We focus on your tomorrow.
We focus on your tomorrow.

Best Home Loan Interest Rates

Check the best home loan interest rates 2022 and know which bank is giving the lowest interest rate on home loan, the best home loan interest rates for government employeeshome loan interest rates for women, and find out the difference between floating-rate and fixed-rate home loans.
Latest Home Loan Interest Rates 2022
Interest RateStarting @ 7.90%     
Check Best Offers
Processing FeeUp to 0.25%
Loan Tenure5 to 30 years
Lowest EMI Per LakhRs. 692 for 30 years
Prepayment ChargesNil

Addition Info: Check List of Best Banks for Personal Loan

  • Currently, the best home loan interest rates start from as low as b p.a.
  • A higher interest rate means a higher EMI amount, and a lower rate means a smaller EMI.
  • If you want to pay a lesser interest cost on your home loan, choose the shorter repayment tenure.
  • Broadly there are two types of home loan interest rates, i.e. Fixed and Floating.
  • Your home loan EMI (equated monthly instalment) changes based on the interest rate applicable on loan.
Table of Contents: Best Home Loan Interest Rates
Best Home Loan Interest Rates of All Banks - 2022

Let us first list the best home loan interest rates in India:

Best Home Loan Interest Rates of Top Public Sector Banks 2022
Bank NameInterest rate (%)Processing fee
Central Bank of India7.00% – 7.65%Up to 0.50% of the loan amount (Min. Rs. 2,500 and Max. Rs. 20,000)
IDBI Bank Limited7.50% – 10.65%Up to Rs. 20,000 + taxes
Bank of Maharashtra7.80% – 9.20%Waiver till 30.06.2022
Bank of India7.80% – 9.65%Up to 0.50% of the loan amount
UCO Bank7.90% – 8.10%0.5% of the loan amount (Min. Rs. 1,500 and Max. Rs. 15,000)
Indian Bank7.90% – 8.95%0.20% to 0.40% (Max. Rs. 50,000)
Punjab National Bank7.90% – 9.35%Full waiver of processing fees from 01.01.2022 to 31.03.2022
Union Bank of India7.90% – 9.85%0.50% of the loan amount (Max. Rs. 15,000) + GST
Bank of Baroda7.95% – 9.30%100% waiver from 18.04.2022 to 30.06.2022
Canara Bank8.05% – 12.85%0.50% of the loan amount (Min. Rs.1,500 and Max. Rs.10,000)
State Bank of India8.05% – 9.05%0.35% + GST
Indian Overseas Bank8.45% – 8.80%Up to 0.50% (Max. Rs. 25,000)

Additional Info: Also check Home Loan for Salaried Employees

Best Home Loan Interest Rates of Top Private Sector Banks 2022
Bank NameInterest rate (%)Processing fee
Bandhan Bank7.80%-13.50%Upto 1% of the loan amount
Jammu & Kashmir Bank7.95% – 8.25%0.25% on the loan amount plus applicable GST
Kotak Mahindra Bank7.99%  – 8.50%Up to 0.50% of the loan amount + GST 
Karur Vysya Bank8.05% – 10.25%Rs. 2,500 – Rs. 7,500 + GST
Axis Bank 8.10% – 8.45%Upto 1% of the loan amount 
ICICI Bank8.10% – 8.95%0.50% – 2.00% of the loan + applicable taxes
HDFC Bank8.10% – 9.00%Up to 0.50% of the loan amount + applicable taxes
Dhanlaxmi Bank8.35% – 9.50%1% of loan amount + service tax
Federal Bank9.05% – 9.20%0.50% of loan amount
IDFC Bank7.95% – 8.40%Upto Rs.3,000

Home loan interest rates for all Public and Private Sector banks updated on : 25 August 2022

Also Read – LRD Loans

Factors that Affect Your Home Loan Apart from Interest Rate

The six main factors that affect home loans apart from interest rates are explained below. These are just a few factors from the whole big list. It is important to consider each of these while applying for a home loan.

