Lowest rate home loans starting at 7% rate: Check list

By Sohail Khan 20 August 2026, 2:41 pm

Synopsis

Home loan interest rates vary based on credit score and other borrower factors. A good credit score is essential for securing a low home loan interest rate. Borrowers should compare banks to find the best home loan interest rates.

Image for Home loan interest rates start at 7%: Check banks offering lowest interest rates on Rs 30 lakh–Rs 75 lakh loans — Lowest rate home loans starting at 7% rate: Check list

Home buyers looking for a fixed or a floating rate home loan usually compare banks and lenders to find the best interest rates. This is important because even a small difference in the interest rate can have a significant impact on the total interest paid over the entire loan tenure. A home loan equated monthly installment (EMI) is the monthly payment made by the borrower towards repaying both the principal and interest on the loan.

A small change in interest rate can impact the EMI outgo hugely, so home loan borrowers should make sure to check the latest interest rate offered by various banks.

For example, for a fixed rate loan of Rs 50 lakh for 30 years, a borrower will pay approximately Rs 12.32 lakh extra if the interest rate is 8% instead of 7%.

Here are the lowest home loan interest rates offered by public sector banks and private banks on loans of above Rs 30 lakh and up to Rs 75 lakh.

Public sector banks: Lowest home loan interest rates

Among public sector banks, Bank of Maharashtra and Central Bank of India offer the lowest home loan interest rate of 7.00% each for loans above Rs 30 lakh and up to Rs 75 lakh.

While Bank of Maharashtra’s interest rate ranges from 7.00% to 9.90%, Central Bank of India charges from 7.00% to 9.15%.

Bank of India offers rates from 7.10% to 10.00%, followed by Indian Bank at 7.15% to 9.55% and UCO Bank at 7.15% to 9.25%.

PUBLIC SECTOR BANKS
Bank of Baroda	7.20-9.00
Bank of India	7.10-10.00
Bank of Maharashtra	7.00-9.90
Canara Bank*	7.20-10.00
Central Bank of India	7.00-9.15
Indian Bank	7.15-9.55
Indian Overseas Bank	7.20 onwards
Punjab and Sind Bank	7.35-10.75
Punjab National Bank	7.25-9.20
State Bank of India	7.25-9.05
UCO Bank**	7.15-9.25
Union Bank of India***	7.15-9.60

Private sector banks: Lowest home loan interest rates

Among private sector banks, South Indian Bank offers the lowest home loan interest rate at 7.25%, followed by Federal Bank at 7.35%.

HSBC Bank offers rates starting from 7.45%, while Karnataka Bank’s rates start at 7.48%. ICICI Bank has a starting interest rate of 7.50%.

PRIVATE SECTOR BANKS
Axis Bank	8.00-11.90
Bandhan Bank	8.55 – 13.52
City Union Bank	8.50-10.00
CSB Bank	8.30 onwards
Federal Bank	7.35 – 10.00
HDFC Bank	7.75 onwards
HSBC Bank	7.45 onwards
ICICI Bank	7.50 onwards
Karnataka Bank	7.48- 11.80
Karur Vysya Bank	8.50-10.65
Kotak Mahindra Bank	7.60 onwards
RBL Bank	9.00 onwards
South Indian Bank	7.25 onwards
Tamilnad Mercantile Bank	7.90 – 9.30

Data from Paisabazar as on August 19, 2026

Importance of good credit score in home loan

A credit score has become an important aspect in the financial space for an individual. Today, a good credit score is essential for taking a loan at a low interest rate.

A credit score is used to assess the creditworthiness of individuals applying for a home loan and how likely they will repay their debts on time.

Home loan interest rates vary

Home loan interest rates can vary from one individual to another, depending on the borrower’s credit score and other factors. Banks also consider factors such as income, loan amount, repayment tenure, employment profile and existing financial obligations while deciding the interest rate offered to a borrower. Therefore, the rate advertised by a bank may not necessarily be the rate applicable to every home loan applicant.

What is a home loan EMI?

The EMI stands for equated monthly installment. It includes the repayment of the principal amount and interest on the outstanding amount of your home loan.

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