Securing your dream home often comes with a precursor–home loans. And when you’re trying to buy your home in Mumbai, the property rates can be a bit of a shocker. So even a small difference in loan interest rates can impact your budget by lakhs over time.

Home loan interest rates in Mumbai can vary, influenced by RBI policies, credit scores, and loan tenure. Whether you’re a first-time buyer, upgrading, or refinancing, understanding Mumbai’s home loan interest rates helps you make smarter financial decisions.

So through this blog, I’ll cover the home loan interest rates charged by top banks, HFCs, and NBFCs. Plus, you’ll know of Nihal Fintech’s home loan benefits as well. Let’s begin.

Best Home Loan Interest Rates in Mumbai

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.

Bank or NBFCLoans Up to Rs.30LLoans B/w Rs.30L and Rs.75LLoans Above Rs.75L
SBI8.00% – 9.15% p.a.8.00% – 9.15% p.a.8.00% – 9.15% p.a.
HDFC Bank8.50% p.a. onwards8.50% p.a. onwards8.50% p.a. onwards
Bajaj Housing Finance7.99% – 17.00% p.a.7.99% – 17.00% p.a.7.99% – 17.00% p.a.
ICICI Bank8.75% p.a. onwards8.75% p.a. onwards8.75% p.a. onwards
Axis Bank8.75% – 12.80% p.a.8.75% – 12.80% p.a.8.75% – 9.65% p.a.
Kotak Mahindra Bank8.65% p.a. onwards8.65% p.a. onwards8.65% p.a. onwards
Bank of Baroda8.00% – 9.65% p.a.8.00% – 9.65% p.a.8.00% – 9.90% p.a.
IDFC First Bank8.85% p.a. onwards8.85% p.a. onwards8.85% p.a. onwards
IDBI Bank8.40% p.a. onwards8.40% p.a. onwards8.40% p.a. onwards
Canara Bank8.00% – 10.75% p.a.7.95% – 10.75% p.a.7.90% – 10.65% p.a.
Punjab National Bank8.05% – 9.85% p.a.8.00% – 9.75% p.a.8.00% – 9.75% p.a.
Federal Bank8.80% p.a. onwards8.80% p.a. onwards8.80% p.a. onwards
Tata Capital Housing8.75% p.a. onwards8.75% p.a. onwards8.75% p.a. onwards
LIC Housing Finance8.00% p.a. onwards8.00% p.a. onwards8.00% p.a. onwards
Aditya Birla Capital8.60% p.a. onwards8.60% p.a. onwards8.60% p.a. onwards

Other than these top 15, there are several banks and NBFCs offering competitive home loan interest rates and benefits. Exhibit A – Nihal Fintech. We offer the best home loans for residential purposes, land acquisitions, constructions and expansions, and even renovations. And you get lower home loan interest rates, easier repayments, and tax benefits.

Best Banks (& NBFCs) for Home Loans in Mumbai

Choosing the right lender for your home loan in Mumbai can be a challenge. To ease your efforts just a little bit, here are the top contenders offering competitive benefits.

SBI

Pro: Trusted by Millions, Backed by the Government.

State Bank of India (SBI) offers some of the lowest home loan interest rates in Mumbai, starting from 8.00% p.a. SBI offers flexible repayment tenures up to 30 years and minimal processing fees. That’s why it’s a top choice for salaried professionals and self-employed borrowers.

There are also special concessions for women applicants and discounts for high credit scores. That makes it even more attractive.

HDFC Bank Ltd.

Pro: India’s Largest Private Mortgage Lender.

HDFC Bank Ltd. provides competitive rates from 8.50% p.a., along with doorstep service and quick approvals. Known for its customized loan solutions, HDFC offers balance transfer facilities, top-up loans, and flexible EMI options—ideal for Mumbai’s fast-paced real estate market.

Bajaj Housing Finance

Pro: Fast Disbursal, Hassle-Free Process.

Bajaj Housing Finance stands out with quick loan approvals (within 72 hours*) and interest rates starting at 7.99% p.a. It’s a great option for those seeking higher loan amounts (up to ₹10 crores) with minimal documentation. Their digital application process makes it convenient for Mumbai’s tech-savvy homebuyers.

ICICI Bank

Pro: Tech-Driven, Customer-Friendly Approvals.

ICICI Bank offers instant loan approvals through its digital platform, with rates starting at 8.75% p.a. Borrowers benefit from pre-approved offers, balance transfer options, and doorstep document collection. It’s perfect for Mumbai’s busy professionals.

Axis Bank

Pro: Flexible Repayment & Top-Up Loan Benefits.

