Looking for an affordable home loan? Interest rates at these 12 public sector banks start from 7%.

As of October 2026, home loan interest rates at public sector banks start at 7%. Before purchasing a home, compare the rates, EMIs, processing fees, and credit score requirements of these 12 banks to make the right choice.

If you are planning to take a home loan to buy a house, simply calculating the property price and down payment isn't enough. You also need to consider the monthly EMI amount you will have to pay over the coming years.

Even a slight difference in the bank's interest rate can impact your finances in the long run. This is why home loan offers from public sector banks are currently in the spotlight.

Rates starting at 7% at two public sector banks

According to available data, the starting interest rate for home loans is 7% at Bank of Maharashtra and Central Bank of India. Meanwhile, rates at other public sector banks vary; the starting rate is 7.25% at the State Bank of India and 7.10% at Bank of India.

At Canara Bank, the starting rate may vary depending on the loan amount. Punjab National Bank also shows variations in starting interest rates across different loan categories. Therefore, it is not advisable to make a decision based on the rate of just one bank.

What is notable about the offers from these 12 banks?

The public sector banks included here are Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, Punjab & Sind Bank, Punjab National Bank, SBI, UCO Bank, and Union Bank of India. While some of these banks specify a starting rate, Indian Overseas Bank's rate begins at 7.20%. The actual rate may vary based on the customer profile and loan terms.

Consider these costs before applying

Before selecting a home loan, gather information about the bank's processing fees, the repayment tenure, and the terms regarding early or delayed payments. Also, assess how comfortably you can manage the EMI based on your monthly income.

Your credit score plays a crucial role

Banks generally consider a customer's income, employment status, credit score, and past loan repayment history. Consequently, not every applicant may qualify for the lowest interest rate advertised. Therefore, before making a final decision, inquire about the applicable interest rates and all associated charges from various banks. This will help you plan your home-buying budget more effectively.