Home Loan Interest Rates September 2026: Home loan rates have started from 7% at some banks in September 2026. Bank of Maharashtra and Central Bank of India were offering rates from 7% as of September 16. Bank of India started at 7.10%. The actual rate can be higher depending on the bank, loan size and borrower’s profile. The rates were compiled by Paisabazaar.
For borrowers planning to buy a house, even a small change in the interest rate can affect the EMI and the total interest paid over many years. That’s why the starting rate is only one part of the comparison.
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State Bank Of India And Other Public Sector Banks
SBI’s home loan rates were in the 7.25% to 8.55% range across all three loan categories in the September 16 data. Bank of Baroda started at 7.20% and went up to 9% for loans up to Rs 75 lakh. For loans above Rs 75 lakh, its rate went up to 9.25%.
Bank of India started at 7.10%. Its rate could reach 10% for loans up to Rs 75 lakh and 10.25% for larger loans. Bank of Maharashtra offered 7% to 9.90% across the three loan slabs.
Canara Bank had different starting rates based on the loan amount. It started at 7.25% for loans up to Rs 30 lakh. The rate was 7.20% for loans above Rs 30 lakh and up to Rs 75 lakh. For loans above Rs 75 lakh it started at 7.15%.
PNB started at 7.30% for loans up to Rs 30 lakh and 7.25% for loans above Rs 30 lakh. UCO Bank and Union Bank of India both started at 7.15%.
Private Banks And Housing Finance Companies
Private banks also had several offers in September. ICICI Bank started at 7.55%, while HDFC Bank started at 7.75%. HSBC Bank offered rates from 7.45%. Axis Bank started at 8% for loans up to Rs 75 lakh and also had rates from 8% for larger loans.
Among housing finance companies, LIC Housing Finance and Bajaj Housing Finance started at 7.15% and 7.25%. ICICI Home Finance started at 7.50%, while Godrej Housing Finance started at 7.65%.
How home loan interest rates compare
Among the public sector banks in the September 16 data, Bank of Maharashtra and Central Bank of India had the lowest starting rate at 7%. Bank of India followed with 7.10%. SBI’s starting rate was 7.25%. In the private bank group, ICICI Bank started at 7.55% and HDFC Bank at 7.75%.
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Loan amount can affect home loan rates
The loan amount can change the rate offered by a lender. Canara Bank is one clear example, with different starting rates for the three loan slabs. PNB also changes its starting rate after the Rs 30 lakh mark. However, some banks such as Bank of Maharashtra and Central Bank of India kept the same starting rate across the three categories.
Check the final home loan rate before applying
A starting rate isn’t guaranteed for every borrower. Credit score, income, job profile, property details, loan-to-value ratio and the lender’s pricing can all affect the final rate. Borrowers should also check processing fees and other charges before taking a loan.
