The Reserve Bank of India (RBI) has implemented two consecutive repo rate cuts in 2025, totaling 50 basis points, bringing the repo rate to 6%. These cuts, announced in February and April 2025, have prompted several major banks and housing finance companies to lower their home loan interest rates, benefiting both new and existing borrowers. Below is a summary of the latest developments based on recent reports:
Bank Responses to Repo Rate Cuts:
State Bank of India (SBI): Reduced its Repo-Linked Lending Rate (RLLR) to 8.25% and External Benchmark-Based Lending Rate (EBLR) to 8.65%, effective April 15, 2025. Home loan rates now start at 8.25%.
Bank of India (BoI): Slashed home loan rates by 25 basis points to 7.9% per annum, based on CIBIL scores, effective April 15, 2025. Rates for other retail loans, such as vehicle and personal loans, were also reduced.
Canara Bank: Lowered its Marginal Cost of Funds-based Lending Rate (MCLR) across various tenures, offering home loan rates starting at 7.8%, one of the most competitive in the market.
HDFC Bank: Cut its MCLR by up to 15 basis points, effective May 7, 2025, with rates ranging between 9.00% and 9.20%.
Punjab National Bank (PNB): Reduced its RLLR to 8.65% from 8.9%, aligning with the RBI’s repo rate cut.
LIC Housing Finance: Lowered its prime lending rate by 25 basis points to 8%, effective April 28, 2025, targeting affordable housing demand.
Other Banks: Indian Bank, Bank of Baroda, and Bank of Maharashtra have also reduced lending rates, with home loan rates ranging from 7.85% to 9.85% depending on borrower profiles and loan terms.
Impact on Borrowers:
The repo rate cuts have led to home loan interest rates dipping below 8% at several public sector banks (PSBs), making home loans more affordable.
Borrowers with floating-rate loans linked to the repo rate (RLLR) will see automatic reductions in their equated monthly installments (EMIs) or loan tenure on their reset dates.
Experts suggest that keeping EMIs constant and reducing loan tenure can save borrowers significant interest over time. For example, a 20-year loan with a reduced rate could save nearly ₹6.93 lakh in interest if tenure is shortened instead of lowering EMIs.
Economists predict further rate cuts of 75-100 basis points in 2025, potentially bringing the repo rate to 5-5.25%, which could further lower home loan rates.
Market Sentiment and Trends:
Posts on X indicate positive sentiment, with users highlighting rates as low as 7.8% and suggesting that the current real estate slowdown combined with lower rates makes 2025 a good time to buy homes.
Public sector banks have been quicker to pass on repo rate cut benefits compared to private lenders like ICICI Bank and Axis Bank, which are yet to fully adjust rates for new borrowers.
The rate cuts are expected to stimulate housing demand, particularly in the affordable housing segment, amid controlled inflation projected at 4.1% for FY26.
Considerations for Borrowers:
Borrowers are advised to check their loan structure (RLLR, MCLR, or fixed-rate) to understand how rate cuts will apply. Those with MCLR or fixed-rate loans may need to refinance to benefit fully.
A high CIBIL score (e.g., 800+) can secure the lowest rates, as seen with banks like BoI and ICICI.
The RBI’s accommodative stance signals potential for further rate reductions, which could enhance affordability later in 2025.
Note: While these developments are specific to India, other countries like the UK have also seen rate cuts (e.g., Bank of England reduced base rate to 4.25%), impacting mortgage rates positively. In contrast, U.S. mortgage rates remain elevated, ranging from 6.62% to 7.04% for 30-year fixed loans, with no significant cuts expected soon.
For the latest updates, borrowers should monitor bank announcements and RBI policy reviews, as further cuts could occur in June or August 2025. Always verify rates directly with lenders, as they vary based on credit profiles and loan terms.
Below is a detailed overview of the latest home loan interest rates for the specified banks, including SBI, ICICI Bank, Axis Bank, HDFC Bank, Canara Bank, and Bank of Baroda (BoB), as well as information on SBI’s home loan interest rate calculator and the lowest home loan interest rates available in India as of May 16, 2025. The data is based on recent web sources and reflects the impact of the Reserve Bank of India’s (RBI) repo rate cuts in February and April 2025, bringing the repo rate to 6%.
1. SBI Home Loan Interest Rate
Current Rates: Starting at 8.25% p.a. onwards, with rates ranging up to 9.2% p.a. depending on the borrower’s credit score, loan amount, and scheme. Women borrowers receive a 0.05% concession on interest rates, subject to the minimum External Benchmark Lending Rate (EBLR).