Axis Bank provides attractive interest rates from 8.75% p.a., along with long tenures (up to 30 years) and low processing fees. Its step-up repayment option helps young earners manage EMIs better, making it a smart choice for first-time buyers in Mumbai.

Kotak Mahindra Bank

Pro: Tailored Solutions for High-Value Properties.

Kotak Mahindra Bank offers competitive rates from 8.65% p.a., with special schemes for luxury home buyers. Features like flexi-loan facility (pay interest only initially) and quick disbursal make it ideal for Mumbai’s premium real estate segment.

Bank of Baroda

Pro: Government-Backed, Affordable Rates.

With interest rates starting at 8.00% p.a., Bank of Baroda is a reliable public-sector option. It offers subsidized loans under government schemes (PMAY) and long repayment tenures, making homeownership easier for middle-class families in Mumbai.

Tata Capital Housing

Pro: Luxury Home Loans with Premium Service.

Tata Capital caters to high-net-worth individuals, offering loans up to ₹15 crores at rates starting from 8.75% p.a. Its bespoke solutions and relationship-based pricing make it ideal for luxury home buyers in Mumbai.

LIC Housing Finance

Pro: Stable & Reliable for Long-term Borrowers

LIC Housing Finance offers fixed and floating rates from 8.00% p.a., with long tenures (up to 30 years). Known for stable EMI structures, it’s a preferred choice for risk-averse borrowers in Mumbai.

Aditya Birla Capital

Pro: Flexible EMI Options for Self-employed.

Aditya Birla Capital provides customized loans for professionals and business owners, with rates starting at 8.80% p.a. Its step-up and step-down EMI plans help borrowers align repayments with cash flow—great for Mumbai’s entrepreneurs.

Each of these banks and finance corporations have their strengths and shortcomings. What you need to do is analyze each of them based on your individual requirements and select the best one. But how?

How to Get the Best Home Loan in Mumbai?

Whether you are buying your first home, upgrading to a better one, or building yourself, getting the best home loan in Mumbai requires strategy. Here’s what you need to do for lowest interest rates, fastest approvals, and best terms in Mumbai’s competitive market.

  • Check & improve your credit score (750+ is ideal).
  • Compare interest rates across lenders.
  • Negotiate with banks for lower rates.
  • Ask for fee waivers. Processing fees (0.5%-1% of loan amount) can sometimes be reduced.
  • Opt for a higher down payment (lower LTV = better rates).
  • Choose the right loan tenure (shorter = less interest).
  • Look for special discounts & schemes (some banks offer lower rates for women applicants).

Mumbai’s home loan market is competitive, but smart borrowers save lakhs. Focus on credit score, negotiation, and loan structure—not just the lowest advertised rate.

FAQs on Home Loan Interest Rates in Mumbai

How does the RBI repo rate affect home loan interest rates?

Banks adjust home loan rates based on RBI repo rate changes. A repo rate hike increases loan rates, while a cut reduces them. Most loans in Mumbai have floating rates, so EMIs change accordingly.

Do banks offer loans for resale properties in Mumbai?

Yes, but Loan-to-value (LTV) may be lower (70–75% vs. 80–90% for new homes). And older properties (>20–30 years) may face restrictions.

Can I get a home loan for an under-construction property in Mumbai?

Yes, but banks disburse funds in phases (linked to construction progress). Interest is charged only on the disbursed amount.

Can I get a home loan with a 650 CIBIL score in Mumbai?

Yes, but 750+ scores get the best rates. A 650–700 score may lead to higher interest rates (+0.25%–0.50%) and lower loan eligibility. You can improve your score by clearing dues, reducing credit utilization, and avoiding multiple loan inquiries.

How do I calculate the ideal loan amount I can afford?

Follow the 40% rule. Your total EMIs (existing + new home loan) should not exceed 40% of your monthly income. Use online affordability calculators to estimate your budget.

Can I apply for a home loan without a salary slip?

Yes, if you’re self-employed or have irregular income, submit ITR for 2-3 years, bank statements, and CA-certified income proof. The eligibility may differ for different banks and NBFCs.

Final Summary

Securing a home loan in Mumbai is a significant financial decision, and finding the right interest rate can save you lakhs over time. The interest rates start as low as 8.00% p.a. and multiple lenders offer competitive terms. You need to compare, negotiate, and choose wisely.

What you need to do is focus on eligibility, compare rates across banks, leverage discounts, and plan for long-term impacts (like repayment and prepayment).

Mumbai’s real estate market moves fast. But a well-researched home loan ensures your dream home doesn’t become a financial burden. To that end, consult with Nihal fintech and get our home loan benefits today!