  • Age isn’t Just a Number: The younger the applicant is, the more money will be sanctioned. Also, this increases the probability of getting the loan approved quickly. Though the maximum limit to apply for a loan for a salaried individual is 60 years, the tenure of the loan will be too less. Usually, for home loans, people look for a decent amount with at least 3- 5 years tenure.
  • Earn a Sizeable Income: How much you earn will determine how much you can get. Bank will scrutinize every aspect of your income and expenditure to check what percentage of your income is available to repay the loan amount. For this, they need your salary slips, bank statements, employer authentication, and more.
  • City: The place you live in will determine what should be your loan amount and EMI value. Living in expensive cities will help you gain larger loan amounts and vice versa. Cities like Mumbai and Delhi are considered Tier- 1 (expensive cities) and Agra and Meerut are Tier-2 (not so expensive cities).
  • Credit Score: Apart from the applicant’s company performance, individual credit rating holds a lot of value. Having a good credit rating increases the probability of getting a loan with more flexible options on tenure, amount, EMI, and interest rates. In case of any default payment records, huge outstanding loans, or fraudulent track records, the bank has every right to cancel the loan or charge a higher interest rate.
  • Existing Debts: Be smart to clear off your outstanding debts and expenditures before applying for a fresh loan. These outstanding loans will reduce the probability of getting the new loan sanctioned with hassles. Yes, it is not always possible to clear off all debts, but making regular payments without any defaults can make a difference in your life.
  • Try Clubbing Incomes: Just like how too many sticks put together will be stronger than a single one, club income of different members in the family. It is possible to club your family member’s salary while applying for a home loan. However, clubbing the salary of an unmarried daughter is not allowed. Make use of the resource pool in the option to get better facilities and offers on the home loan application. Before approaching banks, sit back and decide how to club incomes and EMI payments within the family. It is also critical to ensure each person’s financial credit score is high enough to avail a loan.
  • External benchmark lending rates: Since Oct 2019, floating rate home loans are linked to external benchmarks such as repo rate, yield on three-month or six-month treasury bills, or any other benchmark rate released by FBIL i.e. Financial Benchmarks India Pvt. Ltd. Based on this benchmark rate and customers’ risk premium the banks can transparently calculate effective rate of interest. With change in the benchmark rate, the effective rate will also fluctuate in a maximum of three months.

There could be a time in everyone’s life when you decide you are done living in a rented house. Home loans are always available as a great option for this decision and can lend hands during tax payments too. Though the amount paid by the bank has to be repaid, it is worth spending this money on a property that is expected to appreciate at all times. Investment in land or property is always a safe and smart move!

Additional Info: Looking for 50 Lakh Home Loan? Check EMI & Apply

Which Bank is Giving the Lowest Interest Rates on Home Loan?

Presently, the Home Loan Interest Rates in India starts from 7.80% p.a onwards offered by Bandhan Bank and Bank of Maharashtra. Other lenders offering the best home loan interest rates 2022 of below 8.05% pa. are State Bank of India (SBI), Bank of Baroda (BOB), Union Bank of India (UBI), Punjab National Bank (PNB), Central Bank of India, Bank of India (BOI), Canara Bank, UCO Bank, IDBI Bank, Axis Bank, Tata Capital, Bajaj Finserv and LIC Housing.

List of Banks Offering the Lowest Interest Rates on Home Loan 2022
Name of LenderInterest rate (%)
Bajaj Finserv7.70% – 14.00%
Punjab & Sind Bank7.90% – 9.00%
Punjab National Bank7.90% – 9.35%
Union Bank of India7.90% – 9.60%
Bank of Baroda7.95% – 9.30%
Kotak Mahindra Bank7.99% – 8.50%
State Bank of India8.05% – 9.05%
LIC Housing8.05% – 9.25%
Axis Bank8.10% – 8.45%
ICICI Bank8.10% – 8.95%
HDFC Bank8.10% – 9.00%
Tata Capital8.10%

Additional Info: Also Apply for Home Construction Loan

Best Home Loan Interest Rates for Government Employees

Many home loan lenders even factor in the income sources of their home loan applicants when deciding their rates. Generally, lenders charge lower rates from salaried individuals as compared to self-employed individuals.

