Buying a house in big cities like Delhi or Mumbai often requires a home loan.
The good news is that home loan interest rates in India have come down significantly after the Reserve Bank of India (RBI) cut the repo rate by 1.25% last year.
As a result, many government banks now offer home loans starting at just 7.10%, while some housing finance companies have rates as low as 7.15%.
This makes it a good time for buyers to plan their home purchase and save on interest.
Government Banks Lead with Cheapest Home Loans
Public sector banks are currently offering the lowest interest rates on home loans.
Here are some of the top options:
Bank of India
Interest rates: 7.10% – 10.25%
Loan range: ₹30 lakh to above ₹75 lakh
Bank of Maharashtra
Interest rates: 7.10% – 9.90%
Loan range: ₹30 lakh to ₹75 lakh
Indian Overseas Bank
Interest rates: 7.10% for home loans
Central Bank of India
Interest rates: 7.10% – 9.15%
Loan range: ₹30 lakh to ₹75 lakh
UCO Bank
Interest rates: 7.15% – 9.25%
Loan range: ₹30 lakh to ₹75 lakh
These banks offer competitive rates, making them ideal for buyers who want to save on EMIs.
Private Banks Are Still Expensive
While government banks are leading, private banks lag behind in offering low-interest home loans.
HDFC Bank: 7.90% onwards
ICICI Bank: 7.65% onwards
Axis Bank: 8.35% onwards
For borrowers looking to minimize interest costs, public sector banks remain the better choice for now.
With interest rates near historic lows, it’s a great time for home buyers to compare banks and finalize a loan before rates rise again.
