⁠SBI Raises Home Loan Interest Rates By 25 Basis Points: How Do They Compare With Other Banks?

The State Bank of India (SBI) has raised home loan interest rates by 25 basis points for new borrowers. The rise mainly impacts applicants with lower credit scores, as the bank has lifted the upper band of its loan rates.

According to an Economic Times report, home loans remain the biggest component of SBI’s retail loan portfolio. In the second half of July, SBI’s home loan rates stood between 7.5% and 8.45%. Following the adjustment, new borrowers will now be charged between 7.5% and 8.7%, the report added.

The new home loan interest rates, effective from Aug. 1, 2025, range between 7.5% to 10.55% per annum, as per the bank’s official website.

Here are the interest rates for various categories of SBI home loans:

• Home Loan (term loan): 7.5% to 8.7%

• Home Loan Maxgain (OD): 7.75% to 8.95%

• Top Up Loan: 8% to 10.75%

• Top Up (OD) Loan: 8.25% to 9.45%

• Loan Against Property (P-LAP): 9.20% to 10.75%

• Reverse Mortgage Loan: 10.55%

• YONO Insta Home Top-up Loan: 8.35%

Meanwhile, private lenders continue to price their home loans differently. HDFC Bank’s rates begin at 7.9%, ICICI Bank’s at 7.7%, while Axis Bank’s rates start from 8.35%.

Axis Bank offers home loans with interest rates varying according to the borrower’s CIBIL score. For those with a score of 751 and above, rates range from 8.35% to 9.1% per annum, while borrowers with a score of 750 or below, or those without a credit history, are charged between 8.6% and 9.35% per annum. The bank also provides fixed home loans at an annual rate of 14%, which applies across all home loan variants, giving borrowers a stable and predictable repayment plan without any fluctuations.

HDFC Bank’s home loan rates start from 7.9% per annum and can go up to 13.2% per annum. These rates are applicable for a range of products, including home loans, balance transfer loans, house renovation loans and home extension loans.

ICICI Bank offers both fixed and floating home loans for amounts up to Rs 5 crore, with interest rates beginning at 7.7%.

The bank also provides customised rates based on credit scores. Salaried and self-employed applicants with a score of 800 can secure loans at 8.75%. For those with scores between 750 and 800, salaried customers are charged 8.75%, while self-employed borrowers face a slightly higher rate of 8.85%.

Union Bank of India offers home loans starting at 8.6% per annum. The exact rate a person gets will depend on factors such as their CIBIL score, loan amount, monthly income and repayment capacity.