Home Loan comparison 2026: Compare Interest Rates, EMI, Charges & Best Banks in India

With interest rates starting from 7.10% p.a. and financing of up to 90% of the property value, home loans make owning a house more affordable in 2026. Some of the leading home loan lenders in India include State Bank of India, HDFC Bank, Bank of Baroda, ICICI Bank, and more. Lenders determine home loan interest rates based on factors such as your CIBIL score, employment type, income, repayment capacity, and loan amount. Borrowers should choose the best home loans based on interest rates, EMI, processing fees, loan tenure, and other charges before applying. This page is a borrower’s guide to home loan comparison in 2026, helping borrowers compare different banks and choose the best home loan for their needs.

Home Loan Comparison Overview

Borrowers can choose the best home loan based on their borrowing needs, interest rates, repayment tenure, eligibility criteria, and loan features. Comparing lenders can help you find the best loan option for yourself. A quick home loan comparison overview is as follows: 

Why Compare Home Loans Before Applying?

It is important to evaluate interest rates, loan amounts, repayment terms, and borrowing costs before applying for a home loan. A proper comparison can help borrowers in the following ways:

• Long-term savings: Even a small 0.5% difference in interest rates can reduce the total interest payable over the loan tenure, leading to long-term savings.
• Spotting hidden fees & charges: Comparing lenders helps identify additional hidden costs such as processing fees, legal charges, technical valuation fees, foreclosure charges, and other hidden expenses.
• Finding favourable LTV ratios: Different lenders offer different Loan-to-Value ratios, which determine how much of the property value can be financed through the loan. Depending on your lender and loan amount, lenders often finance up to 90% of the property’s value.
• Balancing EMI & repayment tenure: Comparing tenure options helps borrowers choose an EMI that aligns with their repayment capacity and financial plans.
• Evaluating fixed vs floating rates: Comparing fixed and floating interest rate options helps borrowers understand interest rate risk and identify payment methods that fit them best based on market conditions.

Home Loan Comparison Factors

Home loan options should be compared based on factors such as interest rates, Annual Percentage Rate, processing fees, loan tenure, and repayment flexibility to determine the true cost. Evaluating the total cost of borrowing and penalties can help get an estimate of the true home loan cost. One can compare their home loans through:

• Interest rates & rate types: This process involves home loan interest rate comparison along with their fixed and floating rate options, as these can directly affect your EMI and total repayment amount over the loan tenure.
• Loan tenure & EMI affordability: Assess different repayment tenures to find an EMI amount that best fits your monthly budget and financial plan.
• Processing fees & hidden charges: Check for additional costs such as home loan processing fees, legal charges, technical valuation fees, administrative charges, and documentation costs, as these often increase the total loan cost.
• Down payment & Loan-to-Value ratio: Compare the percentage of property value financed by lenders and calculate the down payment requirement accordingly.
• Prepayment & foreclosure charges: Review whether lenders charge penalties for partial prepayments, foreclosures, or balance transfers, especially for fixed-rate home loans.
• Value-added services & repayment flexibility: Check whether the lenders offer benefits such as overdraft facilities, top-up loans, balance transfer options, online account management, and flexible repayment options, as these can help you in the long run.

Home Loan Interest Rate Comparison by Banks

The major home loan lenders in India include SBI, HDFC Bank, ICICI Bank, Axis Bank, Bank of Baroda, Bajaj Housing Finance, and more. Now that we understand the factors to compare with, let’s take a look at the home loan interest rate comparison by lenders:

Note: Interest rates and charges are indicative and vary based on credit score, income, loan amount, and lender policies.

Public Sector Banks vs Private Banks vs NBFCs

Home loan providers in India are divided into Public Sector Banks, Private Banks, and Non-Banking Financial Companies, with each category differing in interest rates, approval speed, eligibility, and flexibility. 

Fixed vs Floating Interest Rate comparison

Home loan interest rates in India are available in two types: fixed- and floating-rate. Choosing the right option depends on market conditions, risk tolerance, and repayment planning.

Home Loan EMI Comparison

Home loan EMIs vary based on loan amount, interest rate, and repayment tenure. Where a higher tenure reduces EMI but increases total interest outgo, a higher interest rate increases the total borrowing cost. An estimated home loan EMI calculation is as follows:

EMI comparison at Different Loan Amounts

Note: EMI values are approximate and calculated using standard amortisation assumptions 

EMI comparison at Different Tenures

Note: EMI values are approximate and calculated using standard amortisation assumptions.

Home Loan Approval Time Comparison

The approval time for home loans varies across lenders based on their verification process, documentation requirements, and level of digitalisation. While private banks and NBFCs offer faster processing of applications, public sector banks take longer:

Note: These timelines are on average. Approval time depends on credit score, income stability, property documents, and verification speed.

Home Loan Balance Transfer: When and Why to Do It

A home loan balance transfer allows borrowers to transfer their existing home loan from one lender to another to take advantage of lower interest rates, better repayment terms, and improved service. It helps reduce the total EMI, but it should be done after evaluating the related costs and benefits.

When Should You Opt for a Balance Transfer?

• When interest rates drop to a huge extent
• When a large loan balance is still pending
• When the EMI burden becomes high
• When you want better loan features.

Government Schemes That Affect Home Loan Comparison

Government housing schemes and tax benefits reduce the total cost of a home loan. These benefits reduce EMIs, provide interest subsidies, and ultimately lower the total repayment amount. The leading government home loan schemes include PMAY U 2.0, PMAY G, and certain state-specific schemes.

PMAY Subsidy comparison

Under the Pradhan Mantri Awas Yojana, eligible borrowers can receive interest subsidies of up to ₹1.80 lakhs based on their income category and eligibility. Here is an income-wise PMAY subsidy benefit table to help:

Note: PMAY-U 2.0 benefits apply to EWS & LIG households with family income up to ₹9 lakh, and benefits vary by income category.

Tax Benefits on Home Loans

Home loan borrowers in India can claim tax deductions under the Income-tax Act, 1961, thereby reducing the total cost of the loan. These benefits apply to both principal repayment and interest payments, subject to eligibility conditions, with the details as follows:

Find the Right Home Loan with NoBroker

Finding the right home loan doesn’t have to be complicated. The process involves comparing home loans, checking eligibility, understanding EMIs, and choosing the best option based on your budget and financial plans. With NoBroker Home Loan Services, you can compare offers from leading banks and NBFCs, check your eligibility, and get end-to-end assistance throughout the process. NoBroker is the one-stop solution for home loans and home loan-related services.