Home Loan: Big blow to those buying a new house, these 5 banks have made home loans expensive

Home Loan: If you are thinking of buying a new house, then the home loan becoming expensive can be a big shock. In August 2025, SBI, HDFC, Union Bank, Axis Bank, and Karur Vysya Bank have increased interest rates. SBI has increased by 25 bps, HDFC by 35 bps, Union Bank by 10 bps, while Axis and Karur Vysya Bank have increased by 5-5 bps.

Home Loan: People planning to buy a house have received a big blow in the last few days. Many major banks of the country have increased the interest rates on their home loans. This will have a direct impact on those new borrowers who are thinking of taking a bank loan to buy a house right now. Let us know which banks of the country have made home loans expensive?

State Bank of India

State Bank of India (SBI) has increased the interest rate by 25 basis points or 0.25% from August 1, 2025. Now the interest rate range has increased from 7.50% to 8.70%, whereas earlier it was 7.50% to 8.45%. This increase will especially affect those customers who have a low credit score.

HDFC Bank

HDFC Bank has increased the rate by a total of 35 basis points since January this year. The minimum interest rate in January was 8.35%, which has now increased to 8.70%. However, the relief is that this increase will be applicable only on newly approved home loans, it will not affect old customers.

Union Bank of India

Union Bank revised its rates at the end of July 2025. Its minimum interest rate on home loans is now 7.45%, which was earlier 7.35%. This increase is small, but can increase EMI for new borrowers.

Axis Bank

Axis Bank has also made its home loan expensive. Its minimum rate was 8.70% in January, which has increased to 8.75% from March. This is an increase of 5 basis points, which will put an additional burden on new loan takers.

Karur Vysya Bank

Karur Vysya Bank has increased the interest rate by 5 basis points. The interest rate was 8.95% in January, which has now become 9.00%. This is a matter of concern for small borrowers, as there will be a direct impact on EMI.

Big challenges facing home buyers

Continuously rising interest rates are posing challenges for new home buyers. Experts believe that if this trend continues, the demand for home loans may decrease. In such a situation, new buyers should pay special attention to comparing interest rates and future EMI planning before taking a loan.

Disclaimer: India Employment News does not give any suggestion for any purchase or sale related to the stock market. We publish market related analysis quoting market experts and brokerage companies. But take market related decisions only after consulting certified experts.