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🏠 Home Loan · India · 2026

Home Loan Rates:
What's Fair in 2026?

Current market rates and benchmarks. Use this before accepting any offer.

Market benchmark: Home Loan
Current rates by bank
Bank / LenderRate RangeMax AmountVerdict
SBI (RLLR-linked)8.50% – 10.15%No capBest rate
Bank of Baroda8.40% – 10.60%No capCompetitive
HDFC Ltd8.70% – 9.40%No capFair
ICICI Bank8.75% – 10.05%No capFair
Axis Bank8.75% – 13.30%No capVaries
Kotak Mahindra8.75% – 9.60%No capFair
LIC HFL8.50% – 10.75%No capFair
Bajaj Housing8.50% – 15.00%No capCheck carefully
Key check: Ask your bank if your loan is EBLR/RLLR-linked. If it's still on old MCLR, request a switch, you'll get faster rate transmission when RBI cuts rates. The switch is your legal right.

Is your home loan rate fair?

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Home loans are the largest financial commitment most Indians ever make. A difference of just 0.5% in interest rate on a ₹50 lakh, 20-year loan translates to over ₹4.5 lakh in extra interest paid. Yet most borrowers accept the first offer from their salary account bank without checking whether they are getting the best rate.

What is a fair home loan rate in India in 2026?

After RBI's rate cuts in 2025–26, home loan rates have come down significantly. For salaried employees with CIBIL 750+ buying ready-to-move properties, a fair rate in April 2026 is 8.25%–9.00%. Government employees and defence personnel can get below 8.5% from SBI and Bank of Baroda. Rates above 9.5% for salaried borrowers with good credit are worth negotiating or refinancing. Self-employed borrowers typically pay 0.25%–0.75% more than salaried for the same property.

EBLR vs MCLR — which home loan is better?

All new floating rate home loans since October 2019 are linked to an External Benchmark Lending Rate (EBLR), usually the RBI repo rate. This means when RBI cuts the repo rate, your home loan rate automatically resets — you benefit without doing anything. Older loans on MCLR (Marginal Cost of Funds Based Lending Rate) are slower to transmit rate cuts. If you took a home loan before 2019 and are still on MCLR, consider switching to EBLR — banks are required to offer this option.

Home loan balance transfer — when does it make sense?

If your current home loan rate is more than 0.5%–0.75% higher than what other banks are offering for your profile, a balance transfer is worth considering. The savings from a lower rate need to outweigh the transfer costs (processing fee, legal charges, stamp duty) — typically ₹15,000–50,000. Use our balance transfer calculator to find your exact break-even point. Generally, balance transfers make most financial sense if you have more than 8–10 years remaining on your loan.

Home loan tax benefits you may be missing

On a self-occupied property, you can claim up to ₹2 lakh deduction on home loan interest (Section 24b) and up to ₹1.5 lakh on principal repayment (Section 80C) per year. For a first-time homebuyer, an additional ₹50,000 deduction on interest is available under Section 80EEA for loans sanctioned under specific conditions. If you are a co-borrower (common for husband-wife loans), both borrowers can independently claim these deductions — effectively doubling the tax benefit.

Frequently asked questions

Can I get a home loan with a CIBIL score of 700?

Yes. Most banks approve home loans for CIBIL 700+, but rates are 0.25%–0.5% higher than for 750+ borrowers. Below 700, approvals are rare except from HFCs (Housing Finance Companies) like LIC Housing and PNB Housing, who have more flexible criteria.

How much home loan can I get on my salary?

Banks typically allow home loan EMIs up to 40%–50% of your net monthly income. On a net salary of ₹60,000, you can typically get an EMI of ₹24,000–30,000, which translates to a loan of approximately ₹25–32 lakh at 9% for 20 years. Our eligibility checker gives you a personalized estimate.

Can I prepay my home loan?

For floating rate home loans, RBI mandates that banks cannot charge any prepayment penalty. You can make lump-sum payments anytime. For fixed rate loans, banks can charge up to 2%–3%. Prepaying early significantly reduces your total interest outgo.

Related guides

Fixed vs floating home loan — which to choose in 2026? Home loan spread — the part of your rate that's fixed for life First home loan — 12 things to check before you sign Already have a home loan? Check if a balance transfer saves you money