Home Loan · Guide
Home loan interest rates and the best banks in India
Home loan rates at the lenders we track start at 7.20% p.a. and rise with credit risk, loan size and loan-to-value. Public-sector banks tend to publish the lowest starting rates; private banks compete on speed and service. Here is the rate map, taken from each lender’s official rate page.
By FinancePaisa Editorial Team · Research & editorialUpdated · 5 min read
Rates checked against the lenders' official pages on 28 September 2026. Your actual rate depends on your profile; confirm with the lender before you apply.
Official rate pages: SBI · ICICI Bank · HDFC Bank · Bank of Baroda · Axis Bank · Kotak Mahindra
On this page (11 sections)
Interest rate comparison
| Lender | Starting rate | Rate benchmark | Processing fee |
|---|---|---|---|
| SBI | 7.25% p.a. | EBLR + spread | — |
| ICICI Bank | 8.50% p.a. | Repo + spread | 0.5% of loan amount + taxes |
| HDFC Bank | 7.75% p.a. | Repo + 2.50% to 7.95% | Up to 0.50% of loan or ₹3,000, whichever is higher, + taxes |
| Bank of Baroda | 7.20% p.a. | BRLLR 7.90% (repo + 2.65%) | — |
| Axis Bank | 8.20% p.a. | Repo + spread | — |
| Kotak Mahindra | 7.60% p.a. | Repo + spread | 0.5% (salaried), 1% (self-employed) |
SBI
- Starting rate
- 7.25% p.a.
- Rate benchmark
- EBLR + spread
- Processing fee
- —
ICICI Bank
- Starting rate
- 8.50% p.a.
- Rate benchmark
- Repo + spread
- Processing fee
- 0.5% of loan amount + taxes
HDFC Bank
- Starting rate
- 7.75% p.a.
- Rate benchmark
- Repo + 2.50% to 7.95%
- Processing fee
- Up to 0.50% of loan or ₹3,000, whichever is higher, + taxes
Bank of Baroda
- Starting rate
- 7.20% p.a.
- Rate benchmark
- BRLLR 7.90% (repo + 2.65%)
- Processing fee
- —
Axis Bank
- Starting rate
- 8.20% p.a.
- Rate benchmark
- Repo + spread
- Processing fee
- —
Kotak Mahindra
- Starting rate
- 7.60% p.a.
- Rate benchmark
- Repo + spread
- Processing fee
- 0.5% (salaried), 1% (self-employed)
Best home loan banks: our shortlist
On a 20-year home loan, a 25 basis-point rate difference works out to lakhs in extra interest. These are the banks that consistently offer the lowest published rates and the least painful process.
| Rank | Bank | Standout |
|---|---|---|
| 1 | SBI | Low starting rate + Maxgain overdraft variant |
| 2 | ICICI Bank | Fast processing; strong on salaried premium |
| 3 | HDFC Bank | Doorstep service; NRI-friendly |
| 4 | PNB | PSU alternative to SBI |
| 5 | Bank of Baroda | Aggressive on rural and semi-urban markets |
1
- Bank
- SBI
- Standout
- Low starting rate + Maxgain overdraft variant
2
- Bank
- ICICI Bank
- Standout
- Fast processing; strong on salaried premium
3
- Bank
- HDFC Bank
- Standout
- Doorstep service; NRI-friendly
4
- Bank
- PNB
- Standout
- PSU alternative to SBI
5
- Bank
- Bank of Baroda
- Standout
- Aggressive on rural and semi-urban markets
Rate is not the only factor
Two things matter almost as much as rate: (a) how fast the bank clears legal + technical checks on the property, and (b) whether the bank has a good balance-transfer window if RBI cuts rates 2-3 years in. SBI, HDFC, and ICICI all score well on both.
