Best Banks for Home Loans in India 2025 – Compare Rates & Offers

Buying or building a new home is one of life’s biggest commitments. And to that end, securing the right home loan is the first, critical step in the process.

There are so many banks and NBFCs with varying interest rates, processing fees, and repayment terms. Choosing the best bank for your mortgage is crucial to saving money and reducing stress. Whether you’re a first-time buyer or looking to refinance, lenders differ in flexibility, customer service, and loan affordability.

This guide compares the best banks for home loans along with some top NBFCs based on analyzing interest rates and more. Plus, you’ll know how to get the best loans for your dream home. Let’s get straight into it.

Best Banks for Home Loans in India

Choosing the right bank for a home loan can significantly impact your financial health. Factors like interest rates, processing fees, loan tenure, and customer service playing a crucial role. Based on these factors, we have explored a range of banks and NBFCs and listed the top ones.

SBI

SBI, India’s largest public sector bank, offers highly competitive home loan rates with flexible repayment options. Its special concessions for women borrowers and low processing fees make it a top choice. SBI also provides pre-approved loans for properties in selected projects, ensuring faster disbursal.

• Interest Rate: 8.00% p.a. onwards (floating)
• Loan Amount: Up to ₹15 crore
• Tenure: Up to 30 years
• Processing Fee: 0.35% of loan amount (min. ₹2,000; max. ₹10,000 + GST)

HDFC Bank

A leader in housing finance, HDFC Bank provides customized home loans with attractive interest rates and balance transfer facilities. Borrowers benefit from quick approvals, doorstep services, and flexible EMI options, including step-up repayment plans.

• Interest Rate: 8.50% p.a. onwards (floating)
• Loan Amount: Up to ₹10 crore
• Tenure: Up to 30 years
• Processing Fee: 0.50% of loan amount or ₹3,000 (whichever is higher; max. ₹50,000 + GST)

Bajaj Housing Finance

Known for competitive rates and minimal paperwork, Bajaj Housing Finance offers loans up to ₹10 crore with long tenures (up to 40 years). It also provides top-up loans for home improvements at the same interest rate.

• Interest Rate: 7.99% p.a. onwards (floating)
• Loan Amount: Up to ₹10 crore
• Tenure: Up to 40 years
• Processing Fee: Up to 1% of loan amount + GST

ICICI Bank

ICICI Bank stands out with its instant loan approvals and digital application process. Borrowers enjoy part-prepayment without penalties, adjustable EMI options, and pre-approved offers for existing customers.

• Interest Rate: 8.75% p.a. onwards (floating)
• Loan Amount: Up to ₹15 crore
• Tenure: Up to 30 years
• Processing Fee: 0.50% of loan amount + GST (max. ₹50,000)

Axis Bank

Axis Bank offers fast processing, transparent pricing, and special rates for salaried professionals. Its home loan balance transfer feature helps borrowers switch lenders for better terms effortlessly.

• Interest Rate: 8.75% p.a. onwards (floating)
• Loan Amount: Up to ₹5 crore
• Tenure: Up to 30 years
• Processing Fee: 1% of loan amount + GST (max. ₹50,000)

Kotak Mahindra Bank

Kotak Mahindra Bank provides tailored home loans with competitive interest rates and hassle-free documentation. It also offers pre-approved loans and flexible repayment structures for self-employed individuals.

• Interest Rate: 8.65% p.a. onwards (floating)
• Loan Amount: Up to ₹10 crore
• Tenure: Up to 25 years
• Processing Fee: 0.50–1% of loan amount + GST

Bank of Baroda

BoB’s Home Loan comes with low-interest rates, zero hidden charges, and special schemes for government employees. It also offers interest concessions for loans under the Pradhan Mantri Awas Yojana (PMAY).

• Interest Rate: 8.00% p.a. onwards (floating)
• Loan Amount: Up to ₹15 crore
• Tenure: Up to 30 years
• Processing Fee: 0.25–0.50% of loan amount + GST

IDFC First Bank

IDFC First Bank focuses on customer-friendly policies, including no prepayment penalties and instant in-principle approvals. Its floating rate home loans adjust to market trends, ensuring long-term affordability.

• Interest Rate: 8.85% p.a. onwards (floating)
• Loan Amount: Up to ₹5 crore
• Tenure: Up to 30 years
• Processing Fee: 1% of loan amount (max. ₹50,000 + GST)

IDBI Bank

IDBI Bank offers affordable home loans with easy EMI options and discounts for women borrowers. It also has special schemes for affordable housing projects under government initiatives.

