Compare the Lowest Home Loan Interest Rates in India

Whether purchasing your first residential flat, constructing on a freehold plot, or refinancing an existing high-interest balance transfer, explore current RBI repo-linked rates from India’s top public and private mortgage lenders.

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Top 2 Options — Ranked & Reviewed

⭐ Editor's Choice 2026
Rank #1

State Bank of India (SBI) Regular Home Loan

★4.9 / 5.0Issuer: State Bank of India

SBI is India’s premier mortgage financier, commanding over 33% of the nation’s home loan market. With loans linked transparently to the RBI Repo Rate (EBLR), SBI offers industry-lowest borrowing costs, 30-year tenures, and the renowned SBI Maxgain overdraft facility.

Loan Amount
Up to ₹10 Crore (75% - 90% LTV)
Regular APR
8.40% - 9.05% p.a. (EBLR Floating)
Term Lengths
Up to 30 Years (or age 70)
Credit Needed
CIBIL 750+
Origination Fee:0.35% (Min ₹2,000, Max ₹10,000 + GST)

Top Benefits

  • Lowest sovereign counterparty risk backed by India’s largest public bank
  • SBI Maxgain overdraft lets you park surplus funds to reduce daily interest accrual
  • Transparent EBLR pricing with no hidden renewal charges
  • Extensive branch network across every tier-1, tier-2, and rural district in India

Considerations

  • Longer documentation and legal verification timelines compared to private NBFCs
  • Requires thorough physical title verification for older resale properties
Interest rates starting from 8.40% to 9.05% p.a. linked to EBLRFlexible repayment tenure up to 30 years or age 70Zero prepayment penalty on floating rate loansOverdraft balance transfer facility (SBI Maxgain) saves substantial interestSpecial 0.05% concession on interest rate for female borrowers
⭐ Editor's Choice 2026
Rank #2

HDFC Bank Home Loan

★4.8 / 5.0Issuer: HDFC Bank

Following the mega-merger of HDFC Ltd and HDFC Bank, India’s largest private lender provides swift, tech-driven home loan sanctions, balance transfers, and attractive top-up facilities up to ₹50 Lakh with rapid doorstep documentation.

Loan Amount
Up to ₹10 Crore+
Regular APR
8.50% - 9.20% p.a.
Term Lengths
Up to 30 Years
Credit Needed
CIBIL 760+
Origination Fee:0.50% of loan amount or ₹3,000 (Min) + GST

Top Benefits

  • Industry-leading turnaround time with doorstep document pickup and digital tracking
  • Top-up loan availability at attractive home loan interest rates
  • Transparent customer portal for managing amortization schedules and rate switches
  • Comprehensive pre-approved project catalog across all major Indian metro developers

Considerations

  • Processing fee is generally higher than SBI without festival waivers
  • Requires higher CIBIL score for prime tier interest bracket
Interest rates starting from 8.50% to 9.20% p.a.Instant in-principle digital sanction through HDFC digital portalRepayment tenure up to 30 yearsSeamless balance transfer with top-up loan facility up to ₹50 LakhCustomized step-up EMI options for young salaried professionals

Direct Head-to-Head Matchups in Indian Home Loans & Balance Transfer

Still torn between two top contenders? Inspect our side-by-side mathematical showdowns:

1v1 Showdown
State Bank of India (SBI) Regular Home Loan vs HDFC Bank Home Loan

How Indian Home Loans Work

Home loan interest rates in India are directly pegged to the Reserve Bank of India (RBI) Repo Rate via the External Benchmark Lending Rate (EBLR / RLLR) framework mandated since October 2019.

Key Structural Concepts

  1. Repo-Linked Lending Rate (RLLR / EBLR):
  • Floating-rate home loans adjust automatically whenever the RBI’s Monetary Policy Committee (MPC) alters the policy repo rate.
  • The effective rate is calculated as: `Repo Rate + Bank Spread / Margin` (e.g., 6.50% repo + 1.90% margin = 8.40% p.a.).
  • Prepayment penalties on floating-rate individual home loans are strictly 0% as mandated by the RBI.
  1. Income Tax Deductions (Old Tax Regime):
  • Section 24(b): Up to ₹2,00,000 per financial year on interest repayment for self-occupied properties.
  • Section 80C: Up to ₹1,50,000 per financial year on principal repayment, stamp duty, and registration charges.
  • Section 80EEA: Additional ₹1,50,000 deduction on affordable housing loans sanctioned prior to March 2022.
  1. Loan-to-Value (LTV) Ratio Guidelines:
  • Up to ₹30 Lakh loan: Up to 90% LTV.
  • ₹30 Lakh to ₹75 Lakh loan: Up to 80% LTV.
  • Above ₹75 Lakh loan: Up to 75% LTV.

Crunch the Numbers

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