What you need to know
Home loan rates in September 2026 start at about 7.10% – 7.25% at public-sector banks and LIC HFL, 7.60% – 8.20% at large private banks and 8.75% – 11.75% at most other HFCs. Bank loans are priced as the repo rate (5.25%) plus a spread fixed at sanction; the spread depends mainly on your credit score, loan size and employment.
Rates by lender
| Lender | Interest rate (p.a.) | Processing fee | Tenure | EMI per ₹1 lakh* | Rates as of |
|---|---|---|---|---|---|
| Indian Overseas Bank Home LoanPublic sector bank | 7.10% – 8.20% | 0.50% of loan (max ₹25,000) + GST | Up to 30 years | ₹781 | 2026 (aggregator) |
| Canara Bank Home LoanPublic sector bank | 7.15% – 10.00% | 0.50% of loan (max ₹10,000) + GST | Up to 30 years | ₹784 | Official range Dec 2025; aggregators Sep 2026 |
| LIC Housing Finance Home LoanHousing finance company | 7.15% – 9.50% | 0.25% of loan (min ₹5,000, max ₹50,000 per Paisabazaar; BankBazaar shows max ₹15,000) + GST; nil for women borrowers under offer | Up to 30 years | ₹784 | 2026 (aggregator, Jun 2026) |
| PNB Home LoanPublic sector bank | 7.25% – 9.65% | 0.35% of loan (min ₹2,500, max ₹15,000) + GST; waived in some festive campaigns | Up to 30 years | ₹790 | Sep 2026 (aggregator) |
| SBI Home LoanPublic sector bank | 7.25% – 8.55% | 0.35% of loan + GST (min ₹5,000, max ₹15,000 per Paisabazaar; BankBazaar shows ₹3,000 – ₹12,000); nil for Privilege and Shaurya | Up to 30 years | ₹790 | Apr 2026 (official); Sep 2026 (aggregator) |
| IDBI Bank Home LoanPrivate sector bank | 7.40% – 11.90% | 0.50% + taxes (aggregator); product page shows ₹2,500 – ₹5,000 + taxes; waived for balance transfer / PMAY | Up to 30 years | ₹799 | Jul – Sep 2026 (aggregator) |
| Kotak Mahindra Bank Home LoanPrivate sector bank | 7.60% onwards | Up to 2% + GST (nil on some online applications) | Up to 20 years (as listed by source) | ₹812 | 2026 (official) |
| HDFC Bank Home LoanPrivate sector bank | 7.75% – 13.20% | Up to 0.50% of loan, minimum ₹4,000 (aggregator) + GST | Up to 30 years | ₹821 | Sep 2026 |
| PNB Housing Finance Home LoanHousing finance company | 7.90% – 12.00% | Up to 1% + GST | Up to 30 years (NRI up to 15 years) | ₹830 | Sep 2026 (aggregator) |
| Tata Capital Home LoanNBFC | 8.00% – 13.00% | Up to 3% + GST (aggregator offer: ₹999 + GST) | Up to 30 years | ₹836 | 2026 (official) |
| Axis Bank Home LoanPrivate sector bank | 8.20% – 9.10% | Up to 1% of loan or ₹10,000, whichever is higher, + GST (Asha: 1% – 2% + GST) | Up to 30 years | ₹849 | Sep 2026 |
| Bandhan Bank Home LoanPrivate sector bank | 8.55% – 13.52% | Up to 1% + GST | Up to 30 years | ₹871 | 2026 (official) |
| Sammaan Capital (formerly Indiabulls Housing Finance) Home LoanHousing finance company | 8.75% onwards | 0.50% onwards + charges | Up to 15 years (per source; confirm with lender) | ₹884 | Sep 2026 |
| YES Bank Home LoanPrivate sector bank | 9.00% – 11.50% | 1.5% + GST or ₹10,000, whichever is higher (BankBazaar); CreditMantri shows 0.5% or ₹10,000 | Up to 35 years | ₹900 | Sep 2026 (aggregator) |
| Truhome Finance (formerly Shriram Housing Finance) Home LoanHousing finance company | 9.50% onwards | As per MITC (aggregator: up to 1.5% + GST) | Up to 25 years | ₹932 | 2026 |
| Piramal Finance Home LoanHousing finance company | 9.99% onwards | Up to 3% + taxes | Up to 30 years | ₹964 | Jun 2026 |
| Aadhar Housing Finance Home LoanHousing finance company | 11.75% – 17.00% | Typically 0.5% – 1% (aggregator: up to ₹3,500 + GST) | Up to 30 years | ₹1,084 | 2026 (official) |
* At the lowest rate for 20 years. Starting rates go to borrowers with strong credit scores and income; your rate depends on your profile. Sources and dates on each lender page — confirm with the lender before applying.
Benchmarks today
| Benchmark | Rate | Note |
|---|---|---|
| RBI repo rate | 5.25% | Unchanged at the 5 Aug 2026 policy (neutral stance) |
| SBI EBLR | 7.90% | Repo + 2.65% (effective 15 Dec 2025) |
| SBI 1-year MCLR | 8.70% | Effective 15 Sep 2026 |
| HDFC Bank 1-year MCLR | 8.35% | Effective 7 Sep 2026 |
| PNB 1-year MCLR | 8.80% | Effective 1 Sep 2026 |
| Canara Bank 1-year MCLR | 8.75% | Effective 12 Jun 2026 |
What decides your rate
The largest factor: e.g. LIC HFL charges 7.15% at CIBIL 825+ but up to 9.50% at 600 – 699.
Self-employed non-professionals often pay 0.25 – 1 pp more (IDBI, Tata Capital, Aadhar).
Some lenders price larger loans lower (Canara: 7.15% for loans above ₹1 crore).
SBI and Canara give about 0.05% concession to women; Canara a further 0.05% for salary accounts.
Rules on repo-linked (EBLR) loans
- The rate must reset at least once every three months when the benchmark changes.
- The lender cannot change your credit-risk spread unless your credit profile changes substantially; other spread components can change only once in three years.
- At each reset you can choose a higher EMI, longer tenure, switch to fixed or prepay (RBI, Aug 2023).
Cost of a higher rate
| Rate | EMI | Total interest | Extra vs lowest rate |
|---|---|---|---|
| 7.50% | ₹40,280 | ₹46,67,118 | ₹0 |
| 8.00% | ₹41,822 | ₹50,37,281 | ₹3,70,163 |
| 8.50% | ₹43,391 | ₹54,13,879 | ₹7,46,760 |
| 9.00% | ₹44,986 | ₹57,96,711 | ₹11,29,593 |
| 9.50% | ₹46,607 | ₹61,85,574 | ₹15,18,456 |
₹50,00,000 for 20 years.
EMI calculator
Frequently asked questions
Fixed or floating — which is better now?
Fixed home loan rates are much higher (e.g. PNB fixed from 8.25%, Kotak from 12%) and often carry prepayment charges. With repo at 5.25%, most borrowers choose floating.
Why is my existing rate higher than new customers’ rate?
Your spread was fixed at sanction, or you are on MCLR/base rate/PLR. Ask your lender for a conversion to its current rate, or consider a balance transfer.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.