State Bank of India (SBI), the country’s largest lender, has revised its home loan interest rates, bringing them to 8.70%. This move comes at a time when borrowers are keeping a close watch on lending rates, as even small changes can significantly impact EMIs and overall affordability.
Here’s a quick look at how SBI’s rates compare with other major banks:
Current Home Loan Interest Rates by Bank (2025)
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Punjab National Bank (PNB): Starting at 7.45%
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Canara Bank: Between 7.40% – 10.25%, depending on customer profile and tenure
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State Bank of India (SBI): 8.70% (revised)
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HDFC Bank: Competitive rates, generally starting around 8.50% – 9.15%
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ICICI Bank: Similar to HDFC, typically ranging from 8.50% – 9.20%
Why Home Loan Rates Differ
Interest rates depend on several factors such as:
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Loan amount and tenure
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Borrower’s credit score and repayment history
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Type of borrower (salaried, self-employed, NRI, etc.)
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Linked benchmark rate (Repo Linked Lending Rate – RLLR)
Impact on Borrowers
With SBI revising rates upward, EMIs for new borrowers will increase, while existing borrowers on floating rate loans may also feel the pinch unless they restructure their tenure.