Synopsis
Home loan interest rates: Choosing a home loan involves comparing floating and fixed interest rates. Floating rates can decrease but also increase with RBI policy. Fixed rates offer stable EMIs, which can be beneficial as income grows. ET Wealth Online presents the 10 lowest fixed and floating home loan rates from banks as of May 25, 2026.
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When we take a floating or a fixed rate home loan, we search for banks offering the lowest rates. But we also want to know which type of loan will help us repay the lowest amount- floating or fixed rate?
Floating vs fixed interest rate home loan
Floating interest rate and fixed rate home loans have their own advantages and disadvantages. While in a floating rate loan, there is always a chance that the bank may decrease the rate, in a fixed rate loan, there is no such option as the equated monthly instalment (EMI) of the loan remains the same from the beginning to the end of the loan tenure.
However, in a floating rate home loan such as repo rate-linked, if the Reserve Bank of India (RBI) increases the repo rate and banks reciprocate to increase their floating rate home loan interest rates, borrowers have no option but to repay a higher amount.
On the other hand, a fixed EMI may remain the same for a long term, but when the income of a person increases, they may find it easy to repay.
For a borrower, the choice may depend on loan conditions, their repayment capacity and comfortability with repaying either type of loan.
In this write-up, ET Wealth Online will take you through the 10 lowest fixed and floating home loan interest rates offered by banks. (Interest rate data as per Paisabazaar as on May 25, 2026)
10 lowest fixed home loan interest rates
Lender
Fixed Interest Rate (% p.a.) Punjab National Bank 8.20% - 10.75% Canara Bank 8.50% - 10.75% Bank of Baroda 8.75% - 10.00% ICICI Bank 8.90% - 11.20% Indian Bank 9.20% - 9.95% Bank of India 10.65% - 12.55% IDBI Bank 10.90% - 12.00% Indian Overseas Bank 11.00% onwards Union Bank of India 11.40% - 12.65% Axis Bank 14.00%
10 lowest floating home loan interest rates
Lender
Floating Interest Rate (% p.a.) Bank of India 7.10% - 10.25% Indian Overseas Bank 7.10% - 9.75% Union Bank of India 7.15% - 9.60% Canara Bank 7.15% - 10.00% Indian Bank 7.15% - 9.55% Bank of Baroda 7.20% - 9.25% Punjab National Bank 7.20% - 9.25% IDBI Bank 7.35% - 11.95% ICICI Bank 7.50% onwards Axis Bank 8.00% - 11.90%
Bank-wise comparison of fixed vs floating home loan interest rates
Lenders
Interest Rates (% p.a.) Processing Fees Floating Fixed Bank of Baroda 7.20 - 9.25 8.75 - 10.00 0.25% - 0.50% (Rs. 8,500 - Rs. 25,000) Union Bank of India 7.15 - 9.60 11.40 - 12.65 0.50% (Maximum Rs. 15,000) Punjab National Bank 7.20 - 9.25 8.20 - 10.75 0.35% (Rs. 2,500 - Rs. 15,000) Bank of India 7.10 - 10.25 10.65 - 12.55 0.35% (Rs. 3,500 - Rs. 30,000) Canara Bank 7.15 - 10.00 8.50 - 10.75 0.25% (Rs. 750 - Rs. 5,000) IDBI Bank 7.35 - 11.95 10.90 - 12.00 Rs. 10,000 - Rs. 17,500 Indian Overseas Bank 7.10 - 9.75 11.00 onwards 0.50% (Maximum Rs. 25,000) Indian Bank 7.15-9.55 9.20 - 9.95 1% (Rs. 1,500 - Rs. 15,000) Axis Bank 8.00 - 11.90 14 Up to 2% ICICI Bank 7.50 onwards 8.90 - 11.20 Up to 2%
Frequently Asked Questions (FAQs) about fixed vs floating interest rate home loan
What is a home loan with a floating interest rate?
As per the HDFC Bank website, “A floating interest rate is subject to periodic reviews and adjustments based on prevailing market conditions or an underlying benchmark rate. The interest rate may vary during the loan tenure.”
It is linked to a base rate offered by lenders and has a floating component, so changes in the base rate affect the loan’s interest over time.
What is a home loan with a fixed interest rate?
A fixed interest rate remains constant throughout the entire loan tenure. That means your Equated Monthly Instalment (EMI) amount will not change, regardless of fluctuations in market interest rates.