New Delhi: The recent RBI rate cut has started a flurry of interest rate cuts in scheduled banks. Following the rate cut, several public sector banks have slashed their interest rates for home loans. The repo rate has a direct correlation with home loan interest rates, as the latter is directly proportional to the former. A lower repo rate translates into lower interest rates on home loans and other loans (RLLR), thereby borrowers paying less and having lower EMIs (equivalent monthly installments).
Check New Home Loan Rates
Taking the baton, Punjab National Bank, Bank of Baroda, Bank of India, and Indian Bank have announced reductions in their home loan rates by 50 basis points. Following the lead, on 11th June 2025, Canara Bank, Union Bank of India, and Indian Overseas Bank also announced reductions in their lending rates. The reduction of 50 basis points has been observed across all the above-mentioned banks.
The following table includes the new home loan rates for the top 10 banks that are offering the lowest interest rates. The new rates are ranging between 7.85 percent and 9 percent across all the banks, along with the documents that are needed for applying for home loans.
| Bank | Starting Interest Rate (p.a.) | Processing Fees |
| Union Bank of India | 7.85% p.a. onwards | 0.50% of the loan amount with a maximum of Rs.15,000 + GST |
| Bank of Baroda | 8.00% p.a. to 9.50% p.a. | Rs. 5000 onwards (Processing fee depends on the loan variant and amount.) |
| Central Bank of India | 7.85% p.a. onwards | 0.50% up to a maximum of Rs.20,000 + GST |
| Bank of India | 8.40% p.a. onwards | Rs.2,500 onwards (Processing fee is dependent on loan amount and variant) |
| State Bank of India | 8.00% p.a. onwards | 0.35% of the loan amount plus GST. Min Rs.2000 + GST up to Rs.10,000 + GST |
| LIC Housing Finance | 8.00% p.a. onwards | Tiered: Up to Rs.15,000 to Rs.50,000 + GST based on loan amount |
| Canara Bank | 7.90% p.a. onwards | 0.50% (Min Rs.1500 + GST up to Max Rs.10,000 + GST) |
| Punjab and Sind Bank | 8.15% p.a. onwards | Contact the bank |
| Bank of Maharashtra | 7.85% p.a. onwards | Contact the bank |
| Punjab National Bank | 8.00% p.a. onwards | 0.35% or Rs.2,500, whichever is higher, up to Rs.15,000 |
Documents to be required for applying for a home loan
One must furnish all the important documents before applying for the home loans. Let us see what the documents are that one would need to get a home loan
1. Loan application form (to be obtained from the bank or from website)
2. Passport-sized photographs
3. Identify proof (Aadhar, Voter ID)
4. Residential proof
5. Bank account statement/passbook for the previous 6 months.
6. Signature verification by bankers of the applicant.
7. Liabilities statement; personal assets
8. Detailed property assessment.
9. Salary certificate (original) from employer. (for salaried individuals)
10. Form 16/IT Returns for the past 2 financial years. (for salaried individuals)
11. IT Returns/Assessment Orders: copies of the last 3 years. (applicable to self-employed professionals only)
12. Challans as proof of advance income tax payment (applicable to self-employed professionals only)
13. Proof of business address for non-salaried individuals. (applicable to self-employed professionals only)
14. IT returns/assessment orders copies of the last 3 years. (Businessmen having their own enterprise)
15. Challans as proof of advance income tax payment (Businessmen having their own enterprise)
Following the recent RBI repo rate cut, several Indian banks have significantly reduced their home loan interest rates. Top lenders like Union Bank of India, Bank of Baroda, and Canara Bank now offer rates as low as 7.85%. The article details the new rates from the top 10 banks, along with required loan application documents. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
