Home buyers on August 7, 2026 face a stark disparity in mortgage pricing, with public-sector lenders offering rates as low as 7% for floating loans, while private and non-bank products reach above 10% to 20%, highlighting the evolving landscape of home financing in India.
Home buyers looking for borrowing costs on August 7, 2026 are facing a wide spread in mortgage pricing, with the cheapest floating offers from large public-sector lenders starting around 7% and some private-bank and non-bank products climbing well above 10%, according to a compilation by BankBazaar based on lenders’ websites. The table shows that rates vary sharply by loan size, lender category and whether the borrower chooses a floating or fixed plan.
Among floating-rate home loans, public banks remain the most competitive at the lower end. Bank of Maharashtra starts at 7%, UCO Bank at 7% and Bank of India and Canara Bank at 7.10%, while State Bank of India, Indian Bank, Indian Overseas Bank and Union Bank of India are clustered in the low-to-mid 7% range. At the other end, HDFC Bank’s floating rates run as high as 13.20%, and RBL Bank starts at 9%. Several lenders, including ICICI Bank, Kotak Mahindra Bank and South Indian Bank, advertise minimum rates from about 7.25% to 7.60%, though the final offer depends on credit profile and other checks.
Fixed-rate borrowing is much more expensive. Axis Bank lists a flat 14% rate, while others such as Canara Bank, ICICI Bank and Punjab National Bank offer ranges that mostly sit between the high 8%s and low 12%s. Bank of Baroda’s fixed-rate loans begin at 8.90%, and LIC Housing Finance is the only listed housing finance company with a fixed-rate product in the table, at 10% to 10.25%. The report also notes that some fixed-rate loans apply only for a limited period before switching to floating pricing.
The housing finance company segment is similarly mixed. Tata Capital and Aditya Birla Housing Finance begin at 7.50% and 7.75% respectively, while LIC Housing Finance’s floating rates range from 7.15% to 10.10% depending on loan size. Bajaj Finserv’s range is unusually broad, reaching 20%, reflecting how sharply pricing can move for riskier profiles. ICICI Bank says on its website that its home loan offers start at 7.50% for pre-approved loans and are linked to the repo rate, with rates varying according to credit score, income, loan amount and tenure. State Bank of India says its home loan rates currently run from 8.40% to 10.15%, also linked to the external benchmark lending rate, underscoring that advertised starting rates are only one part of the cost picture.
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.
