Home Loan Interest Rates In August 2025: HDFC Bank vs ICICI Bank vs Axis Bank
When the RBI reduces key lending rates, borrowing becomes cheaper. This becomes beneficial for people seeking home and other retail loans.
Reserve Bank of India is set to review its monetary policy at the upcoming Monetary Policy Committee meeting from Aug. 4-6. The outcome of the two-day MPC meeting is likely to have an impact on home loans.
While the MPC is widely speculated to maintain its current 5.5% lending rate, a potential further reduction would be a relief for borrowers.
Following the RBI’s decision to reduce lending rates twice this year so far, several banks have passed on the benefits to the customers. This is because when the central banks reduce lending rates, borrowing becomes cheaper. This results in stimulated economic activity with more money rotating in the market.
Why RBI May Reduce Repo Rate
The RBI’s two rate cuts earlier this year followed after easing inflation concerns in India, managing which is a key task of the MPC. At the last MPC meeting, the RBI had revised its inflation projection for India to 3.7% from 4% earlier.
In June, India’s retail inflation, measured by the Consumer Price Index (CPI), fell sharply to a 77-month low of 2.1%. This has prompted economists to suggest that a 25 basis point rate cut by the RBI might be on cards.
Reports suggest that there is scope for a further rate cut by the RBI’s Monetary Policy Committee.
Top Home Loan Rates In August 2025
Let’s take a look at affordable home loans offered by top banks. Housing loans from top lenders typically range between 7.5% and 10% per annum.
Currently, SBI is offering home loan interest rates ranging from 7.5% to 8.7% per annum. HDFC Bank’s home loan rates start from 7.9% p.a. Bank of Baroda offers interest rates between 7.45% and 9.2%. Bank of Maharashtra provides housing loan interest rates starting at 7.35% p.a. Axis Bank offers housing loans with interest rates starting at 8.75% p.a. ICICI Bank has housing loans starting at 7.70% p.a. Canara Bank’s home loan rates range from 7.40% to 10.25%.
These rates are an indicative range shared by the banks on their website. The exact home loan interest rate depends on several factors like employment nature, relationship with banks, loan amount, monthly salary and CIBIL score.
