Property prices across housing segments in India continue to see a steady rise, even as demand for home loans remains robust. With the Reserve Bank of India (RBI) keeping the repo rate unchanged in Feburary, home loan interest rates at public sector banks have stayed largely stable in March, offering limited relief to buyers.
If you are planning to buy a home, it is crucial to factor in associated charges, tenure flexibility, and repayment conditions as well along with the home loan interest rate. Even a fractional difference in interest rates might significantly alter monthly EMIs as well as total repayment outflows over decades.Here's a look at home loan interest rates across public sector banks to help you decide which is most suitable for you:
Home Loan Interest Rates in March 2026
1. State Bank of India
India's largest public sector bank is offering home loans to customers at an interest rate ranging between 7.25% to 8.45%. The exact interest rate is determined taking into consideration the buyer's credit score, location of the property, besides other factors.
2. Punjab National Bank
Interest rates are between 7.2% and 9.1% per annum. The actual interest rate remains dependent on the buyer's CIBIL score and other details.
3. Canara Bank
Canara Bank offers one of the most competitive home loan rates that range between 7.15% to 10% per annum.
4. Central Bank of India
Home loans at Central Bank of India are available at 7.2% to 8.7%. Also, it provides home loans at attractive rates in key categorie like third or fourth house, Cent Home Loan Double Plus, Cent Grih Lakshmi Loan and others.
5. Bank of Baroda
This bank offers home loans at interest rates ranging between 7.20% to 9.25% across different tenures.
6. Union Bank of India
Buyers can get home loans at interest rates ranging between 7.15% to 9.5%.
Home Loan: Key Factors To Note Before Applying
1. Interest Rate Type
Fixed or floating rates can alter repayment costs over time. Floating rates are beneficial in a falling interest environment, but carry a risk if rates rise.
2. Processing Fees
Typically 1–2% of the loan amount is charged as processing fees. This upfront cost can add significantly to your borrowing expense.
3. Prepayment
Some banks impose penalties if you repay early. Clarify these terms well in advance to avoid surprises.
4. Loan Tenure
Longer tenure equals lower EMIs, but higher total interest. On the other hand, shorter tenure equals higher EMIs, but lower overall cost.
5. Eligibility
Income, age, credit score, and repayment history are also critical to acquiring a home loan. A rejected application can hurt your credit score.
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