Lowest Home Loan Interest Rates in India

Ranked by the rate each lender publishes, verified on 16th September 2026. The lowest floor we can source is 7.00% from Bank of Maharashtra — but the lowest floor and the cheapest loan for you are different questions, and the rest of this page is about the difference.

Lenders ranked by published rate

Sorted ascending on the lender's own published floor. We rank on this number and no other, because it is the only figure we can source directly from the lender.

# Lender Published rate EMI on ₹50,00,000 / 20 yr Rate type
1 Bank of Maharashtra PSU bank 7.00% – 9.65% ₹38,765 Floating, RLLR-linked
2 Central Bank of India 7.00% is for women borrowers (Cent Grih Lakshmi); Cent Home starts at 7.20% PSU bank 7.00% – 9.25% ₹38,765 Floating, RBLR-linked
3 HSBC Private bank 7.00% – 8.10% ₹38,765 Floating, repo-linked
4 Indian Overseas Bank PSU bank 7.10% – 8.20% ₹39,066 Floating, RLLR-linked
5 Canara Bank PSU bank 7.15% – 10.00% ₹39,216 Floating, repo-linked
6 Union Bank of India PSU bank 7.15% – 9.35% ₹39,216 Floating, EBLR-linked
7 Indian Bank PSU bank 7.15% – 9.15% ₹39,216 Floating
8 UCO Bank PSU bank 7.15% – 9.25% ₹39,216 Floating, repo-linked (UCO Float)
9 LIC Housing Finance Housing finance company 7.15% – 10.30% ₹39,216 Floating, LHPLR-linked
10 Bank of Baroda PSU bank 7.20% – 8.95% ₹39,367 Floating, BRLLR-linked
11 SBI PSU bank 7.25% onwards ₹39,519 Floating, EBLR-linked
12 PNB PSU bank 7.25% – 9.15% ₹39,519 Floating, RLLR + BSP
13 Bajaj Housing Finance Housing finance company 7.25% – 10.65% ₹39,519 Floating, reference-rate linked
14 Punjab & Sind Bank PSU bank 7.35% – 10.75% ₹39,822 Floating, PRLR-linked
15 Saraswat Bank Private bank 7.35% – 9.10% ₹39,822 Floating, CIBIL-banded
16 Federal Bank Private bank 7.35% – 9.50% ₹39,822 Floating, repo-linked
17 IDBI Bank Private bank 7.40% – 11.50% ₹39,974 Floating, RLLR-linked
18 Karnataka Bank Private bank 7.48% – 11.80% ₹40,219 Floating, EBLR-linked
19 J&K Bank Private bank 7.50% – 8.20% ₹40,280 Floating, HLRLLR-linked
20 PNB Housing Finance Housing finance company 7.50% – 10.05% ₹41,047 Floating, PNBRRR-linked
21 Kotak Mahindra Bank Private bank 7.60% onwards ₹40,586 Floating, repo-linked
22 HDFC Bank Private bank 7.75% – 13.20% ₹41,047 Floating, repo-linked
23 IDFC FIRST Bank Private bank 7.75% onwards ₹41,047 Floating, repo-linked
24 Aditya Birla Housing Finance Housing finance company 7.75% onwards ₹41,047 Floating, ARR-linked
25 Tamilnad Mercantile Bank Private bank 7.90% – 9.30% ₹41,511 Floating, RLLR-linked
26 Standard Chartered Private bank 7.99% onwards ₹41,791 Floating
27 Axis Bank Private bank 8.00% – 9.10% ₹41,822 Floating, repo-linked
28 IndusInd Bank Private bank 8.00% – 15.00% ₹41,822 Floating, externally benchmarked
29 Tata Capital Housing finance company 8.00% – 13.00% ₹41,822 Floating, PLR-linked
30 Home First Finance Housing finance company 8.00% – 17.50% ₹41,822 Floating, PLR-linked
31 Dhanlaxmi Bank Private bank 8.20% – 11.50% ₹42,446 Floating, RLLR-linked
32 City Union Bank Private bank 8.25% – 10.50% ₹43,391 Floating, EBLR-linked
33 CSB Bank Private bank 8.30% onwards ₹42,760 Floating, repo-linked
34 ICICI Bank Private bank 8.50% – 9.80% ₹43,391 Floating, repo-linked
35 Karur Vysya Bank Private bank 8.50% – 10.65% ₹43,391 Floating
36 Bandhan Bank Private bank 8.55% – 13.52% ₹43,550 Floating, RLLR-linked
37 IIFL Home Finance Housing finance company 8.90% – 17.10% ₹44,665 Floating, PLR-linked
38 Can Fin Homes Housing finance company 8.95% – 11.00% ₹44,826 Floating or fixed
39 Grihum Housing Finance Housing finance company 9.00% – 18.00% ₹44,986 Floating, GRR-linked
40 SMFG Grihashakti Housing finance company 9.25% onwards ₹45,793 Floating, RPLR-linked
41 Truhome Finance Housing finance company 9.50% onwards ₹46,607 Floating (fixed also offered)
42 Repco Home Finance Housing finance company 9.90% – 11.40% ₹48,417 Floating, MLR + spread
43 Capri Global Housing Finance Housing finance company 10.50% – 21.25% ₹49,919 Variable, reference-rate linked
44 Sundaram Home Finance Housing finance company 10.65% onwards ₹50,424 Floating, SH-PLR-linked
45 Aadhar Housing Finance Housing finance company 11.75% – 17.00% ₹54,185 Floating, RPLR-linked
46 Muthoot Homefin Housing finance company 12.25% – 15.00% ₹55,928 Floating, profile-based
47 Vastu Housing Finance Housing finance company 12.50% – 19.50% ₹56,807 Floating, PLR less spread
48 Aptus Value Housing Finance Housing finance company 14.00% – 15.50% ₹62,176 Floating or fixed, PLR-linked

