Best Home Loan Interest Rates September 2025 | Compare & Save
Check the best home loan interest rates in September 2025. Compare SBI, PNB, BoI & more to find the lowest EMI and save big on your dream home.
HOME LOANFINANCE
5/8/20243 min read
Best Home Loan Interest Rates in September 2025 – Compare & Save Today
Buying our dream home is very much exciting—but we need to choose the right home loan. The good news is that , September 2025 has brought some of the lowest home loan interest rates we’ve seen in recent years. With banks like Central Bank Of Indi , PNB, Bank of India, SBI, and others reducing their interest rates, and this is a great time to compare lenders and lock in a better deal.
Today, we’ll cover the best home loan interest rates in September 2025, why they matter, and how you can get the lowest rate possible.
Why September 2025 is Important for Home Loan Borrowers
Central Bank Of India (CBI) , Punjab National Bank (PNB) and Bank of India (BoI) reduced their MCLR (Marginal Cost of Funds based Lending Rate) by 5–15 basis points and Repos bases lending rates by 5-15 basis points effective September 1, 2025 , resulting in lower EMI .
RBI has kept the repo rate unchanged at 5.50%, but due to competition in the market and looking into upcoming festive season banks have kept the home loan interest rates lowest .
👉 Bottom line: If you’re planning to take a home loan, September 2025 is the right time to compare and negotiate.
Best Home Loan Interest Rates in September 2025
Here’s a quick look at the lowest home loan interest rates offered by top banks and housing finance companies this month:
Bank / Lender Starting Interest Rate (Sep 2025)
Central Bank of India 7.35% p.a. onwards
https://www.centralbankofindia.co.in/en/retail-scheme-interest
Union Bank of India 7.45% p.a. onwards
https://www.unionbankofindia.co.in/en/Details/home-loan-interest-rate
Bank of Baroda 7.45% p.a. onwards
https://www.bankofbaroda.in/interest-rate-and-service-charges/retail-loans-interest-rates
State Bank of India (SBI) 7.50% p.a. onwards
Punjab National Bank (PNB) 7.45% p.a. onwards (after cut)
https://pnb.bank.in/Retail-Advances-interst-rate-on-advances-linked-to-mclr.html
Bank of India (BoI) ~7.35% p.a. onwards
https://bankofindia.co.in/home-loan/star-home-loan
Non-Bank HFCs (like Bajaj, LIC, etc.) ~8.00% p.a. or lower
(Note: Exact rates depend on credit score, loan amount, and loan-to-value ratio.)
Why Home Loan Rates Are Falling
RBI hasn’t cut the repo rate recently, but banks are cutting interest rates to stay competitive. This is due to :
Lower bond yields and borrowing costs.
Festive season offers to boost home loan demand.
High competition between banks .
👉 This means you, the borrower, can benefit from reduced EMIs if you choose wisely.
Tips to Get the Best Home Loan Rate in September 2025
Check your CIBIL score – Aim for 750+ to get the lowest rate.
Compare multiple banks & HFCs – Don’t settle on the first offer.
Choose floating rate loans – In a falling rate environment, they save you more.
Use festive offers & negotiations – Many banks give special discounts in September–October.
Add a co-applicant – Women co-borrowers often enjoy extra concessions.
Increase your down payment – A lower Loan-to-Value (LTV) ratio = lower interest rate.
Example: EMI Savings in September 2025
Let’s say you take a ₹30 lakh loan for 20 years:
At 7.35% p.a., EMI ≈ ₹23,893
At 8.00% p.a., EMI ≈ ₹25,093
👉 That’s a difference of ₹1,200 per month or ₹2.80 lakh saved over 20 years—just by choosing the right bank this September.
Final Thoughts
If you’re house-hunting or planning to takeover, September 2025 is the perfect time to act. With banks like Central Bank of India offering rates starting around 7.35% p.a., locking in your loan now can save you lakhs in the long run.
Pro Tip: Always compare at least 2–3 lenders before finalizing, and don’t hesitate to negotiate. A small drop in interest rate means big savings over the years.
✅ Paisekipanchayat.in takeaway:
The best home loan interest rates in September 2025 range from 7.35% to 7.60% for public sector banks, while HFCs start around 8%. With smart planning and a good credit score, you can grab the lowest deal available today
FAQs on Best Home Loan Interest Rates in September 2025
1. What are the best home loan interest rates in September 2025?
The best home loan interest rates in September 2025 start at 7.35% p.a. with banks like Central Bank of India
2. Which bank is offering the lowest home loan rate in September 2025?
As of September 2025, Central Bank of India is offering the lowest home loan rates at 7.35% p.a.
3. Did PNB and Bank of India cut home loan rates in September 2025?
Yes. Both PNB and Bank of India reduced their MCLR rates effective September 1, 2025, by 5–15 basis points, lowering home loan EMIs for new and existing borrowers.
4. How can I get the lowest home loan interest rate in 2025?
To get the best rate:
Maintain a credit score of 750+
Compare multiple banks & HFCs
Opt for floating rate loans
Apply with a co-applicant (preferably a woman)
Take advantage of festive season offers
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5. Are home loan interest rates expected to fall further in 2025?
While the RBI repo rate is stable at 5.50%, banks are cutting lending rates to attract borrowers. Rates may drop slightly more during the festive season, but much depends on inflation and RBI policy.