Best Home Loan Offers & Interest rates 2025 : Hello friends! Are you still living in a rented house, tired of paying rent to the landlord every month, but your dream of owning your own home is still incomplete? Have you ever heard about a home loan? Look, in today’s time, everyone wants to own their own house. But the real question is—which bank is the right choice for a home loan? In this digital age, not only banks but also many third-party institutions offer home loans. Each one has different interest rates, different conditions, and different offers. In such a situation, choosing the right option is not easy.
If you also want to take a home loan, whether to buy a new house, build one, or renovate an existing home, then stay with us till the end of this post and find out what interest rates different banks are offering.
“When we bought our house, my father too fulfilled his dream home with the help of a home loan.”
As you know, buying a house is everyone’s dream. But nowadays, property prices are so high that not everyone can pay the full amount at once. At such times, a home loan becomes the best option. With its help, you can gradually pay for your house in EMIs (installments). The best part is that you instantly become the owner of your home and no longer have to worry about rent. Along with this, taking a home loan also gives you tax benefits, which reduces the burden on your pocket.
People choose different banks for loans because every bank has its own interest rates, charges, and facilities. Some banks offer lower interest rates, some process loans faster, and some bring special offers. That’s why, don’t rush while taking a loan—compare all banks carefully, check the interest rates, and take a home loan only from the bank you are completely satisfied with.
In this post, we will learn what a home loan is, what the interest rates of different banks are, and also understand some other important details.
What is a Home Loan Offer ?
A home loan is the money provided by a bank or financial institution to buy, build, or renovate a house. Since house prices are very high, not everyone can pay the full amount at once. The money taken from the bank is repaid in EMIs, i.e., monthly installments. By taking a home loan, you can immediately get your own house and repay gradually over time. Also, under government rules, you can save on taxes for the loan amount. Instead of paying rent, you pay EMIs and make your dream home truly yours.
Government Bank Home Loan Interest Rates and Charges 2025
| Bank Name | Interest Rate (P.A.) | Processing Fees | Minimum Salary Eligibility |
| SBI | Starts from 7.50% | ₹2,000 + GST to ₹10,000 + GST | ₹10,000/month |
| Bank of India | Starts from 7.35% | ₹3,500 to ₹30,000 (0.35% of loan amount) | ₹15,000/month |
| Bank of Baroda | Starts from 7.45% | ₹8,500 to ₹25,000 | ₹15,000/month |
| Canara Bank | Starts from 7.40% | ₹1,500 to ₹10,000 + GST | ₹15,000/month |
| Punjab National Bank | Starts from 8.25% | ₹2,500 to ₹15,000 | ₹15,000/month |
| Indian Overseas Bank | Starts from 7.35% | ₹2,500 to ₹20,000 | ₹15,000/month |
| Bank of Maharashtra | Starts from 7.35% | ₹2,500 to ₹20,000 | ₹15,000/month |
| Central Bank of India | Starts from 7.35% | ₹2,500 to ₹20,000 | ₹15,000/month |
| UCO Bank | Starts from 7.40% | ₹2,500 to ₹15,000 | ₹15,000/month |
| Union Bank of India | Starts from 7.45% | ₹2,500 to ₹15,000 | ₹15,000/month |
📝Note: The interest rates and fee details given in the above table may go up or down with time.
Private Bank Home Loan Interest Rates and Charges 2025
| Bank / Institution | Interest Rate (P.A.) | Processing Fees | Minimum Salary Eligibility |
| HDFC Bank | 7.90% onwards | ₹3,300 to ₹15,000 | ₹10,000/month |
| ICICI Bank | 8.75% onwards | ₹2,500 to ₹10,000 | ₹10,000/month |
| Axis Bank | 8.35% onwards | ₹10,000 to ₹25,000 | ₹10,000/month |
| LIC Housing Finance | 7.50% onwards | ₹15,000 to ₹50,000 | ₹10,000/month |
| IDBI Bank | 7.65% onwards | ₹2,500 to ₹20,000 | ₹15,000/month |
| IDFC First Bank | 8.85% onwards | ₹2,500 to ₹20,000 | ₹15,000/month |
| HSBC Bank | 7.70% onwards | ₹2,500 to ₹20,000 | ₹15,000/month |
| Karur Vysya Bank | 7.95% onwards | ₹2,500 to ₹15,000 | ₹15,000/month |
| Saraswat Bank | 7.50% to 8.90% | ₹2,500 to ₹15,000 | ₹15,000/month |
| Tata Capital | 7.75% onwards | ₹5,000 to ₹20,000 | ₹15,000/month |
Documents Required for Home Loan
1. Identity Proof
- Aadhaar Card
- PAN Card
- Passport
- Driving License
- Voter ID
2. Address Proof
- Aadhaar Card
- Passport
- Voter ID
- Electricity / Water / Gas Bill (last 2–3 months)
- Bank Statement (showing address)
3. Income Proof
For Salaried Individuals:
- Last 3 months’ salary slips
- Last 6 months’ bank statement (showing salary credit)
- Form 16 / Income Tax Returns (ITR) of last 2 years
For Self-Employed / Business Owners:
- ITR of last 2–3 years
- Bank statements of last 6–12 months
- Professional/Business License / Company Registration Documents
4. Property Documents
- Sale Deed / Agreement of Sale
- Title Deed of land/property
- Approved Plan / Layout of property
- Property Tax Receipt
5. Other Documents
- Passport-size photographs
- Bank account details
Home Loan Eligibility Criteria
- Age: 21–70 years
- Salary/Income: ₹15,000+ monthly salary or stable self-employed income
- Credit Score: 750+
- Employment/Business: Stable job or 2–3 years of business history
- EMI Capacity: Should not exceed 40–50% of monthly income
- Property: Must be legally valid and approved
Home Loan Offer FAQS
Which bank is offering the best home loan?
SBI, HDFC, and LIC Housing Finance are considered among the best with low rates and flexible terms.
Which home loan is the cheapest?
Public sector banks like SBI, Bank of Baroda, and Bank of India usually offer cheaper home loans.
Why is SBI home loan better?
SBI offers lower interest rates, transparent charges, and special schemes for women and salaried individuals.
How much salary is required for a home loan?
Generally, a minimum salary of ₹15,000 per month is required, but it depends on the bank.
Which is better HDFC or SBI home loan?
HDFC is known for quick processing, while SBI often provides lower interest rates. Choose as per your need.
What is the PM home loan scheme?
It’s the Pradhan Mantri Awas Yojana (PMAY), which offers subsidies on interest rates to first-time home buyers.
What is a good CIBIL score for a home loan?
A score of 750 or above is considered good for easy approval and better rates.
What is the safest type of home loan?
Fixed interest rate loans are safer, as the EMI remains constant throughout the tenure.
Is LIC home loan better than SBI?
LIC offers flexible tenure, but SBI usually has lower interest. Both are reliable, compare before applying.
How much ITR is required for a home loan?
For self-employed, 2–3 years of ITR is usually required.
How to reduce home loan interest rate?
Maintain a good credit score, make regular payments, and consider transferring to a lower-rate bank.
Who is eligible for LIC home loan?
Any salaried or self-employed person with stable income, good credit score, and valid property documents.
How to pay a 30-year home loan in 10 years?
Increase your EMI amount, make part-prepayments whenever possible, and reduce loan tenure.
What happens if I pay 2 EMI extra every year?
It reduces the principal faster, cuts interest, and helps you close the loan earlier.
How to get a cheap home loan?
Compare banks, maintain a high CIBIL score, and apply during special bank schemes or offers.
