Nine major Indian banks compete aggressively for home loan business in 2026: four PSUs (SBI, PNB, BoB, Canara) and five private banks (HDFC, ICICI, Axis, Kotak, IDFC FIRST). Rates cluster in a narrow 8.50%-9.00% band for CIBIL 760+ salaried borrowers, so processing fees, OD variants, turnaround speed, and pre-approved relationship offers usually decide. This comparison pulls the FY 2026-27 rate card for all nine into one table so you can shortlist before running numbers in the bank-specific EMI calculators.
Rate comparison — 9 banks, CIBIL 760+ salaried, FY 2026-27
| Bank | Govt/PSU/Defence | Private salaried | Self-employed | Processing fee |
|---|---|---|---|---|
| SBI | 8.50% | 8.75% | 8.95% | 0.40-0.50% (flat ₹10K promos) |
| PNB | 8.50% | 8.65% | 8.85% | 0.35% (lowest among majors) |
| BoB | 8.50% | 8.65% | 8.85% | 0.50% (₹7.5-10K flat promos) |
| Canara | 8.55% | 8.70% | 8.90% | 0.50% |
| HDFC | 8.75% | 8.85% | 8.95% | 0.50% |
| ICICI | 8.75% | 8.90% | 9.00% | 0.50% (often flat for Insta) |
| Axis | 8.75% | 8.90% | 9.00% | 1.00% (negotiable) |
| Kotak | 8.75% | 8.90% | 9.00% | 0.50% |
| IDFC FIRST | 8.85% | 9.00% | 9.10% | 1.00% (flat ₹10-15K promos) |
Women borrowers at PSU banks get a 5-bps additional concession across all tiers. Privy League / Burgundy / Imperia premium banking customers at private banks get preferential 10-25 bps pricing via their RM.
Product variant matrix
| Bank | OD-linked variant | Affordable / Special | Max tenure |
|---|---|---|---|
| SBI | MaxGain | SBI Shaurya (defence), women concession | 30 years |
| PNB | — | PNB Awas (PMAY-CLSS bundled) | 30 years |
| BoB | Baroda Home Loan Advantage | Women concession | 30 years |
| Canara | Canara Smart Housing | Canara Housing under PMAY | 30 years |
| HDFC | HDFC Plus (hybrid) | Pre-approved for existing customers | 30 years |
| ICICI | Money Saver | Express Home Loan (8-min digital) | 30 years |
| Axis | Axis Power | Axis Asha, Happy Ending 12-EMI waiver | 30 years |
| Kotak | Kotak Home Saver | Privy League preferential pricing | 25-30 years |
| IDFC FIRST | — | Balance Transfer + Top-Up (aggressive) | 30 years |
Decision framework — which bank for which borrower?
Govt / Defence / PSU employees
Winner: SBI or PNB (tied at 8.50% + lowest processing fee at PNB). If you already hold a salary account, apply at that bank for relationship benefits. See SBI home loan guide or PNB home loan guide.
Private-sector salaried with existing HDFC / ICICI / Axis / Kotak relationship
Winner: Your existing bank’s pre-approved Insta offer. Rates are typically 15-25 bps below walk-in pricing, processing fees often waived or flat. ICICI Express (8 min) and HDFC Insta (24-48 hr) are the fastest digital sanctions. See HDFC · ICICI · Axis · Kotak guides.
First-time buyers, sub-₹45L property, PMAY eligible
Winner: Axis Asha or PNB Awas — both bundle PMAY-CLSS subsidy (up to ₹2.67L) with lower processing fees and relaxed income norms. The subsidy reduces principal upfront, dramatically lowering effective rate to 5-6% range for eligible EWS/LIG buyers. See Axis Asha details.
Surplus-heavy professionals (doctors, freelancers, CAs)
Winner: OD-linked home loan. Top picks in order: SBI MaxGain, Axis Power, Kotak Home Saver, BoB Home Loan Advantage, ICICI Money Saver. 25 bps rate premium over vanilla, but surplus balance offsets daily interest while remaining liquid. Worth it if average parked balance ≥ 10% of outstanding. Mechanics identical across variants — pick based on where you already bank.
Women borrowers
Winner: PSU bank (SBI / PNB / BoB / Canara). 5-bps automatic concession saves ~₹1.2L over 20 years on a ₹50L loan. Confirm women applicant is primary (not just co-applicant) for full concession. Private banks rarely publish women-specific concessions — negotiate case-by-case.
Balance transfer from expensive NBFC / HFC
Winner: IDFC FIRST Balance Transfer + Top-Up (aggressive acquisition pricing, often 15-25 bps below market). HDFC / ICICI are also competitive for BT-plus-new-funding. See our balance transfer break-even guide before committing.
Rural / Tier-3 / semi-urban property
Winner: PSU banks (SBI, PNB, BoB, Canara). Private banks struggle with title vetting and technical evaluation outside metros. PSUs underwrite more flexibly on non-standard properties, though sanction turnaround is slower (7-10 days vs private 3-5 days).
Large-ticket loans > ₹1 Cr
Winner: HDFC (post-merger scale, branch-level relationship underwriting) or SBI (highest LTV reliability). Private-bank Priority / Wealth / Imperia relationships get preferential 15-25 bps pricing via RM — always use the RM route for ₹1Cr+ loans, never walk-in.
