Lowest home loan interest rates after RBI repo rate hike: Check EMI on above Rs 30 lakh to 75 lakh loans at public & private banks, HFCs

The Reserve Bank of India (RBI) in its Monetary Policy Committee (MPC) meeting today (Wednesday, October 7, 2026) raised the repo rate from 5.25% to 5.50%. With the rate hike, home loan interest rates linked to the External Benchmark Lending Rate (EBLR) are set to rise.

However, before banks increase interest rates on EBLR-linked loans, you can still lock in prevailing low rates to purchase your home. Here we take you through the lowest interest rates for home loans above Rs 30 lakh to Rs 75 lakh offered by public and private sector banks and housing finance companies (HFCs).

Public sector banks: Lowest interest rates on home loans above Rs 30 lakh to Rs 75 lakh

Among public sector banks, Bank of Maharashtra and Central Bank of India are offering the lowest home loan interest rate of 7.00% each.

Public Sector Bank	Home loan interest Rate (%)
Bank of Maharashtra	7.00–9.90
Central Bank of India	7.00–9.15
Bank of India	7.10–10.00
Indian Bank	7.15–9.15
UCO Bank**	7.15–9.25
Union Bank of India***	7.15–9.60
Bank of Baroda	7.20–9.00
Canara Bank*	7.20–10.00
Indian Overseas Bank	7.20 onwards
Punjab National Bank	7.25–9.20
State Bank of India	7.25–8.55
Punjab and Sind Bank	7.35–10.75

Private sector banks: Lowest interest rates on home loans above Rs 30 lakh to Rs 75 lakh

Among private sector banks, South Indian Bank offers the lowest home loan interest rate at 7.25%, followed by Federal Bank at 7.35%.

HSBC Bank offers rates starting from 7.45%, while Karnataka Bank’s rates start at 7.48%. ICICI Bank has a starting interest rate of 7.55%.

Bank	Home loan Interest Rate (%)
South Indian Bank	7.25 onwards
Federal Bank	7.35–10.50
HSBC Bank	7.45 onwards
Karnataka Bank	7.48–11.80
ICICI Bank	7.55 onwards
Kotak Mahindra Bank	7.60 onwards
Tamilnad Mercantile Bank	7.90–9.30
HDFC Bank	7.75 onwards
Axis Bank	8.00–11.90
CSB Bank	8.30 onwards
City Union Bank	8.50–10.00
Karur Vysya Bank	8.50–10.65
Bandhan Bank	8.55–13.52
RBL Bank	9.00 onwards

Data from Paisabazar as on September 30, 2026

Housing finance companies: Lowest home loan interest rates on home loans above Rs 30 lakh to Rs 75 lakh

Among HFCs, LIC Housing Finance offers the lowest home loan rate at 7.15%, while Bajaj Housing Finance offers a 7.25% rate on loans of above Rs 30 lakh to Rs 75 lakh.

Housing finance company	Home loan rate
LIC Housing Finance	7.15 onwards
Bajaj Housing Finance	7.25 onwards
ICICI Home Finance	7.50 onwards
PNB Housing Finance	7.60-10.05%
Godrej Housing Finance	7.65 onwards
Aditya Birla Capital	7.75 onwards
Tata Capital	8.00 onwards
GIC Housing Finance	8.20 onwards
Samman Capital (Formerly Indiabulls Housing Finance)	8.75 onwards
SMFG India Home Finance	9.25 onwards

What is a home loan EMI?

The EMI stands for equated monthly instalment. It includes the repayment of the principal amount and interest on the outstanding amount of your home loan. Banks also consider factors such as income, loan amount, repayment tenure, employment profile and existing financial obligations while deciding the interest rate offered to a borrower. Therefore, the rate advertised by a bank may not necessarily be the rate applicable to every home loan applicant.

Home loan interest rates can vary from one individual to another, depending on the borrower’s credit score and bank conditions.

How does repo rate impact EBLR-linked home loans?

The repo rate impacts home loan rates since it is the rate at which banks borrow money from the central bank. When the RBI increases the repo rate, banks get loans from it at a higher rate. Since banks spend more money on these high-rate loans, they transfer the increased costs to their borrowers by increasing interest rates on EBLR-linked loans such as home laons.

A small change in the interest rate can impact EMI of your home loan. So as a home loan borrower, you should check the latest interest rates offered by various banks.

What should home loan borrowers do if banks increase interest rates?

Adhil Shetty, CEO, Bankbazaar, says that with the RBI saying cuts are off the table and the next step can only be a hike or a pause, borrowers should not plan around lower EMIs.

Shetty further says, “Many lenders extend the tenure to keep the EMI unchanged, which feels easier but costs more over time. Asking your lender how the change will be applied, and making a small prepayment each year, can help limit the extra interest."