The State Bank of India (SBI) has increased its interest rates for home loans and home-related loans, effective August 1, 2025.
According to revised data, the interest rate for a regular home loan currently stands at 7.50 per cent to 8.70 per cent.
The country’s biggest lender revised its home loan rates after the Reserve Bank of India’s (RBI) decision to keep its repo rates unchanged at 5.55 per cent in the August 2025 Monetary Policy meeting.
The central bank has reduced repo rates by a total of 100 basis points via three interest rate cuts this year.
Consequently, the SBI raised the upper interest rate band by 25 basis points to 8.70 per cent from its previous 8.45 per cent. Its lower limit of the home loan rates, however, has remained unchanged.
Also Read: RBI keeps lending rate unchanged
What does it mean for the consumers?
Increase in home loan interest rates raises borrowing costs for those taking a loan at the higher interest rates.
Depending on the individual’s credit score, a higher interest rate would then mean a slightly increased EMI, which also impacts the repayment burden by raising the interest amount. Overall, home buying just for more expensive for those seeking loans from the SBI.
What do other banks charge?
As compared with the SBI, the interest rates for home loans vary bank by bank, ranging from a starting rate of 7.45 per cent by the Punjab National Bank (PNB) to 7.40 per cent - 10.25 per cent by the Canara Bank.
The HDFC Bank offers home loans at interest rates starting at 7.90 per cent per annum. This rate also applies to the bank’s balance transfer loans, house renovation loans, and home extension loans.
The ICICI Bank’s home loans start at a little lesser at 7.70 per cent for fixed and floating interest rates for an amount of ₹5 crore. While its standard home loan interest rates stand at 8.75 per cent – 9.40 per cent for salaried people who seek a loan of up to ₹35 lakh; for self-employed individuals, the interest rate is between 8.75 per cent and 9.55 per cent.
For home loans in the range of ₹ 35 lakhs to ₹ 75 lakhs, interest rates are levied in the range of 8.75%-9.55% for salaried and 8.75%-9.70% for self-employed customers. Home loans over ₹75 lakhs incur an interest rate ranging from 8.75% to 9.65%, 8.75% to 9.80% for salaried and self-employed, respectively.
Kotak Mahindra Bank charges 7.99 per cent pa, although its interest rate for existing customers switching from a floating rate to a fixed rate is 12 per cent pa.
The Bank of Baroda offers home loans at interest rates starting from 7.45 per cent to 9.20 per cent for both salaried and non-salaried individuals. Since the bank’s interest rate depends on loan limit and CIBIL score, a risk premium of 0.05 per cent is applicable for customers who don’t obtain credit insurance cover.
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