Home Loan Interest Rates Compared: 12 Lenders, Diwali Offers and the Real Cost of Each Deal

Ten of the 12 lenders in this comparison publish a “from” rate on their own pages, and on 5 November 2026 those run from 7.40% (Bank of Baroda, LIC Housing Finance) to 8.50% (ICICI Bank). Those are best-case rates, and the top of each lender’s range is higher. The rates follow a repo rate that RBI raised to 5.50% on 7 October. The only festive offer on a lender page I read was SBI’s 50% processing-fee waiver, valid until 31 December.

Home loan interest rates by bank and housing finance company (checked 5 November 2026)

Each row shows what the lender’s own page said. “Not on the page” means I could not find the figure there, so I have not filled it in from anywhere else. Rates are floating unless stated, and the lowest figure usually needs a high credit score.

Two things stand out. First, the pages disagree with themselves: Bank of Baroda’s page says “starting @7.40%” in the text, but the page title says 7.5%. Second, most pages carry no date, and Bajaj Housing Finance’s is headed August 2026, before the October hike, so confirm the rate with the lender before you plan around it.

Why “starting from” rates mislead

A “from” rate is the floor of a range, not an average. Look at how wide the ranges are in the table: SBI’s card spans 1.30 percentage points, LIC Housing Finance’s spans 3.00, and HDFC Bank’s spans 5.45. The rate you get depends on four things:

• Credit score. LIC Housing Finance’s salaried card charges 7.40% at CIBIL 825 and above, 7.85% at 750 to 774, 8.35% at 700 to 724 and 9.15% at 600 to 699, for loans up to ₹1 crore (the top band applies up to ₹5 crore).
• Employment type. SBI adds 0.10% for non-salaried borrowers with a CIBIL score below 825, and Bajaj Housing Finance’s self-employed range starts 0.55 points above its salaried one.
• Loan size. Canara Bank’s lowest rate for men is 7.55% up to ₹50 lakh, 7.50% from ₹50 lakh to ₹1 crore and 7.45% above ₹1 crore.
• Gender and relationship. Canara Bank gives women a 0.05% lower rate, and takes a further 0.05% off for takeover or ready-to-move loans and another 0.05% for salaried employees of government, PSU or large corporate employers who keep their salary account with it, though the rate cannot fall below 7.40%.

HDFC Bank’s page also publishes a table of rates it actually offered customers in April to June 2026 (its FY27 first quarter): housing loans ranged from 7.10% to 12.00%, with an average of 7.35%. That was before RBI’s October hike, so today’s figures will be higher. It still shows that the average sat close to the bottom of the range. The table does not say how many borrowers paid the top rates.

Diwali home loan offers decoded: what is actually on offer

Diwali falls on Sunday 8 November, so the offers are time-limited. Here is what I found. SBI’s home loan page carries a festive offer of a 50% waiver in processing fees (minimum ₹5,000 plus GST), valid up to 31 December 2026, subject to terms and conditions. HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, Bank of Baroda, Canara Bank, LIC Housing Finance and Tata Capital showed no festive offer in the text I read (LIC’s menu lists a “Special Offer” section that I could not open). Bajaj Housing Finance shows a pre-qualified offer valid until 21 December 2026, but I could not see what it contains. A bank can run an offer through branches that its website does not mention, so ask.

What a fee waiver is worth, in rupees

Take a ₹50 lakh loan with a processing fee of 0.50%. That is ₹25,000, and with 18% GST it comes to ₹29,500. A 50% waiver saves ₹12,500 plus ₹2,250 GST, or ₹14,750. This is an illustration: I could not read SBI’s fee card, so your actual fee may differ.

Compare that with the rate. On a ₹50 lakh, 20-year loan at 8.50%, each 0.10% off the rate lowers the EMI by about ₹316 a month and saves about ₹75,800 over the full term. A one-off ₹25,000 saving equals only about 0.03% off the rate if you keep the loan for 20 years, and about 0.10% if you keep it for 5. A fee waiver therefore beats a lower rate only if you plan to prepay or transfer the loan early. Otherwise, take the lower rate.

Builders run their own festive offers, such as subvention schemes and free-gift deals, and those work differently from lender offers. Our guide to festive property offers covers what to check before you sign with a builder.

What each rate costs: EMI and total interest on ₹50 lakh over 20 years

These figures are my own calculations for a ₹50 lakh loan over 20 years. I picked four rate points from the table: 7.50% (the lowest SBI and Bajaj Housing Finance rate), 8.00% (the lowest HDFC Bank and Axis Bank rate), 8.50% (ICICI Bank’s “from” rate) and 9.25% (inside LIC Housing Finance’s band for CIBIL 600 to 699). The EMIs for 7.50% and 8.00% match the ones in our RBI October policy post.

The gap between the lowest and highest rows is ₹5,513 a month and ₹13.2 lakh over the term. That is far larger than any festive fee waiver, which is why your credit profile matters more than the offer.

How to get a better rate than the advertised one

• Fix your credit score first. On LIC Housing Finance’s card, moving from the 700 to 724 band (8.35%) to 825 and above (7.40%) cuts the EMI on ₹50 lakh by about ₹2,940 a month and saves about ₹7.1 lakh in interest over 20 years. Check your report for errors, keep credit card use below about 30% of your limit (Kotak’s guidance) and avoid several loan applications in the same month.
• Ask for the concessions on the card. Canara Bank’s table lists concessions by loan size, a 0.05% lower rate for women, and extra 0.05% cuts for takeover loans and for some salaried employers. SBI lists an interest concession for women borrowers; its page did not show the amount.
• Get at least three written offers on the same loan amount and tenure, and compare the spread over the benchmark, the processing fee and the reset terms together.
• Ask for the fee waiver in writing if the website advertises one. Only the sanction letter counts.
• Already have a loan? Compare your spread with what new borrowers are offered. If the gap is wide, you can negotiate with your lender or consider a balance transfer. Transfer costs matter, so work out the break-even point before you move; we will publish that calculation later this month.

