Home loan rates in India hover near multi-year lows in mid-September, with public sector banks offering competitive rates around 7%, while private lenders’ rates vary based on borrower profile and loan size.
Home loan costs in India remained near multi-year lows in mid-September, with Paisabazaar data showing starting rates of 7 per cent at Bank of Maharashtra and Central Bank of India among the lenders tracked as of September 16. Bank of India began at 7.10 per cent, while UCO Bank and Union Bank of India started at 7.15 per cent. The spread was wider among private lenders, where rates were generally higher and often depended on borrower profile, loan size and other eligibility checks.
Among public sector banks, State Bank of India quoted home loans from 7.25 per cent, while Bank of Baroda started at 7.20 per cent. HDFC Bank’s starting rate was 7.75 per cent, ICICI Bank’s was 7.55 per cent and HSBC Bank’s was 7.45 per cent. In the housing finance company segment, LIC Housing Finance began at 7.15 per cent, Bajaj Housing Finance at 7.25 per cent and ICICI Home Finance at 7.50 per cent, according to the Paisabazaar comparison.
The rate on offer can also change with the size of the loan. Canara Bank, for example, priced loans at 7.25 per cent for borrowings up to Rs 30 lakh, 7.20 per cent for loans above Rs 30 lakh and up to Rs 75 lakh, and 7.15 per cent for larger loans. Punjab National Bank also charged slightly less on bigger loans, while some lenders, including Bank of Maharashtra, Central Bank of India and UCO Bank, kept the same floor rate across all three loan bands. ICICI Bank’s own rate page says its home loan pricing is linked to the repo rate and varies by credit score and employment status, with pre-approved loans starting at 7.55 per cent and rates valid until September 30, 2026.
Borrowers should be careful not to rely only on the advertised minimum. Lenders can adjust pricing for credit score, income stability, property type, loan-to-value ratio and internal risk policies, which means the final rate may be higher than the headline figure. The latest comparisons also show that even small differences matter over long tenures, making it worth checking fees, concessions and the top end of the rate range as well as the starting point. SBI’s published pricing, for instance, runs from 7.25 per cent to 8.55 per cent, illustrating how sharply costs can rise for less favoured profiles.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
