Archive · 10 Oct 2026
Public Sector Home Loan Rates Start at 7% in October 2026
The article compares home loan interest rates at 12 public sector banks in India.
The rates shown are current as of 7 October 2026.
Bank of Maharashtra and Central Bank of India list starting rates of 7% in each of three loan-size groups.
Other banks have different rates, and some rates change with the size of the loan.
A borrower may not qualify for the lowest advertised rate.
Banks can consider a person’s credit history, income, job and loan amount when setting the rate.
The article says borrowers should also compare charges, repayment time and other loan conditions.
A small rate difference can change how much interest a borrower pays overall.
Twelve public sector banks list home loan rates starting between 7% and 7.35% as of 7 October 2026.
Bank of Maharashtra and Central Bank of India start at 7% across all three loan-size slabs.
The comparison covers loans up to ₹30 lakh, above ₹30 lakh to ₹75 lakh, and above ₹75 lakh.
Rates can vary with the borrower’s credit profile, income, employment, loan amount and other factors.
The article advises borrowers to compare fees, tenure, total interest costs, flexibility and possible penalties—not just headline rates.
- Who
- Twelve public sector banks and people considering home loans.
- What
- A comparison of home loan interest rates across three loan-size slabs.
- When
- Rates are stated as of 7 October 2026.
- Where
- India.
- Why
- To help prospective borrowers compare rates and other loan terms before applying.
Headline-rate focus
Whole-loan comparison
How to compare offers
Headline-rate focus
The listed starting interest rate offers a quick way to compare banks.
Whole-loan comparison
The article cautions that the headline rate alone is insufficient; borrowers should also consider fees, tenure, total interest costs, flexibility and penalties.
Access to the lowest rate
Headline-rate focus
Some banks advertise rates beginning at 7%.
Whole-loan comparison
The lowest advertised rate is not guaranteed to every borrower; the final rate depends on individual creditworthiness and other factors.
- Banks compared
- 12 public sector banks
- Rates sourced from
- Paisabazaar.com
- Rate date
- 7 October 2026
- Lowest listed starting rate
- 7%
- Banks starting at 7% in all three slabs
- Bank of Maharashtra and Central Bank of India
- Loan-size slabs
- Up to ₹30 lakh; above ₹30 lakh and up to ₹75 lakh; above ₹75 lakh
- Factors affecting the final rate
- Borrower profile, credit score and history, income, employment and loan amount