Schemes:
Regular Home Loan: For purchasing or constructing a house/flat.
Flexipay Home Loan: Allows higher loan amounts with interest-only payments initially.
NRI Home Loan: For Non-Resident Indians purchasing residential properties.
Top-Up Home Loan: Ranges from 9.85% to 10.05% p.a. for additional funds.
Key Features:
Loan tenure up to 30 years.
Processing fee: 0.35% of the loan amount (min. ₹2,000, max. ₹10,000) plus taxes.
No prepayment charges for floating-rate loans.
Linked to RBI’s repo rate as the External Benchmark Rate (EBR) since October 2019.
Recent Update: Effective April 15, 2025, SBI reduced its Repo-Linked Lending Rate (RLLR) to 8.25% and EBLR to 8.65% following the RBI’s 25 bps repo rate cut in April 2025.
2. SBI Home Loan Interest Rate Calculator
Availability: SBI offers an online Home Loan EMI Calculator on its official website (sbi.co.in) and through the SBI YONO app. It is also available on financial marketplaces like Paisabazaar.com and BankBazaar.com.
How to Use:
Inputs Required: Loan amount, interest rate (e.g., 8.25% p.a.), loan tenure (up to 30 years), and optionally, processing fees.
Outputs: Monthly EMI, total interest payable, and an amortization schedule showing the principal and interest components.
Example: For a ₹50 lakh loan at 8.25% p.a. for 20 years, the EMI is approximately ₹42,468, with total interest of around ₹51.92 lakh (indicative, as final rates depend on credit score and scheme).
Benefits:
Helps borrowers plan finances by estimating monthly repayments.
Allows comparison of different loan amounts and tenures.
Accurate results require the exact interest rate offered by SBI, which varies based on CIBIL score and loan type.
Note: The calculator assumes a floating rate unless specified. Rates are reset quarterly as per RBI guidelines, impacting EMIs for EBLR-linked loans.
3. ICICI Bank Home Loan Interest Rate
Current Rates: Starting at 8.75% p.a. for pre-approved customers with a CIBIL score of 800 or above. Standard rates range from 9.00% to 10.05% p.a. based on credit score, loan amount, and occupation profile.
Schemes:
Regular Home Loan: For purchase or construction of a house/flat.
Step-Up Home Loan: Higher loan amounts with lower initial EMIs for young salaried individuals.
Home Loan Balance Transfer: Lower rates for transferring existing loans from other lenders.
Land Loan: For purchasing plots, with construction required within 2 years.
NRI Home Loan: For NRIs purchasing or renovating properties in India.
Key Features:
Loan amount up to ₹5 crore.
Tenure up to 30 years.
Minimal documentation and no prepayment charges for floating-rate loans.
Fixed-rate options available for predictable EMIs.
Recent Update: Rates as low as 8.60% p.a. for pre-approved customers were reported earlier in 2025, but standard rates start at 9.00% p.a. for most borrowers as of May 2025.
4. Axis Bank Home Loan Interest Rate
Current Rates: Starting at 7.85% p.a. to 9.85% p.a., depending on credit score, loan amount, and borrower profile.
Schemes:
Regular Home Loan: For purchase, construction, or renovation.
Balance Transfer: For transferring existing loans to Axis Bank.
Top-Up Loan: Additional funds for personal or home-related needs.
Key Features:
Loan tenure up to 30 years.
Processing fee: Typically 0.25% to 1% of the loan amount.
Floating rates linked to the repo rate, ensuring quick transmission of RBI rate cuts.
Recent Update: Axis Bank has not yet fully passed on the April 2025 repo rate cut to new borrowers, but rates remain competitive, especially for high CIBIL scores (750+).
5. HDFC Bank Home Loan Interest Rate
Current Rates: Starting at 8.7% p.a. to 9.55% p.a. for home loans, with rates varying based on loan amount, credit score, and borrower profile.
Schemes:
Regular Home Loan: For purchasing or constructing residential properties.
Balance Transfer: For transferring loans from other lenders.
Top-Up Loan: For existing customers needing additional funds.
PMAY Scheme: Subsidized rates for eligible borrowers.
Key Features:
Loan tenure up to 30 years.
Processing fee: Up to 0.5% of the loan amount (min. ₹3,000, max. ₹10,000).
MCLR-based rates range from 9.00% to 9.20% as of May 7, 2025.
Recent Update: HDFC Bank reduced its MCLR by up to 15 bps in May 2025, but home loan rates remain slightly higher than public sector banks due to slower transmission of repo rate cuts.
