Home loan interest rates — compare and borrow smarter
Starting home loan rates from 10 major lenders, what the RBI repo rate hike means for your EMI, and the eligibility, documents and tax points every home buyer in Dehradun should know.
- 10 lenders compared in one table
- Updated for the 7 Oct 2026 repo hike
- Independent — no referral fees
Home loan interest rates from major lenders
Lowest advertised starting rates for salaried borrowers with strong credit. Sorted from lowest to highest starting rate.
| Lender | Starting rate | Processing fee | Max tenure |
|---|---|---|---|
| LIC Housing Finance | 7.15% | 0.25%, max ₹15,000 | Up to 30 yrs |
| Union Bank of India | 7.15% | 0.50%, max ₹15,000 | Up to 30 yrs |
| Bank of Baroda | 7.20% | ₹8,500 – ₹25,000 | Up to 30 yrs |
| State Bank of India | 7.25% | 0.35% + GST (min/max caps apply) | Up to 30 yrs |
| Punjab National Bank | 7.25% | 0.35%, ₹2,500 – ₹15,000 | Up to 30 yrs |
| Bajaj Housing Finance | 7.25% | As per sanction | Up to 32 yrs |
| ICICI Bank | 7.55% | 0.50% + GST | Up to 30 yrs |
| Kotak Mahindra Bank | 7.60% | Up to 2% (lower online) | Up to 30 yrs |
| HDFC Bank | 7.75% | Up to 0.50%, min ₹4,000 | Up to 30 yrs |
| Axis Bank | 8.00% | Up to 1%, min ₹10,000 | Up to 30 yrs |
Rates as of Sep–Oct 2026 (before the 7 Oct repo hike). Source: lender websites and public sources.
How home loan rates work: EBLR and today's hike
Since October 2019, banks have priced floating-rate home loans off an external benchmark lending rate (EBLR), which for most banks is the RBI repo rate. Your rate is the benchmark plus a spread fixed for your loan, based mainly on your credit score, loan amount and loan-to-value ratio. The rate resets at least once every three months.
On 7 Oct 2026 the RBI raised the repo rate by 25 basis points to 5.50%, its first hike since February 2023. If you have a repo-linked loan, expect your rate to rise by about 0.25% at your next reset. Housing finance companies such as LIC Housing Finance and Bajaj Housing Finance use their own benchmark rates, so changes there may come at a different time and pace. The next MPC meeting is on 2–4 Dec 2026.
When your rate changes, RBI rules require your lender to inform you and offer a choice: a higher EMI, a longer tenure, or a mix. Many lenders extend the tenure by default. If you can afford it, choosing a higher EMI keeps total interest lower.
The lowest home loan rate is not always the cheapest loan
The lowest starting rate in the table above is 7.15%, but compare the full picture: the spread you are actually offered, processing and legal fees, insurance that may be bundled with the loan, and how quickly the lender passes on rate cuts as well as hikes.
Estimate your home loan EMI
The calculator starts with a ₹30 lakh loan for 20 years at an illustrative 7.50%. At that rate the EMI is about ₹24,168. At 7.75%, a 0.25% increase, it is about ₹24,628. Change the numbers to match your offer.
For a year-wise schedule and prepayment strategies, use our full loan EMI calculator.
Loan EMI calculator
Indicative EMI for a reducing-balance loan. Your lender's schedule, fees and rate resets may differ.
How much can you borrow?
Loan-to-value (LTV) limits
RBI caps the loan at 90% of the property value for loans up to ₹30 lakh, 80% for ₹30–75 lakh and 75% above ₹75 lakh. The rest is your down payment.
Income and FOIR
Lenders typically allow total EMIs of about 40–50% of your net monthly income, including your existing loans. A co-applicant's income can raise eligibility.
Credit score and age
A score of 750+ helps you get the lower end of a lender's range. Tenure usually ends by 60–70 years of age. See how to improve your CIBIL score.
Documents you will typically need
- KYC: PAN, Aadhaar or other address proof, and photographs for all applicants.
- Income (salaried): recent salary slips, Form 16 and 6 months of salary-account statements.
- Income (self-employed): 2–3 years of income-tax returns with computation, financial statements and 12 months of bank statements.
- Property: sale agreement or allotment letter, title documents, approved building plan, and RERA registration for under-construction projects.
