Home Loan Interest Rates 2026
Compare home loan rates of 17 banks and housing finance companies, work out your EMI and eligibility, and understand the rules that matter when you buy a home in India — RBI’s loan-to-value limits, repo-linked pricing, tax deductions, stamp duty, RERA and the PMAY-U 2.0 interest subsidy.
RBI repo rate 5.25% · Lender rates checked 27 September 2026Home Loan interest rates — 17 lenders compared
Published starting and maximum rates for each lender. The RBI repo rate is 5.25% after cuts totalling 1.25 percentage points in 2025, so floating-rate loans linked to the repo rate are cheaper than a year ago. The rate you are offered depends on your credit score, income, employer and loan details.
| 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.
EMI calculator
More: Eligibility calculator · EMI calculator · Balance transfer calculator · Prepayment calculator · Repayment schedule · Affordability calculator · PMAY subsidy calculator · Land area converter
RBI loan-to-value (LTV) limits
| Loan amount | Maximum LTV | Minimum own contribution |
|---|---|---|
| Up to ₹30 lakh | 90% | 10% |
| Above ₹30 lakh up to ₹75 lakh | 80% | 20% |
| Above ₹75 lakh | 75% | 25% |
- Applies to individual housing loans from banks and HFCs; individual lenders may set lower limits (e.g. Aadhar HFL up to 80%).
- Stamp duty, registration and other documentation charges are excluded from the property cost when calculating LTV — except where the property costs ₹10 lakh or less, when they may be included.
- For under-construction homes, lenders disburse in stages linked to construction progress; your own contribution usually goes first.
- LTV is measured against the lower of the agreement value and the lender’s valuation.
Home loan benchmarks: repo, EBLR and MCLR
| 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 |
How tenure changes your EMI and interest
| Tenure | EMI | Total interest | Total repaid |
|---|---|---|---|
| 10 years | ₹61,993 | ₹24,39,141 | ₹74,39,141 |
| 15 years | ₹49,237 | ₹38,62,656 | ₹88,62,656 |
| 20 years | ₹43,391 | ₹54,13,879 | ₹1,04,13,879 |
| 25 years | ₹40,261 | ₹70,78,406 | ₹1,20,78,406 |
| 30 years | ₹38,446 | ₹88,40,443 | ₹1,38,40,443 |
₹50,00,000 at 8.50%.
Home loan tax benefits at a glance
| Benefit | Old regime | New regime |
|---|---|---|
| Principal repayment (incl. stamp duty & registration in the year paid) | Up to ₹1.5 lakh within Sec 80C (Sec 123 of the Income-tax Act, 2025 from tax year 2026-27) | Not available |
| Interest — self-occupied home | Up to ₹2 lakh a year (₹30,000 if construction not completed within 5 years, or for repair loans) | Not available |
| Interest — let-out home | Full interest against rent; net house-property loss set off against other income up to ₹2 lakh, rest carried forward 8 years | Deductible against that property’s rent; loss cannot be set off against other income |
| Pre-construction interest | In 5 equal instalments from the year construction is completed (within the limits above) | For let-out property, against its rent |
| Sec 80EE / 80EEA (first-home extra interest) | Only for loans sanctioned by 31 Mar 2017 / 31 Mar 2022 — closed to new loans | Not available |
Co-owners who are also co-borrowers can each claim these limits on their share. If the house is sold within 5 years of the end of the year of possession, 80C deductions already claimed are added back to income.
Stamp duty and registration snapshot
| State | Stamp duty | Registration fee | Women buyers |
|---|---|---|---|
| Maharashtra | 5% + 1% metro cess (Mumbai/metro areas) = 6%; varies by area | 1%, capped at ₹30,000 | 1% concession for women (5% in Mumbai) |
| Karnataka | 5% (2% up to ₹20 – 21 lakh, 3% ₹21 – 45 lakh) + cess/surcharge in Bengaluru | 2% (some sources: 1%) | None |
| Tamil Nadu | 7% | 4% (one source shows 1%) | 1% lower registration for women on property up to ₹10 lakh (from Apr 2025) |
| Telangana | 4% + 1.5% transfer duty | 0.5% | None |
| Andhra Pradesh | 5% + 1.5% transfer duty | 1% | None |
| Delhi | Men 6%, women 4%, joint 5% | 1% | 4% for women |
| Uttar Pradesh | Men 7%, women 6% (concession value-capped) | 1% | 1% concession, capped |
| Gujarat | 4.9% (incl. surcharge) | 1%; waived for sole women buyers | Registration fee waived |
| West Bengal | Urban 6% (7% above ₹1 crore); rural 5% (6% above ₹1 crore) | 1% | None |
| Rajasthan | Men 6%, women 5%, plus surcharge (about 20% of duty) | 1% | 5% (one source: men 5% / women 4%) |
| Kerala | 8% | 2% | None |
| Haryana | Urban: men 7%, women 5%; rural lower | Slab-based fee up to ₹50,000 | 2% lower |
| Punjab | Men 7%, women 5% | 1% | 5% |
| Madhya Pradesh | 7.5% (urban, incl. municipal duty) | 3% | Disputed across sources |
| Bihar | Men 6%, women 5.7% | 2% | 5.7% |
Duty is charged on the higher of the agreement value and the government’s circle / ready-reckoner value. Compiled from LegiScore (Aug 2026), SquareYards (Jul 2026) and StudioMatrx (Apr 2026); these aggregators disagree for Karnataka, Tamil Nadu, Rajasthan and Madhya Pradesh — always confirm on your state’s IGR / registration portal before paying.
