Current Home Loan Interest Rates (2026)
Most home loans in India are floating-rate loans linked to the RBI repo rate, which is 5.50% after the RBI raised it by 0.25 percentage points on 7 October 2026. Published starting rates in March 2026, before that rise, were:
- SBI7.10% onwards
- HDFC Bank7.20% onwards
- Punjab National Bank7.25% onwards
- Bank of Baroda7.30% onwards
- Axis Bank7.60% onwards
- ICICI Bank7.65% onwards
Repo-linked rates usually rise when the repo rate rises, so check each bank's website for today's rate. Your own rate depends on your credit score, loan amount, property type (ready or under construction) and employment type (salaried or self-employed). A CIBIL score of 750+ typically gets the best rates.
Home Loan Eligibility Criteria
Banks typically consider these factors:
- Age21-65 years (loan tenure + age should not exceed 65-70)
- IncomeMinimum ₹25,000/month for salaried; ₹2L+ annual for self-employed
- CIBIL Score650+ (minimum), 750+ (best rates)
- EmploymentMinimum 2 years experience (salaried) or 3 years vintage (business)
- PropertyShould be approved by the bank; clear title documents required
- LTV RatioBanks fund 75-90% of property value; rest is your down payment
The maximum EMI-to-income ratio is typically 50-60%. If your monthly income is ₹1L, your total EMIs (all loans combined) should not exceed ₹50-60K.
Documents Required for Home Loan
- Identity & AddressAadhaar, PAN, passport, voter ID
- Income Proof (Salaried)Last 3 months salary slips, 6 months bank statements, Form 16
- Income Proof (Self-Employed)3 years ITR, balance sheet, P&L, GST returns
- Property DocumentsSale agreement, title deed, builder approvals, NOC
- OthersPassport-size photographs, processing fee cheque
Pro tip: Keep your last 6 months bank statements clean — no cheque bounces, maintain minimum balance, and avoid cash deposits above reporting limits.
Fixed vs Floating Rate — Which to Choose?
Floating rate: linked to the RBI repo rate, so your EMI or tenure goes up when the repo rate rises and down when it falls. Most Indian home loans are floating. Individual borrowers pay no prepayment penalty on floating-rate home loans under RBI rules.
Fixed rate: usually higher than the floating rate at the start, but your EMI stays the same. Many fixed-rate loans are fixed only for the first few years and then switch to floating.
What to weigh: In October 2026 the RBI raised the repo rate and changed its policy stance to 'calibrated tightening', which signals that further rises are possible. A floating rate is usually cheaper but exposes you to such rises; a fixed rate costs more but gives certainty. Nobody can reliably predict rates over a 20-year loan, so compare the actual offers and choose what your budget can handle if rates go up by 1-2 percentage points.
Tax Benefits on Home Loan
Home loans offer the most generous tax deductions in India:
- Section 80CUp to ₹1.5 Lakh deduction on principal repayment
- Section 24(b)Up to ₹2 Lakh deduction on interest (self-occupied property)
- Section 80EEAAdditional ₹1.5 Lakh for first-time buyers (stamp value ≤ ₹45L)
Joint Loan Benefit: Both co-borrowers can claim deductions individually, effectively doubling the tax savings to ₹7L+ annually.
For a ₹50L loan at 8.5% for 20 years, the tax savings alone can be ₹15-25 Lakh over the loan tenure.
Stamp Duty & Registration Charges
Stamp duty varies by state and typically ranges from 3-8% of property value:
- Maharashtra5% (6% in Mumbai)
- Karnataka5%
- Delhi4% (men), 4% (women get 1% rebate in some cases)
- Tamil Nadu7%
- UP5% (women get 1% rebate)
Registration charges are typically 1% of property value. Some states offer reduced stamp duty for women buyers — buying in a woman's name or as joint owner can save ₹50K-2L.
