When choosing a , whether fixed or floating, comparing interest rates across various financial institutions is a critical step. Since minor rate fluctuations accumulate over a multi-decade loan, even a fraction of a percentage point can dramatically affect the total interest paid. Every (EMI) includes both principal repayment and interest charges, meaning a rate decrease lowers monthly expenses and long-term financial strain.
For instance, on a ₹50 lakh loan spanning 30 years, an 8% interest rate costs approximately ₹12.32 lakh more in total interest than a 7% rate.
Lowest public sector bank rates ( ₹30 lakh to ₹75 lakh)
State-backed lenders often provide competitive interest terms based on loan brackets. Bank of Maharashtra offers interest rates ranging from 7% to 9.90%, while the rates at Central Bank of India range between 7.00% and 9.15%.
Bank of India offers home loan rates starting at 7.10% and going up to 10.00%. Indian Bank follows with rates ranging from 7.15% to 9.55%, while UCO Bank offers rates between 7.15% and 9.25%.
Bank of Baroda: 7.20-9.00
Bank of India: 7.10-10.00
Bank of Maharashtra: 7.00-9.90
Canara Bank: 7.20-10.00
Central Bank of India: 7.00-9.15
Indian Bank: 7.15-9.55
Indian Overseas Bank: 7.20 onwards
Punjab and Sind Bank: 7.35-10.75
Punjab National Bank: 7.25-9.20
State Bank of India: 7.25-9.05
UCO Bank: 7.15-9.25
Union Bank of India: 7.15-9.60
Lowest private sector bank rates ₹(30 lakh to ₹75 lakh)
Private institutions also offer competitive entry-level pricing. South Indian Bank offers the lowest starting rate at 7.25%. Federal Bank follows with home loan interest rates beginning at 7.35%.
HSBC Bank offers rates starting from 7.45%, while Karnataka Bank’s home loan rates begin at 7.48%. ICICI Bank offers interest rates starting at 7.50%.
Axis Bank: 8.00-11.90
Bandhan Bank: 8.55 – 13.52
City Union Bank: 8.50-10.00
CSB Bank: 8.30 onwards
Federal Bank: 7.35 – 10.00
HDFC Bank: 7.75 onwards
HSBC Bank: 7.45 onwards
ICICI Bank: 7.50 onwards
Karnataka Bank: 7.48- 11.80
Karur Vysya Bank: 8.50-10.65
Kotak Mahindra Bank: 7.60 onwards
RBL Bank: 9.00 onwards
South Indian Bank: 7.25 onwards
Tamilnad Mercantile Bank: 7.90 – 9.30
(Data from Paisabazar as on 19 August 2026)
Why credit scores drive mortgage costs
Credit scores serve as a primary metric for assessing financial reliability. Lenders use this score to evaluate creditworthiness and predict the likelihood of timely debt repayments. Maintaining a strong credit profile is essential for securing the lowest advertised rates.
Key determinants of individual loan rates
Advertised interest rates serve as baseline offers rather than guaranteed terms for every applicant. Banks customise final rates based on a combination of risk factors, including the applicant’s credit score, annual income, total loan amount, repayment duration, employment stability, and pre-existing debt commitments.