Best Home Loan Interest Rate
Check the best home loan interest rates in 2025 so that you can compare different options to get the lowest home loan interest rate and apply for that loan instantly. Also, find out the recent home loan interest rates for government employees, self-employed individuals, and women, and know the difference between floating-rate and fixed-rate home loans
Compare Best Home Loan Interest Rates from All Top Banks 2025
The following are the home loan interest rates of top banks and NBFCs in India:
| Bank Name | Interest rate (p.a.) | Processing fee |
| HDFC Bank Home Loan | 7.90% - 9.00% | Up to 1.50% + applicable taxes/ statutory levies |
| HSBC Bank Home Loan | 7.70% | 1% or Rs. 10,000, whichever is higher + applicable taxes |
| Kotak Mahindra Bank Home Loan | 7.99% | Up to 2% + taxes & any other applicable statutory dues |
| IDFC Bank Home Loan | 8.85% | Up to 3% + GST |
| PNB Housing Finance | 8.25% | Up to 1% + GST |
| Aditya Birla Housing | 8.60% | Up to 1% |
| Tata Capital Housing | 7.75% | Rs. 5,000 to Rs. 10,000 + GST |
| Federal Bank Home Loan | 8.75% | 0.50% (Rs. 10,000 to Rs. 2,00,000) |
| Bajaj Finserv | 7.35% - 17.00% | Up to 4% + GST |
| L&T Housing Finance | 8.10% | Up to 3% + applicable taxes |
| ICICI Bank Home Loan | 7.70% | Up to 2% + GST |
| SBI Bank Home Loan | 7.50% - 8.45% | 0.35% (Rs. 2,000 to Rs. 10,000) + GST |
| Bank of Baroda Home Loan | 7.45% | Rs. 8,500 to Rs. 25,000 |
| Bank of Maharashtra | 7.35% - 10.40% | Up to 0.25% (maximum Rs. 25,000) |
| Bank of India Home Loan | 7.35% | 0.25% to 0.50% |
| Union Bank of India Home Loan | 7.35% - 9.75% | 0.50% (maximum Rs. 15,000) + GST |
How to Calculate Interest on Home Loan?
The fastest way to calculate the home loan interest is by using the home loan EMI calculator. Follow the steps given below:
- Open an online Home Loan EMI Calculator.
- Enter the required details, i.e. loan amount (as required), tenure (which can be up 30 years), and interest rate (as applicable).
- Click on the Calculate or Submit button
- The instant result will be displayed on the screen, including the Monthly EMI, Total Interest Payable, and Total Amount Payable (Principal + Interest).
- An amortisation schedule (year-wise breakup) is also displayed.
Factors Affecting the Housing Loan Interest Rates
Many factors can affect the home loan interest rate, including:
- Credit Score: A CIBIL score reflects an individual's creditworthiness and plays a significant role in determining the interest rate for a home loan.
- Repayment tenure: The duration available to repay the home loan can affect the interest rate.
- Employment and income stability: The type and duration of employment and the stability of a person's income can affect the interest rate and home loan eligibility.
- Relationship with the lender: If you have a long-standing, positive relationship with a lender, it can result in a more favorable interest rate.
- Location: The area where your property is located can affect the home loan interest rate. Lenders may offer lower interest rates for properties in well-connected neighborhoods with high resale value.
- Economic factors: Some economic factors like inflation, changes in monetary policies, and demand-supply dynamics in the existing credit market can also affect current home loan interest rate.
- Loan-to-value ratio: The loan-to-value ratio can impact the interest rate on your home loan.
- Type of interest rate: Home loans can involve either a fixed or floating interest rate.
- Debt-to-income ratio: It is ideal to keep your debt-to-income-ratio low to get low home loan interest rate.
What is the EMI for a 20 lakh home?
To calculate your Rs. 20 lakh home loan EMI instantly, you can use a home loan EMI calculator. It is an easy to use tool. The EMI for a Rs. 20 lakh home loan may vary depending on the repayment tenure and rate of interest. The EMI calculator allows you to try different combinations of tenures and interest rates to reach the desired results.
| Loan Amount | Interest Rates | Tenure | EMI |
| Rs. 20 Lakh | 7.35% | 30 Years | 13,779 |
| Rs. 20 Lakh | 7.35% | 20 Years | 14,585 |
| Rs. 20 Lakh | 7.35% | 10 Years | 15,929 |
| Rs. 20 Lakh | 7.35% | 5 Years | 18,370 |
Types of Home Loan Interest Rates
There are mainly three types of home loan interest rates, including fixed interest rate (remains constant throughout the loan tenure), floating/ variable interest rate (can change when external benchmark, i.e. RBI repo rate, MCLR, etc., are revised), and hybrid/ semi-fixed interest rate (have fixed rate for an initial 2 - 5 years then switches to floating).