Who each bank suits best
- SBI — you want one of the lowest published rates and the Maxgain overdraft
- ICICI — you want faster processing than SBI and premium salaried treatment
- HDFC — you want doorstep service and one point of contact
- Bank of Baroda / PNB — you are open to other public-sector banks, which often price close to or below SBI
SBI vs HDFC Bank
SBI is India's largest home-loan lender by book size; HDFC Bank (post-merger) is the largest private-sector lender. Both are strong choices - but the total cost of the loan over 20-25 years can differ by lakhs depending on which you pick.
| Feature | SBI | HDFC Bank |
|---|---|---|
| Starting rate | 7.25% p.a. (EBLR-linked) | 7.75% p.a. (Repo-linked) |
| Maximum loan amount | No published maximum | No published maximum |
| Maximum tenure | 30 years | 30 years |
| Processing fee | 0.35% + GST (confirm caps with SBI) | Up to 0.50% of loan or ₹3,000, whichever is higher, + taxes |
| Foreclosure (floating) | Nil | Nil |
| Overdraft variant | Maxgain (available) | Not available |
| Disbursal timeline | 15-30 days | 10-20 days |
| Doorstep service | Limited | Yes |
| LTV cap (₹30-75 lakh) | 80% | 80% |
Starting rate
- SBI
- 7.25% p.a. (EBLR-linked)
- HDFC Bank
- 7.75% p.a. (Repo-linked)
Maximum loan amount
- SBI
- No published maximum
- HDFC Bank
- No published maximum
Maximum tenure
- SBI
- 30 years
- HDFC Bank
- 30 years
Processing fee
- SBI
- 0.35% + GST (confirm caps with SBI)
- HDFC Bank
- Up to 0.50% of loan or ₹3,000, whichever is higher, + taxes
Foreclosure (floating)
- SBI
- Nil
- HDFC Bank
- Nil
Overdraft variant
- SBI
- Maxgain (available)
- HDFC Bank
- Not available
Disbursal timeline
- SBI
- 15-30 days
- HDFC Bank
- 10-20 days
Doorstep service
- SBI
- Limited
- HDFC Bank
- Yes
LTV cap (₹30-75 lakh)
- SBI
- 80%
- HDFC Bank
- 80%
SBI vs HDFC Bank: our verdict
SBI publishes the lower starting rate (7.25% p.a. against 7.75% p.a.) and offers the highly useful Maxgain overdraft. At those starting rates, a 20-year ₹50 lakh loan from SBI costs about ₹3,66,871 less in interest. HDFC Bank wins on speed and service - if you have a tight closing timeline or want a single point of contact, that is worth a slightly higher rate to some borrowers.
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Maxgain: SBI's secret weapon
Maxgain converts your home loan into an overdraft account. Any surplus you park in it reduces the interest-bearing portion without formal prepayment. For salaried borrowers with irregular bonuses or year-end incentives, this can shave off 2-3 years of tenure at no extra cost.
How rate benchmarks work
Since October 2019, RBI requires new retail floating home loans to be linked to an external benchmark - usually the repo rate. Your rate = benchmark + a bank-specific spread. When RBI cuts the repo, most floating home loans reset within 3 months.
Where you can save the most
- Choose the shortest tenure your EMI budget allows
- Prefer floating over fixed unless you expect a sharp rate rise
- Compare 3 banks in writing before finalising
- Ask for waiver on processing fees during promo windows
- Review your rate annually - RBI cuts should flow to you automatically
Impact of credit score
| Credit score | Approximate rate premium |
|---|---|
| 800+ | Starting rate (base) |
| 750-799 | + 10 bps |
| 700-749 | + 30 bps |
| 650-699 | + 60-80 bps |
| Below 650 | Case-by-case or decline |
800+
- Approximate rate premium
- Starting rate (base)
750-799
- Approximate rate premium
- + 10 bps
700-749
- Approximate rate premium
- + 30 bps
650-699
- Approximate rate premium
- + 60-80 bps
Below 650
- Approximate rate premium
- Case-by-case or decline