Best Home Loan Interest Rate
Check the best home loan interest rates 2026 and know which bank is giving the lowest interest rate on home loan at 7.35% even after numerous rate hikes! Find out the Current home loan interest rates for government employees, home loan interest rates for women, and find out the difference between floating-rate and fixed-rate home loans.
Current Home Loan Interest Rates 2026
| Interest Rate | Starting @ 7.35% |
|---|---|
| Processing Fee | Up to 0.25% |
| Loan Tenure | 5 to 30 years |
| Lowest EMI Per Lakh | Rs. 769 for 30 years |
| Prepayment Charges | Nil |
Best Home Loan Interest Rates of Top Public, Private Sector Banks and NBFCs 2026
| Bank Name | Interest rate (%) | Processing fee |
|---|---|---|
| HDFC | 7.90% to 13.20% | Up to 1.50% of loan amount |
| HSBC Bank | 7.70% | Up to 1.00% of the loan amount + applicable taxes |
| Kotak Mahindra Bank | 7.70% | Up to 0.50% of loan amount + GST & other statutory levies |
| IDFC Bank | 8.85% | Up to Rs. 10,000 |
| PNB Housing Finance | 8.25% | Up to 1% of loan amount + GST |
| Federal Bank | 8.75% | 0.50% of loan amount (Min. Rs. 3,000 - Rs. 7,500) |
| Bajaj Finserv | 7.45% - 18.00% | Up to 1% of loan amount (Minimum Rs. 700) |
| ICICI Bank | 8.75% | Up to 0.50% of loan amount or Rs. 2,000, whichever is higher + GST |
Best Home Loan Interest Rates of Top Public Sector Banks 2026
| Bank Name | Interest rate (%) | Processing fee |
|---|---|---|
| State Bank of India | 7.50% - 8.45% | Up to 0.50% of loan amount + GST |
| Central Bank of India | 7.35% to 8.50% | Up to 0.50% of loan amount (Maximum Rs. 20,000) |
| Bank of Baroda | 7.45% | Up to 0.50% of loan amount (Minimum Rs. 8,500 & Maximum Rs. 25,000) |
| Bank of Maharashtra | 7.35% - 10.40% | 0.25% of loan amount (Maximum Rs. 25,000) |
| Bank of India | 7.35% | Maximum Rs. 50,000 |
Home loan interest rates for all Public and Private Sector banks updated on: 1th Jan 2026
Best Home Loan Interest Rates for Government Employees
Many home loan lenders even factor in the income sources of their home loan applicants when deciding their rates. Generally, lenders charge lower rates from salaried individuals as compared to self-employed individuals.
Among self-employed, chartered accountants and doctors generally hold higher chances of getting their home loans approved at lower rates. Among salaried, government and PSU employees are most preferred by lenders owing to their job security and income certainty.
They are followed by the ones employed in reputed and large private sector organisations as these companies are generally looked upon as stable and have increased potential to face economic downturns as compared to other private companies.
It lowers the credit risk perception of the lenders resulting in them enticing such employees by offering them lower home loan rates.
Here, we will share the Lowest home loan interest rates offered to government employees:
| Name of Lender | Interest Rate (%) |
|---|---|
Punjab & Sind Bank (PSB Apna Ghar-Sahaj) (Available to permanent employees of Central/State Governments/PSUs) | 8.50% to 10% |
Punjab National Bank (PNB Pride Housing Loan For Government Employees) (For permanent employees of Central/State Governments/Defence Personnel & Paramilitary forces ) | 8.25% |
What is the EMI for a 50 lakh home?
To calculate your Rs. 50 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. 50 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. 50 Lakh | 7.35% | 30 Years | ₹ 34,449 |
| Rs. 50 Lakh | 7.35% | 20 Years | ₹ 39,822 |
| Rs. 50 Lakh | 7.35% | 10 Years | ₹ 58,960 |
| Rs. 50 Lakh | 7.35% | 5 Years | ₹ 99,834 |
How to Get a Home Loan at a Low-Interest Rate? - 2026
As a home loan is a big-ticket loan, lenders carefully conduct an in-depth evaluation of the applicant's credit history, income, repayment capacity etc. For the applicants looking for a home loan, it is important that they are well aware of the factors that lenders look upon when processing their home loans. Knowing such factors can help them get their home loan approved at lower rates.
Here is a list of some factors looked upon by home loan lenders to set your interest rate:
Credit score
Lenders consider the applicant's score to be one of the important factors when evaluating his home loan application. Those having a score of 750 and above are generally looked upon as creditworthy and have increased chances of home loan approval at lower rates. It is because those with lower scores are usually considered to be lacking financial discipline, which makes the lenders charge higher rates to make up for their increased risk of credit default.
Thus, if you are someone who have a poor credit score or is new to credit, consider building your credit score by using your credit cards regularly and in a disciplined manner. Once your credit score equals a score of 750 or above, apply for a home loan.
Income
Lenders generally consider applicants having income as safer bets as they have higher disposable income. Those having lower disposable income are considered by the lenders to have higher default chances. Thus, many lenders charge such applicants with higher home loan rates.
Employer’s profile
Also, many of the lenders check the income sources of their home loan applicants when deciding their interest rates. Generally, lenders charge lower home loan rates from the salaried than self-employed people.
Doctors and chartered accountants under the self-employed section generally have higher chances of getting their home loans approved at lower rates. Among the salaried class, government employees and PSU are favored the most owing to their job security and income certainty.
Next are those who are employed in reputed private sector organisations that are preferred by the lenders for home loan approval at a lower interest rate. It is because such companies where these individuals are working are considered to be highly stable with a higher potential to face economic downturns as compared to the other private companies.
It lowers the lender's credit risk perception resulting in them enticing such staff/employees through lower home loan rates.
Existing consumer relation with lenders
There are many lenders offering preferential rates on home loans to their existing customers. Such relations can be in the form of current, savings or FD accounts or in the form of credit cards or various other loan options.
Thus, those seeking a home loan should begin their loan search by directly contacting their banks or NBFCs with whom they share long term existing banking relationships. Interest rates offered to such individuals can be looked upon as a benchmark to compare home loan rates offered by other lenders.
Loan amount
The loan amount that you are looking to borrow can even impact the interest rate of a home loan. Usually, home loans of up to 30 lakh come at lower rates than loans available at higher amounts. For availing of the best home loan interest rates, you should choose to make a higher down payment contribution from your own resources. It lowers the lender's credit risk, which in turn helps at boosting your chances to avail home loan at a lower interest rate.
Thus, the prudent ways to get your home loan at lower interest rates are keeping a CIBIL score of 750 and above, making higher down payment contribution from your own funds, widening your home loan search horizon, which includes contacting those banks or NBFCs with whom you already share a banking relationship. Owing to your long term good relationship with a bank, you may get a home loan at a lower interest rate.
Best Home Loan Interest Rates for Women 2026
To promote financial independence among women, most lenders usually offer the best home loan interest rates to women borrowers. Such rates are usually lower than other individual rates. Usually, the concessional interest rate offered to women borrowers by lenders is 5 bps.
| Name of Lender | For Women |
|---|---|
| HDFC Bank | 7.90% to 13.20% |
| Kotak Mahindra Bank | 7.70% |
| State Bank of India | 7.50% - 8.45% |
| Punjab National Bank | 8.25% |
You can also check different features and benefits of SBI Home Loan EMI Calculator
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.
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.
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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