Lowest Home Loan Interest Rates in July 2025
Navigating the world of home loans can be daunting. Interest rates play a crucial role in this journey. In July 2025, understanding the lowest home loan interest rates is more important than ever.
Interest rates fluctuate based on various factors—like RBI policies and economic indicators. Knowing these trends helps you make smarter, more informed choices.
Whether you are a first-time homebuyer or looking to refinance, comparing mortgage rates from different lenders can save you lakhs over your loan tenure.
Latest Home Loan Interest Rates of Banks, NBFCs & HFCs– July 2025
Here are some of the most competitive home loan interest rates from top banks, NBFCs & HFCs:
|
Lender Name |
Up to ₹30 Lakh |
₹30–₹75 Lakh |
Above ₹75 Lakh |
|
State Bank of India |
7.50% – 8.70% |
7.50% – 8.70% |
7.50% – 8.70% |
|
HDFC Bank |
8.15% onwards |
8.15% onwards |
8.15% onwards |
|
Bajaj Housing Finance |
7.49% – 17.00% |
7.49% – 17.00% |
7.49% – 17.00% |
|
ICICI Bank |
8.00% onwards |
8.00% onwards |
8.00% onwards |
|
Axis Bank |
8.75% – 12.80% |
8.75% – 12.80% |
8.75% – 9.65% |
|
Federal Bank |
9.15% onwards |
9.15% onwards |
9.15% onwards |
|
Punjab National Bank |
7.55% – 9.35% |
7.50% – 9.25% |
7.50% – 9.25% |
|
Kotak Mahindra Bank |
8.20% onwards |
8.20% onwards |
8.20% onwards |
|
Canara Bank |
7.50% – 10.25% |
7.45% – 10.25% |
7.40% – 10.15% |
|
IDFC FIRST Bank |
8.85% onwards |
8.85% onwards |
8.85% onwards |
|
IDBI Bank |
7.75% onwards |
7.75% onwards |
7.75% onwards |
|
RBL Bank |
8.20% onwards |
8.20% onwards |
8.20% onwards |
|
Tata Capital Housing Finance |
7.99% onwards |
7.99% onwards |
7.99% onwards |
|
PNB Housing Finance |
8.25% – 11.50% |
8.25% – 11.50% |
8.25% – 12.35% |
|
Sammaan Capital (ex-Indiabulls) |
8.75% onwards |
8.75% onwards |
8.75% onwards |
|
India Shelter Finance |
10.00% – 24.00% |
10.00% – 24.00% |
10.00% – 24.00% |
|
L&T Finance |
8.65% onwards |
8.65% onwards |
8.65% onwards |
|
Godrej Housing Finance |
8.55% onwards |
8.55% onwards |
8.55% onwards |
|
Home First Finance |
11.90% onwards |
11.90% onwards |
11.90% onwards |
|
Easy Home Finance |
8.99% onwards |
8.99% onwards |
8.99% onwards |
|
Piramal Finance Ltd |
9.50% onwards |
9.50% onwards |
9.50% onwards |
|
Union Bank of India |
7.25% – 9.75% |
7.25% – 9.90% |
7.25% – 9.90% |
|
Bank of Baroda |
7.45% – 9.25% |
7.45% – 9.25% |
7.45% – 9.50% |
|
Bank of India |
7.35% – 10.10% |
7.35% – 10.10% |
7.35% – 10.35% |
|
UCO Bank |
7.40% – 9.00% |
7.40% – 9.00% |
7.40% – 9.00% |
|
Bank of Maharashtra |
7.35% – 10.15% |
7.35% – 10.15% |
7.35% – 10.15% |
|
Indian Overseas Bank |
7.35% onwards |
7.35% onwards |
7.35% onwards |
|
Indian Bank |
7.40% – 9.40% |
7.40% – 9.40% |
7.40% – 9.40% |
|
Central Bank of India |
7.35% – 9.40% |
7.35% – 9.40% |
7.35% – 9.40% |
|
Punjab & Sind Bank |
7.55% – 10.75% |
7.55% – 10.75% |
7.55% – 10.75% |
|
Karur Vysya Bank |
8.45% – 11.40% |
8.45% – 11.40% |
8.45% – 11.40% |
|
South Indian Bank |
8.30% onwards |
8.30% onwards |
8.30% onwards |
|
Karnataka Bank |
8.40% – 10.86% |
8.40% – 10.86% |
8.40% – 10.86% |
|
Dhanlaxmi Bank |
8.75% onwards |
8.75% onwards |
8.75% onwards |
|
Tamilnad Mercantile Bank |
