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Latest Home Loan Interest Rates
People take many types of loans from banks according to their needs. Such as – education loan, gold loan, loan for marriage, loan for buying a car etc. One of these is home loan. There are many types of loans in the country. There are many types of home loans available. Meanwhile, there is news that home loans can get cheaper. According to a report by ET, if you are planning to take a home loan in May 2025, here is what you need to know about the updated interest rates.
RBI cut the repo rate by 25 basis points in its monetary policy meeting in April 2025, bringing it down from 6.25% to 6.00%. This was the second reduction this year after the first reduction of 0.25% in the repo rate by RBI in February this year. These cuts are expected to provide some relief to home loan borrowers. But this will happen only when the banks pass on the benefit to the customers.
Bank List: Interest Rates of SBI, HDFC Bank, ICICI Bank, PNB and Other Banks
State Bank Of India
- For loans up to Rs 30 lakh – Interest rate of 8.00 to 9.15 percent
- Above Rs 30 lakh and up to Rs 75 lakh – Interest rate of 8.00-9.15%
- Loan amount above Rs 75 lakh – Interest rate of 8.00-9.15%
Punjab National Bank
- For loans up to Rs 30 lakh – Interest rate of 8.05-9.85%
- Above Rs 30 lakh and up to Rs 75 lakh – Interest rate of 8.00-9.75%
- Loan amount above Rs 75 lakh – Interest rate of 8.00-9.75%
Canara Bank
- For loans up to Rs 30 lakh – Interest rate of 8.00-10.75%
- Above Rs 30 lakh and up to Rs 75 lakh – Interest rate of 7.95-10.75%
- Loan amount above Rs 75 lakh – Interest rate of 7.90-10.65%
Bank Of Baroda
- For loans up to Rs 30 lakh – Interest rate of 8.40-10.15%
- Above Rs 30 lakh and up to Rs 75 lakh – Interest rate of 8.40-10.15%
- Loan amount above Rs 75 lakh – Interest rate of 8.40-10.40%
ICICI Bank
- On loans up to Rs.30 lakh – 8.75% onwards
- Above Rs.30 lakh and up to Rs.75 lakh – 8.75% onwards
- Loan amount above Rs.75 lakh – 8.75% onwards
HDFC Bank Ltd.
- For loans up to Rs.30 lakh – 8.50% onwards
- Above Rs.30 lakh and up to Rs.75 lakh – 8.50% onwards
- Loan amount above Rs.75 lakh – 8.50% onwards
Latest Home Loan Interest Rates: Benefits for Both Floating and Fixed Regimes
According to a report by ET, new borrowers on both floating and fixed interest rate regimes will soon get the benefit of lower interest rates. However, when it comes to existing borrowers, only those having floating interest rates will get the benefit of the interest rate cut.
Home loan borrowers whose loans are linked to the updated floating rate interest regime EBLR will see a change in their equated monthly instalments (EMIs) based on how quickly their bank revises lending rates in line with the RBI’s decision. As per RBI guidelines, banks should reset interest rates at least once every three months. So, if your bank hasn’t updated your rate after the February rate cut, it should be visible by May 2025.
If Your Home Loan is Linked to Other Lending Arrangements
Before October 2019, banks were offering home loans, auto loans, etc. linked to other lending regimes such as MCLR (marginal cost of lending rate), base rate or BPLR. If your current loan is linked to any such lending regime, it is important for you to switch to an EBLR-based lending regime. According to a report by ET, home loan interest rates vary depending on several factors such as your CIBIL score, loan tenure, property location and income, etc. Banks use your credit score to assess your loan eligibility. A CIBIL score above 750 is generally considered good and can help you get a lower interest rate.