Buying a home is one of the biggest financial decisions in life, and securing the best home loan deal can help ease the financial burden. With a wide range of home loan options available, choosing the right bank and the most competitive interest rate is crucial to ensure that you get the best deal for your needs. In 2025, many banks and financial institutions in India offer home loans with attractive interest rates, flexible repayment terms, and various additional benefits. Here’s a comparison of the best home loan banks in India and their interest rates:
1. State Bank of India (SBI)
SBI is one of the most trusted and largest banks in India, offering home loans with competitive interest rates and excellent customer service.
Interest Rate: Starting from 8.40% per annum.
Key Features: Loan amount up to ₹15 crores (based on income and repayment capacity). Tenure up to 30 years. Processing fee up to 0.35% of the loan amount. No prepayment charges on floating-rate loans.
Benefits: Low interest rates, wide range of loan amounts, and easy repayment options. SBI also offers a “SBI Shaurya Home Loan” for defense personnel.
2. HDFC Ltd.
HDFC is one of the most prominent housing finance companies in India, offering home loans at competitive interest rates. They provide customized loans with flexible terms and excellent customer service.
Interest Rate: Starting from 8.70% per annum.
Key Features: Loan amount up to ₹10 crore. Repayment tenure up to 30 years. Processing fee of 0.50% of the loan amount. Special offers for women borrowers.
Benefits: Personalized home loan solutions, easy documentation, and flexible repayment options. They also offer top-up loans for existing home loan customers.
3. ICICI Bank
ICICI Bank is a leading private sector bank in India that offers a range of home loan products with attractive features and competitive interest rates.
Interest Rate: Starting from 8.75% per annum.
Key Features: Loan amount up to ₹10 crore (based on income and eligibility). Repayment tenure up to 30 years. Processing fee of up to 0.50% of the loan amount.
Benefits: Competitive interest rates, minimal documentation, and fast loan disbursal. ICICI also offers a home loan balance transfer option with top-up loans.
4. Axis Bank
Axis Bank offers affordable home loans with flexible features, making them an excellent choice for homebuyers in India. They offer loans at competitive rates with hassle-free documentation.
Interest Rate: Starting from 8.75% per annum.
Key Features: Loan amount up to ₹5 crore (subject to eligibility). Repayment tenure of up to 30 years. Processing fee of up to 1% of the loan amount.
Benefits: Flexible loan tenure, attractive interest rates, and a range of loan options like home loan balance transfers and top-up loans.
5. Punjab National Bank (PNB)
PNB is a trusted public sector bank offering home loans at affordable interest rates. It provides a wide variety of home loan products to cater to the needs of first-time homebuyers and those looking to upgrade their homes.
Interest Rate: Starting from 8.75% per annum.
Key Features: Loan amount up to ₹10 crore. Repayment tenure of up to 30 years. Processing fee of up to 0.50% of the loan amount.
Benefits: Attractive interest rates, easy eligibility criteria, and flexible repayment options. They also offer special schemes for women applicants.
6. Kotak Mahindra Bank
Kotak Mahindra Bank offers home loans with competitive interest rates and provides a range of options for homebuyers. They also offer a “Home Loan Top-Up” for existing borrowers.
Interest Rate: Starting from 8.50% per annum.
Key Features: Loan amount up to ₹5 crore. Tenure of up to 30 years. Processing fee up to 1% of the loan amount.
Benefits: Attractive interest rates, minimal paperwork, and quick loan disbursal. Kotak also offers customized home loan solutions for self-employed individuals.
7. LIC Housing Finance
LIC Housing Finance offers home loans with affordable interest rates and attractive repayment options. It provides financing for both new home purchases and home improvements.
Interest Rate: Starting from 8.70% per annum.
Key Features: Loan amount up to ₹10 crore. Tenure of up to 30 years. Processing fee of up to 0.50% of the loan amount.
Benefits: Fast approval process, attractive interest rates, and a range of home loan options for salaried and self-employed individuals.
8. IDFC First Bank
IDFC First Bank offers a range of affordable home loan options with attractive features and competitive rates. They offer quick loan processing and a hassle-free application process.
Interest Rate: Starting from 8.75% per annum.
Key Features: Loan amount up to ₹5 crore. Repayment tenure of up to 30 years. Processing fee up to 1% of the loan amount.
Benefits: Flexible loan repayment options, minimal documentation, and fast loan disbursal.
Comparison of Home Loan Interest Rates (2025):
| Bank | Starting Interest Rate | Loan Amount | Repayment Tenure | Processing Fee |
|---|---|---|---|---|
| SBI | 8.40% | Up to ₹15 crores | Up to 30 years | 0.35% of loan amount |
| HDFC Ltd. | 8.70% | Up to ₹10 crore | Up to 30 years | 0.50% of loan amount |
| ICICI Bank | 8.75% | Up to ₹10 crore | Up to 30 years | 0.50% of loan amount |
| Axis Bank | 8.75% | Up to ₹5 crore | Up to 30 years | Up to 1% of loan amount |
| PNB | 8.75% | Up to ₹10 crore | Up to 30 years | 0.50% of loan amount |
| Kotak Mahindra Bank | 8.50% | Up to ₹5 crore | Up to 30 years | Up to 1% of loan amount |
| LIC Housing Finance | 8.70% | Up to ₹10 crore | Up to 30 years | 0.50% of loan amount |
| IDFC First Bank | 8.75% | Up to ₹5 crore | Up to 30 years | Up to 1% of loan amount |
Conclusion
Choosing the best home loan bank in India depends on several factors, including the interest rate, loan amount, repayment tenure, and processing fees. SBI, HDFC, ICICI Bank, and others offer competitive rates and flexible options. Always compare the home loan offers and choose the one that fits your financial situation and long-term goals. A lower interest rate and favorable loan tenure can significantly reduce your overall repayment burden, making it essential to research the best deals available in 2025.
