Lowest Home Loan Rates

Ranked by real, individually-verified effective interest rate — not a benchmark spread, and not the bulk-imported data this app used to show for home loans.

The Top 10

Methodology

Real rates, not benchmark spreads

This app's home loan data was previously bulk-imported and never individually checked. Every lender here was freshly researched — resolved to its current effective all-in rate (banks almost universally quote home loans as a benchmark-plus-spread, not a flat number), confirmed as currently open for applications, and cross-checked against its own official rate sheet where one was published.

A "+" after a rate means that lender only discloses a floor rate with no published ceiling. The floor rate itself usually requires a strong credit profile (CIBIL 800+ is common) — check each lender's own eligibility criteria before assuming you'd qualify for the number shown.

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Lowest home loan interest rates in India

A home loan runs for up to thirty years, so even a difference of a quarter of a percentage point in the interest rate changes the total you repay by a large amount. Rates are usually linked to an external benchmark and vary with your credit score, income and loan size.

This list ranks home loans by interest rate. Also compare the processing fee, prepayment and foreclosure rules on floating-rate loans, and the loan-to-value ratio a lender will finance.

The ranked list, in plain text

  1. Canara Housing Loan (Canara Bank): interest 7.15% to 10% p.a.. The lowest verified floor rate in this pool at 7.15% — genuinely no hard CIBIL cutoff (scores below 650 are still priced, just higher), plus a relatively low ₹10,000 processing-fee cap.
  2. Baroda Home Loan (Bank of Baroda): interest 7.2% to 8.95% p.a. · up to ₹20,00,00,000. Also 7.20% at the floor, with a high ₹20 crore max loan amount for big-ticket purchases — but expects a firmer profile (CIBIL 701+, ₹5L/year minimum income) than its PSU peers here.
  3. Cent Home Loan (Central Bank of India): interest 7.2% to 8.75% p.a. · up to ₹5,00,00,000. 7.20% floor with one of the lowest processing-fee caps in this pool (₹20,000) and a currently-running full fee waiver promotion (until 31 Dec 2026, conditions apply) — worth checking if it still applies when you apply.
  4. PNB Housing Loan (Punjab National Bank): interest 7.2% to 8.4% p.a.. Ties for the second-lowest floor at 7.20%, with the tightest overall spread here (7.20-8.40%) and an explicitly published 'no minimum CIBIL score' policy — a clear sanction timeline (5-7 days) too.
  5. SBI Regular Home Loan (State Bank of India): interest 7.25% to 8.45% p.a.. India's largest home loan book at 7.25%, with the lowest processing-fee cap here (₹12,000) and a Maxgain overdraft-linked repayment option most PSU peers don't offer.
  6. Star Home Loan (Bank of India): interest 7.35% to 8.7% p.a. · up to ₹5,00,00,000. 7.35% floor for a CIBIL 675+ applicant — a meaningfully lower bar than several PSU peers here, plus a construction moratorium of up to 36 months if you're building rather than buying ready.
  7. Union Home Loan (Union Bank of India): interest 7.45% to 10% p.a.. 7.45% floor, but currently the only lender in this pool with processing fees fully waived — worth comparing against the lower-rate options above once you net out that saving.
  8. Maha Super Housing Loan Scheme (Bank of Maharashtra): interest 8.1% to 10.3% p.a.. A noticeably higher 8.10% floor than the rest of this PSU-heavy pool, but a genuine, unusual perk: your last 2 EMIs are waived entirely for consistently on-time repayment.
  9. HDFC Home Loan (HDFC Bank): interest 8.35% to 15.15% p.a.. The strongest private-bank rate in this whole survey at 8.35% — still above every PSU bank here, but with faster digital processing and more flexible repayment structures (step-up, flexible EMI) than any PSU option.
  10. IB Home Loan (Indian Bank): interest 8.4% to 10.3% p.a. · up to ₹10,00,00,000. The highest floor rate in this pool at 8.40%, but a fully digital application flow (Ind Smart) and no prepayment charges — worth it if approval speed matters more to you than shaving off a fraction of a percent.

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