From SBI To Kotak: A Look At Current Home Loan Interest Rates | Business News

Last Updated:July 09, 2025, 12:24 IST

Several leading Indian banks are offering competitive home loan interest rates, with rates starting from as low as 7.50 per cent.

Interest rates might vary depending on the borrower’s credit score and loan type.

Owning a home remains one of the most significant milestones for most individuals. While selecting the perfect property is important, securing the right home loan that offers the best interest rates is just as crucial. With home loans being long-term financial commitments, it’s essential to find a loan that aligns with your financial goals and offers favourable interest rates.

A lower interest rate can significantly reduce the total repayment amount over the loan’s tenure. Currently, several leading Indian banks are offering competitive home loan interest rates, with rates starting from as low as 7.50 per cent. These rates fluctuate by a variety of factors, including market conditions, RBI policy changes, and each bank’s lending policies.

Among the notable banks offering attractive home loan interest rates are the Bank of Baroda, Punjab National Bank, and State Bank of India. In this article, let’s take a look at home loan interest rates offered by top Indian banks:

Bank of India: Reducing its home loan interest rates by 50 basis points, the minimum interest rate of the bank on home loans now starts at 7.35 per cent. Notably, this new rate structure is effective from June 16.

Punjab National Bank (PNB): The second-largest public sector bank in the country has reduced its marginal cost of lending rates by 5 basis points across all tenures. PNB now offers home loan interest rates starting from 7.50 per cent annually. The processing fee is 0.35 per cent of the loan amount.

Kotak Mahindra Bank: Offers rates from 8.20 per cent onwards for loans above Rs 75 Lakh. Coming to the processing fee, the bank charges 2 per cent of the loan amount.

Bank of Baroda: The home loan interest rate of Bank of Baroda is at 7.50 per cent with processing fees starting from Rs 5,000 onwards depending on the loan amount and variant.

State Bank of India (SBI): Also offers home loans with interest rates starting from 7.50 per cent to 10.50 per cent with a processing fee of 0.35 per cent of the loan amount (minimum Rs 2,000 and maximum Rs 10,000).

Canara Bank: The bank offers home loan interest rates from 7.40 per cent onwards for loans above Rs. 75 Lakh. The processing fee is 0.50 per cent of the loan amount (minimum Rs 1,500 and maximum Rs 10,000).

It is worth noting that lenders evaluate multiple factors, like the borrower’s credit score and the loan type, to determine eligibility and the applicable interest rate. Some factors include credit score, interest rate type, income and employment stability, loan amount, and repayment tenure.

Business Desk

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Delhi, India, India

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