Home Loan Rates: Just before the next monetary policy decision of the Reserve Bank of India i.e. RBI, banks have reduced the interest rates on home loans. Many banks are now offering home loans at a minimum interest of 7 percent per annum. This decline is a relief news for all those home buyers who were thinking of taking a home loan, because now the monthly installments will be less and it will be easier to repay the loan. Public sector banks like Bank of Maharashtra, Central Bank of India, Indian Overseas Bank and Bank of India are offering starting rates of 7.35 percent per annum till November 2025. At the same time, Canara Bank and State Bank of India i.e. SBI are starting from 7.40 percent and 7.50 percent. Private banks like Axis Bank are providing loans at 8.35 percent and HDFC Bank at 7.90 percent. These rates depend on credit score, income and other factors, but overall you are getting a chance to get a cheap home loan from banks.
Bank of India
Now let’s talk about Bank of India. This bank is a government bank started in 1906, which is a good home loan option for home builders. Here you get fast loan with less paperwork. The tenure is up to 30 years and the interest rate ranges from 10.70 percent to 12.20 percent per annum. Similarly, Bank of Baroda is also doing wonders. Here the home loan rate starts from 7.35 percent per annum. The tenure is 30 years and there are easy repayment options. The bank gives loans up to Rs 10 crore, in which the processing fee is only 0.25 percent of the loan amount. The good thing is that there is no prepayment charge on variable rate loans. Meaning, if you feel like depositing money, you can deposit it without any penalty.
State Bank of India
State Bank of India i.e. SBI is the largest bank of the country, which is the center of everyone’s trust. In 2025, home loan rates here range from 7.50 percent to 8.70 percent per annum. These rates are decided on your CIBIL score, scheme and profile. The basis here is the repo-linked benchmark rate of RBI, which came into effect from August 1, 2025. If your score is good, you may get a lower rate. Now talking about Punjab National Bank, this bank established in 1894 has many types of home loan programs. Its rates start from 8.50 percent. Whether you want to buy a new house, build one or renovate an old one, there are options for everyone. Loan is available up to 90 percent of the house price and the rates range from 8.50 to 10.95 percent.
ICICI Bank
In private sector, ICICI Bank is also giving you loan at low interest. Interest in this bank starts from 8.75 percent. The interest rates in the bank are between 9.00 to 10.05 percent and the tenure is 30 years. This is good for those who want easy installments for a long time.
Axis Bank
Axis Bank is also offering flexible terms and affordable rates from 8.35 percent. Rates for property finance range from 8.75 to 9.15 percent and tenure is 30 years. Talking about HDFC Bank, it is offering interest rates of 7.90 percent for 30 years. Offering cheap loans to eligible customers, up to 90 percent of the property price and at rates ranging from 8.70 to 10.05 percent.
Even before the RBI policy, these rates are providing special benefits to the customers. But remember that interest rates may change even after the RBI policy meet, so contact the bank.
