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Borrowers shopping for home loans have a wide range of choice in interest rates. According to data compiled by Paisabazaar.com as of July 30, effective interest rates start as low as 7.35 per cent and can go up to 15 per cent depending on the lender and loan slab.

 

Here’s a sector-wise explanation of the latest home loan rate trends.

 

Public-sector banks are best for affordable starting rates

 

-State-run lenders offer the most affordable entry-level home loan rates, especially for loans up to Rs 30 lakh.

 

-Bank of Maharashtra, Union Bank, and Bank of India start at 7.35 per cent, the lowest in this segment.

 

 

-Punjab and Sind Bank tops the range with rates going up to 10.75 per cent.

 

Most public-sector banks maintain consistent rates across all loan slabs, offering better predictability for large home loan borrowers as well. 

 

-Canara Bank and Bank of India have wide spreads, going over 10 per cent for higher loan amounts.

 

-UCO Bank and Union Bank offer additional concessions, up to 0.10 per cent, for women borrowers or those opting for balance transfer or bundled insurance.

 

Below is a detailed table of loan rates offered by public sector banks. 

Name of Lender	Loan Amount (Rs)
	Upto 30 Lakh	Above 30 Lakh & Upto 75 Lakh	Above 75 Lakh
PUBLIC SECTOR BANKS
State Bank of India	7.50-8.70	7.50-8.70	7.50-8.70
Bank of Baroda	7.45-9.25	7.45-9.25	7.45-9.50
Union Bank of India*	7.35-10.00	7.35-10.00	7.35-10.00
Punjab National Bank	7.50-9.35	7.45-9.25	7.45-9.25
Bank of India	7.35-10.10	7.35-10.10	7.35-10.35
Canara Bank	7.50-10.25	7.45-10.25	7.40-10.15
UCO Bank**	7.40-9.50	7.40-9.50	7.40-9.50
Bank of Maharashtra	7.35-10.15	7.35-10.15	7.35-10.15
Punjab and Sind Bank	7.55-10.75	7.55-10.75	7.55-10.75
Indian Overseas Bank	7.35 onwards	7.35 onwards	7.35 onwards
Indian Bank	7.40-9.40	7.40-9.40	7.40-9.40
Central Bank of India	7.35-9.40	7.35-9.40	7.35-9.40

 

Private-sector banks: Wider range, higher ceiling

 

Private banks typically quote higher starting rates and wider ranges compared to public lenders.

 

-Kotak Mahindra Bank and HDFC Bank offer rates of 7.90 per cent and 7.99 per cent, respectively.

 

-Axis Bank and Bandhan Bank show some of the widest spreads, with Bandhan’s top-end rates peaking at 15 per cent for some borrowers.

 

Rate structures can differ based on borrower profile, credit score, income bracket, and internal risk grading.

 

Below is a detailed table of loan rates offered by private sector banks 

Name of Lender	Loan Amount (Rs)
	Upto 30 Lakh	Above 30 Lakh & Upto 75 Lakh	Above 75 Lakh
PRIVATE SECTOR BANKS
Kotak Mahindra Bank	7.99 onwards	7.99 onwards	7.99 onwards
ICICI Bank	7.70 onwards	7.70 onwards	7.70 onwards
Axis Bank	8.35-11.90	8.35-11.90	8.35-9.35
HSBC Bank	7.70 onwards	7.70 onwards	7.70 onwards
South Indian Bank	8.30-10.60	8.30-10.60	8.30-10.60
Karur Vysya Bank	7.95-10.90	7.95-10.90	7.95-10.90
Karnataka Bank	8.40-10.86	8.40-10.86	8.40-10.86
Federal Bank	8.75 onwards	8.75 onwards	8.75 onwards
Tamilnad Mercantile Bank	8.15-9.50	8.15-9.50	8.15-9.50
Bandhan Bank	8.41-15.00	8.41-12.58	8.41-12.58
RBL Bank	8.20 onwards	8.20 onwards	8.20 onwards
CSB Bank	9.39-11.08	9.39-11.08	9.39-11.08
HDFC Bank	7.90 onwards	7.90 onwards	7.90 onwards
City Union Bank	8.25-9.50	8.50-10.00	8.75-10.50

 

Housing finance companies: Cautious lending, higher spreads

 

Housing finance companies (HFCs) tend to cater to self-employed or non-salaried borrowers, often leading to higher interest bands.

 

-Bajaj Housing Finance and LIC Housing Finance start at 7.49 per cent and 7.50 per cent, keeping them competitive.

 

-On the higher end, SMFG India Home Finance starts from 10 per cent, and some HFCs like Sammaan Capital reach 8.75 per cent onwards.

 

HFCs generally charge higher rates due to perceived credit risk, especially in the absence of formal income documentation.

 

Below is a detailed table of loan rates offered by HFCs 

Name of Lender	Loan Amount (Rs)
	Upto 30 Lakh	Above 30 Lakh & Upto 75 Lakh	Above 75 Lakh
HOUSING FINANCE COMPANIES (HFCs)
LIC Housing Finance	7.50 onwards	7.50 onwards	7.50 onwards
Bajaj Housing Finance	7.49 onwards	7.49 onwards	7.49 onwards
Tata Capital	7.70 onwards	7.70 onwards	7.70 onwards
PNB Housing Finance	8.25-11.50	8.25-11.50	8.25-10.85
GIC Housing Finance	8.80 onwards	8.80 onwards	8.80 onwards
SMFG India Home Finance	10.00 onwards	10.00 onwards	10.00 onwards
Sammaan Capital  (Formerly Indiabulls Housing Finance)	8.75 onwards	8.75 onwards	8.75 onwards
Aditya Birla Capital	8.25 onwards	8.25 onwards	8.25 onwards
ICICI Home Finance	7.50 onwards	7.50 onwards	7.50 onwards
Godrej Housing Finance	8.55 onwards	8.55 onwards	8.55 onwards
*Extra interest rate concession of 0.05% to borrowers opting for insurance policy.  **Additional concession of 0.05% & 0.10% for women borrowers & takeover loans, respectively.
Rates as of 30th July 2025
Source: Paisabazaar.com