January 2026 Home Loan Interest Rates: Public Sector Banks, Private Lenders, and HFCs Offer Rates Between 7-12.6%

Banks and housing finance companies (HFCs) in India offer home loan interest rates ranging from 7-12.6% in January 2026. Public sector banks offer the lowest starting rates, around 7.10%, while private banks have higher ceilings, with ICICI Bank starting at 7.65%. HFCs offer competitive entry rates, with LIC Housing Finance and Bajaj Housing Finance starting from 7.15%. Borrower profile, loan size, and credit score significantly impact the final rate.