Home loan EMI calculator: A small difference in interest rates costs you lakhs; check what SBI, BoI, UBI, others offer

A small difference in home loan interest can change your monthly budget for years. The following comparison places Bank of Maharashtra at the lowest, with rates starting at 7% annually. The Central Bank of India and the Bank of India (BoI) follow, both starting at 7.10%.

The Union Bank of India (UBI) and the LIC Housing Finance list starting rates of 7.15%. The Bank of Baroda’s floating rate starts at 7.20%. SBI, Punjab National Bank and South Indian Bank show starting rates of 7.25%.

These are advertised starting rates, rather than guaranteed offers for every applicant. Your approved rate can depend on your credit profile and the lender’s assessment. Compare written offers for the same loan amount and repayment period before deciding.

These rates are for September 2026. They remain subject to change at the respective lender’s discretion.

What would a ₹50 lakh loan cost?

Consider borrowing ₹50 lakh for 25 years, with repayment in 300 monthly instalments. At 7% annual interest, the estimated EMI is ₹35,339. That’s the fixed monthly amount paid towards your loan.

Over the full period, repayments would total around ₹1.06 crore. Of this, around ₹56.02 lakh would be interest, in addition to the ₹50 lakh borrowed.

At 7.10%, the estimated EMI rises to ₹35,659. At 7.15%, it becomes around ₹35,819. A 7.20% rate gives an EMI of around ₹35,979. At 7.25%, borrowers would pay about ₹36,140 monthly.

The gap between 7% and 7.25% is around ₹801 every month. Over 25 years, the difference in total repayments amounts to roughly ₹2.40 lakh. Even a seemingly-small rate difference can therefore affect the overall borrowing cost.

At 8%, the same loan requires an estimated EMI of ₹38,591. That is around ₹3,252 more monthly than borrowing at 7%. Total interest would reach approximately ₹65.77 lakh, about ₹9.76 lakh more.

These calculations assume unchanged interest rates throughout the entire repayment period. They exclude processing fees, taxes, insurance and other charges.

Actual repayments may differ because figures are rounded and loan conditions vary. Floating rates can change, affecting your EMI, repayment period or both.

Processing fees also deserve attention

The Bank of Maharashtra’s processing fee is up to 0.25%. For ₹50 lakh, that works out to ₹12,500 before any applicable additional charges. Its stated maximum fee is ₹25,000.

The Bank of India also lists a 0.25% processing fee, subject to stated limits. Union Bank charges 0.50%, capped at ₹15,000, plus GST. SBI lists 0.35%, capped at ₹12,000, plus GST. These caps matter when calculating the actual upfront expense.

Among other listed lenders, Punjab and Sind Bank starts at 7.35%. Federal Bank and Saraswat Bank also start at 7.35%. IDBI Bank starts at 7.40% while HSBC’s floating rate starts at 7.45%.

Ask each lender for the final interest rate and complete charges before applying. Check whether any fee waiver applies to your application.

A longer repayment period reduces instalments but increases total interest. Choose repayments that leave room for household expenses and emergencies.