Home loan rates start at 7.10% in March; state-owned banks lead in offers | Personal Finance

Home loan interest rates in March start at around 7.10 per cent across several lenders, with offers subject to borrower profile and credit size, according to data from Paisabazaar.com.

Public sector banks

Public sector banks are offering some of the lowest entry-level rates across loan brackets:

Bank of India, Bank of Maharashtra, and Central Bank of India start from about 7.10 per cent

Union Bank of India and UCO Bank begin around 7.15 per cent

State Bank of India and Punjab National Bank offer rates from about 7.20–7.25 per cent

Most public sector lenders have rate ranges extending up to 9–10 per cent or higher, depending on credit risk and borrower profile.

Private banks

Private banks offer similar starting rates but with a broader spread:

HSBC and South Indian Bank start from about 7.20–7.45 per cent

ICICI Bank and HDFC Bank offer rates from around 7.65–7.75 per cent onwards

Axis Bank, Bandhan Bank, and Karnataka Bank have upper ranges going up to 11–12 per cent

Housing finance companies

Housing finance companies are broadly aligned with banks on starting rates:

LIC Housing Finance and Bajaj Housing Finance start from around 7.15 per cent

Tata Capital, PNB Housing Finance, and ICICI Home Finance begin near 7.50 per cent

What determines your final rate

The actual interest rate offered depends on multiple factors:

Credit score and repayment history

Loan amount and tenure

Employment type

Existing relationship with the lender