PMAY-U 2.0 interest subsidy (ISS)
| Feature | PMAY-U 2.0 ISS |
|---|---|
| Who qualifies | EWS (income up to ₹3 lakh), LIG (₹3 – 6 lakh), MIG (₹6 – 9 lakh); family must not own a pucca house anywhere in India |
| House value | Up to ₹35 lakh |
| Loan amount | Up to ₹25 lakh |
| Carpet area | Up to 120 sq m |
| Subsidy | 4% interest subsidy on the first ₹8 lakh of the loan, for tenure up to 12 years |
| Maximum subsidy | ₹1.80 lakh (net present value capped at ₹1.50 lakh) |
| How it is paid | 5 yearly instalments via DBT, credited by the lender against your principal |
| Conditions | Loan tenure over 5 years; loan must be active with more than 50% principal outstanding at each release; house geo-tagged |
| How to apply | PMAY-U 2.0 portal (pmaymis.gov.in) or through your bank / HFC (Primary Lending Institution) |
PMAY-U 2.0 was approved by the Union Cabinet on 9 Aug 2024 for 1 crore urban houses over 5 years. The older CLSS scheme under PMAY-U 1.0 is closed to new applicants.
Bank vs housing finance company
| Point | Banks | Housing finance companies / NBFCs |
|---|---|---|
| Regulator | RBI | RBI (regulation) and National Housing Bank (supervision) |
| Starting rates we track | 7.10% – 9.00% | 7.15% – 11.75% |
| Benchmark | External benchmark (mostly repo rate) for new floating-rate retail loans since Oct 2019; reset at least every 3 months | Own benchmark — e.g. LIC HFL LHPLR, Tata Capital PLR 10.70%, Sammaan RMLR 12.60%, Aadhar PLR 17.50%; reset at lender’s discretion |
| Who they suit | Salaried and documented self-employed borrowers with good credit scores | Also informal-income, self-employed and small-town borrowers; some HFCs match bank rates for top scores |
| Prepayment | No charge on floating-rate loans to individuals | Same rule |
| LTV caps | 90% / 80% / 75% by loan size | Same RBI caps |
Home Loan eligibility
- Resident Indians and NRIs; minimum age usually 18 – 21
- Maximum age at loan maturity typically 60 – 75 depending on lender and employment (e.g. Canara/PNB 70, Bandhan 75, some LIC HFL schemes 80)
- Regular income: salaried, self-employed professional or self-employed business owner; informal-income borrowers at affordable-housing lenders
- Credit score: 750+ usually gets the best rates (LIC HFL’s lowest rate needs 825+)
- Total EMIs (including the new loan) generally within 50% – 60% of net monthly income
- Property with clear, marketable title and approved plan; loan limited by RBI LTV caps (90% / 80% / 75%)
Documents required
- KYC: PAN (mandatory), Aadhaar / passport / voter ID, address proof, photographs
- Salaried: last 3 salary slips, Form 16 (2 years), 6 months’ salary bank statement
- Self-employed: ITR with computation (2 – 3 years), CA-certified P&L and balance sheet, business proof (GST / Udyam / licence), 12 months’ bank statements
- Property: sale agreement / allotment letter, title chain, approved plan, RERA registration, OC/CC or builder NOC, encumbrance certificate, tax receipts
- Own-contribution receipts and existing loan statements (if any)
- For balance transfer: sanction letter, 12 months’ repayment track, list of documents held by current lender
How to apply
- Check eligibility & compareUse the eligibility calculator and compare APR, not just the headline rate.
- Apply with documentsOnline or at a branch; pay the processing / login fee.
- Appraisal & sanctionLender checks credit score, income and FOIR, then issues a sanction letter and Key Facts Statement with APR.
- Legal & technical checkTitle search, encumbrance, approvals and valuation of the property.
- Agreement & mortgageSign the loan agreement; deposit original title deeds (equitable mortgage) or register a mortgage deed as the state requires.
- DisbursalPaid to the seller/builder — in one go for ready homes or in stages for under-construction projects.
