Home Loans 2025: From Bajaj Finserv to Tata Capital, Which NBFC Is Offering the Lowest Interest Rate?

If you are planning to buy a new house, one of the most important factors to consider is the interest rate on your home loan. While banks remain a popular choice, non-banking financial companies (NBFCs) are also offering competitive rates to attract borrowers. Leading NBFCs such as Bajaj Finserv, Tata Capital, LIC Housing Finance, and PNB Housing Finance are currently providing loans at rates ranging from 7.35% to 9.50%. Comparing these options can help you find the loan with the lowest EMI for your budget.

Interest Rates Starting at 7.35%

According to data from BankBazaar.com, as of August 15, 2025, NBFCs and housing finance companies are offering home loans with interest rates starting from 7.35% and going up to 9.50%. These rates are comparable to those of major banks. However, unlike bank loans, NBFCs’ rates are not always directly linked to the Reserve Bank of India’s repo rate. This means changes in the RBI’s policy rates may impact NBFC loans differently.

Why the Range Varies

The interest rate you receive depends on several personal factors such as your credit score, monthly income, and repayment capacity. For example, a borrower with an excellent credit history is more likely to get the lowest rate, while someone with higher risk factors may face higher charges.

Top NBFC Home Loan Offers in 2025

1. Bajaj Finserv – Starting at 7.35%

Bajaj Finserv currently offers one of the cheapest home loan options in the market. A loan of ₹50 lakh for 20 years at 7.35% interest comes with an EMI of around ₹39,822. This makes it the most affordable choice among leading NBFCs.

2. LIC Housing Finance – Starting at 7.50%

LIC Housing Finance is another popular option for home buyers. With an entry rate of 7.50%, a ₹50 lakh loan over 20 years results in an EMI of approximately ₹40,280. Its slightly higher cost compared to Bajaj Finserv is offset by the trust factor of LIC, which has a strong brand presence across India.

3. Tata Capital – Starting at 7.75%

Tata Capital begins its home loan offerings at 7.75%. A ₹50 lakh loan for 20 years under this scheme translates to an EMI of about ₹41,047. Backed by the Tata Group, this option is often preferred by borrowers looking for a reliable private sector NBFC.

4. PNB Housing Finance – Starting at 8.25%

PNB Housing Finance loans start at 8.25%, which is slightly higher than Bajaj and LIC. A 20-year loan of ₹50 lakh would mean an EMI of around ₹42,603. While the cost is higher, it remains a popular choice due to its strong network and customer service support.

5. Piramal Capital & Housing Finance – Starting at 9.50%

Piramal Capital is at the higher end of the spectrum, with starting rates at 9.50%. For a ₹50 lakh loan over 20 years, the EMI comes to around ₹46,607. Generally, this option is offered to borrowers with higher risk profiles or limited credit history, making it the most expensive among the top NBFCs.

Key Takeaways for Borrowers

• Bajaj Finserv leads the market with the lowest rate at 7.35%.

• LIC Housing Finance and Tata Capital are solid mid-range options, balancing affordability and trust.

• PNB Housing Finance is slightly costlier but offers strong brand reliability.

• Piramal Capital is the priciest option, suited for higher-risk customers.

Final Word

For anyone considering a home loan in 2025, comparing NBFCs alongside traditional banks can make a big difference in long-term savings. Even a small difference in interest rates—say 0.5%—can translate into lakhs of rupees saved over the tenure of a 20-year loan. Always check your credit score, eligibility, and repayment capacity before finalizing a lender.

By doing thorough research and comparing NBFCs like Bajaj Finserv, Tata Capital, LIC Housing, PNB Housing, and Piramal Capital, you can identify the loan that fits your budget while minimizing your EMI burden.