When it comes to buying a house, a slight variation in your home loan rate of interest can result in substantial savings down the line. Fortunately, competitive rates are being presented by Indian banks and housing finance institutions in July 2025. Ranging from government to private sector lenders, borrowers have a number of appealing alternatives based on income, credit score, and tenure. Some of the best rates available till date are listed below.
SBI gives salaried borrowers low rates
The State Bank of India (SBI) is still among the most reputable home loan givers. Its rate ranges from 8.35% annually for salaried borrowers. Women applicants get a slight relief of 0.05%. SBI also charges low processing fees and has flexible repayment structures, making it a good choice for first-time homebuyers as well as a balance transfer option.
Private lenders like HDFC and ICICI remain competitive
ICICI Bank and HDFC are providing rates starting from 8.40% per annum. Both fixed and floating rate plans are offered by them, along with top-up loan facilities. Paperless and online application procedures make them ideal for technology-friendly borrowers. Here, the eligibility for a loan is generally dependent upon your credit score and income pattern on a monthly basis.
Trust-worthy offers and rates are provided by public banks
Punjab National Bank (PNB) and Bank of Baroda also are offering competitive interest rates, as low as 8.45% and 8.40% respectively. PNB offers special schemes for government employees in the central and state governments. Bank of Baroda offers free prepayment of floating-rate loans and balance transfer facility free of hassle. Both banks are best for one who seeks assured and transparent terms.
LIC Housing and Axis Bank round out the list
LIC Housing Finance has interest rates starting at 8.50% and is the favourite for long-term housing finance of up to 30 years. Axis Bank also begins with 8.50% and appeals to young working professionals with its swift approval and EMI options. Both banks provide top-up loans, thus being a hassle-free option to renovate or extend a home.
Best Home Loan Interest Rates (July 2025)
| Lender Starting | Interest Rate (p.a.) | Key Features |
| SBI | 8.35% | Concession for women, minimal processing fee |
| HDFC Bank | 8.40% | Digital process, pre-approved loan options |
| ICICI Bank | 8.40% | Fixed/floating options, fast digital approvals |
| Bank of Baroda | 8.40% | Free prepayment , balance transfer facility |
| PNB | 8.45% | Special plans for govt employees |
| LIC Housing Finance | 8.50% | Long tenure loans up to 30 years |
| Axis Bank | 8.50% | Flexible EMIs, top-up loan options |
Compare the rates, tenure, processing fee, and prepayment terms prior to signing on the dotted line. Your final interest rate will be based on your job profile and credit history. Use a home loan EMI calculator to calculate the EMI and determine your eligibility with multiple institutions. Choosing the correct loan will save you lot of money over the repayment period.
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