Home loan rates in September:For many families in India who pay big EMIs every month, the home loan interest rate is still the biggest cost to think about. On September 3, both government and private banks, along with housing finance companies, are giving different kinds of rates.
Home loan rates in September: Public sector banks
Government banks are still giving some of the cheapest home loan choices, mainly when the loan amount is small.
- State Bank of India (SBI): 7.50–8.95 per cent across all loan slabs.
- Union Bank of India: Among the lowest entry points at 7.35 per cent, though rates can go up to 10 per cent.
- Bank of India and Bank of Maharashtra: Starting at 7.35 per cent, with upper bands extending above 10 per cent.
- Punjab & Sind Bank: One of the highest ranges, going up to 10.75 per cent.
In some cases, there are extra benefits too, like lower rates for women who take loans, people shifting their loan from another bank, or those who choose loans with insurance policies linked, reported Business Standard.
Name of Lender | Loan Amount (Rs) | ||
| Upto 30 Lakh | Above 30 Lakh & Upto 75 Lakh | Above 75 Lakh | |
| PUBLIC SECTOR BANKS | |||
| State Bank of India | 7.50-8.95 | 7.50-8.95 | 7.50-8.95 |
| Bank of Baroda | 7.45-9.25 | 7.45-9.25 | 7.45-9.50 |
| Union Bank of India* | 7.35-10.00 | 7.35-10.00 | 7.35-10.00 |
| Punjab National Bank | 7.50-9.35 | 7.45-9.25 | 7.45-9.25 |
| Bank of India | 7.35-10.10 | 7.35-10.10 | 7.35-10.35 |
| Canara Bank** | 7.50-10.25 | 7.45-10.25 | 7.40-10.15 |
| UCO Bank*** | 7.40-9.50 | 7.40-9.50 | 7.40-9.50 |
| Bank of Maharashtra | 7.35-10.15 | 7.35-10.15 | 7.35-10.15 |
| Punjab and Sind Bank | 7.55-10.75 | 7.55-10.75 | 7.55-10.75 |
| Indian Overseas Bank | 7.35 onwards | 7.35 onwards | 7.35 onwards |
| Indian Bank | 7.40-9.40 | 7.40-9.40 | 7.40-9.40 |
| Central Bank of India | 7.35-9.40 | 7.35-9.40 | 7.35-9.40 |
Private sector banks
Private banks give a wider range of rates. Some start with low rates, but they can go much higher based on the borrower’s profile.
- ICICI Bank and HSBC: 7.70 per cent onwards.
- HDFC Bank: 7.90 per cent onwards.
- Axis Bank: Wider band of 8.35–11.90 per cent, depending on eligibility
- Bandhan Bank: Among the costliest, with rates stretching up to 15 per cent.
These banks usually look more closely at things like your credit score, how steady your job is, and how much you earn before they decide the loan price.
Name of Lender | Loan Amount (Rs) | ||
| Upto 30 Lakh | Above 30 Lakh & Upto 75 Lakh | Above 75 Lakh | |
| PRIVATE SECTOR BANKS | |||
| Kotak Mahindra Bank | 7.99 onwards | 7.99 onwards | 7.99 onwards |
| ICICI Bank | 7.70 onwards | 7.70 onwards | 7.70 onwards |
| Axis Bank | 8.35-11.90 | 8.35-11.90 | 8.35-9.35 |
| HSBC Bank | 7.70 onwards | 7.70 onwards | 7.70 onwards |
| South Indian Bank | 7.75 onwards | 7.75 onwards | 7.75 onwards |
| Karur Vysya Bank | 7.95-10.90 | 7.95-10.90 | 7.95-10.90 |
| Karnataka Bank | 8.19-10.74 | 8.19-10.74 | 8.19-10.74 |
| Federal Bank | 8.75 onwards | 8.75 onwards | 8.75 onwards |
| Tamilnad Mercantile Bank | 8.15-9.50 | 8.15-9.50 | 8.15-9.50 |
| Bandhan Bank | 8.41-15.00 | 8.41-12.58 | 8.41-12.58 |
| RBL Bank | 8.20 onwards | 8.20 onwards | 8.20 onwards |
| CSB Bank | 9.39-11.08 | 9.39-11.08 | 9.39-11.08 |
| HDFC Bank | 7.90 onwards | 7.90 onwards | 7.90 onwards |
| City Union Bank | 8.25-9.50 | 8.50-10.00 | 8.75-10.50 |
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Housing finance companies
- LIC Housing Finance and ICICI Home Finance: 7.50 per cent onwards.
- Bajaj Housing Finance: Slightly lower at 7.45 per cent onwards.PNB Housing
- Finance: Wider band of 8.25–11.50 per cent.
- SMFG India Home Finance: One of the highest entry levels at 10 per cent onwards.
Name of Lender | Loan Amount (Rs) | ||
| Upto 30 Lakh | Above 30 Lakh & Upto 75 Lakh | Above 75 Lakh | |
| HOUSING FINANCE COMPANIES (HFCs) | |||
| LIC Housing Finance | 7.50 onwards | 7.50 onwards | 7.50 onwards |
| Bajaj Housing Finance | 7.45 onwards | 7.45 onwards | 7.45 onwards |
| Tata Capital | 7.75 onwards | 7.75 onwards | 7.75 onwards |
| PNB Housing Finance | 8.25-11.50 | 8.25-11.50 | 8.25-10.85 |
| GIC Housing Finance | 8.20 onwards | 8.20 onwards | 8.20 onwards |
| SMFG India Home Finance | 10.00 onwards | 10.00 onwards | 10.00 onwards |
| Sammaan Capital(Formerly Indiabulls Housing Finance) | 8.75 onwards | 8.75 onwards | 8.75 onwards |
| Aditya Birla Capital | 8.25 onwards | 8.25 onwards | 8.25 onwards |
| ICICI Home Finance | 7.50 onwards | 7.50 onwards | 7.50 onwards |
| Godrej Housing Finance | 8.55 onwards | 8.55 onwards | 8.55 onwards |
| Extra interest rate concession of 0.05% to borrowers opting for insurance policy. Under CRG-Prime, CRG-1 & CRG-2, additional 5 bps concession for takeover/ready to move HL proposals & for salaried employees maintaining salary a/c with the bank. Additional concession of 0.05% & 0.10% for women borrowers & takeover loans, respectively. | |||
| Rates as of 3rd September 2025 | |||
| Source: Paisabazaar.com | |||
How will this affect borrowers?
For people buying homes or already paying loans, the wide range of rates shows why it’s important to compare before choosing. Even a small change of 0.25-0.50% can mean thousands of rupees extra every year.
Government banks are still a good pick for safe and steady borrowers, while private banks usually fit better for people with strong credit records. Housing finance companies may give faster approval, but their rates are often higher.
Since EMIs are already heavy on most families, experts say it’s smart to check not only the rate but also things like insurance tieupss, flexible repayment time, and special discounts.
