Current Home Mortgage Interest Rates as of August 8, 2025

Home Loan Interest Rates in India: A Comprehensive Overview

As of August 2025, home loan interest rates in India vary significantly depending on the lender and the type of interest rate chosen. Here's a breakdown of the current rates for both fixed and floating interest rates.

Fixed Interest Rates

Typically, fixed interest rates for home loans range from approximately 7.90% to 9.20% per annum (p.a.). For instance, Bank of India offers rates from 8.40% p.a., while other banks range from about 7.90% to 9.20% p.a.

Floating Interest Rates

Floating interest rates on home loans are linked to benchmarks such as the RBI's repo rate or banks' Marginal Cost of Funds Based Lending Rate (MCLR). As of August 2025, floating rates from major banks range approximately from 6.95% to 8.05% p.a. HDFC Bank offers rates as low as 6.95% p.a., while State Bank of India offers rates up to 7.85% p.a.

It's important to note that effective home loan rates depend on factors such as loan amount, LTV ratio, and the specific bank's policy. For example, PNB links its floating rates to the repo rate plus a margin, currently around 6.0% p.a., but effective rates tend to be higher, ranging from 7.65% to 9.75% in different slabs.

The Reserve Bank of India (RBI) reduced the policy repo rate thrice in 2025, bringing it down to 5.5%, which has influenced floating rate home loan pricing. After these cuts, many banks have adjusted their lending rates accordingly, but rates still vary by institution and loan conditions. Experts predict stable rates for August 2025 with potential further minor easing later in the year.

Comparison of Rates

| Type of Rate | Typical Range for Home Loans (p.a.) | |--------------------|-------------------------------------------| | Fixed Interest Rate| Approx. 7.90% to 9.20% | | Floating Interest Rate| Approx. 6.95% to 8.05% depending on bank and loan details |

These rates are subject to change based on market conditions, RBI policy changes, and the borrower's credit profile.

It's essential to thoroughly review the terms and conditions of each bank or Financial Institution (FI) before making a decision on a home loan. The specific tenure for which fixed rates are offered may vary between banks and FIs, as well as the Annual Percentage Rate (APR) for both fixed and floating interest rates.

This information was compiled by BankBazaar.com on March 19, 2019, from respective bank's websites. For the most up-to-date information, it's recommended to visit the official websites of the banks and FIs.

Some notable banks and FIs offering home loans include, but are not limited to:

HDFC Bank
State Bank of India
ICICI Bank
PNB
Bank of India
Aditya Birla Housing Finance
LIC Housing Finance Ltd
Yes Bank
IDBI Bank
IIFL Home Finance
Sundaram Home Finance Ltd
PNB Housing
RBL Bank
Bajaj Finserv
Bank of Baroda
Central Bank
Fixed interest rates may be subject to revision after a specified tenure depending on the bank's T&Cs.
The APR for certain banks/FIs is conditional on having a credit score of 751 and above.
Some banks/FIs offer fixed rates only for a definite period, after which prevailing floating rates are applied.
Karur Vysya Bank offers floating interest rates for home loans between 7.95% and 10.90% for all loan amounts.
Tamilnad Mercantile Bank offers floating interest rates for home loans between 8.15% and 9.50% for all loan amounts.
J&K Bank offers a floating interest rate of 8.0% or higher for all loan amounts.
Indian Bank offers floating interest rates for home loans between 7.40% and 8.80% for all loan amounts.
UCO Bank offers floating interest rates for home loans between 7.35% and 9.50% for all loan amounts.
IOB offers floating interest rates for home loans between 7.35% and 8.45% for all loan amounts.
Punjab National Bank offers floating interest rates for home loans between 7.55% and 9.20% for loan amounts under Rs. 30 lakh, 7.50% and 9.20% for loan amounts between Rs. 30 lakh and Rs. 75 lakh, and 7.50% and 9.10% for loan amounts over Rs. 75 lakh.
South Indian Bank offers a floating interest rate of 7.75% or higher for all loan amounts.
Samman Capital offers a floating interest rate of 8.75% or higher for all loan amounts.
Central Bank Housing offers floating interest rates for home loans between 10% and 12.85% for all loan amounts.

[1] BankBazaar.com (2019). Home Loan Interest Rates in India. Retrieved from https://bankbazaar.com/loan/home-loan/interest-rates/ [2] PNB (2025). Home Loan Interest Rates. Retrieved from https://www.pnb.co.in/personal/home-loan/interest-rates.html [3] RBI (2025). Monetary Policy Statement. Retrieved from https://www.rbi.org.in/scripts/AnnualPublications.aspx?head=Annual%20Reports&sid=mp [4] ICICI Bank (2025). Home Loan Interest Rates. Retrieved from https://www.icicibank.com/personalbanking/loans/home-loan/interest-rates.page [5] HDFC Bank (2025). Home Loan Interest Rates. Retrieved from https://www.hdfcbank.com/personal/loans/home-loan/home-loan-interest-rates.html

The effective home loan rates not only depend on factors such as loan amount and LTV ratio, but they also vary with the specific bank's policy on personal-finance and investing in a business. For instance, PNB links its floating rates to the repo rate plus a margin, causing the effective rates to be higher.
While reviewing terms and conditions of each bank or Financial Institution (FI) before making a home loan decision, one should also consider factors like the specific tenure for which fixed rates are offered, the Annual Percentage Rate (APR) for both fixed and floating interest rates, and any additional conditions such as having a credit score of 751 and above to benefit from certain APRs.
In the realm of personal-finance and investing in a business, it's crucial to stay updated on the latest home loan rates to make informed decisions. Frequent policy changes by the Reserve Bank of India (RBI) can impact floating rate home loan pricing, with experts predicting stable rates for August 2025 with potential further minor easing later in the year.