Among self-employed, chartered accountants and doctors generally hold higher chances of getting their home loans approved at lower rates. Among salaried, government and PSU employees are most preferred by lenders owing to their job security and income certainty. They are followed by the ones employed in reputed and large private sector organisations as these companies are generally looked upon as stable and have increased potential to face economic downturns as compared to other private companies. It lowers the credit risk perception of the lenders resulting in them enticing such employees by offering them lower home loan rates.

Here, we will share the best home loan interest rates offered to government employees:

Name of LenderInterest Rate (%)

Punjab & Sind Bank (PSB Apna Ghar-Sahaj)

(Available to permanent employees of Central/State Governments/PSUs)

8.00% to 8.75%

Punjab National Bank (PNB Pride Housing Loan For Government Employees)

(For permanent employees of Central/State Governments/Defence Personnel & Paramilitary forces )

7.90% – 9.35%

Check for 50 lakh home loan EMI and apply easily on MyMoneyMantra.

Best Home Loan Interest Rates for Women

To promote financial independence among women, most lenders usually offer the best home loan interest rates to women borrowers. Such rates are usually lower than other individual rates. Usually, the concessional interest rate offered to women borrowers by lenders is 5 bps. 

Additional Info: Also check SBI Home Loan EMI Calculator

Name of LenderFor Women
State Bank of India8.05% – 9.05%
Union Bank of India7.90% – 9.85%
Punjab National Bank7.90% – 9.35%

Additional Info: You can also Check Banglarbhumi West Bengal Land Record

Floating Rate Loans or Fixed Rate Loans - Which are more popular?

Fixed interest rate: Loan’s fixed interest rate means the interest rate charged on the home loan amount will stay constant across the tenure. This means your home loan EMI will even stay constant through the repayment period. The benefit of fixed-rate home loans is that the EMI of home loans will remain the same, which would permit you to easily manage your finances. Such loans are prudent if you expect the home loans interest rates to rise in the near future. The flip angle of fixed-rate home loans is that if the market rates fall, you would be still paying a high interest.

Additional Info: Looking for 30 Lakh Home Loan? Check EMI & Apply

Floating interest rate: For those with floating rate home loans means that your rates for a home loan will not remain fixed and will keep changing over the loan tenure. Under floating rate home loan, rates are linked with external benchmarks such as T bill or repo rates that are market-linked. EMI of your home loan might fall or rise subject to changes in the benchmark rates. Plus point of floating interest rates is when the interest rate regime is on a declining trend, the interest rate of home loans is low. Flip angle is if the rates are high, home loans EMI might even shoot, which might negatively affect your budget.

Bank NameInterest rate (%)Processing fee
SBI8.05% – 9.05%Full waiver 
Axis Bank Ltd.8.10% – 8.45%Upto 1% of the loan amount subject to minimum of Rs.10,000
Bandhan Bank Ltd.7.80%-13.50%Upto 1% of the loan amount subject to minimum of Rs.5000
HDFC Bank8.10% – 9.00%Up to 0.50% of the loan amoun + applicable taxes
ICICI Bank8.10% – 8.95%0.50% – 2.00% of the loan + applicable Goods & Service Tax
Kotak Mahindra Bank Ltd7.99%  – 8.50%Up to 2% of the loan amount + GST

Thus, as interest rates of fixed-rate home loans stay the same throughout the entire loan tenure, many of the home loan applicants might opt for it as it eliminates the possibility of witnessing interest rate volatility. But, do note that there are only some lenders providing fixed-rate home loans for the entire repayment tenure. And those who do usually charge higher interest rates for fixed-rate home loans to reduce their interest rate risk.

Most of the lenders may even offer mixed rate home loans where the interest rates remain fixed for a specified period, like 2 or 3 years of home loan repayment tenure, and then it switches to floating rate home loans. Remember that rates charged in the course of the fixed-rate period are usually higher when compared to floating interest rate home loans at the time when the home loan is sanctioned.

Also Read – Documents Required for SBI Home Loan

How to get a home loan at a low-interest rate? - 2022Example of Flat Rate & Reducing Balance Method of Interest Calculation

As a home loan is a big-ticket loan, lenders carefully conduct an in-depth evaluation of the applicant’s credit history, income, repayment capacity etc. For the applicants looking for a home loan, it is important that they are well aware of the factors that lenders look upon when processing their home loans. Knowing such factors can help them get their home loan approved at lower rates.

