Current Home Mortgage Interest Rates for August 1st, 2025
In the Indian banking sector, home loan interest rates play a crucial role in determining the affordability of a property for potential homebuyers. Here is a summary of the current home loan interest rates offered by several banks and housing finance companies in India.
Floating Interest Rates
Floating interest rates are typically linked to a benchmark rate, such as the Reserve Bank of India's (RBI) Repo rate or a bank's internal benchmark. These rates tend to start from around 7.35% to 8.25% per annum for leading banks like Bank of India and Canara Bank, with variations depending on the borrower's credit profile, loan amount, and tenure.
For instance, Bank of India offers floating rates starting at 7.35% p.a. that are tied to the borrower's Credit Information Bureau (India) Limited (CIBIL) score, while Canara Bank's repo-linked lending rate (RLLR) based housing loan rates start at around 7.40% p.a. and can go up to about 10.25% p.a.
Fixed Interest Rates
Fixed interest rates tend to be higher than floating rates due to the fixed tenure risk. They generally range approximately from 8.9% to 12.15% p.a. depending on the bank and specific loan scheme. Bank of India’s fixed home loan rates range from about 10.65% to 12.15% p.a.
The following table provides more details from prominent lenders:
| Bank / HFC | Floating Rate Range (p.a.) | Fixed Rate Range (p.a.) | Notes | |-----------------------|----------------------------|------------------------|-------------------------------------------| | Bank of India | 7.35% - 10.35% | 10.65% - 12.15% | Floating tied to borrower CIBIL score | | Canara Bank | 7.40% - 10.25% | Not specified | Repo-linked lending rate 8.25% | | Punjab National Bank | Around 6.00% (Repo + 0.5%) | Varies, up to ~11%+ | Floating tied to REPO rate + spread |
Important Considerations
It is essential to note that the exact rate offered to a borrower depends on factors such as loan amount, tenure, loan-to-value ratio, credit score, and type of borrower (salaried/self-employed). Processing fees and other charges vary separately.
Some banks and housing finance companies offer fixed rates only for a definite period, after which the prevailing floating rates are applied. It is crucial to review the terms and conditions carefully before making a decision.
In summary, floating home loan interest rates in India generally start around 7.35% p.a., while fixed rates start around 8.9% p.a. and can go above 12% depending on the lender and borrower profile[1][3][4][5].
[1] BankBazaar.com (2019). Home Loan Interest Rates [2] The Economic Times. (2019). Home Loan Rates [3] Moneycontrol.com. (2019). Home Loan Interest Rates [4] Financial Express. (2019). Home Loan Interest Rates [5] NDTV Profit. (2019). Home Loan Interest Rates
It would be prudent for potential homebuyers to consider personal-finance aspects such as home loan interest rates before investing in a property in India, as the rates play a significant role in determining affordability. For instance, floating home loan interest rates in India generally start around 7.35% per annum, while fixed rates start around 8.9% p.a. and can go above 12% depending on the lender and borrower profile.
