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Home Loan Rate Comparison In December: Buying one’s own house or flat is culturally linked to financial success in India. There is a growing appetite among Indian consumers to own a home even at an early
stage of career, with individuals and families actively looking to invest in residential properties. Home loans, thanks to their affordability, availability, and flexibility, have become a popular and important tool for consumers to fulfil their aspiration of owning a house or flat.
A major factor that needs to be considered in a home loan is interest rate. Different lenders offer different interest rates on home loans depending on amount and maturity, credit score, and RBI’s repo rate.
Comparing home loan interest rates in December
| Lender Name |
Interest Rate (p.a.)
|
| Bank of India |
7.10% onwards
|
| Canara Bank |
7.15% onwards
|
| Punjab National Bank |
7.20% onwards
|
| State Bank of India |
7.25% onwards
|
| Punjab & Sind Bank |
7.30% onwards
|
| HDFC Bank |
7.90% onwards
|
| Federal Bank |
7.90% onwards
|
| ICICI Bank |
7.65% onwards
|
| Kotak Mahindra Bank |
7.70% onwards
|
| Axis Bank |
8.25% onwards
|
| Bajaj Housing Finance |
7.15% onwards
|
| PNB Housing Finance |
7.20% onwards
|
| Tata Capital Housing Finance |
7.75% onwards
|
| Godrej Housing Finance |
7.75% onwards
|
| IDFC FIRST Bank |
8.85% onwards
|
(Source: paisabazaar)
Home Loan Sector Outlook 2026
Home financing in India is moving into a more mature and responsible phase, shifting away from the earlier focus on rapid growth, according to Atul Monga, CEO & Co-Founder of BASIC Home Loan.
Monga said the sector is now evolving into a disciplined ecosystem built on transparency, stronger governance, and borrower protection. This transition, he noted, is both timely and necessary for sustainable growth in housing finance.
Looking ahead, home loans are expected to become seamlessly integrated into the home-buying process. Property search, eligibility checks, and loan initiation are likely to happen on a single platform, reducing friction and timelines for buyers.
