 "SBI, BoB offering home loans at 8.4%: Full list of existing loan rates")
The State Bank of India, Bank of Baroda, Union Bank of India, and many other public sector banks (PSBs) are offering home loans at interest rates beginning at 8.40 per cent.
Earlier this month, the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 6.5 per cent for the fourth time in a row. The RBI had been raising this rate since May 2022 to tackle high inflation. For borrowers, this meant higher interest rates on their loans.
Repo rate pause coupled with new RBI guidelines, which gives borrowers the ability to switch to fixed-rate home loans at their discretion makes it favourable for buyers to consider taking out a loan.
To help you make an informed decision, here are the tables compiled by Paisabazaar.com of the home loan interest rates offered by various public sector banks, private sector banks, and housing finance companies (HFCs) as of October 25, 2023.
Public Sector Banks:
Public sector banks, known for their reliability and accessibility, offer a range of home loan interest rates tailored to different loan amounts. Here is an overview of some prominent public sector banks along with the best and worst loan rates in each category:
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| Name of Lender | Loan Amount (Rs) | ||
| Upto 30 Lakh | Above 30 Lakh & Upto 75 Lakh | Above 75 Lakh | |
| PUBLIC SECTOR BANKS | |||
| State Bank of India | 8.40-10.15 | 8.40-10.05 | 8.40-10.05 |
| Bank of Baroda | 8.40-10.65 | 8.40-10.65 | 8.40-10.90 |
| Union Bank of India | 8.40-10.80 | 8.40-10.95 | 8.40-10.95 |
| Punjab National Bank | 8.55-10.25 | 8.50-10.15 | 8.50-10.15 |
| Bank of India | 8.30-10.75 | 8.30-10.75 | 8.30-10.75 |
| Canara Bank | 8.50-11.25 | 8.45-11.25 | 8.40-11.15 |
| UCO Bank | 8.45-10.30 | 8.45-10.30 | 8.45-10.30 |
| Bank of Maharashtra | 8.50-11.15 | 8.50-11.15 | 8.50-11.15 |
| Punjab and Sind Bank | 8.50-10.00 | 8.50-10.00 | 8.50-10.00 |
| Indian Overseas Bank | 8.85 onwards | 8.85 onwards | 8.85 onwards |
| Central Bank of India | 8.45-9.80 | 8.45-9.80 | 8.45-9.80 |
While SBI and BoB are offering home loan interest rates ranging from 8.40 per cent to 10.15 per cent for loans up to Rs 30 lakh, PNB’s rates vary from 8.55 per cent to 10.25 per cent.
Notably, Canara Banks is offering an additional 5 bps concession for takeover/ready-to-move home loan proposals and a 5 bps concession for salaried employees working in central/state government/PSUs/MNCs/Bluechip Companies and corporates maintaining or switching salary accounts with Canara Bank including Canara SB Premium Payroll package payroll accounts. The offer is applicable in all loan slabs up to the floor/ceiling rate.
