Lowest home loan interest rates from public sector banks
Name of Lender Above Rs 75 lakh Bank of India 7.10–10.25 Bank of Maharashtra 7.10–9.90 Central Bank of India 7.10–9.15 Indian Overseas Bank 7.10 onwards Union Bank of India 7.15–9.50 UCO Bank 7.15–9.25 Indian Bank 7.15–9.55 Bank of Baroda 7.20–9.25 Punjab National Bank 7.20–9.00 State Bank of India 7.25–8.70 Canara Bank 7.15–9.90 Punjab and Sind Bank 7.30–10.70
Lowest home loan interest rates from private sector banks
Name of Lender Above Rs 75 lakh South Indian Bank 7.20 onwards Karnataka Bank 7.30–11.68 ICICI Bank 7.45 onwards HSBC Bank 7.45 onwards Kotak Mahindra Bank 7.70 onwards HDFC Bank 7.75 onwards Tamilnad Mercantile Bank 7.90–9.30 Axis Bank 8.00–9.10 CSB Bank 8.05 onwards RBL Bank 8.20 onwards City Union Bank 8.75–10.50 Federal Bank 7.30–9.75 Bandhan Bank 8.41–12.58 Karur Vysya Bank 8.50–10.65
What is the tax rebate available on a home loan?
Do women get concessional interest rates for SBI home loans?
How does my salary influence my home loan amount?
With the interest rate of your home loan having a direct impact on your monthly equated instalment (EMI) payment and the entire cost of your loan, obtaining the lowest home loan interest rate can result in significant savings over time.When you avail a home loan, you can opt for a tenure that you are comfortable with and repay it in easy instalments. However, the interest rate on a home loan depends on various factors such as the credit score of the borrower, loan-to-value (LTV) ratio, income, loan tenure, policy rate, etc.One of the key factors is credit score, as having a good score can help you get a home loan at a low interest rate. Higher credit scores usually result in better terms, such as best interest rates.The table gives you a comparison of lending rates of 12 public sector banks (PSBs) and 13 private sector banks of home loan amounts above Rs 75 lakhs.*Extra interest rate concession of 0.05% to borrowers opting for insurance policy.**Under CRG-Prime, CRG-1 & CRG-2, additional 5 bps concession for takeover/ready to move HL proposals & for salaried employees maintaining salary a/c with the bank.***Additional concession of 0.05% & 0.10% for women borrowers & takeover loans, respectively.Rates as of 11th March 2026Source: Paisabazaar.comInterest paid on housing loans is allowed as a deduction to the extent of Rs 2 lakh in respect of self-occupied property. In order to provide a further impetus, an additional deduction of up to 1,50,000/- for interest paid on loans borrowed up to March 31, 2020, for the purchase of an affordable house valued up to 45 lakh.The principal portion of the EMI paid for the year is allowed as deduction under Section 80C. The maximum amount that can be claimed is up to Rs 1.5 lakh.There is a concessional interest rate of 0.05% p.a. if a woman is the main applicant/co-applicant in a SBI home loan.Apart from other criteria and norms of the lending bank, the home loan amount is generally calculated on the basis of your EMI and the net monthly income (NMI) ratio, where NMI is the take-home pay after taxes and other payroll deductions. The EMI/NMI ratio varies in the range of 20% to 70% for different net annual income slabs. The loan amount can be increased by including a co-applicant.