Home Loan: Compare Interest Rates, Eligibility and EMI
Eligibility & Quotes from top PSU & Pvt. Banks
Lowest Interest Rates
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Eligibility & Quotes from top PSU & Pvt. Banks
Lowest Interest Rates
Free CIBIL Score
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A home loan helps you purchase, construct, renovate or extend a residential property without paying its entire cost upfront. You repay the borrowed amount through monthly instalments consisting of principal and interest.
Current home loan interest rates start from approximately 7.00% per annum under qualifying or limited-period offers. The rate actually offered to you can be higher depending on your credit score, income, employment profile, existing EMIs, loan amount, repayment tenure and property.
Wishfin lets you compare suitable home loan offers from banks and housing finance companies. Before applying, compare the final sanctioned rate, benchmark, processing fee, rate-reset terms and total repayment—not just the advertised starting rate.
Top Banks Offering Lowest Home Loan Interest Rates 2026
Here''s a list of top banks offering lowest housing loan interest rates in India. You can compare and apply online for the best home loan.
State Bank of India (SBI)- 0.35% of the loan amount + GST
- Minimum 2000 + GST
- Maximum of 10000 + GST Advocate & Valuer fee - actual expenses will be realised separately.
LIC Housing Finance (LIC HFL)- For loan amount below INR 1 Crore - 0.25% of the loan amount + AT or INR 10,000 + AT. whichever is lower
- Loan Amount Above INR 1 Crore to Up to INR 15 Crore - INR 20,000 + AT
HDFC Bank- Salaried & Self-employed Professionals - INR 3,300, + Taxes
- Self-employed Non-professionals - INR 5,000 + Taxes
PNB Housing Finance Ltd (PNBHFL)- INR 10,000 + GST
ICICI Bank
India Shelter Finance Corporation- 2%-3% of the loan amount (Including GST)
Axis Bank- Up to 1.00% of the Loan amount subject to minimum of INR 10,000 + GST
Bank of Baroda- Upto 0.50% of the loan amount or Max INR 7,500 + GST
Bank of India- 0.25% of the loan amount, subject to a minimum and maximum of INR 1,500 and INR 20,000, respectively
Citibank- Up to 0.40% of the loan amount + GST
IDBI Bank- Up to INR 5,000 + GST
- For inward BT irrespective of the amount & PMAY proposals – Nil
Kotak Mahindra Bank- For Salarired - INR 10,000 + GST
- For Self-Employed/Professional - 0.25% + GST on loan amount
Piramal Capital & Housing Finance (PCHF)- 0.10% - 0.25% of the loan amount + GST
Punjab National Bank (PNB)- 0.35% of the loan amount, subject to a minimum and maximum of INR 2,500 and INR 15,000, respectively
Tata Capital- 0.50% of the loan amount + GST
Godrej Housing Finance(GHF)- Salaried - INR 999 + GST at the time of Login
- Self-Employed - 0.25% of the loan amount
Compare Banks by their Interest Rates
Banks differ in terms of the offered Interest Rates. Now Rate your bank based on the Rate it offers.
HOW TO APPLY FOR A HOME LOAN ONLINE
- Calculate an affordable EMI.
- Check your credit score and report.
- Enter the required loan amount, income and employment details.
- Compare suitable lender offers.
- Shortlist the property and collect its legal documents.
- Submit identity and income documents.
- Allow the lender to complete credit assessment.
- Review the sanction letter and charges.
- Complete legal and technical property verification.
- Pay your required contribution.
- Complete the sale, mortgage and registration documents.
- Confirm the disbursement and EMI start date.
Online submission can begin the application process, but final sanction and disbursement remain subject to lender verification.
HOME LOAN TAX BENEFITS
Tax treatment depends on the property, ownership, possession, repayment contribution and tax regime selected.
Under the old tax regime, eligible deductions can include:
- Up to ₹2 lakh under Section 24(b) for interest on an eligible loan used to purchase or construct a self-occupied house
- Up to ₹30,000 within the applicable Section 24(b) conditions for interest on an eligible repair loan
- Home loan principal repayment under Section 80C, within the combined ₹1.5 lakh limit
- Eligible stamp duty and registration payments under Section 80C in the year paid, within the combined limit
The new tax regime does not allow the Section 24(b) interest deduction for a self-occupied property.
