Buying a home? That’s a huge dream for so many of us! But let’s be real, turning that dream into a reality often boils down to one crucial detail: your home loan interest rate.
And in 2025, was inflation and fluctuating repo rates disrupt lending expenses throughout India, picking the right bank for a low-interest home loan is more important than ever. If you’re on the hunt for the best deal, please don’t just settle for the first offer that comes your way. Instead, take the time to compare interest rates, look at processing fees, understand the repayment terms, and even check out their customer service.
Good news! This guide is here to help you do just that, by bringing you the top 10 banks for low-interest home loans in India, all updated with fresh Finaccle 2025 insights.
Factors That Affect Home Loan Interest Rates
Before diving into the bank list, let’s quickly understand what determines your home loan interest rate.
Credit Score & History
A high credit score (750+) means lower risk for the bank, translating to better rates for you.
Employment & Income
Stable income and employment with reputed companies often attract preferential rates.
Loan Amount & Tenure
Higher loan amounts over longer periods usually come with slightly higher interest rates.
Fixed vs Floating Interest
Your choice between fixed or floating rates directly affects how much you’ll pay in the long term.
Types of Home Loan Interest Rates in India
- Fixed Interest Rate: Locked-in rate for the full tenure, offering consistency—but may be higher than floating initially.
- Floating Interest Rate: Varies with market conditions (linked to RBI repo rate). Riskier, but can save you money if rates fall.
- Hybrid Interest Rate: A mix—fixed for the first few years, then floating. Offers some security while still being flexible.
Top 10 Banks Offering Low-Interest Home Loans in India (2025)
Here our curated list of India’s best banks based on interest rates, trust, and ease of application.
- HDFC Bank
- State Bank of India (SBI)
- ICICI Bank
- Axis Bank
- Bank of Baroda
- Kotak Mahindra Bank
- Punjab National Bank (PNB)
- Union Bank of India
- IDFC FIRST Bank
- Canara Bank
Comparison Table: Interest Rates And Tenure
Use our home loan calculator to estimate your EMI and compare interest rates from these top banks in India before you apply.
| Bank Name | Interest Rate (2025) | Max Tenure |
| HDFC Bank | 8.35% – 9.10% | 30 years |
| SBI | 8.15% – 9.05% | 30 years |
| ICICI Bank | 8.40% – 9.20% | 30 years |
| Axis Bank | 8.50% – 9.25% | 30 years |
| Bank of Baroda | 8.25% – 9.00% | 30 years |
| Kotak Mahindra Bank | 8.30% – 9.10% | 20 years |
| PNB | 8.20% – 9.05% | 30 years |
| Union Bank of India | 8.30% – 9.15% | 30 years |
| IDFC FIRST Bank | 8.30% – 9.15% | 30 years |
| Canara Bank | 8.25% – 9.10% | 30 years |
Disclaimer:
This table is for informational and comparison purposes only. Interest rates, fees, and terms may vary depending on the applicant’s profile and bank policies. Please confirm directly with the respective banks before applying.
Ready to Apply?
Use Finaccle’s free Home Loan Comparison Tool to check real-time interest rates, calculate EMIs, and apply instantly from 30+ top banks.
Detailed Review of Each Bank
1.HDFC Bank
One of the most trusted names in housing finance, HDFC offers competitive floating and fixed rates, flexible EMIs, and fast disbursal.
2.State Bank of India (SBI)
India’s largest lender, SBI offers some of the lowest interest rates, especially for salaried applicants and government employees.
3.ICICI Bank
Ideal for digital-first users, ICICI offers a smooth online application process and reasonable rates for those with strong credit profiles.
4.Axis Bank
Known for quick processing and doorstep services, Axis Bank has tailored loan products for professionals and self-employed individuals.
5.Bank of Baroda
Offers a transparent structure with zero hidden charges. Their interest rates remain competitive in 2025.
6.Kotak Mahindra Bank
Great for urban buyers with salaried income. Also known for custom EMI plans and part-payment flexibility.
7.Punjab National Bank (PNB)
PNB’s housing loans under PMAY are particularly beneficial for first-time buyers looking for affordability.
8.Union Bank of India
Low processing fees, fair interest rates, and wide rural-urban coverage make Union Bank a strong pick.