EMI column applies each lender's published floor to the same loan, so the rows are comparable. It is not a quote — it is what that advertised rate would cost if you qualified for it.

Why we do not name a "best" bank

The top three floors in our set — Bank of Maharashtra at 7%, Central Bank of India at 7%, HSBC at 7% — sit within 0.00 percentage points of each other. At that spacing, which lender is cheapest for a particular borrower is decided by the spread the lender adds to its benchmark after seeing the file, not by the advertised floor.

A page that declared one of them the winner would be making a claim about your file that it cannot possibly know. What we can tell you is the published number, where it came from, and when we checked it. That is the deal on every page in this section.

When a lower rate is the wrong choice

The most common mistake is optimising the rate and ignoring the fee. Here is the arithmetic on ₹50,00,000 over 20 years.

Option Rate EMI Upfront fee
Lower rate, with fee 7% ₹38,765 ₹25,000
Higher rate, fee waived 7.25% ₹39,519 nil

The cheaper rate saves ₹754 a month, so the ₹25,000 fee pays for itself in about 34 months. Hold the loan longer than that and the lower rate wins comfortably. Expect to sell, refinance or prepay in full before then — a job move, an under-construction flat you may exit — and the waived fee is the better deal.

Run your own numbers → Compare all banks → How we source rates →

Lowest home loan rates — common questions

What is the lowest home loan interest rate in India right now?
Among the 48 lenders we track, the lowest published floor is 7.00% from Bank of Maharashtra, read from their own rate page on 16th September 2026. Floors move when the RBI changes the repo rate, so check the verification date on any site quoting a "lowest rate".
Is the lowest interest rate always the cheapest home loan?
No. A processing fee of ₹25,000 takes about 34 months to recover against a rate that is 0.25 percentage points lower on ₹50,00,000 over 20 years. Over a full tenure the rate almost always wins — but if you expect to prepay or sell within a few years, the fee can dominate.
How do I actually get the lowest rate a bank advertises?
Published floors normally assume a credit score in the highest band, a salaried profile with documented income, and a loan-to-value ratio well inside the lender's cap. Improving any of those before applying moves you closer to the floor. A larger down payment is usually the fastest lever, because it cuts both the LTV and the loan size.
Do women get lower home loan interest rates?
Several lenders offer a concession of roughly 5 basis points when a woman is the primary applicant or co-applicant, and many states charge lower stamp duty on property registered in a woman's name — which is usually the larger saving of the two. Both need checking against the specific lender and state rather than assumed.

Disclaimer: BankCreds.com is a loan comparison platform and does not directly lend, disburse, or provide any financial products. We aggregate and display loan offers from RBI-registered banks and NBFCs to help you make an informed decision. All loan applications are processed directly by the respective lender. Interest rates, charges, eligibility, and terms shown are indicative and subject to the lender's final assessment. Please read the lender's terms and conditions carefully before applying.