Home loan rates start at 7% in Aug: Check best offers by top lenders | Personal Finance
Home loan interest rates are as low as 7 per cent a year, with public sector banks offering some of the most competitive terms, according to data compiled by Paisabazaar. Bank of Maharashtra and Central Bank of India have the lowest starting rate at 7 per cent across loan slabs, while Bank of India starts at 7.10 per cent.
Among private sector lenders, HSBC offers home loans from 7.45 per cent, while ICICI Bank’s rates start at 7.55 per cent. Housing finance companies (HFCs) are also offering competitive rates, with LIC Housing Finance starting at 7.15 per cent.
The rates are as of August 26, 2026, according to Paisabazaar.
Latest home loan rates
| Name of Lender | Loan Amount (Rs) | ||
| Upto 30 Lakh | Above 30 Lakh & Upto 75 Lakh | Above 75 Lakh | |
| PUBLIC SECTOR BANKS | |||
| Bank of Baroda | 7.20-9.00 | 7.20-9.00 | 7.20-9.25 |
| Bank of India | 7.10-10.00 | 7.10-10.00 | 7.10-10.25 |
| Bank of Maharashtra | 7.00-9.90 | 7.00-9.90 | 7.00-9.90 |
| Canara Bank* | 7.25-10.00 | 7.20-10.00 | 7.15-9.90 |
| Central Bank of India | 7.00-9.15 | 7.00-9.15 | 7.00-9.15 |
| Indian Bank | 7.15-9.55 | 7.15-9.55 | 7.15-9.55 |
| Indian Overseas Bank | 7.20 onwards | 7.20 onwards | 7.20 onwards |
| Punjab and Sind Bank | 7.35-10.75 | 7.35-10.75 | 7.35-10.75 |
| Punjab National Bank | 7.30-9.30 | 7.25-9.20 | 7.25-9.20 |
| State Bank of India | 7.25-9.05 | 7.25-9.05 | 7.25-9.05 |
| UCO Bank** | 7.15-9.25 | 7.15-9.25 | 7.15-9.25 |
| Union Bank of India*** | 7.15-9.60 | 7.15-9.60 | 7.15-9.60 |
| PRIVATE SECTOR BANKS | |||
| Axis Bank | 8.00-11.90 | 8.00-11.90 | 8.00 – 9.10 |
| Bandhan Bank | 8.55 – 13.52 | 8.55 – 13.52 | 8.55 – 13.52 |
| City Union Bank | 8.25-9.50 | 8.50-10.00 | 8.75-10.50 |
| CSB Bank | 8.30 onwards | 8.30 onwards | 8.30 onwards |
| Federal Bank | 8.35 – 10.50 | 7.35 – 10.50 | 7.35 – 9.50 |
| HDFC Bank | 7.75 onwards | 7.75 onwards | 7.75 onwards |
| HSBC Bank | 7.45 onwards | 7.45 onwards | 7.45 onwards |
| ICICI Bank | 7.55 onwards | 7.55 onwards | 7.55 onwards |
| Karnataka Bank | 7.48- 11.80 | 7.48- 11.80 | 7.48- 11.80 |
| Karur Vysya Bank | 8.50-10.65 | 8.50-10.65 | 8.50-10.65 |
| Kotak Mahindra Bank | 7.60 onwards | 7.60 onwards | 7.60 onwards |
| RBL Bank | 9.00 onwards | 9.00 onwards | 9.00 onwards |
| South Indian Bank | 7.25 onwards | 7.25 onwards | 7.25 onwards |
| Tamilnad Mercantile Bank | 7.90 – 9.30 | 7.90 – 9.30 | 7.90 – 9.30 |
| HOUSING FINANCE COMPANIES (HFCs) | |||
| Aditya Birla Capital | 7.75 onwards | 7.75 onwards | 7.75 onwards |
| Bajaj Housing Finance | 7.25 onwards | 7.25 onwards | 7.25 onwards |
| GIC Housing Finance | 8.20 onwards | 8.20 onwards | 8.20 onwards |
| Godrej Housing Finance | 7.65 onwards | 7.65 onwards | 7.65 onwards |
| ICICI Home Finance | 7.50 onwards | 7.50 onwards | 7.50 onwards |
| LIC Housing Finance | 7.15 onwards | 7.15 onwards | 7.15 onwards |
| PNB Housing Finance | 7.75-10.05% | 7.60-10.05% | 7.50-9.95 |
| Sammaan Capital (Formerly Indiabulls Housing Finance) | 8.75 onwards | 8.75 onwards | 8.75 onwards |
| SMFG India Home Finance | 9.25 onwards | 9.25 onwards | 9.25 onwards |
| Tata Capital | 8.00 onwards | 8.00 onwards | 8.00 onwards |
| *Under CRG-Prime, CRG-1 & CRG-2, additional 5 bps concession for takeover/ready to move HL proposals & for salaried employees maintaining salary a/c with the bank. **Additional concession of 0.05% & 0.10% for women borrowers & takeover loans, respectively. ***Extra interest rate concession of 0.05% to borrowers opting for insurance policy. | |||
| Rates as of 26th August 2026 | |||
| Source: Paisabazaar.com | |||
Source: Paisabazaar.com. Rates as of August 26, 2026.
The comparison shows that the rate offered can vary significantly across lenders and borrower categories. It also differs depending on the loan amount in some cases.
Among public sector banks, Bank of Maharashtra and Central Bank of India offer rates starting at 7 per cent across all three loan slabs. Bank of India starts at 7.10 per cent, while UCO Bank and Union Bank of India start at 7.15 per cent.
Canara Bank’s rates start at 7.25 per cent for loans up to Rs 30 lakh and fall to 7.15 per cent for loans above Rs 75 lakh. State Bank of India’s rate starts at 7.25 per cent across all loan slabs.
Private banks start from 7.25 per cent
Among private banks, South Indian Bank has rates starting at 7.25 per cent, while HSBC Bank starts at 7.45 per cent. Karnataka Bank’s rates start at 7.48 per cent and ICICI Bank at 7.55 per cent.
HDFC Bank’s home loan rates start at 7.75 per cent, while Axis Bank starts at 8 per cent. At the higher end, RBL Bank’s rates start at 9 per cent.
The lowest advertised rate, however, should not be treated as the rate every borrower will receive. Lenders generally price home loans based on factors such as the borrower’s credit profile, income, employment, loan amount, and other eligibility criteria.
HFCs also offer competitive rates
Among housing finance companies, LIC Housing Finance has rates starting at 7.15 per cent, followed by Bajaj Housing Finance at 7.25 per cent. ICICI Home Finance starts at 7.50 per cent, while PNB Housing Finance starts at 7.75 per cent for loans up to Rs 30 lakh.
Borrowers should compare the final rate offered to them rather than choosing a lender solely on the advertised starting rate. The processing fee, other charges and the overall interest payable over the loan tenure should also be considered.
For a large, long-term borrowing such as a home loan, even a small difference in the interest rate can materially affect the total repayment. Borrowers should therefore compare offers from multiple lenders before finalising the loan.
