Understanding Home Loan Interest Rates

 Understanding Home Loan Interest Rates: A Comprehensive Guide for 2025:

When considering a home loan, the interest rate is one of the most critical factors that can affect your monthly payments and overall financial commitment. With multiple lenders offering different rates, it's essential to compare these rates across various institutions to find the best deal for your needs.

In this blog post, we’ll break down the current home loan interest rates from various lenders across Public Sector Banks, Housing Finance Companies, and Private Sector Banks in India, as of April 2025.

Home Loan Interest Rates by Lender

Here’s a detailed table outlining the interest rates for different loan amounts (up to 30 lakh, above 30 lakh & up to 75 lakh, and above 75 lakh) from some of India’s leading lenders.

Public Sector Banks:

Name of Lender	Upto ₹30 Lakh (%)	₹30 Lakh - ₹75 Lakh (%)	Above ₹75 Lakh (%)
Tamilnad Mercantile Bank	8.60 - 9.80	8.60 - 9.80	8.60 - 9.80
Bandhan Bank	8.60 - 9.80	8.91 - 15.00	8.91 - 13.08
State Bank of India	8.25 - 9.40	8.25 - 9.40	8.25 - 9.40
RBL Bank	9.00#	9.00#	9.00#
Bank of Baroda	8.40 - 10.40	8.40 - 10.40	8.40 - 10.65
CSB Bank	10.24 - 12.09	10.24 - 12.09	10.24 - 12.09
Union Bank of India	8.10 - 10.50	8.10 - 10.65	8.10 - 10.65
HDFC Bank Ltd.	8.70#	8.70#	8.70#
Punjab National Bank	8.20 - 10.00	8.15 - 9.90	8.15 - 9.90
City Union Bank	10.35 - 15.75	10.15 - 15.75	10.15 - 14.05
Bank of India	8.15 - 10.60	8.15 - 10.60	8.15 - 10.85
Bank of Maharashtra	8.10 - 10.90	8.10 - 10.90	8.10 - 10.90
Indian Overseas Bank	8.15 - 10.75	8.15 - 10.75	8.15 - 10.75
Indian Bank	8.15 - 10.75	8.15 - 10.75	8.15 - 10.75

Housing Finance Companies (HFCs):

Name of Lender	Upto ₹30 Lakh (%)	₹30 Lakh - ₹75 Lakh (%)	Above ₹75 Lakh (%)
LIC Housing Finance	8.25#	8.25#	8.25#
Bajaj Housing Finance	8.25#	8.25#	8.25#
Central Bank of India	8.10 - 9.70	8.10 - 9.70	8.10 - 9.70
Tata Capital	8.75#	8.75#	8.75#
PNB Housing Finance	8.50 - 14.50	8.50 - 14.50	8.50 - 11.45
GIC Housing Finance	8.80#	8.80#	8.80#

Private Sector Banks:

Name of Lender	Upto ₹30 Lakh (%)	₹30 Lakh - ₹75 Lakh (%)	Above ₹75 Lakh (%)
LIC Housing Finance	8.25#	8.25#	8.25#
Bajaj Housing Finance	8.25#	8.25#	8.25#
Central Bank of India	8.10 - 9.70	8.10 - 9.70	8.10 - 9.70
Tata Capital	8.75#	8.75#	8.75#
PNB Housing Finance	8.50 - 14.50	8.50 - 14.50	8.50 - 11.45
GIC Housing Finance	8.80#	8.80#	8.80#

Key Observations:

- Public Sector Banks generally offer lower interest rates compared to Private Sector Banks. However, there may be exceptions based on the type of loan or applicant's profile.

- Housing Finance Companies (HFCs) tend to offer slightly higher rates, but they may be more flexible when it comes to terms and conditions.

- Some lenders, such as RBL Bank, HDFC Bank, and others, have fixed rates that may be more stable over time but could be higher than those offered by government banks.

Conclusion

Choosing the right home loan is essential to ensure your financial stability while making such an important investment. By comparing interest rates from different lenders, you can make a more informed decision. Additionally, some lenders offer extra interest rate concessions for opting for insurance policies or green home projects, which could be an excellent opportunity for some borrowers.

Remember that rates are subject to change, so always verify the latest terms and conditions with the lender before applying.

Source: 

To know the complete details, you should visit the respective official websites of the mentioned banks.