8.15% – 9.50% |
8.15% – 9.50% |
8.15% – 9.50% |
|
Bandhan Bank |
8.41% – 15.00% |
8.41% – 12.58% |
8.41% – 12.58% |
|
Cholamandalam Investment & Finance |
10.50% onwards |
10.50% onwards |
10.50% onwards |
|
LIC Housing Finance |
7.50% onwards |
7.50% onwards |
7.50% onwards |
|
Repco Home Finance |
9.60% onwards |
9.60% onwards |
9.60% onwards |
|
GIC Housing Finance |
8.80% onwards |
8.80% onwards |
8.80% onwards |
|
ICICI Home Finance |
8.80% onwards |
8.80% onwards |
8.80% onwards |
|
Aditya Birla Capital |
8.25% onwards |
8.25% onwards |
8.25% onwards |
|
HSBC India |
8.25% onwards |
8.25% onwards |
8.25% onwards |
|
Standard Chartered Bank |
8.95% onwards |
8.95% onwards |
8.95% onwards |
Piramal Finance Ltd offers home loans at 9.50% onwards, with loan amounts ranging from Rs. 5 lakh to Rs. 2 crore, and tenures up to 30 years.
Tips for Securing the Lowest Home Loan Interest Rates
Securing a low rate can impact your long-term financial health. Here are practical steps to help you get the best deal:
· Maintain a high credit score: A CIBIL score of 750+ shows you’re a responsible borrower.
· Apply when rates are low: Track RBI repo rate changes to pick the right moment.
· Opt for a larger down payment: The higher your contribution, the lower your lender’s risk—and potentially, your rate.
· Reduce your credit utilization: Keep balances low on credit cards and personal loans.
· Compare lenders: Even a 0.25% difference can save you thousands annually.
Types of Home Loan Interest Rates
1. Fixed Interest Rate
· EMI remains constant throughout the tenure.
· Good for those who value predictability.
· Charges apply on pre-closure.
2. Floating Interest Rate
· Changes based on market conditions or repo rate.
· Usually starts lower than fixed rates.
· Ideal for flexible budgets or shorter loan terms.
What Affects Your Home Loan Interest Rate?
|
Factor |
How it Influences Your Rate |
|
Credit Score |
Higher score = lower interest |
|
Income Stability |
Regular salary improves eligibility |
|
Property Type |
Urban/semi-urban homes attract lower rates |
|
Loan Tenure |
Shorter tenure may mean lower rates |
|
Existing Relationship with Lender |
Can fetch you discounts or waivers |
Frequently Asked Questions (FAQs)
1. What is a good interest rate on a home loan in July 2025?
Any rate between 7.50%–8.50% is considered excellent, especially for salaried professionals.
2. Can I switch from a floating to a fixed rate later?
Yes. Most lenders, including Piramal Finance, allow this, sometimes with a small fee.
3. What is the minimum CIBIL score for a home loan?
Ideally, 750 and above ensures faster approvals and lower rates.
4. Can I transfer my loan to Piramal Finance?
Absolutely. Piramal Finance offers home loan balance transfer options to help you save on interest.
5. Does Piramal Finance charge for prepayment?
Yes, for fixed-rate loans, a 2% charge applies on the prepaid principal.
Final Take
Your dream home deserves the right loan, not just the lowest rate, but a lender who understands your needs.
With Piramal Finance, you get a fair deal, a human touch, and financial clarity. Start your home ownership journey with the confidence of knowing you’re in good hands.