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Best home loan interest rates in India
Home loans are long-term commitments, and even a minor difference of 0.1% in your interest rate can translate to lakhs of rupees saved over a 20-year tenure. This page compares the home loan rates and processing fees of major banks and housing finance corporations.
External Benchmark Context: The current Reserve Bank of India (RBI) repo rate stands at 5.25% (unchanged since December 5, 2025). Floating home loan rates offered by Indian retail lenders are benchmarked to this rate (EBLR/RLLR) and adjust accordingly.
Comparison of Home Loan Interest Rates
| Lender / Platform | Interest Rate (From) | Processing Fee | Best For | Action |
|---|---|---|---|---|
| BankBazaar (marketplace) | — | Varies by bank | Comparing multiple bank rates side-by-side | Check rates → |
| State Bank of India (SBI) | ~7.25%–7.50% p.a. | 0.35% of loan amount (min ₹5,000, max ₹15,000) | Salaried individuals & corporate employees | Check rate → |
| ICICI Bank | Repo-linked (from 7.50% p.a.) | Up to 2% of loan amount (minimum ₹3,000) | Self-employed individuals & business owners | Check rate → |
| Kotak Mahindra Bank | Starting at 7.60% p.a. | Up to 2% of loan amount (Nil for online applications) | Lowest floating rate range and quick processing | Check rate → |
* Last verified: June 28, 2026. Interest rates and processing fees are subject to revision by financial institutions based on RBI policies and market benchmarks.
How we chose
We compiled interest rates from published schedules of major Indian banks and housing finance corporations. The order of entries is organized by user eligibility and terms (fixed vs floating), not based on commercial referral payouts.
You can use our free Home Loan EMI Calculator to estimate your exact EMIs, total interest paid, and see how prepayments can shorten your loan tenure.
Frequently Asked Questions
How is a home loan interest rate decided?
Home loan rates are tied to external benchmarks (usually the RBI repo rate). A bank or housing finance company adds a spread or margin on top of the benchmark based on your credit score, loan amount, and employment profile.
Fixed vs floating rate?
Floating rates change when RBI repo rates change, whereas fixed rates remain constant for a specified term. Floating rates are generally lower and do not carry prepayment penalties for individual borrowers.
What is a balance transfer and when does it help?
A home loan balance transfer is moving your outstanding loan balance from one lender to another offering a lower interest rate. It helps save interest when you are in the early stages of a long loan tenure.
How does prepayment reduce interest?
Making prepayments directly reduces your loan principal. Because interest is calculated on the remaining principal balance, prepayments accelerate your loan payoff and save significant interest over time.