Best Home Loan Interest Rates in India — April 2026
Bank of Baroda and Canara Bank offer the lowest home loan rates at 8.45% p.a., followed closely by SBI and PNB at 8.50%. Private banks HDFC, ICICI, Axis, and Kotak range from 8.70–8.75%. Yes Bank is the most expensive at 9.00%. All rates are floating, linked to RLLR/MCLR, and effective April 2026.
Last updated: April 6, 2026
Best Home Loan Banks — Ranked April 2026
#1Best pick
Bank of Baroda8.45%
Cheapest — best for cost-conscious buyers
#2
Canara8.45%
Runner-up — great branch network
#3
SBI8.50%
Competitive rate
#4
PNB8.50%
Competitive rate
#5
HDFC8.70%
Competitive rate
#6
Kotak8.70%
Competitive rate
#7
ICICI8.75%
Competitive rate
#8
Axis8.75%
Competitive rate
#9
IDFC First8.75%
Most expensive — avoid unless you need their specific features
#10
Yes Bank9.00%
Most expensive — avoid unless you need their specific features
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Calculate your EMI →Frequently Asked Questions
Which bank has the lowest home loan rate in April 2026?+
Bank of Baroda and Canara Bank both offer 8.45% p.a., the lowest among major banks. SBI and PNB are next at 8.50%.
Does RBI rate cut affect my home loan EMI?+
Yes, if you have a floating-rate home loan linked to RLLR or MCLR, an RBI repo rate cut typically reduces your rate within 3 months. The benefit passes through faster for RLLR-linked loans.
Should I choose SBI or HDFC for home loan?+
SBI is cheaper at 8.50% vs HDFC at 8.70%. On a ₹30L, 20-year loan, SBI saves ~₹400/month. However, HDFC offers faster disbursals and better digital processes for self-employed borrowers.
Disclaimer: Rates are indicative as of April 2026 and subject to change. This is for informational purposes only. Verify with the bank before making financial decisions.