Home Loan Interest Rates in India Today: Bank-wise Rates and Repo Rate History

What is the current home loan interest rate in India?

Most borrowers with a good credit score will be quoted somewhere between 7.40% and 8.75% today, depending on the lender, loan size and profile. That range comes from the banks' own rate pages, checked on 15 October 2026.

Rates moved up this month. The RBI raised the repo rate by 25 basis points to 5.50% on 7 October 2026, its first hike since February 2023. Banks reprice repo-linked loans within days: PNB moved its RLLR to 8.35% from 8 October, Bank of Baroda's BRLLR went to 8.15% on 8 October, Canara Bank's RLLR to 8.25% on 9 October, Union Bank's EBLR to 8.25% on 8 October, and SBI's EBLR to 8.15% on 15 October.

Two lenders on our list still showed older figures when we checked. Kotak's page lists 7.60% onwards against a repo rate of 5.25%, and SBI's home loan card still shows 7.25% onwards from 1 April 2026. Expect both to be revised.

What is the repo rate now, and how has it moved since 2019?

The repo rate is 5.50%, according to the RBI's own website on 14 October 2026. It has travelled a long way in seven years. The RBI cut it from 6.25% in February 2019 to 4.00% by May 2020 during the pandemic, then raised it in six steps to 6.50% by February 2023.

It stayed at 6.50% for two years. The cutting cycle began in February 2025, with 6.25%, then 6.00% in April, a 50 basis point cut to 5.50% in June, and 5.25% in December 2025. The October 2026 hike reversed the last of those cuts. The Business Standard report on the decision notes it was the first increase since February 2023.

For a floating-rate borrower, every 25 basis points on a ₹1 crore, 20-year loan at around 8% is roughly ₹1,563 a month. On ₹5 crore it is about ₹7,813 a month.

Which bank has the lowest home loan interest rate?

On headline rates, LIC Housing Finance is lowest. Its loans contracted between April and June 2026 under Griha Prakash started at 7.15%, with an average of 7.46%. That is an actual-rate disclosure, which is more useful than an advertised 'starting from' figure.

Among banks, the public sector lenders are cheapest for strong profiles after this month's revision: Union Bank at 7.40% for CIBIL 825 and above, Canara Bank at 7.40% for women and 7.45% for others on loans above ₹1 crore, and PNB at 7.45% during its festive campaign to 31 December 2026. Private banks start higher. HDFC Bank and Axis Bank begin at 8.00%, and ICICI's standard rate for salaried borrowers starts at 8.75%.

The headline rate is only part of it. Processing fees differ (ICICI charges 0.5% of the loan amount plus taxes), and the spread a bank assigns you at sanction stays with you for the life of the loan. Negotiate the spread, not just the rate.

Why do banks quote a range instead of one rate?

Because the rate you get is the benchmark plus a spread that the bank sets for you. The benchmark is public: for most banks it is the RBI repo rate plus a fixed mark-up, which is why HDFC Bank, Axis and ICICI all moved together after 7 October. The spread depends on your credit score, income type, loan size and loan-to-value ratio.

PNB's grid shows how much the score matters. For a loan above ₹30 lakh with 80% LTV, a CIBIL score of 800 or more gets 7.45%, while a score of 600 to 699 gets 9.25%. On ₹1 crore over 20 years that gap is worth roughly ₹11,000 a month, so clean up your credit report before you apply. Union Bank's sheet follows the same pattern, from 7.40% at 825 and above to 9.60% at 600 to 649.

What is the EMI on a ₹1 crore, ₹2 crore and ₹5 crore home loan for 20 years?

At 8% for 20 years, the EMI is about ₹83,644 on ₹1 crore, ₹1,67,288 on ₹2 crore and ₹4,18,220 on ₹5 crore. These are our calculations using the standard reducing-balance EMI formula and 240 monthly instalments.

The interest bill is large. On ₹1 crore at 8%, you pay about ₹1.01 crore in interest over 20 years, so the total outgo is roughly double the loan. Every half a percentage point adds around ₹3,100 to the monthly EMI on ₹1 crore. For buyers in Gurgaon's ₹5 crore and above bracket, the difference between 7.5% and 8.5% is more than ₹31,000 a month.

Will my EMI go up after the October 2026 repo hike?

If your loan is repo-linked and floating, yes, at the next reset. Banks pass repo changes on to existing borrowers, usually by extending the tenure first unless you ask for a higher EMI. Kotak, for example, states on its rate page that when the repo rate rises, the home loan rate rises with it.

Fixed-rate loans are not affected. Several lenders sell them, but they cost more: Axis Bank's fixed home loan is 14.00% a year, and ICICI's full-term fixed rate is 10.90% to 11.20%, well above floating rates. With the RBI now tightening, some borrowers will be tempted. In our view, paying 3 percentage points extra for certainty rarely makes sense on a 20-year loan, but a short fixed period can work if you expect more hikes.

How do Gurgaon luxury buyers use home loans?

Ticket sizes in Gurgaon's premium projects routinely run past ₹5 crore, and banks cap the loan at a share of property value, so most buyers fund 20% to 30% themselves. Lenders also price large loans differently. Canara Bank's grid, for instance, gives its best rate on loans above ₹1 crore, while ICICI quotes a slightly higher ceiling above ₹75 lakh.

For under-construction homes, the bank disburses in stages tied to the builder's demand letters, and you pay only interest until full disbursement. Pick a lender that has already approved the project; it saves weeks. Our home loan guide for luxury property in Gurgaon covers eligibility, LTV limits and tax benefits in more detail.