| Bank/NBFC | Interest Rate | Processing Fee | Max Tenure | Max Amount | Prepayment |
|---|---|---|---|---|---|
| SBI | 8.50% - 9.85% | 0.35% (min Rs.2,000) | 30 years | No limit | No charge (floating) |
| HDFC Bank | 8.75% - 9.95% | 0.50% (up to Rs.10,000) | 30 years | No limit | No charge (floating) |
| ICICI Bank | 8.75% - 9.90% | 0.50% (up to Rs.10,000) | 30 years | No limit | No charge (floating) |
| Axis Bank | 8.75% - 10.00% | 1% (up to Rs.10,000) | 30 years | Rs. 5 Cr | No charge (floating) |
| Bank of Baroda | 8.60% - 10.65% | 0.25% - 0.50% | 30 years | No limit | No charge (floating) |
| PNB | 8.65% - 10.15% | 0.35% (up to Rs.15,000) | 30 years | No limit | No charge (floating) |
| Kotak Mahindra | 8.75% - 9.65% | 0.50% | 20 years | Rs. 10 Cr | No charge (floating) |
| LIC HFL | 8.60% - 10.75% | 0.25% - 0.50% | 30 years | No limit | No charge (floating) |
| Bajaj Housing | 8.50% - 14.00% | Up to 4% | 30 years | Rs. 5 Cr | No charge (floating) |
| HDFC Ltd (merged) | 8.75% - 9.95% | 0.50% | 30 years | No limit | No charge (floating) |
* Rates are indicative and may vary based on individual profile. Please verify with the institution before applying.
Tips to Get the Lowest Home Loan Rate
- Maintain CIBIL score 750+: Banks offer their best rates to high-score borrowers. Check and improve your score before applying.
- Higher down payment: Paying 30-40% (vs minimum 20%) reduces lender risk and may get you a better rate.
- Women borrowers: Most banks offer 0.05% lower rate for women applicants. Make the property in the woman's name.
- Negotiate: If you have multiple offers, use them as leverage. Banks can reduce rates by 0.10-0.25% for good profiles.
- Balance transfer: If your existing rate is >0.50% higher than current market rates, consider transferring. Processing fee is minimal.
Calculate Your Home Loan EMI
Use our Home Loan EMI Calculator to see your monthly payment and total interest for any loan amount and tenure.
Related Calculators
Frequently Asked Questions
What is the lowest home loan interest rate in 2026?
SBI offers the lowest starting rate at 8.50% for salaried individuals with strong credit profiles. Bank of Baroda and LIC HFL also offer competitive rates from 8.60%. Actual rate depends on your credit score, income, loan amount, and LTV ratio.
How much home loan can I get on my salary?
Generally, you can get a loan where EMI is 40-50% of your net monthly salary. For example, on Rs. 1 lakh net salary, maximum EMI of Rs. 40,000-50,000, which translates to roughly Rs. 45-55 lakh loan at current rates for 20-year tenure.
Is home loan interest tax deductible?
Yes, under old regime: Section 24(b) allows up to Rs. 2 lakh deduction on interest for self-occupied property (no limit for rented). Section 80C allows up to Rs. 1.5 lakh on principal repayment. New regime: standard deduction of Rs. 75,000 only, no 24(b) or 80C.
Should I take a home loan for 20 or 30 years?
Shorter tenure means higher EMI but much less total interest. A Rs. 50L loan at 8.5%: 20 years = Rs. 43,391 EMI, Rs. 54.14L interest. 30 years = Rs. 38,446 EMI, Rs. 88.41L interest. Choose the shortest tenure where EMI is comfortable (under 40% of income).