For home loan borrowers, the decision signals stability. Since most home loans are linked to benchmarks such as the repo rate, an unchanged policy rate means EMIs will remain steady in the near term. Banks are also expected to hold lending rates unless there is a shift in liquidity conditions or policy stance.
“Keeping rates steady means stability for current and future home loan borrowers. EMIs will remain unchanged, which makes planning for the future easier. This is especially good news for people buying homes, who can now move forward with more confidence,” said Anuj Puri, Chairman, ANAROCK Group.
How do home loan borrowers gain from RBI’s decision?
Though the decision does not bring fresh relief, borrowers have already gained from the cumulative 125 basis points reduction in the repo rate since early 2025. These cuts have translated into lower borrowing costs, reduced EMIs, and interest savings over the life of home loans, particularly for those whose loans have fully adjusted to the rate cycle.
So, how does this translate into actual benefit?
According to Adhil Shetty, CEO of BankBazaar.com, “On a ₹50 lakh, 20-year loan, that translates to an EMI saving of around ₹3,050 per month and a lifetime interest saving of approximately ₹7.34 lakh. On a ₹75 lakh loan, the monthly saving is approximately ₹5,800, with total interest savings of around ₹13.94 lakh. A rate hold keeps these gains intact.”
“Those paying 50 basis points or more above current market rates should explore refinancing now,” Shetty said.
What are banks charging for home loans? According to data shared by Policy Bazaar:
Public sector banks
State Bank of India:
Up to ₹30 lakh: 7.25–8.70%
₹30–75 lakh: 7.25–8.70%
Above ₹75 lakh: 7.25–8.70%
Bank of Baroda:
Up to ₹30 lakh: 7.20–9.00%
₹30–75 lakh: 7.20–9.00%
Above ₹75 lakh: 7.20–9.25%
Union Bank of India:
Up to ₹30 lakh: 7.15–9.50%
₹30–75 lakh: 7.15–9.50%
Above ₹75 lakh: 7.15–9.50%
Punjab National Bank:
Up to ₹30 lakh: 7.25–9.10%
₹30–75 lakh: 7.20–9.00%
Above ₹75 lakh: 7.20–9.00%
Bank of India:
Up to ₹30 lakh: 7.10–10.00%
₹30–75 lakh: 7.10–10.00%
UCO Bank:
Up to ₹30 lakh: 7.15–9.25%
₹30–75 lakh: 7.15–9.25%
Above ₹75 lakh: 7.15–9.25%
Bank of Maharashtra:
Up to ₹30 lakh: 7.10–9.90%
₹30–75 lakh: 7.10–9.90%
Above ₹75 lakh: 7.10–9.90%
Indian Overseas Bank:
All slabs: 7.10% onwards
Indian Bank:
Up to ₹30 lakh: 7.15–9.55%
₹30–75 lakh: 7.15–9.55%
Above ₹75 lakh: 7.15–9.55%
Central Bank of India:
Up to ₹30 lakh: 7.10–9.15%
₹30–75 lakh: 7.10–9.15%
Above ₹75 lakh: 7.10–9.15%
Private sector banks
Kotak Mahindra Bank:
All slabs: 7.70% onwards
ICICI Bank:
All slabs: 7.45% onwards
Axis Bank:
Up to ₹30 lakh: 8.00–11.90%
₹30–75 lakh: 8.00–11.90%
Above ₹75 lakh: 8.00–9.10%
HSBC Bank:
All slabs: 7.45% onwards
South Indian Bank:
All slabs: 7.20% onwards
Karur Vysya Bank:
All slabs: 8.50–10.65%
Karnataka Bank:
All slabs: 7.31–11.69%
Federal Bank:
Up to ₹30 lakh: 8.30–10.75%
₹30–75 lakh: 7.30–10.75%
Above ₹75 lakh: 7.30–9.75%
Tamilnad Mercantile Bank:
All slabs: 7.90–9.30%
Bandhan Bank:
All slabs: 8.41–12.58%
RBL Bank:
All slabs: 8.20% onwards
CSB Bank:
All slabs: 8.30% onwards
HDFC Bank:
All slabs: 7.75% onwards
City Union Bank:
Up to ₹30 lakh: 8.25–9.50%
₹30–75 lakh: 8.50–10.00%
Above ₹75 lakh: 8.75–10.50%
Housing finance companies (HFCs)
LIC Housing Finance:
All slabs: 7.15% onwards
Bajaj Housing Finance:
All slabs: 7.15% onwards
Tata Capital:
All slabs: 7.50% onwards
PNB Housing Finance:
All slabs: 7.50% onwards
GIC Housing Finance:
All slabs: 8.20% onwards
SMFG India Home Finance:
All slabs: 10.00% onwards
Sammaan Capital (formerly Indiabulls Housing Finance):
All slabs: 8.75% onwards
Aditya Birla Capital:
All slabs: 7.75% onwards
ICICI Home Finance:
All slabs: 7.50% onwards
Godrej Housing Finance: