The Reserve Bank of India (RBI) recently reduced the repo rate by 25 basis points to 6.25%. It is expected this move will ease the burden on home loan borrowers.
While SBI’s home loan interest rate is cheaper than the housing loans offered by several lenders, it is not the cheapest. Data on various lenders’ websites show at least six banks are offering home loans that are cheaper than SBI in February 2025.
Central Bank of India: This bank also offers home loans starting at an 8.1% annual interest rate.
Bank of Baroda, Punjab National Bank, Canara Bank, and Indian Bank: These public sector banks are offering home loans starting at 8.15% interest rate. A housing loan of ₹50 lakh for 20 years will result in a monthly EMI of ₹42,289.
In contrast to the above-mentioned public sector lenders, private sector home loan providers such as HDFC Bank, Axis Bank, Kotak Mahindra Bank ,and ICICI Bank are offering home loans starting at an 8.75% interest rate. A housing loan of ₹50 lakh for 20 years at this rate will result in a monthly EMI of ₹44,185.
Please note that the final home loan rates offered by lenders vary from customer to customer, depending on their credit scores. It is expected that all lenders will pass on the repo rate cut benefit to customers by the next interest reset cycle.