A co-borrower cannot claim a deduction merely because their name appears on the loan. The person should generally be a co-owner and contribute to repayment to claim an eligible benefit.
Tax rules and individual circumstances differ. Obtain professional tax advice before making a claim.
TYPES OF HOME LOANS
HOME-PURCHASE LOAN
Used to purchase a new or resale residential house or apartment. The lender verifies the borrower and property before disbursement.
HOME-CONSTRUCTION LOAN
Available for constructing a house on an eligible plot owned by the applicant. Disbursement generally takes place in stages according to construction progress.
RESIDENTIAL PLOT LOAN
Used to purchase an eligible residential plot. Plot loans may have different margins, tenures and construction conditions from regular home loans.
HOME-RENOVATION LOAN
Used for repairs, remodelling or improvements to an existing residential property. The lender may request an estimate of the planned work.
HOME-EXTENSION LOAN
Used to add rooms, floors or other permitted space to an existing house. Approved construction plans may be required.
HOME LOAN BALANCE TRANSFER
Allows an existing borrower to move the outstanding loan to another lender for a lower rate or improved terms.
HOME LOAN TOP-UP
An additional loan offered to eligible existing home loan borrowers based on repayment history, income and available property value.
NRI HOME LOAN
Eligible non-resident Indians can obtain financing to purchase or construct residential property in India, subject to lender and foreign-exchange rules.
HOME LOAN DETAILS AT A GLANCE
| Particular | Current details |
|---|---|
| Starting interest rate | From approximately 7.00% p.a. |
| Maximum tenure | Generally up to 30 years |
| Loan amount | Depends on income, property value and lender policy |
| Maximum indicative LTV | Up to 75%–90% |
| Preferred credit score | 750 or above |
| Common interest-rate type | Floating benchmark-linked rate |
| Processing fee | Varies by lender and offer |
| Eligible applicants | Salaried, self-employed and eligible NRI applicants |
| Loan purposes | Purchase, construction, extension, renovation and balance transfer |
| Security | Mortgage of the financed property |
CURRENT HOME LOAN INTEREST RATES
The following rates are indicative as of 3 September 2026. Some starting rates are promotional or available only to applicants with strong credit and income profiles.
| Bank or housing finance company | Indicative home loan interest rate |
|---|---|
| Bank of Maharashtra | From 7.00% p.a. under a limited-period offer |
| Central Bank of India | From approximately 7.00% p.a. |
| Bank of India | From approximately 7.10% p.a. |
| UCO Bank | From approximately 7.15% p.a. |
| Union Bank of India | From approximately 7.15% p.a. under eligible offers |
| LIC Housing Finance | From approximately 7.15% p.a. |
| Canara Bank | From approximately 7.15% p.a., depending on loan slab |
| Bank of Baroda | From approximately 7.20% p.a. |
| State Bank of India | From approximately 7.25% p.a. |
| Punjab National Bank | From approximately 7.25% p.a. |
| South Indian Bank | From approximately 7.25% p.a. |
| Indian Overseas Bank | From approximately 7.35% p.a. |
| Karnataka Bank | From approximately 7.48% p.a. |
| ICICI Bank | From 7.55% p.a. for eligible pre-approved digital customers |
| HDFC Bank | Approximately 7.75%–13.20% p.a. |
| PNB Housing Finance | From approximately 7.75% p.a. for eligible loan slabs |
| Tata Capital Housing Finance | Approximately 8.00%–13.00% p.a. for eligible salaried borrowers |
| Axis Bank | Approximately 8.35%–9.35% p.a. |
The advertised starting rate is not guaranteed. The lender’s sanction letter will specify the actual rate, benchmark, spread, fees and repayment conditions.
ICICI Bank’s 7.55% rate is associated with eligible customers holding a pre-approved home loan offer and applying through its digital journey. Standard rates can start from approximately 8.50% and vary by loan amount and borrower profile.
WHICH BANK OFFERS THE LOWEST HOME LOAN RATE?
