Buying a house has become easier today, thanks to home loans.
However, many people get confused about which bank offers the best deal.
After the RBI reduced the repo rate, many banks also lowered their home loan interest rates.
If you’re planning to take a home loan, it’s important to compare the interest rates and monthly EMIs offered by leading public and private sector banks.
Public Sector Banks Offering Low-Interest Home Loans
Canara Bank
Interest Rate: 7.3%
Loan Amount: ₹50 lakh for 20 years
Monthly EMI: ₹39,670
Why Choose? Lowest interest rate among public sector banks.
Union Bank of India
Interest Rate: 7.3%
Loan Amount: ₹50 lakh for 20 years
Monthly EMI: ₹39,670
Why Choose? Same low rate as Canara Bank; suitable for families seeking affordable EMI.
Bank of Baroda
Interest Rate: 7.45%
Loan Amount: ₹50 lakh for 20 years
Monthly EMI: ₹40,127
Why Choose? Slightly higher rate but comes with the reliability of a well-known bank.
State Bank of India (SBI)
Interest Rate: 7.5%
Loan Amount: ₹50 lakh for 20 years
Monthly EMI: ₹40,280
Why Choose? Trusted brand and wide network make it a popular choice.
Punjab National Bank (PNB)
Interest Rate: 7.5%
Loan Amount: ₹50 lakh for 20 years
Monthly EMI: ₹40,280
Why Choose? Great option for those wanting a secure public sector bank.
Private Banks: Slightly Higher Rates, More Convenience
ICICI Bank
Interest Rate: 7.7%
Loan Amount: ₹50 lakh for 20 years
Monthly EMI: ₹40,893
Why Choose? Easy digital process appeals to tech-savvy customers.
HDFC Bank
Interest Rate: 7.9%
Loan Amount: ₹50 lakh for 20 years
Monthly EMI: ₹41,511
Why Choose? One of the largest private housing finance providers.
Kotak Mahindra Bank
Interest Rate: 7.99%
Loan Amount: ₹50 lakh for 20 years
Monthly EMI: ₹41,791
Why Choose? Competitive rates with personalized services.
Axis Bank
Interest Rate: 8.35%
Loan Amount: ₹50 lakh for 20 years
Monthly EMI: ₹42,918
Why Choose? Strong network and simple loan processing.
Yes Bank
Interest Rate: 9%
Loan Amount: ₹50 lakh for 20 years
Monthly EMI: ₹44,986
Why Choose? Highest EMI among listed banks, so should be chosen only after careful consideration.
Final Thoughts
If you’re planning to take a home loan, it’s important to compare interest rates and EMIs carefully.
Canara Bank and Union Bank currently offer the lowest rates at 7.3%, while Yes Bank charges the highest at 9%.
Choose the one that fits your financial plan and repayment capacity.