Checklist before you sign

• Benchmark and reset clause. Ask which benchmark your loan follows (repo-linked EBLR or RLLR, or the older MCLR) and when it resets. RBI requires repo-linked loans to reset at least once every three months. Lenders moved quickly after the October hike: Union Bank’s EBLR changed on 8 October, Canara Bank’s RLLR on 9 October and SBI’s EBLR on 15 October.
• Spread. Ask whether the spread is fixed for the whole tenure. For banks, it should change only if your credit profile does.
• What happens at a reset. Under RBI’s 2023 framework, lenders must tell you how a rate change affects your EMI or tenure and offer you the option to switch to a fixed rate, raise the EMI or extend the tenure. Ask for a higher EMI where you can, because stretching the tenure costs far more, as our October policy post worked out.
• Prepayment terms. RBI’s prepayment directions, effective for loans sanctioned or renewed from 1 January 2026, bar charges on floating-rate loans to individuals for non-business purposes. SBI’s page says there is no prepayment penalty. HDFC Bank’s page still lists a 2% charge on fixed-rate and combination loans during the fixed period, except when you prepay from your own funds. Read the key facts statement for your loan type.
• All fees, not only the processing fee. Kotak’s fee page lists valuation fees of up to ₹5,000 plus taxes and mentions legal and administrative charges. Add up everything before you compare two offers.
• Insurance. If the lender offers loan-linked life or home insurance, ask whether it is optional and whether the premium is added to your loan. Compare it with a standalone policy.
• Refunds. HDFC Bank says its processing fee is non-refundable, and Kotak says its ₹5,000 login fee is non-refundable. Assume you will not get fees back if the loan is not disbursed, and ask before you pay.

Frequently asked questions

Which bank has the lowest home loan interest rate?

On 5 November 2026, Bank of Baroda and LIC Housing Finance showed the lowest “from” rate, 7.40%. LIC’s applies only to salaried borrowers with a CIBIL score of 825 or more. The rate you get depends on your credit score, loan size and employment type, so compare written offers for your own profile.

Do Diwali home loan offers really save money?

Usually only a little. The one offer I found on a lender page was SBI’s 50% processing-fee waiver until 31 December 2026. On a ₹50 lakh loan with a 0.50% fee that saves about ₹14,750 including GST, while 0.10% off the rate saves about ₹75,800 over 20 years. Compare the rate first.

What credit score do I need for the best home loan rate?

LIC Housing Finance’s salaried card gives its lowest rate, 7.40%, at a CIBIL score of 825 or more, and 7.85% at 750 to 774. SBI’s rates are also CIBIL-based and add 0.10% for non-salaried borrowers below 825. Axis Bank splits its range at 750. Aim for 750 or above and, if you can wait, 825.

Is the processing fee refundable?

Assume not. HDFC Bank’s page says its processing fee is non-refundable, and Kotak says the ₹5,000 collected at login is non-refundable, though it is adjusted against the final fee. Ask the lender in writing what happens if your loan is rejected or you withdraw before disbursal.

How often do home loan rates change?

Repo-linked loans move when the lender resets its benchmark, which RBI requires at least once every three months. Banks changed their benchmarks within days of RBI’s 7 October hike. Your own rate changes on your loan’s reset date. The next RBI policy decision is due on 4 December 2026. Older MCLR-linked loans adjust more slowly.

Sources and method

• SBI, regular home loan page and its published home loan rate card (EBLR 8.15%, effective 15 October 2026), read 5 November 2026.
• HDFC Bank, home loan page (rate table, fees, FY27 first-quarter rates offered).
• ICICI Bank, home loan page.
• Axis Bank, home loan interest rates and charges page.
• Kotak Mahindra Bank, interest rates and fees and charges pages.
• Bank of Baroda, home loan page.
• Canara Bank, retail lending rates linked to RLLR (RLLR 8.25% from 9 October 2026).
• Punjab National Bank, interest rates on advances (RLLR 8.35%).
• Union Bank of India, interest rates on loans and advances (EBLR 8.25% from 8 October 2026).
• LIC Housing Finance, home loan page (salaried rate table by CIBIL score and loan size).
• Bajaj Housing Finance, home loan interest rates page.
• Tata Capital, home loan rates and charges page.
• Reserve Bank of India: monetary policy statement of 7 October 2026; Reset of Floating Interest Rate on EMI-based Personal Loans circular (18 August 2023); Pre-payment Charges on Loans Directions, 2025 (2 July 2025).

Method: I opened each page in a browser on 5 November 2026 and copied the figures shown. Where a figure was not on the page I wrote “not on the page”. I could not read SBI’s processing-fee card, the self-employed tab of LIC Housing Finance’s table, or the home loan spreads for Punjab National Bank and Union Bank of India, so I have not given figures for them. EMIs and total interest are my own calculations using the standard reducing-balance formula. Rates change often, so check the lender before you apply. This article is for information only and is not personalised financial advice.

If you are still deciding whether to buy at all, start with our guide to buying, renting or investing in Indian real estate in 2026.