Current home loan interest rates in India
Last updated RBI repo rate: 5.25% (as of June 2026, neutral stance)
Indicative only. These are typical bands, not offers, and home-loan rates change frequently — often the day the RBI moves the repo rate. Always confirm the live rate, spread and fees directly with the lender before deciding.
Indicative rate bands by lender type
| Lender type | Indicative range |
|---|---|
| Public sector banks Usually the lowest spreads over the repo rate for prime, salaried borrowers with a low loan-to-value. | 7.50% – 8.75% |
| Private banks Competitive on service and speed; rates depend heavily on your credit profile and relationship. | 8.00% – 9.50% |
| Housing finance companies (HFCs / NBFCs) More flexible on eligibility (self-employed, thin credit files) but typically priced higher. | 8.50% – 10.50% |
What moves your rate within these bands
- Your credit score — the single biggest lever on the rate you're offered
- Loan-to-value — a larger down payment (lower LTV) can earn a better rate
- Salaried vs self-employed income, and employer category
- Loan amount and tenure
- Special concessions some lenders offer (e.g. for women borrowers)
Why these rates move with the repo rate
Most new floating home loans in India are linked to an external benchmark — usually the RBI repo rate — as a repo-linked lending rate (RLLR). Your rate is that benchmark plus a fixed lender spread, so when the RBI changes the repo rate, your EMI or tenure follows. Older MCLR-linked loans move more slowly. For the full picture, read how the RBI repo rate affects your EMI.
Even a 0.5% difference matters: on a ₹50,00,000 loan over 20 years it's worth about ₹3,82,832 in total interest. Plug your own figures into the home loan calculator, and check what you'd qualify for with the eligibility calculator.