Bank of Maharashtra and Central Bank of India are among the lenders advertising home loans from approximately 7.00% per annum. Bank of India, LIC Housing Finance, Canara Bank and other public-sector lenders also have starting rates in the lower 7% range.
A lender offering the lowest headline rate may not offer you the lowest overall cost. Compare:
- Final rate after credit assessment
- Benchmark and spread
- Frequency of rate resets
- Processing fee and GST
- Legal and property valuation expenses
- Conditions attached to promotional rates
- Loan-to-value ratio
- Part-payment rules
- Foreclosure conditions
- Rate-conversion charges
- Customer service and disbursement time
Always request a written quotation before selecting a lender.
HOME LOAN EMI CALCULATION
The EMI is calculated using the loan amount, monthly interest rate and number of monthly instalments.
EMI formula: EMI = P × R × (1 + R)ᴺ ÷ ((1 + R)ᴺ − 1) Where:
- P is the principal loan amount
- R is the monthly interest rate
- N is the number of monthly instalments
HOME LOAN EMI FOR ₹50 LAKH OVER 20 YEARS
| Interest rate | Approximate monthly EMI | Approximate total interest |
|---|---|---|
| 7.00% | ₹38,765 | ₹43.04 lakh |
| 7.25% | ₹39,519 | ₹44.85 lakh |
| 7.55% | ₹40,433 | ₹47.04 lakh |
| 7.75% | ₹41,047 | ₹48.51 lakh |
| 8.00% | ₹41,822 | ₹50.37 lakh |
| 8.50% | ₹43,391 | ₹54.14 lakh |
| 9.00% | ₹44,986 | ₹57.97 lakh |
A difference of 0.50% may appear small, but it can add several lakh rupees to the total interest on a long-tenure loan.
HOME LOAN EMI AT 7.00%
| Loan amount | 10 years | 20 years | 30 years |
|---|---|---|---|
| ₹20 lakh | ₹23,222 | ₹15,506 | ₹13,306 |
| ₹30 lakh | ₹34,833 | ₹23,259 | ₹19,959 |
| ₹50 lakh | ₹58,054 | ₹38,765 | ₹33,265 |
| ₹75 lakh | ₹87,081 | ₹58,147 | ₹49,898 |
| ₹1 crore | ₹1,16,108 | ₹77,530 | ₹66,530 |
| ₹1.5 crore | ₹1,74,162 | ₹1,16,295 | ₹99,795 |
The calculations are illustrative. Your actual EMI may vary according to the sanctioned rate, disbursement date, reset cycle and lender calculation method.
HOW MUCH HOME LOAN CAN YOU GET?
The maximum loan amount depends mainly on:
- Net monthly income
- Existing EMIs and credit-card obligations
- Applicant’s age
- Repayment tenure
- Employment or business stability
- Credit history
- Property value
- Lender’s property valuation
- Applicable LTV limit
- Income of an eligible co-applicant
Lenders commonly use the Fixed Obligations to Income Ratio to measure repayment capacity.
FOIR formula: FOIR = Total monthly financial obligations ÷ Net monthly income × 100 Suppose your net monthly income is ₹1,00,000 and existing EMIs total ₹20,000. If a lender permits overall monthly obligations of ₹50,000, approximately ₹30,000 may remain available for the proposed home loan EMI.
The permitted ratio varies by lender, income level and applicant profile. It should not be presented as one fixed percentage for every borrower.
HOME LOAN LTV AND DOWN PAYMENT
Banks generally do not finance 100% of the property value. Indicative maximum LTV limits commonly followed for individual housing loans are:
| Housing loan amount | Maximum indicative LTV |
|---|---|
| Upto ₹30 Lakh | Upto 90% |
| Above ₹30 Lakh and up to ₹75 Lakh | Upto 80% |
| Above ₹75 Lakh | Upto 75% |
Example:
If a property costs ₹1 crore and the eligible loan falls in the above-₹75-lakh category, the lender may finance up to approximately ₹75 lakh. The buyer would need to arrange at least ₹25 lakh, along with stamp duty, registration and other expenses.
The lender may use the lower of the agreement value and its independent valuation when calculating the loan. A valuation shortfall must normally be funded by the borrower.
