Buying a home is one of the biggest financial decisions in life. Choosing the right home loan or mortgage can save lakhs (or thousands of dollars) in interest over the loan tenure. With banks offering competitive rates in 2026, this is the best time to compare and secure a low-interest home loan.
This guide explains home loan interest rates, eligibility, documents, and how to get fast approval.
What Is a Home Loan / Mortgage?
A home loan (also called a mortgage) is a secured loan provided by banks or financial institutions to:
- Buy a new or resale house
- Construct a home
- Renovate or extend property
- Refinance an existing mortgage
Best Home Loan Interest Rates (2026)
| Lender | Interest Rate (p.a.) | Loan Amount | Tenure |
|---|---|---|---|
| SBI Home Loan | 8.40% – 9.80% | Up to ₹10 Cr | Up to 30 years |
| HDFC Ltd | 8.50% – 9.90% | Up to ₹15 Cr | Up to 30 years |
| ICICI Bank | 8.60% – 10% | Up to ₹10 Cr | Up to 30 years |
| Axis Bank | 8.75% – 10.15% | Up to ₹5 Cr | Up to 30 years |
Types of Home Loans
- Home Purchase Loan
- Home Construction Loan
- Home Improvement Loan
- Balance Transfer / Refinance Loan
- Land Purchase Loan
Eligibility Criteria
- Age: 21–65 years
- Stable income source
- Good CIBIL score (700+)
- Property must be legally approved
Documents Required
- PAN & Aadhaar
- Income proof (salary slips / ITR)
- Bank statements
- Property documents
How to Get Low-Interest Home Loan
✔ Maintain high credit score
✔ Choose longer tenure wisely
✔ Compare fixed vs floating rates
✔ Negotiate processing fees
Home Loan vs Rent
| Factor | Home Loan | Rent |
|---|---|---|
| Asset Creation | Yes | No |
| Tax Benefits | