLR-linked | 0.50% |
How rate benchmarks work
Since October 2019, RBI requires new retail floating home loans to be linked to an external benchmark - usually the repo rate. Your rate = benchmark + a bank-specific spread. When RBI cuts the repo, most floating home loans reset within 3 months.
Where you can save the most
- Choose the shortest tenure your EMI budget allows
- Prefer floating over fixed unless you expect a sharp rate rise
- Compare 3 banks in writing before finalising
- Ask for waiver on processing fees during promo windows
- Review your rate annually - RBI cuts should flow to you automatically
Impact of credit score
| Credit score | Approximate rate premium |
|---|---|
| 800+ | Starting rate (base) |
| 750-799 | + 10 bps |
| 700-749 | + 30 bps |
| 650-699 | + 60-80 bps |
| Below 650 | Case-by-case or decline |