Private Sector Banks:
Here is an overview of some prominent private sector banks along with the best and worst loan rates in each category:
| Name of Lender | Loan Amount (Rs) | ||
| Upto 30 Lakh | Above 30 Lakh & Upto 75 Lakh | Above 75 Lakh | |
| PRIVATE SECTOR BANKS | |||
| Kotak Mahindra Bank | 8.70 onwards | 8.70 onwards | 8.70 onwards |
| ICICI Bank | 9.00-9.80 | 9.00-9.95 | 9.00-10.05 |
| Axis Bank | 9.00-13.30 | 9.00-13.30 | 9.00-9.40 |
| HSBC Bank | 8.45 onwards | 8.45 onwards | 8.45 onwards |
| South Indian Bank | 9.57-10.97 | 9.57-10.77 | 9.57-11.42 |
| Karur Vysya Bank | 9.23-10.73 | 9.23-10.73 | 9.23-10.73 |
| Karnataka Bank | 8.75-10.43 | 8.75-10.43 | 8.75-10.43 |
| Federal Bank | 8.80 onwards | 8.80 onwards | 8.80 onwards |
| Dhanlaxmi Bank | 9.35-10.50 | 9.35-10.50 | 9.35-10.50 |
| Tamilnad Mercantile Bank | 9.45-9.95 | 9.45-9.95 | 9.45-9.95 |
| Bandhan Bank | 9.15-15.00 | 9.15-13.32 | 9.15-13.32 |
| RBL Bank | 9.15-11.55 | 9.10-11.30 | 9.10-11.30 |
| CSB Bank | 11.27-13.12 | 11.27-13.12 | 11.27-13.12 |
| HDFC Bank Ltd. | 8.50 - 10.20 | 8.50 - 10.20 | 8.50 - 10.20 |
| City Union Bank | 12.25 - 14.00 | 12.75 - 14.50 | 13.25 - 14.75 |
Leading private lenders, like HDFC Bank, Kotak Mahindra Bank and ICICI Bank provide competitive interest rates starting from 8.70 per cent. HSBC Bank’s home loan interest rates start from 8.45 per cent onwards across tenures.
Housing Finance Companies (HFCs):
Housing Finance Companies offer specialised home loan solutions with varying interest rates. Here is an overview of some well-known HFCs along with the best and worst loan rates in each category:
| Name of Lender | Loan Amount (Rs) | ||
| Upto 30 Lakh | Above 30 Lakh & Upto 75 Lakh | Above 75 Lakh | |
| HOUSING FINANCE COMPANIES (HFCs) | |||
| LIC Housing Finance | 8.50-10.35 | 8.50-10.55 | 8.50-10.75 |
| Bajaj Housing Finance | 8.45 onwards | 8.45 onwards | 8.45 onwards |
| Tata Capital | 8.70 onwards | 8.70 onwards | 8.70 onwards |
| PNB Housing Finance | 8.50-14.50 | 8.50-11.45 | 8.50-11.45 |
| GIC Housing Finance | 8.80 onwards | 8.80 onwards | 8.80 onwards |
| Repco Home Finance | 9.50 onwards | 9.50 onwards | 9.50 onwards |
| Indiabulls Housing | 8.75 onwards | 8.75 onwards | 8.75 onwards |
| Aditya Birla Capital | 8.80-14.75 | 8.80-14.75 | 8.80-14.75 |
| ICICI Home Finance | 9.20 onwards | 9.20 onwards | 9.20 onwards |
| Godrej Housing Finance | 8.55 onwards | 8.55 onwards | 8.55 onwards |
Soucre: Paisabazaar.com
Private home loan lenders, like Bajaj Housing Finance, Tata Capital and PNB Housing Finance, offer competitive rates ranging from 8.45 per cent to 14.50 per cent. LIC Housing Finance provides interest rates ranging from 8.50 per cent to 10.75 per cent.
Homeownership is one of the most critical decisions for prospective homebuyers. Finding the best home loan rates depends on your financial profile, the loan amount you require, and the loan tenure.
Fluctuating interest rates can have a significant impact on loan tenures and the overall cost of borrowing.
Home loan EMIs for customers who bought properties less than Rs 40 lakh have gone up 20% in the last two years due to a rise in mortgage rate, according to real estate consultant Anarock.
Anarock said that affordable home buyers have been paying almost 20% more in their EMIs over the last two years. The floating interest rates for home loans up to Rs 30 lakh have risen from 6.7% in mid-2021 to nearly 9.15% now.
To enhance consumer protection, the RBI in August this year, asked banks to inform borrowers about changes in the loan's tenure or EMI. Borrowers now also have the option to switch from floating to fixed-rate home loans or opt for foreclosure, with disclosed fees.
The RBI has directed banks to provide borrowers with options when resetting interest rates. This applies to personal loans, including consumer credit, education loans, loans for property development, and financial asset investments. These measures aim to address issues arising from rising interest rates and ensure borrowers are informed and have choices.