Here are the current home loan (mortgage) interest rates in major Indian banks and housing finance companies as of April 2026. Rates are mostly floating and start from the lowest indicative levels for salaried applicants with good credit scores (typically 750+ CIBIL). Actual rates you get will depend on:
- Your credit score
- Income stability (salaried vs self-employed)
- Loan amount
- Property location
- Loan-to-value ratio
- Relationship with the bank
Read More – How to get pre approved for mortgage loan 2026
Lowest Starting Home Loan Interest Rates (April 2026)
Public sector banks generally offer the most competitive starting rates:
| Bank / Lender | Starting Interest Rate (p.a.) | Typical Range (p.a.) | Notes |
|---|---|---|---|
| Bank of India | 7.10% | 7.10% – 10.25% | One of the lowest |
| Central Bank of India | 7.10% | 7.10% – 9.15% | Competitive for smaller loans |
| Bank of Maharashtra | 7.10% | Up to ~9.65% | Good for PSU employees |
| Union Bank of India | 7.15% | 7.15% – 9.50% | Strong option |
| Canara Bank | 7.15% | 7.15% – 10.00% | Varies by loan slab |
| Bank of Baroda | 7.20% | 7.20% – 9.25% | Good processing |
| Punjab National Bank (PNB) | 7.20% – 7.25% | 7.20% – 9.10% | Reliable PSU bank |
| State Bank of India (SBI) | 7.25% | 7.25% – 8.70% | Most popular, wide network |
| HDFC Bank / HDFC Ltd | 7.20% – 7.75% | 7.75% – 13.00% | Faster processing, higher for larger loans |
| ICICI Bank | 7.45% | 7.45% – 10.05% | Good for premium properties |
| Axis Bank | 8.00% – 8.35% | 8.00% – 11.90% | Higher starting rate |
| Kotak Mahindra Bank | 7.70% | 7.70% – 12.00% (fixed higher) | Flexible options |
| Bajaj Housing Finance | 7.15% (salaried) | 7.15% – 10.25% | Up to ₹15 Cr loan |
Note: Rates above are approximate starting floating rates. Fixed rates are usually 1–3% higher. Processing fees typically range from 0.25%–1% of the loan amount + GST (with minimum caps).
Key Factors Affecting Your Rate
- Credit Score: 750+ usually gets you the lowest slab.
- Loan Amount Slabs: Some banks charge slightly higher rates for loans above ₹30 lakh or ₹75 lakh.
- Salaried vs Self-Employed: Self-employed applicants often pay 0.25%–0.75% more.
- Women Borrowers: Many banks offer 0.05%–0.10% concession.
- Repo Rate Context: The RBI repo rate is currently at 5.25% (unchanged as of early April 2026). Home loan rates are linked to banks’ Marginal Cost of Funds-based Lending Rate (MCLR) or External Benchmark Linked Rate (EBLR), so they move slowly with policy changes.
Tips Before Applying
- Compare effective interest rate (not just advertised starting rate) using EMI calculators on bank websites or aggregators like Paisabazaar, BankBazaar.
- Check for balance transfer offers if you already have a loan — many lenders offer lower rates (starting ~7.25%).
- Factor in total cost: Processing fee, legal charges, stamp duty on loan agreement, etc.
- Pre-approve your loan to know exact rate before finalizing property.
- Rates can change any time — always verify directly with the bank or on their official website.
Would you like me to help with:
- EMI calculation for a specific loan amount & tenure?
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- Documents required or eligibility criteria?
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