Home loan rates at 12 public sector banks start at 7% for October 2026
Bank of Maharashtra and Central Bank of India offer the lowest starting rate of 7 per cent, while rates at other state-run lenders differ.
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Those planning to buy a home with a loan need to look beyond the property price and the down payment. The monthly instalments to be paid over many years deserve equally serious thought, and so does the way a bank lends.
Even a small difference in a bank's interest rate can affect a borrower's finances over the long term. This is why the home loan offers of public sector banks for October 2026 are drawing attention these days.
According to available information, the starting home loan rate at Bank of Maharashtra and Central Bank of India is 7 per cent. Rates differ across the other public sector banks. State Bank of India offers a starting rate of 7.25 per cent, while Bank of India's starting rate is 7.10 per cent.
Canara Bank's starting rate can vary with the loan amount. Punjab National Bank also has different starting rates for different kinds of loans. It is therefore not advisable to decide by looking at the rate of just one bank.
The 12 public sector banks are Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, Punjab & Sind Bank, Punjab National Bank, SBI, UCO Bank and Union Bank of India. Some banks offer rates up to a fixed limit, while Indian Overseas Bank's rate starts at 7.20 per cent. The rate a borrower actually gets can vary with the customer and the terms of the loan.
Before choosing a home loan, find out about the bank's processing fee, the repayment tenure and the conditions for prepayment or late payment. Also work out, from your monthly income, how much EMI you can comfortably pay.
Banks generally look at an applicant's income, employment, credit score and record of repaying earlier loans. The lowest rate quoted in an advertisement is therefore not necessarily available to every applicant. Before making a final decision, speak to different banks to learn which loan rate and charges would apply to you. This will help in planning your home-buying budget better.