• Interest Rate: 8.40% p.a. onwards (floating)
• Loan Amount: Up to ₹10 crore
• Tenure: Up to 30 years
• Processing Fee: 0.50% of loan amount (max. ₹25,000 + GST)

Canara Bank

Canara Bank provides low processing fees, long repayment tenures, and interest subsidies under PMAY. Its flexible loan structuring helps borrowers manage finances efficiently.

• Interest Rate: 8.00% p.a. onwards (floating)
• Loan Amount: Up to ₹10 crore
• Tenure: Up to 30 years
• Processing Fee: 0.50% of loan amount (max. ₹15,000 + GST)

Punjab National Bank

PNB’s Housing Loan Scheme features competitive rates, minimal documentation, and quick sanctions. It also offers special benefits for defense personnel and pensioners.

• Interest Rate: 8.05% p.a. onwards (floating)
• Loan Amount: Up to ₹15 crore
• Tenure: Up to 30 years
• Processing Fee: 0.35% of loan amount (max. ₹15,000 + GST)

Federal Bank

Federal Bank ensures fast loan processing and transparent pricing with no prepayment charges. Its doorstep service and digital loan tracking enhance convenience for borrowers.

• Interest Rate: 8.80% p.a. onwards (floating)
• Loan Amount: Up to ₹10 crore
• Tenure: Up to 30 years
• Processing Fee: 0.50% of loan amount (max. ₹10,000 + GST)

Tata Capital Housing

Tata Capital provides customized home loans with attractive interest rates and flexible tenures. It also offers top-up loans for renovations without additional documentation.

• Interest Rate: 8.75% p.a. onwards (floating)
• Loan Amount: Up to ₹5 crore
• Tenure: Up to 30 years
• Processing Fee: 1–2% of loan amount + GST

LIC Housing Finance

Backed by LIC, this NBFC offers stable interest rates, long repayment periods, and special schemes for LIC policyholders. It also provides pensioners’ home loans with relaxed age criteria.

• Interest Rate: 8.00% p.a. onwards (floating)
• Loan Amount: Up to ₹15 crore
• Tenure: Up to 30 years
• Processing Fee: 0.50–1% of loan amount + GST

Aditya Birla Capital

Aditya Birla Capital stands out with quick disbursals, competitive rates, and personalized loan solutions. It also offers balance transfer facilities for borrowers seeking better terms.

• Interest Rate: 8.60% p.a. onwards (floating)
• Loan Amount: Up to ₹10 crore
• Tenure: Up to 25 years
• Processing Fee: 1% of loan amount + GST

So, are you a first-time homebuyer or refinancing an existing loan? No matter; you need to select the right lender to ensure long-term savings and a hassle-free experience. To that end, a great option for you is Nihal Fintech’s home loan solutions.

Best Home Loan Interest Rates

For homebuyers in Mumbai, securing a loan with a competitive interest rate is crucial. The difference of even 0.5% can save (or cost) you lakhs over the loan tenure. Currently, leading banks and NBFCs in Mumbai offer loan interest rates starting from 7.99% per annum. And, the fluctuations will be based on RBI policies, credit profile, and lender-specific terms.

What to Consider When Applying for a Home Loan?

A home loan is a long-term financial commitment, and choosing the right one requires careful evaluation. Before applying, consider these key factors to secure the best deal and avoid future financial strain.

Interest Rates (Fixed vs. Floating)

Fixed rates remain constant but are usually higher initially. Floating rates, on the other hand, fluctuate with market conditions but may save money if rates drop. So compare banks for the most competitive rates.

Loan Eligibility & Amount

Banks assess income, credit score (750+ preferred), job stability, and existing debts. Loan-to-Value (LTV) Ratio (usually 75-90%) determines how much you can borrow against the property value.

Processing Fees & Hidden Charges

Some banks charge 0.25%-1% of the loan amount as processing fees. Watch out for prepayment penalties, legal charges, and late payment fees.

Repayment Tenure & EMI Affordability

Longer tenures (up to 30 years) reduce EMIs but increase total interest paid. Use an EMI calculator to ensure monthly payments fit your budget.

Prepayment & Foreclosure Policies

Some banks charge penalties for early repayment; others allow partial prepayment without fees. Opt for lenders with flexible foreclosure options.

We want to stress that you shouldn’t settle for the first offer—compare multiple lenders.

FAQs on Banks for Home Loans

Let’s Conclude

Finding the best home loan is about more than just low interest rates—it’s about aligning your financial needs with a lender that offers flexibility, transparency, and strong customer support. Whether you prioritize low EMIs, quick approvals, or minimal fees, the right bank can make your home-buying journey smoother and more affordable.

Before finalizing a lender, compare offers, read the fine print, and negotiate terms where possible. A well-researched decision today can save you lakhs over the loan’s tenure.

So, ready to take the next step in your funding journey? Then explore Nihal Fintech’s financing services and reach out to our experts today!