6. Canara Bank Home Loan Interest Rate
Current Rates: Starting at 7.8% p.a. to 11.0% p.a. for floating-rate loans, with fixed-rate options from 9.50% to 11.75% p.a. Women borrowers receive a 0.5% concession on interest rates.
Schemes:
Regular Home Loan: For purchase, construction, or renovation.
PMAY Scheme: Interest rate subsidies for eligible borrowers.
Balance Transfer: For transferring existing loans to Canara Bank.
Key Features:
Loan amount up to 4-5 times gross annual income.
Tenure up to 30 years.
Processing fee: 0.50% of the loan amount (min. ₹1,500, max. ₹10,000).
No prepayment charges for floating-rate loans.
Recent Update: Canara Bank offers one of the lowest rates in the market at 7.8% p.a. for high CIBIL score borrowers, effective April 4, 2025, following the repo rate cut.
7. Lowest Home Loan Interest Rate
Current Lowest Rate: 7.8% p.a. offered by Canara Bank for borrowers with excellent credit scores (CIBIL 800+). Other banks like Bank of India (7.9% p.a.) and Axis Bank (7.85% p.a.) also offer competitive rates.
Factors for Securing Lowest Rates:
High CIBIL Score: Scores above 750, ideally 800+, qualify for the lowest rates.
Loan Type: Floating-rate loans linked to the repo rate (EBLR) benefit from RBI rate cuts.
Borrower Profile: Salaried individuals, women borrowers, and those opting for insurance or green projects may receive concessions (e.g., 0.05%–0.10% discounts).
Negotiation: Comparing offers from multiple lenders and leveraging pre-approved offers can secure better rates.
Market Trend: Public sector banks (e.g., Canara Bank, Bank of India) are offering lower rates than private banks (e.g., ICICI, HDFC) due to faster transmission of repo rate cuts.
Note: Rates vary based on credit score, loan tenure, and market conditions. Always verify with lenders for personalized rates.
8. Bank of Baroda (BoB) Home Loan Interest Rate
Current Rates: Starting at 8.40% p.a. to 10.60% p.a., depending on the borrower’s CIBIL score, loan amount, and profile. A risk premium of 0.05% may apply for those not opting for credit insurance.
Schemes:
Regular Home Loan: For purchase, construction, or renovation.
Balance Transfer: For transferring existing loans.
Top-Up Loan: For additional funding needs.
Key Features:
Loan tenure up to 30 years.
Processing fee: Typically 0.25% to 0.50% of the loan amount.
Linked to the Baroda Repo-Linked Lending Rate (BRLLR), currently at 9.15% (Repo Rate 6% + Markup 3.15%).
Recent Update: BoB reduced its repo-linked home loan rates by 25 bps following the RBI’s April 2025 repo rate cut, making rates competitive for high CIBIL score borrowers.
Summary of Home Loan Interest Rates (May 2025)
Bank Starting Rate (p.a.) Range (p.a.) Key Notes
SBI 8.25% 8.25%–9.2% Women get 0.05% concession; linked to repo rate.
ICICI Bank 8.75% 9.00%–10.05% Pre-approved customers get lower rates; fixed-rate options available.
Axis Bank 7.85% 7.85%–9.85% Competitive for high CIBIL scores; slower rate cut transmission.
HDFC Bank 8.7% 8.7%–9.55% MCLR-based rates; slightly higher than PSBs.
Canara Bank 7.8% 7.8%–11.0% Lowest in market; women get 0.5% concession.
Bank of Baroda 8.40% 8.40%–10.60% Risk premium for no insurance; linked to BRLLR.
Recommendations
For Lowest Rates: Consider Canara Bank (7.8% p.a.) or Bank of India (7.9% p.a.) if you have a CIBIL score above 800. Axis Bank’s 7.85% p.a. is also competitive.
For SBI Borrowers: Use the SBI Home Loan EMI Calculator to estimate EMIs and compare schemes. Apply via the YONO app for convenience.
For Private Banks: ICICI Bank offers attractive rates for pre-approved customers, while HDFC and Axis are better for fixed-rate seekers but lag in passing on repo rate cuts.
General Tips:
Maintain a CIBIL score above 750 to secure lower rates.
Opt for floating-rate loans to benefit from potential further repo rate cuts (75–100 bps expected in 2025).
Use online EMI calculators (available on bank websites or platforms like Groww, Paisabazaar) to plan repayments.
Compare processing fees, prepayment charges, and concessions (e.g., for women or PMAY eligibility) before finalizing.
For personalized rates, contact the respective banks or visit their official websites (e.g., sbi.co.in, icicibank.com, canarabank.com). Rates are subject to change based on RBI policy and individual credit profiles.