Tax benefits under the Income-tax Act, 2025
The Income-tax Act, 2025 applies from 1 April 2026 and carries forward the main home loan benefits, with new section numbers.
- Interest: under the old tax regime, interest on a self-occupied home can be deducted up to ₹2 lakh a year from income under the head "house property".
- Principal: under the old regime, principal repayment is eligible within the overall ₹1.5 lakh limit of Section 123 (earlier Section 80C), along with PPF, ELSS and other options.
- New regime: these deductions are generally not available for a self-occupied home.
Home loan balance transfer: when it is worth it
- Ask your lender first. Many banks will reduce your spread for a small conversion fee — often much cheaper than switching.
- Count every cost. Processing fee, legal and valuation charges and, in some cases, stamp duty on the new mortgage.
- Remaining tenure matters. A common rule of thumb is that a switch pays off when the rate gap is meaningful and many years of the loan remain.
- Avoid unnecessary top-ups. A balance transfer with a large top-up loan can wipe out the saving.
Buying a home in Dehradun: local points to check
All the lenders in the table have branches or offices in Dehradun, so you can usually deal with a local branch. A few Uttarakhand-specific points:
- Approved maps. Lenders check that the building plan is approved by the relevant authority, such as the Mussoorie Dehradun Development Authority (MDDA) in its area.
- RERA. Under-construction projects should be registered with Uttarakhand RERA. Check the registration and project timeline before you book.
- Circle rates and registration. Stamp duty is calculated on the higher of the agreement value and the government circle rate for that area. Registration happens at the local sub-registrar's office. Budget for these costs separately; most lenders do not finance them.
- Valuation. The lender's own valuation decides the loan amount. In fast-growing areas around Dehradun, valuation can be lower than the asking price, so keep a buffer for the down payment.
We help families in Dehradun, across Uttarakhand and in Delhi NCR plan down-payment savings through mutual funds. Prefer Hindi? Read होम लोन ब्याज दर.
Frequently asked questions
Which bank has the lowest home loan interest rate?
In our table, collected before the 7 Oct 2026 repo hike, the lowest advertised starting rate is 7.15%. Starting rates are usually for borrowers with high credit scores, stable income and a lower loan-to-value ratio, so the rate you are offered may be higher.
Will home loan rates go up after the RBI hike?
Most likely, for floating-rate loans. Bank home loans are linked to an external benchmark, usually the repo rate, which rose 0.25% to 5.50% on 7 Oct 2026. Lenders typically pass this on at the next reset. Housing finance companies use their own benchmarks and may revise rates on their own schedule.
How much home loan can I get?
It depends on your income, existing EMIs, age, credit score and the property value. RBI caps the loan at 90% of the property value up to ₹30 lakh, 80% for ₹30–75 lakh, and 75% above ₹75 lakh. Lenders also limit total EMIs to a share of your income, typically around 40–50%.
Can I prepay my home loan without a penalty?
Yes, for floating-rate home loans to individuals. Under the RBI Pre-payment Charges Directions effective 1 January 2026, lenders cannot charge foreclosure or part-prepayment fees on floating-rate loans to individuals for non-business purposes. Fixed-rate loans may still carry a charge.
What tax benefits are available on a home loan?
Under the old tax regime, interest on a self-occupied home can be deducted up to ₹2 lakh a year, and principal repayment counts within the ₹1.5 lakh limit of Section 123 (earlier Section 80C). The new regime does not allow these deductions for a self-occupied home. Please verify with your tax professional.
When does a home loan balance transfer make sense?
When the rate gap is meaningful and many years of tenure remain, so that interest saved clearly exceeds the switching costs (processing fee, legal and valuation charges, and any stamp duty). First ask your current lender for a rate reduction; it is often cheaper.
Do lenders in Dehradun need MDDA-approved maps?
Lenders generally check that the building plan is approved by the relevant authority — in much of Dehradun that is the Mussoorie Dehradun Development Authority (MDDA) — and that under-construction projects are registered with Uttarakhand RERA. Check approvals before you pay a booking amount.
Ready to start your investment journey?
Visit us at Ghanta Ghar, Dehradun, or talk to us on WhatsApp. We serve investors across Uttarakhand and Delhi NCR.