Additional Info: Also check Pan Number for Banks

Here is a list of some factors looked upon by home loan lenders to set your interest rate:

Credit score

Lenders consider the applicant’s score to be one of the important factors when evaluating his home loan application. Those having a score of 750 and above are generally looked upon as creditworthy and have increased chances of home loan approval at lower rates. It is because those with lower scores are usually considered to be lacking financial discipline, which makes the lenders charge higher rates to make up for their increased risk of credit default.

Thus, if you are someone who have a poor credit score or is new to credit, consider building your credit score by using your credit cards regularly and in a disciplined manner. Once your credit score equals a score of 750 or above, apply for a home loan.


Lenders generally consider applicants having income as safer bets as they have higher disposable income. Those having lower disposable income are considered by the lenders to have higher default chances. Thus, many lenders charge such applicants with higher home loan rates.

Employer’s profile

Also, many of the lenders check the income sources of their home loan applicants when deciding their interest rates. Generally, lenders charge lower home loan rates from the salaried than self-employed people.

Additional Info: Also check How to Apply for Pradhan Mantri Awas Yojana

Doctors and chartered accountants under the self-employed section generally have higher chances of getting their home loans approved at lower rates. Among the salaried class, government employees and PSU are favoured the most owing to their job security and income certainty. Next are those who are employed in reputed private sector organisations that are preferred by the lenders for home loan approval at a lower interest rate. It is because such companies where these individuals are working are considered to be highly stable with a higher potential to face economic downturns as compared to the other private companies. It lowers the lender’s credit risk perception resulting in them enticing such staff/employees through lower home loan rates.

Existing consumer relation with lenders

There are many lenders offering preferential rates on home loans to their existing customers. Such relations can be in the form of current, savings or FD accounts or in the form of credit cards or various other loan options. Thus, those seeking a home loan should begin their loan search by directly contacting their banks or NBFCs with whom they share long term existing banking relationships. Interest rates offered to such individuals can be looked upon as a benchmark to compare home loan rates offered by other lenders.

Loan amount

The loan amount that you are looking to borrow can even impact the interest rate of a home loan. Usually, home loans of up to 30 lakh come at lower rates than loans available at higher amounts. For availing of the best home loan interest rates, you should choose to make a higher down payment contribution from your own resources. It lowers the lender’s credit risk, which in turn helps at boosting your chances to avail home loan at a lower interest rate.

Additional Info: Also Check Plot Loan

Thus, the prudent ways to get your home loan at lower interest rates are keeping a credit score of 750 and above, making higher down payment contribution from your own funds, widening your home loan search horizon, which includes contacting those banks or NBFCs with whom you already share a banking relationship. Owing to your long term good relationship with a bank, you may get a home loan at a lower interest rate.

Additional Info: Looking for 50 Lakh Home Loan? Check EMI & Apply


Lowest Interest Rate

Home loan interest rates are the lowest ever in the past 15 years. With raining festival offers on home loan, currently you can avail of the best interest rate on Bajaj Finserv home loan @7.70% p.a for all loan amounts.

Affordable EMI plans

You can avail the lowest Home Loan EMI at Rs. 727/- per lakh with maximum repayment flexibility. Some options are Step-Up EMIs, Step Down EMIs, Moratorium, OD facility, balance transfer, top up and more.

No Foreclosure Charge

Home Loans at floating interest rate (linked to repo rate) offer you ultimate prepayment flexibility. There is no part or full prepayment charge. You can prepay early & reduce interest cost as per your cash flows.

Home Loan Popular Offers

Fullerton India

Business Loan

Annual Fee: ₹ 9,99,999.00

Joining Fee: ₹ 2,485.00

Tata Capital

Business Loan

Annual Fee: ₹ 5,00,000.00

Joining Fee: ₹ 3,666.00


Business Loan

Annual Fee: ₹ 50,000.00

Joining Fee: ₹ 3,615.00


Business Loan

Annual Fee: ₹75,000.00

Joining Fee: ₹ 3,615.00


View and improve your credit score - for free.


Financial Tools

error: Content is protected !!