9.IDFC FIRST Bank
Though newer, IDFC FIRST Bank has made a mark with its customer-first approach and digital convenience.
10.Canara Bank
Another PSU with competitive rates and schemes for women borrowers and low-income segments.
How to Choose the Right Home Loan Bank
Don’t just chase the lowest interest rate—look at:
- Customer reviews
- Processing time
- Pre-payment/foreclosure charges
- Special schemes (like women’s discounts or PMAY)
Tips to Get the Lowest Possible Interest Rate
- Maintain a credit score above 750
- Choose a shorter loan tenure
- Go for floating rates when the RBI repo rate is stable or falling
- Apply jointly with a co-applicant
Use Finaccle to compare in real time
Tips to Get the Lowest Possible Interest Rate
Want to reduce your EMI burden? Here’s how you can land the lowest possible home loan interest rate in 2025:
Improve Your Credit Score
Before applying, check your credit score. A score above 750 significantly increases your chances of getting a lower rate. Clear credit card dues, avoid late payments, and maintain a healthy credit utilization ratio.
Choose a Shorter Tenure
Banks often reward borrowers who opt for shorter tenures with lower interest rates. While your EMI may be higher, you’ll pay far less interest overall.
Opt for Floating Rate in 2025?
With repo rates expected to remain stable or even drop, floating interest rates might save you money in the long run. Just make sure you’re financially comfortable with some fluctuations in EMI.
Pro tip: Use tools from Finaccle Advisory Private Limited to compare both fixed and floating rate scenarios before deciding.
How to Apply for a Home Loan Easily via Finaccle
With Finaccle Advisory Private Limited, you no longer need to visit multiple banks or fill out endless forms.
- One-stop portal
- Instant comparison of over 30 banks
- Personalized loan advice
- Faster approvals and documentation support
Whether you’re buying your first home or investing in a second property, Finaccle Advisory Private Limited ensures you get the best home loan deal in India for 2025—quickly and stress-free.
Need expert help? Check out our Home Loan Advisory Services to get started today.
Government Schemes for First-Time Buyers
Dreaming of your first home? The Indian government has your back with housing subsidies and schemes to make it easier.
PMAY – Pradhan Mantri Awas Yojana
Under PMAY, first-time home buyers can get an interest subsidy of up to ₹2.67 lakh, depending on income slab and eligibility. This drastically reduces your EMI and total repayment amount.
Subsidies for Affordable Housing
Many state governments and local municipalities offer additional subsidies and tax rebates for affordable housing projects. Women borrowers and economically weaker sections also enjoy special benefits. Interest rate subsidies for home loans under ₹35 lakh for low and mid-income groups.
Finaccle Advisory Private Limited helps you check your eligibility and apply for these government schemes along with your home loan—so you don’t leave any money on the table.
Conclusion
Buying a home is a big financial commitment, and choosing the right home loan can make a huge difference over the years. Instead of relying on guesswork or word-of-mouth, let the professionals at Finaccle Advisory Private Limited help you compare, choose, and apply for the best loan for your needs.
With trusted insights, bank partnerships, and a dedicated support team, Finaccle Advisory Private Limited is your go-to partner in securing low-interest home loans in India in 2025.
FAQs
1.Which bank has the lowest home loan interest rate in India in 2025?
As of mid-2025, SBI and HDFC Bank offer the lowest rates starting from 8.15%.
2. How can I get a home loan at low interest?
Improve your credit score, opt for floating rates, and use Finaccle Advisory Private Limited to get expert help and the best deals from top Indian banks.
3. Are fixed rates better than floating rates in 2025?
If you prefer stability, go fixed. But with rates expected to fall, floating may save more in the long run.
4. Can I prepay my home loan?
Yes, most banks allow partial or full prepayment without penalty, especially for floating-rate loans.
5. How does Finaccle help with home loans?
Finaccle Advisory Private Limited provides end-to-end assistance—from comparing rates and documentation to negotiating with banks and securing the fastest approvals.
6. How can I check home loan eligibility based on my salary?
Most banks calculate your home loan eligibility by ensuring your EMI doesn’t exceed 40–50% of your net monthly salary. Use the EMI calculator home loan on Finaccle’s website to instantly check how much loan amount you can qualify for.
