Home Loan Interest Rates 2025: A Quick Guide To Top Bank Offers

Buying a home is one of the biggest financial decisions you'll ever make. One of the most important things to compare before applying for a home loan is the interest rate and processing fees charged by different banks. A lower rate can save you lakhs in the long run.

Here’s a look at the home loan interest rates and processing charges offered by top banks in India in 2025:

State Bank of India: SBI provides loans starting at 8.25% per annum, and charges 0.35% of the loan amount as a processing fee, plus GST.

HDFC Bank: Home loans begin at 8.75% per annum. The processing fee is up to 0.50% or Rs 3,000 plus taxes, whichever is higher.

Axis Bank: The bank provides home loans starting at 8.75% per annum, with a processing fee of up to 1% of the loan amount or a minimum of Rs 10,000 plus GST.

Kotak Mahindra Bank: It offers home loans starting at 8.65% per annum. The processing fee is 0.5% of the loan amount plus taxes for salaried individuals.

HSBC Bank: The home loan rate is 8.50% per annum with a processing fee of 1% of the loan amount or Rs 10,000, whichever is higher.

Union Bank of India: Home loans start at 8.10% per annum, with a processing fee of 0.50% of the loan amount.

LIC Housing Finance: Interest rates start from 8.50% per annum. The processing fee varies from Rs 15,000 to Rs 50,000 plus GST depending on the loan amount.

Bank of Baroda: The bank offers interest rates from 8.15% per annum. There’s no processing fee, only a discounted upfront fee.

Canara Bank: The bank offers loans starting at 8.15% per annum and charges 0.50% of the loan amount as processing fee.

Central Bank of India: It charges interest starting at 8.10% per annum. The processing fee is 0.50% of the loan amount up to Rs 20,000 plus GST.

Punjab and Sind Bank: The home loan rates start at 8.25% per annum. Processing fees vary by loan amount, ranging from Rs 1,000 to Rs 15,000.

Bank of India: The bank offers home loans at an interest rate starting from 8.40% per annum, with no processing fee.

IDFC First Bank: The interest rate charges start from 8.85% per annum and it has a processing fee of up to 3% of the total loan amount.

Bank of Maharashtra: It offers loans at 8.10% per annum and charges no processing fee.

Punjab National Bank: The home loan rates start at 8.15% per annum with zero processing charges.

IDBI Bank: It offers loans starting from 8.50% per annum, with a processing fee between Rs 2,500 and Rs 5,000.

Federal Bank: The bank offers rates from 8.80% per annum. Processing fees are 0.50% of the loan amount.

Standard Chartered Bank: The bank’s interest rates start at 8.95% per annum. Processing fee details need to be checked directly with the bank.

Yes Bank: It offers loans from 9% per annum and charges a processing fee of 1.5% of the loan amount or Rs 10,000, whichever is higher.

If you’re planning to take a home loan in 2025, it’s important to compare both the interest rates and the processing fees. You need to consider the total cost before making a final decision.