FIXED VS FLOATING HOME LOAN INTEREST RATE
| Feature | Floating rate | Fixed rate |
|---|---|---|
| Rate movement | Can change with the applicable benchmark | Remains fixed for the agreed period |
| EMI or tenure | May change following a rate reset | Usually remains predictable during the fixed period |
| Initial pricing | Often lower than a comparable fixed rate | May carry a premium |
| Prepayment treatment | Individual non-business borrowers generally receive favourable treatment under applicable rules | Charges may apply depending on lender and source of funds |
| Best suited for | Borrowers comfortable with rate movement | Borrowers prioritising repayment certainty |
Some loans are fixed only for an initial period and later become floating. Read the reset and conversion clauses before signing.
HOW FLOATING HOME LOAN RATES CHANGE
Banks generally link new floating-rate retail loans to an external benchmark such as the policy repo rate. The borrower’s rate normally consists of:Applicable benchmark + lender spread
The benchmark can change during the loan. The spread is determined using the borrower’s risk profile and loan conditions.
When the rate rises, a lender may increase the EMI, extend the tenure or use a combination of both, subject to the loan terms and applicable directions. Borrowers should be informed about the available choices, applicable charges and effect on repayment.
Check these points in the sanction letter:
- Benchmark used
- Current benchmark value
- Spread over the benchmark
- Reset frequency
- EMI or tenure treatment after a reset
- Floating-to-fixed conversion option
- Conversion charges
- Maximum permissible tenure
HOME LOAN ELIGIBILITY
| Parameters | Salaried applicant | Self-employed applicant |
|---|---|---|
| Minimum age | Commonly 21 years | Commonly 21-25 years |
| Maximum age at maturity | Usually 60–70 years, depending on lender | Usually 65–70 years, depending on lender |
| Income | Must support the proposed EMI | Documented business or professional income |
| Work stability | Lender-specific | Lender-specific business vintage |
| Credit score | 750 or above generally preferred | 750 or above generally preferred |
| Property | Must satisfy legal and technical requirements | Must satisfy legal and technical requirements |
These are general market conditions, not universal approval rules. Some lenders can consider applicants with a lower credit score but may charge a higher rate or approve a lower amount.
HOME LOAN DOCUMENTS
COMMON DOCUMENTS
- Completed application form
- PAN
- Aadhaar, passport, voter ID or another accepted identity document
- Current address proof
- Photographs
- Existing loan details
- Property documents
DOCUMENTS FOR SALARIED APPLICANTS
- Recent salary slips
- Salary-account statements
- Form 16
- Income-tax returns, where requested
- Employment certificate or appointment letter
- Details of incentives, bonus or additional income
DOCUMENTS FOR SELF-EMPLOYED APPLICANTS
- Income-tax returns
- Computation of income
- Audited balance sheet and profit-and-loss account
- Business bank statements
- GST returns, where applicable
- Business registration documents
- Professional qualification, where relevant
PROPERTY DOCUMENTS
- Agreement for sale or allotment letter
- Title deed
- Previous ownership documents
- Encumbrance or title-search records
- Approved layout
- Sanctioned building plan
- Construction permission
- RERA details, where applicable
- Completion or occupancy documents
- Property tax receipts
- Society documents for a resale apartment
- Construction estimate for a self-built house
The exact list depends on the property type, state and lender.
HOW TO IMPROVE HOME LOAN ELIGIBILITY
- Check your credit report before applying
- Correct inaccurate credit information
- Clear overdue accounts
- Reduce credit-card utilisation
- Avoid applying with several lenders simultaneously
- Close small unnecessary loans where practical
- Make a larger down payment
- Add an eligible earning co-applicant
- Select a manageable tenure
- Maintain consistent salary or business banking
- Keep income-tax filings updated
- Choose a property with complete approvals
Taking a personal loan immediately before applying for a home loan can reduce eligibility because the new EMI becomes part of your financial obligations.
PROPERTY CHECKS BEFORE TAKING A HOME LOAN
The lender’s legal approval is intended to protect its security interest and does not replace the buyer’s independent due diligence.
