In short
On 19 October 2026, the lowest home loan rate published by 14 Indian lenders ranged from 7.15% (Indian Bank, LIC Housing Finance) to 8.75% (ICICI Bank), after the RBI raised the repo rate to 5.5% on 7 October 2026. On a ₹50 lakh loan over 20 years, that gap is ₹4,969 a month. Leaving out the grids dated before the increase (Indian Bank, IDBI Bank, Kotak Mahindra Bank), the lowest rate is 7.15% (LIC Housing Finance). These are “starting at” rates for the best credit scores: the RBI's average rate on new housing loans was 7.61% in August 2026.
14 lenders, lowest rate first
| Lender | Type | From | Up to | EMI on ₹50 lakh, 20 years, at the lowest rate | Notes |
|---|---|---|---|---|---|
| Indian Bank † | Public sector bank | 7.15% | 8.55% | ₹39,216 | Grid dated 10 September 2026, before the 8 October benchmark increase. |
| LIC Housing Finance † | Housing finance company | 7.15% | 10.15% | ₹39,216 | Salaried, by CIBIL score; 7.15% for 825 and above; no update date on the page. |
| Bank of Baroda † | Public sector bank | 7.40% | 9.15% | ₹39,974 | BRLLR − 0.75% to + 1.00%, from 8 October 2026. |
| Union Bank of India | Public sector bank | 7.40% | 9.60% | ₹39,974 | By CIBIL score: 7.40% for 825 and above; from 8 October 2026. |
| IDBI Bank | Private bank | 7.40% | 10.00% | ₹39,974 | Salaried and self-employed professionals; the benchmark shown dates from December 2025. |
| Punjab National Bank † | Public sector bank | 7.45% | 10.35% | ₹40,127 | Festive campaign rates, 1 October to 31 December 2026, by CIBIL score; no further concession for women. |
| Canara Bank | Public sector bank | 7.45% | 10.25% | ₹40,127 | By internal risk grade and loan amount; 7.45% above ₹1 crore (7.50% to 7.55% for smaller loans); women 5 basis points less. |
| Central Bank of India | Public sector bank | 7.45% | 9.00% | ₹40,127 | Cent Home; the women’s scheme Cent Grih Lakshmi starts at 7.25%. |
| SBI | Public sector bank | 7.50% | 8.80% | ₹40,280 | Rate depends on the credit score; EBLR 8.15% from 15 October 2026. |
| Bajaj Housing Finance † | Housing finance company | 7.50% | 10.25% | ₹40,280 | Web page range; the lender’s PDF schedule goes up to 15%. |
| Kotak Mahindra Bank | Private bank | 7.60% | — | ₹40,586 | “Starting at” rate only; no ceiling published. The page still shows the repo rate before 7 October. |
| HDFC Bank | Private bank | 8.00% | 13.45% | ₹41,822 | Repo rate + 2.50% to 7.95%; no update date on the page. |
| Axis Bank | Private bank | 8.00% | 9.10% | ₹41,822 | Repo + 2.50% to 3.35% for a CIBIL score of 751 or more; up to 9.10% below. Outside the ASHA programme. |
| ICICI Bank | Private bank | 8.75% | 9.90% | ₹44,186 | Standard grid, salaried, by loan amount; valid until 31 October 2026. A pre-approved online offer from 7.80% is not counted. |
Standard home loan for a salaried borrower, floating rate, as published; rates reserved for women and special programmes are in the notes, not in the columns. “—”: no maximum published. † Rates shown only by script on the lender's page: read in a browser by Payotte's research, not re-checked on a second download. Grid or benchmark dated before the 7 October increase: Indian Bank, IDBI Bank, Kotak Mahindra Bank. Not read: Bank of India; the bank’s site refused automated and browser access with a security check.
How Payotte read it
Each rate comes from the lender's own interest-rate page or schedule, never from a comparison site. Most lenders now link home loan rates to the repo rate or to an external benchmark plus a spread that depends on the credit score; the lowest rate is for the best scores. The EMI uses the standard reducing-balance formula over 240 monthly instalments. The RBI repo rate and the average rate on new housing loans (weighted average lending rate, August 2026, provisional) are the figures used by the home loan calculator.
Questions
Which bank has the lowest home loan rate in India?
In Payotte's reading of 14 lenders' official pages on 19 October 2026: Indian Bank (7.15%) and LIC Housing Finance (7.15%), for the best credit scores. Your own rate depends on your score, the loan amount and the lender's assessment.
How much does a 1% difference cost on a home loan?
On ₹50 lakh over 20 years, the EMI is ₹41,822 at 8% and ₹44,986 at 9%: ₹3,164 a month more.
Did home loan rates go up in October 2026?
The RBI raised the policy repo rate by 25 basis points to 5.5% on 7 October 2026. Repo-linked lending rates moved with it at most banks from 8 or 9 October; a few pages read on 19 October 2026 still showed older benchmarks (see the notes).
General information drawn from the official sources cited and dated on this page. It is not legal, tax or financial advice: for your own situation, ask a licensed professional.
Sources
- RBI, Monetary Policy Statement 2026-27, Resolution of the Monetary Policy Committee, October 5 to 7, 2026
- RBI, Lending and Deposit Rates of Scheduled Commercial Banks – September 2026, Table 9 (Sector-wise WALR, fresh rupee loans sanctioned, Housing)
- Lenders' rate pages: linked in the table, read on 19 October 2026.