Total-lifetime-cost comparison — ₹50L, 20 years
Rate alone is misleading. Here’s total EMI + total interest + closing cost for a ₹50L loan, 20-year tenure, CIBIL 760+ private salaried across all 9 banks:
| Bank | Rate | Monthly EMI | Total interest | All-in closing |
|---|---|---|---|---|
| SBI | 8.75% | ₹44,186 | ₹56.05 L | ~₹55K |
| PNB | 8.65% | ₹43,854 | ₹55.25 L | ~₹35K |
| BoB | 8.65% | ₹43,854 | ₹55.25 L | ~₹45K |
| Canara | 8.70% | ₹44,020 | ₹55.65 L | ~₹45K |
| HDFC | 8.85% | ₹44,520 | ₹56.85 L | ~₹60K |
| ICICI | 8.90% | ₹44,688 | ₹57.25 L | ~₹60K |
| Axis | 8.90% | ₹44,688 | ₹57.25 L | ~₹80K (list) / ₹45K (promo) |
| Kotak | 8.90% | ₹44,688 | ₹57.25 L | ~₹55K |
| IDFC FIRST | 9.00% | ₹45,025 | ₹58.05 L | ~₹80K (list) / ₹40K (promo) |
PNB and BoB win on absolute cost (~₹55.25L interest + ₹35-45K closing = ₹55.6-55.7L). HDFC/ICICI/Axis at similar mid-band pricing; IDFC FIRST costs ~₹2.5L more than PNB over the lifetime. For Govt/PSU/Defence eligibility, PNB at 8.50% drops interest to ₹53.5L — saving ~₹5L over IDFC FIRST.
Tax savings — identical across all banks
Home loan tax benefits are lender-agnostic. Under the old regime, any of these 9 banks’ home loans qualify for:
- Section 24(b): Interest up to ₹2L/FY (self-occupied)
- Section 80C: Principal up to ₹1.5L/FY (shared with EPF / PPF / ELSS)
- Section 80EEA: First-time buyers on sub-₹45L stamp-value properties get additional ₹1.5L interest deduction
On a ₹50L loan, a 30%-slab old-regime taxpayer saves ~₹85K-1L annually in the first decade. These deductions often tip the regime choice — see our new vs old regime comparison.
How to actually apply — pre-approval sequence
Don’t apply to 9 banks simultaneously — each hard inquiry drops your CIBIL by 3-5 points, and 9 inquiries in 30 days signals distress to underwriters. Instead:
- Shortlist 3 banks based on your profile + this comparison. Typically: your salary-account bank + SBI/PNB (PSU cheapest option) + one private alternative.
- Get pre-approved in-principle offers via each bank’s digital pre-check (soft inquiry only, no CIBIL impact). HDFC Insta, ICICI Express, Axis 24×7, SBI YONO all support this.
- Compare the 3 pre-approved offers on rate, processing fee, tenure flexibility, and sanction timeline. Use the bank-specific EMI calculators to model total lifetime cost.
- Apply formally to 1 winner (hard inquiry + full docs). If rejected at formal stage, apply to #2. Maximum 2 hard inquiries is safe.
Common mistakes to avoid
- Chasing the headline rate without comparing total cost. A 8.50% loan with 1% processing beats an 8.40% loan with 1.5% processing only after year 3 break-even. Always model total outgo including closing costs.
- Ignoring pre-approved offers. Your own salary-account bank’s pre-approved offer is almost always 15-25 bps cheaper than walk-in. Check NetBanking/iMobile/YONO before filling any other form.
- Taking the full 30-year tenure by default. Almost doubles lifetime interest vs 20 years. Start at 20 and stretch only if FOIR forces it.
- Accepting bundled credit-life insurance. All 9 banks bundle partner insurance into loan amount. You pay interest on it for full tenure. Reject if term insurance already in place.
- Not negotiating the processing fee. Every bank has negotiation room, especially for CIBIL 780+ salaried at top corporates. Ask for waiver as part of sanction negotiation — you won’t get it by not asking.
- Applying at 9 banks simultaneously. Hard inquiries cumulatively drop CIBIL by 30+ points within a month. Use pre-approved soft inquiries for comparison; apply formally to only 1-2 banks.
Bottom line — quick picks
- Cheapest absolute rate: PNB or SBI (Govt/PSU eligible) at 8.50%
- Fastest digital sanction: ICICI Express (8 min) or HDFC Insta (24-48 hr)
- Best for surplus-heavy borrowers: SBI MaxGain (largest, most flexible OD)
- Best for first-time affordable buyers: Axis Asha or PNB Awas (PMAY-CLSS bundled)
- Best for balance transfer: IDFC FIRST BT + Top-Up (aggressive acquisition pricing)
- Best for women borrowers: PSU bank (5-bps concession)
- Best for premium banking customers: Your existing bank’s Privy League / Burgundy / Imperia / Wealth channel
Once shortlisted, run exact numbers in the bank-specific EMI calculator for your winner: SBI · PNB · BoB · Canara · HDFC · ICICI · Axis · Kotak · IDFC FIRST.
For full lifetime-outgo analysis (EMI + stamp duty + registration + lifetime tax savings), use our Home Loan Total Cost Calculator.