Following the series of repo rate cuts this year by the Reserve Bank of India, home loans have become more affordable due to lower interest rates. Those looking to buy a home now have cheaper financing options to fulfill their dream of owning a property.
Loan rates are impacted by changes in the repo rate. With lower interest rates, monthly EMIs become more affordable, thus encouraging more people to consider buying their own homes.
At the latest Monetary Policy Committee (MPC) meeting in August, RBI decided to keep the repo rate unchanged at 5.5%, after lowering it in June. Prior to this, the central bank had announced rate cuts at its earlier bi-monthly meetings this year.
Loan rates can vary slightly among lenders, based on the borrower's salary, credit score, age and other factors. With reduced rates, both public and private banks are offering competitive options, helping borrowers plan better for this big financial commitment.
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Home Loan Rates In September 2025
Currently, the State Bank of India (SBI) is offering home loan interest rates ranging from 7.5% to 8.7% per annum. Public sector banks continue to provide lower rates, with the Bank of Maharashtra offering rates from 7.35% onward, followed by Bank of Baroda at 7.45%, according to the websites of the banks. Canara Bank offers home loans at interest rates ranging from 7.4% to 10.25%. Punjab National Bank provides competitive rates from 7.45% onward, as per the official website.
HDFC Bank’s home loans start at 7.9% per annum. Among other private lenders, Axis Bank’s home loan rates range from 8.75% to 9.15%, while ICICI Bank offers rates starting at 7.7% per annum.
Home loan eligibility conditions vary slightly among different banks, but broadly depend on some common factors. Lenders typically consider the applicant’s credit history and CIBIL score, which reflect financial discipline. A stable monthly income and proof of employment or business are other crucial factors. Many banks offer flexible repayment tenure ranging up to 30 years. Loan amounts also depend on location, with banks willing to offer higher loan amounts for metropolitan cities such as Mumbai and Bengaluru.
| Bank | Interest Rate In September (p.a) | "Eligiblity | Key Details" | |
|---|---|---|---|---|
| SBI | 7.50% to 8.70% | Credit history; CIBIL score | ||
| HDFC Bank | 7.9% onwards | "Min Rs 10 | 000 per month salary; max loan tenure of 30 years; credit history" | |
| Bank of Baroda | 7.45% onwards | Up to 30 years; min 21 years of age; max loan amount varies by locations | ||
| Bank of Maharashtra | 7.35% onwards | "Maximum loan amount will be lowest of loan amount assessed on the basis of permissible deduction norms | maximum permissible LTV ratio | loan amount requested." |
| Axis Bank | 8.75% to 9.15% | Min 21 years of age; max loan amount at Rs 5 crore; loan tenure up to 30 years | ||
| ICICI Bank | 7.70% onwards | "Max loan of Rs 5 crore | credit score" | |
| Canara Bank | 7.40% to 10.25% | "Credit score | monthly salary" | |
| Punjab National Bank | 7.45% onwards | "credit score | loan tenure" | |
| Suryoday Small Finance Bank | 10% to 13% | "Up to 20 years tenure | rate may vary for salaried versus business professionals" | |
| Source: Loan rates and eligibility data sourced from respective bank websites. These figures are only tentative. |
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