Before purchasing, examine:
- Seller’s ownership and right to transfer
- Chain of title documents
- Encumbrances and existing mortgages
- Survey, property or revenue records
- Approved layout
- Land-use permission
- Sanctioned building plan
- Construction permission
- Completion or occupancy certificate
- RERA registration and project status
- Property tax and utility dues
- Society or association records
- Legal access to the property
- Pending disputes or acquisition notices
- Agreement carpet area and property description
Appoint an independent property lawyer and do not rely solely on a broker, developer or lender’s project approval.
HOME LOAN FEES AND CHARGES
The interest rate is only one part of the borrowing cost. Depending on the lender, a home loan may involve:
- Processing fee
- GST on applicable fees
- Legal opinion charges
- Technical valuation charges
- Documentation or administrative fee
- Mortgage creation or registration expenses
- Property insurance
- Rate-conversion fee
- EMI bounce charges
- Penal charges for delayed payment
- Statement or duplicate-document charges
- Fixed-rate foreclosure charges, where applicable
Request a complete schedule of charges before accepting the sanction.
PRE-EMI VS FULL EMI
For an under-construction property, the lender may release the loan in stages.
Pre-EMI generally consists only of interest on the amount already disbursed. Principal repayment usually begins when full EMI starts.
Paying only pre-EMI for an extended construction period can increase the total interest cost because the principal does not reduce. Ask whether the lender allows full EMI to begin after the first disbursement.
HOME LOAN BALANCE TRANSFER
A balance transfer allows you to move an existing loan to a lender offering a lower rate or improved terms.
Before transferring, compare:
- Existing and proposed rates
- Outstanding principal
- Remaining tenure
- Processing fee
- Legal and valuation costs
- Existing lender’s conversion offer
- EMI saving
- Total interest saving
- Break-even period
A lower rate does not automatically make a transfer worthwhile. Calculate whether the interest saving will recover the transfer cost within a reasonable period.
HOME LOAN PREPAYMENT
Part-payment reduces the outstanding principal and can lower total interest.
After making a part-payment, you may generally choose between:
- Reducing the EMI while retaining the tenure
- Reducing the tenure while retaining a similar EMI
Reducing the tenure usually provides greater interest savings, while reducing the EMI improves monthly cash flow.
Prepayment conditions depend on the interest-rate type, borrower category, purpose and applicable regulations. Review the loan agreement before paying.
PMAY-U 2.0 HOME LOAN INTEREST SUBSIDY
Eligible urban households may receive assistance under the Interest Subsidy Scheme of Pradhan Mantri Awas Yojana–Urban 2.0.
Key eligibility limits currently include:
| Parameter | PMAY-U 2.0 ISS condition |
|---|---|
| Maximum annual household income | Up to ₹9 lakh |
| Maximum home loan | Up to ₹25 lakh |
| Maximum property value | Up to ₹35 lakh |
| Subsidy rate | 4% on the first ₹8 lakh |
| Subsidy tenure | Up to 12 years |
| Maximum carpet area | Up to 120 square metres |
| Maximum subsidy | Up to ₹1.80 lakh |
| Release method | Subject to the scheme’s instalment and verification rules |
Meeting the income, loan and property-value limits does not by itself guarantee the subsidy. The applicant, family, property, lender and transaction must satisfy all prevailing scheme conditions.
WHY COMPARE HOME LOANS THROUGH WISHFIN?
Wishfin can help applicants:
- Compare offers from participating lenders
- Estimate home loan EMI
- Check general eligibility
- Understand document requirements
- Apply online
- Receive application assistance
- Explore balance-transfer options
Loans made Pocket-friendly
Choose your desired EMI first... then identify the loan that fits your pocket!
Frequently Asked Questions (FAQs)
Below are few questions for Cibil Score
Home loan rates currently start from approximately 7.00% per annum under qualifying or limited-period offers. The final rate depends on the applicant and property.
CONCLUSION
The right home loan should combine a competitive rate with manageable EMI, transparent charges and suitable repayment terms. Compare written offers from multiple lenders and verify the selected property independently before paying the seller or developer.
Rates, fees, tax rules, subsidy conditions and lending policies can change. All rates and EMI calculations shown here are indicative. The lender’s sanction letter and prevailing regulations will apply.
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