How to Get a Home Loan at a Low-Interest Rate in 2025
Here are some factors looked at by home loan lenders to set your interest rate:
- Credit score: Applicants having a credit score of 750 or above are generally looked upon as creditworthy and have increased chances of home loan approval at lower rates.
- Income: Customers with lower disposable income are considered to have higher default chances. Thus, many lenders charge such applicants higher home loan rates.
- Employer’s profile: Generally, lenders charge lower home loan rates to the salaried than self-employed people. Also, among the salaried class, government employees and PSU are favoured the most, owing to their job security and income certainty.
- Existing consumer relations with lenders: There are many lenders who offer preferential rates on home loans to their existing customers who have any current/ savings account, deposits, credit cards or are availing of other services from the lender.
- Loan amount: The loan amount that you are looking to borrow can impact your home loan eligibility as well as interest rates. Usually, smaller home loans come at lower interest rates than higher amounts.
- Interest rate comparison: Always compare home loan interest rates of different lenders to get the best offer available in the market.
Which Bank gives the Best Home loan Rate?
When searching for the best home loan interest rates, several banks are competitive:
- Bajaj Finserv – Starting at 7.35% p.a.
- HDFC Bank – around 7.90% - 9.00% p.a.
- Kotak Mahindra Bank - Starting 7.99% p.a
- SBI Home Loan – starting from ~7.50% - 8.45% p.a.
- Aditya Birla Housing Finance - Starting 8.60% p.a
The best bank depends on your credit score, employment type, and loan amount. For example, salaried applicants with a CIBIL score above 750 usually get the lowest offers.
How to Apply for a Home Loan?
Follow the steps mentioned below to apply for a home loan:
- Click on the ‘Home Loan’ tab on our web portal.
- Fill in the online application form for a home loan by entering all the required details.
- Enter the ‘OTP’ received on your registered mobile phone to get the best home loan offer quote.
- Click on the ‘Submit’ button.
- Many home loan offers will be displayed on your screen as per the information entered by you.
- Choose the preferred option and apply.
- Our home loan team will get in touch with you regarding the home loan process completion.
You can also call the Home Loan Customer Care Number of the lender to know the process in detail.
Best Home Loan Interest Rates FAQs
Lenders offering the lowest and best home loan interest rates at present are Bank of Maharashtra, Bank of India, Bank of Baroda, Union Bank of India, Bajaj Finserv, SBI and HSBC.
The current home loan interest rates for salaried individuals may vary from lender to lender. However, the lowest home loan interest rates for salaried individuals start at 7.35%p.a.
While a fixed interest rate is ideal for predictable EMIs and protection against rising interest rates, a floating interest rate comes with other benefits like a lower initial interest rate, zero prepayment/ foreclosure charges (in most cases) and the advantage of falling rates.
When comparing private banks with government or public sector banks for home loan interest rates, government banks often offer lower rates.
Bank of Baroda, Union Bank of India, Bajaj Finserv, SBI and HSBC are the top 5 banks with the best home loan rates in India at present.
The best banks for home loan balance transfer at low interest rates at present are Bank of Maharashtra, Bank of India, Bank of Baroda, Union Bank of India, Bajaj Finserv, SBI and HSBC.
Yes, many banks offer lower interest rates on home loans for borrowers in India. Women may typically get a concession of 0.05% to 0.10% in home loan interest rates than standard rates. These lender initiatives encourage homeownership and promote financial inclusion among women.
Reducing your home loan interest rate after availing the loan is possible through home loan balance transfer, monitoring repo rate changes and requesting the lender for interest rate reduction, making regular part prepayments, opting for foreclosure, reducing tenures, improving your credit score, or converting a fixed-rate loan to floating.
Yes, you can transfer your housing loan to another bank for a better interest rate through the home loan balance transfer facility.
The best interest rate for a 20 lakh home loan is currently offered by Bank of Maharashtra, Bank of India, Bank of Baroda, Union Bank of India, Bajaj Finserv, SBI and HSBC.
Reshma Rawat is a passionate writer, with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra, and writes blogs & webpages on financial products (loans, credit cards, insurance, financial policies by government, mutual funds, etc.
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