SBI home loan: India’s biggest lender, State Bank of India, has revised its interest rates for home loans and home-related loans effective 1 August 2025. This rate revision comes after the Reserve Bank of India (RBI) decided to keep its key benchmark interest rates (repo rates) unchanged at 5.55% in the August 2025 Monetary Policy announcement.
SBI home loan interest rate
The interest rate for a regular home loan (term loan) currently stands at 7.50% to 8.70%, according to revised data.
SBI has raised the upper interest rate band by 25 basis points to 8.70%, compared to 8.45% earlier, according to a report by the Economic Times. However, the lower limit of the home loan rates has remained unchanged.
As SBI hikes interest rates, let’s take a look at what other banks offer —
HDFC Bank
HDFC Bank offers home loans at interest rates starting from 7.90% p.a. This rate applies to home loans, balance transfer loans, house renovation loans, and home extension loans.
ICICI Bank
ICICI Bank promises its customers home loans at fixed and floating interest rates for an amount ₹5 crore, starting at 7.70%.
The bank offers home loans to customers with different interest rates for salaried and self-employed individuals. The standard home loan interest rates currently stands at 8.75%-9.40% for salaried individuals up to a loan of ₹35 lakh and 8.75%-9.55% for self-employed individuals.
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
The current home loan interest rate at Kotak Mahindra Bank starts at 7.99% per annum. For existing customers switching from a floating rate to a fixed rate, the interest will be 12% per annum.
Bank of Baroda
Bank Baroda offers home loans at interest rates ranging from 7.45% to 9.20% for both salaried and non-salaried individuals. Notably, the interest rate will depend on loan limit and the CIBIL score of the applicants. Additionally, a risk premium of 0.05% will be levied for customers who do not obtain credit insurance cover.
Punjab National Bank
The bank levies an interest rate on home loans starting at 7.45%. PNB offers home loans at varying interest rates based on the loan amount, CIBIL score and tenure.
Canara Bank
Canara Bank provides home loans at an interest rate in the range of 7.40% to 10.25 %.
What does hike in home loan interest rates mean for customers?
Any increase in the home loan interest rate will raise the borrowing costs for those taking a term loan at the higher interest rates. Based on the customer’s credit profile or credit score, a higher interest rate would mean a slightly increased EMI. This increase will also impact the repayment burden by raising the interest amount.