RBI rules that protect you
| Protection | What it means for you |
|---|---|
| Key Facts Statement (KFS) | Mandatory for all retail and MSME term loans since 1 Oct 2024; shows the all-inclusive Annual Percentage Rate (APR), EMI schedule and every fee |
| Charges not in KFS | Cannot be levied without your explicit consent |
| Validity | At least 3 working days for loans of 7 days or more — time to compare offers |
| Floating-rate reset (RBI, Aug 2023) | At a rate reset you can choose a higher EMI, a longer tenure (without negative amortisation), switch to fixed rate, or prepay; you get quarterly statements |
Prepayment & foreclosure
| Situation | Rule |
|---|---|
| Floating-rate loans to individuals (non-business) | No prepayment / foreclosure charge — any lender, part or full, from any source of funds |
| Loans sanctioned or renewed from 1 Jan 2026 | RBI (Pre-payment Charges on Loans) Directions, 2025 also bar charges on floating-rate business loans to individuals and MSEs at most banks and large NBFCs; no minimum lock-in |
| Fixed-rate loans | Lender may charge as per the sanction letter and Key Facts Statement |
| Disclosure | Any charge must be shown in the sanction letter, loan agreement and KFS; waived charges cannot be levied later |
Home Loan guides, calculators & lenders
Rates & lenders
Rates, benchmarks, fees and lenders compared
Calculators
EMI, eligibility, affordability, prepayment, balance transfer, PMAY and more
Process & documents
Applying, documents, certificates and rejection reasons
Loan types
Plot, renovation, commercial and other loans
Tax & government schemes
Tax benefits, PMAY-U 2.0, PMAY-G and DDA housing
Property & legal
RERA, stamp duty, EC, land records, partition and benami rules
Lender-wise home loan pages
Frequently asked questions
What is the lowest home loan interest rate right now?
Among the 17 lenders we track, IOB (7.10%, aggregator figure), Canara Bank (7.15%), LIC Housing Finance (7.15% for CIBIL 825+), SBI (7.25%) and PNB (7.25%) have the lowest starting rates as of September 2026. Starting rates go to borrowers with high credit scores and stable income.
What is the EMI on a ₹50 lakh home loan?
At 8.5% for 20 years the EMI is about ₹43,391 a month, and total interest over the loan is about ₹54,13,879. At 7.5% the EMI falls to about ₹40,280.
How much of the property price will the bank finance?
RBI caps the loan at 90% of the property value for loans up to ₹30 lakh, 80% for ₹30 – 75 lakh and 75% above ₹75 lakh. Stamp duty and registration are not counted in the property value unless the property costs ₹10 lakh or less, so you must pay them yourself.
How does the repo rate affect my home loan?
Most bank home loans are linked to an external benchmark — usually the RBI repo rate — and must reset at least once every three months. The repo rate is 5.25% after cuts totalling 1.25 percentage points in 2025, and was held on 5 August 2026. Loans on MCLR or an HFC’s own PLR adjust more slowly.
Can I prepay my home loan without penalty?
Yes. Banks, NBFCs and HFCs cannot charge prepayment or foreclosure fees on floating-rate home loans to individuals, whether you pay part or all of the loan and from any source of funds. Fixed-rate loans may carry a charge (commonly 2%) as stated in your sanction letter and KFS.
What tax benefits do I get on a home loan?
Only under the old tax regime: principal repayment up to ₹1.5 lakh a year within Section 80C (Section 123 of the Income-tax Act, 2025 from tax year 2026-27) and interest up to ₹2 lakh a year on a self-occupied home under Section 24(b). Under the new regime there is no deduction for a self-occupied home; interest on a let-out home is deductible only against its rent.
Is a bank or a housing finance company better?
Banks generally offer lower, repo-linked rates. HFCs such as LIC HFL can match banks for high credit scores, while others (Aadhar, Piramal, Truhome) lend to self-employed or informal-income borrowers that banks may decline — at higher rates, often linked to their own PLR.
Can I get the PMAY subsidy in 2026?
Yes, through the Interest Subsidy Scheme (ISS) of PMAY-U 2.0 if your household income is up to ₹9 lakh, you own no pucca house anywhere in India, the house costs up to ₹35 lakh and the loan is up to ₹25 lakh. The subsidy is 4% on the first ₹8 lakh of the loan (maximum ₹1.80 lakh), paid in five yearly instalments to your loan account.
What is the Key Facts Statement (KFS)?
Since 1 October 2024 every lender must give you a KFS before you sign, showing the all-in Annual Percentage Rate (APR), EMI schedule and every fee. Charges not listed in the KFS cannot be collected without your consent.
What should I do if my lender does not return my property papers after I close the loan?
RBI requires lenders to return original property documents within 30 days of full repayment. For delays caused by the lender, it must pay ₹5,000 for each day of delay; complain to the lender and then to the RBI Integrated Ombudsman (cms.rbi.org.in).
Rates compiled from lenders’ published rate pages and reputable aggregators (dates on each lender page) for comparison only. FinancePortal is not a lender or financial adviser; confirm terms and read the Key Facts Statement before borrowing.