Home Loan Interest Rates in March 2025

The Reserve Bank of India (RBI) recently reduced the repo rate by 25 basis points, bringing it down to 6.25% from 6.50%. This change, announced on February 7, has prompted several banks to lower their lending rates. Some of the leading banks like Canara Bank, State Bank of India (SBI), Union Bank, and Punjab National Bank have already lowered their repo-based interest rates. Other banks are expected to follow suit soon.

If you have a floating-rate home loan, this rate cut means you can either reduce your EMI (Equated Monthly Installment) or shorten your loan tenure. For new home loan borrowers, this is a great opportunity to secure loans at a lower interest rate.

Let’s take a look at the home loan interest rates offered by some of India’s top banks for loans above Rs. 75 lakh.

Public Sector Banks:

SBI offers rates from 8.25% to 9.40%.

Bank of Baroda offers rates starting at 8.40%, going up to 10.65%.

Union Bank of India starts at 8.10%, with a maximum rate of 10.65%.

Punjab National Bank offers rates from 8.15% to 9.90%.

Canara Bank has rates from 8.15% to 10.90%.

Private Sector Banks:

ICICI Bank starts at 8.75%.

Axis Bank offers rates from 8.75% to 9.65%.

Karur Vysya Bank starts at 8.75%, going up to 11.70%.

Federal Bank starts at 8.55%.

HDFC Bank offers rates from 8.70%.

Remember, if you have a strong CIBIL score, you may be eligible for even lower rates. With the RBI's recent move, now is the right time to explore home loans at more affordable rates.