Public Sector Bank Home Loan Rates — February 2026 Snapshot
Planning to buy your dream home in 2026? Choosing the right bank can save you lakhs of rupees over your loan tenure. Here is a complete, up-to-date comparison of all major public sector bank home loan interest rates as of 18th February 2026, sourced from Paisabazaar.com.
| Bank | Upto ₹30 Lakh | ₹30L – ₹75 Lakh | Above ₹75 Lakh |
|---|---|---|---|
| State Bank of India | 7.25% – 8.70% | 7.25% – 8.70% | 7.25% – 8.70% |
| Bank of Baroda | 7.20% – 9.00% | 7.20% – 9.00% | 7.20% – 9.25% |
| Union Bank of India | 7.15% – 9.50% | 7.15% – 9.50% | 7.15% – 9.50% |
| Punjab National Bank | 7.25% – 9.10% | 7.20% – 9.00% | 7.20% – 9.00% |
| Bank of India | 7.10% – 10.00% | 7.10% – 10.00% | 7.10% – 10.25% |
| Canara Bank | 7.25% – 10.00% | 7.20% – 10.00% | 7.15% – 9.90% |
| UCO Bank | 7.15% – 9.25% | 7.15% – 9.25% | 7.15% – 9.25% |
| Bank of Maharashtra | 7.10% – 9.90% | 7.10% – 9.90% | 7.10% – 9.90% |
| Punjab & Sind Bank | 7.30% – 10.70% | 7.30% – 10.70% | 7.30% – 10.70% |
| Indian Overseas Bank | 7.10% Onwards | 7.10% Onwards | 7.10% Onwards |
| Indian Bank | 7.15% – 9.55% | 7.15% – 9.55% | 7.15% – 9.55% |
| Central Bank of India | 7.10% – 9.15% | 7.10% – 9.15% | 7.10% – 9.15% |
Rates as of 18th February 2026 | Source: Paisabazaar.com
Based on the current data, here are the top 3 banks with the lowest starting interest rates:
🥇 Bank of India / Bank of Maharashtra / Indian Overseas Bank / Central Bank of India — Starting at 7.10%
🥈 Union Bank of India / UCO Bank / Indian Bank — Starting at 7.15%
🥉 Bank of Baroda / State Bank of India / Punjab National Bank — Starting at 7.20% – 7.25%
Pro Tip: The starting rate is only one factor. Always compare processing fees, prepayment charges, and loan tenure flexibility before finalising your bank.
Borrowers who opt for an insurance policy with their home loan get an extra interest rate concession of 0.05%.
Under CRG-Prime, CRG-1 & CRG-2 schemes, Canara Bank offers an additional 5 basis points (0.05%) concession for takeover and ready-to-move home loan proposals, as well as for salaried employees maintaining a salary account with the bank.
Several public sector banks offer an additional concession of 0.05% for women borrowers and 0.10% for takeover loans — making homeownership even more affordable for women applicants.
A lower interest rate doesn’t always mean a cheaper loan. Factor in processing fees (typically 0.25%–0.50%), legal charges, and prepayment penalties.
All rates listed above are floating rates linked to the bank’s MCLR or repo rate. If you expect rates to fall further, floating is beneficial. If you want stability, ask about fixed-rate options.
A CIBIL score above 750 typically qualifies you for the lowest slab rates. Scores below 700 may attract higher interest rates or even rejection.
Before applying, calculate your monthly EMI. For a ₹50 lakh loan at 7.20% for 20 years, your EMI would be approximately ₹39,200/month.
First-time homebuyers should also check eligibility for PMAY (Pradhan Mantri Awas Yojana) for additional interest subsidies of up to ₹2.67 lakh.
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