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Home Loan Rates Show Lakhs Can Turn on Small Differences
Different banks charge different interest rates for home loans.
Even a small rate difference can change how much you pay every month.
For a ₹50 lakh loan over 25 years, a 7% rate gives an estimated EMI of ₹35,339.
At 7.25%, the EMI rises to about ₹36,140.
That difference is about ₹801 each month.
Over the whole loan, it can add roughly ₹2.40 lakh.
An 8% rate would cost about ₹3,252 more each month than a 7% rate.
People should compare final written offers, including fees, before choosing a lender.
Bank of Maharashtra lists the lowest starting rate at 7%, followed by Central Bank of India and Bank of India at 7.10%.
Union Bank of India and LIC Housing Finance start at 7.15%, while Bank of Baroda starts at 7.20%.
For a ₹50 lakh, 25-year loan, estimated EMI rises from ₹35,339 at 7% to ₹36,140 at 7.25%.
The 0.25-percentage-point difference between 7% and 7.25% adds about ₹801 per month and ₹2.40 lakh over 25 years.
Advertised rates may vary by borrower, and calculations exclude processing fees, taxes, insurance and other charges.
- Who
- Home-loan borrowers and the listed lenders, including Bank of Maharashtra, Central Bank of India, Bank of India, Union Bank of India, LIC Housing Finance, Bank of Baroda and others.
- What
- A comparison of advertised home-loan interest rates, estimated EMIs and selected processing fees.
- Where
- Among lenders operating in India.
- When
- The listed rates are for September 2026 and may change at lenders’ discretion.
- Why
- To show how interest rates and fees affect the total cost of borrowing and help borrowers compare offers.
Lower advertised rates
Borrower due diligence
Choosing a lender
Lower advertised rates
Borrowers may prioritize lenders with the lowest advertised starting rates, such as Bank of Maharashtra at 7%.
Borrower due diligence
The lowest advertised rate is not guaranteed for every applicant, so borrowers should compare final written offers based on their credit profile and the lender’s assessment.
Comparing loan costs
Lower advertised rates
A lower interest rate can reduce monthly payments and total repayment costs over a long loan term.
Borrower due diligence
Interest is only part of the expense; processing fees, taxes, insurance and other charges also affect the actual cost.
Floating-rate assumptions
Lower advertised rates
The calculations provide a straightforward comparison by assuming the interest rate remains unchanged throughout the repayment period.
Borrower due diligence
Floating rates can change, potentially affecting the EMI, repayment period or both.
Key facts
- Lowest listed rate
- Bank of Maharashtra starts at 7% annually.
- Loan example
- ₹50 lakh borrowed for 25 years, repaid in 300 monthly instalments.
- EMI at 7%
- Estimated at ₹35,339 per month.
- EMI at 7.25%
- Estimated at ₹36,140 per month.
- Long-term difference
- The 7% versus 7.25% comparison shows an estimated ₹2.40 lakh difference in total repayments.
- 8% comparison
- At 8%, the estimated EMI is ₹38,591 and total interest is approximately ₹65.77 lakh.
- Processing fees
- Bank of Maharashtra and Bank of India list 0.25%; Union Bank of India lists 0.50%, capped at ₹15,000 plus GST; State Bank of India lists 0.35%, capped at ₹12,000 plus GST.
Sources
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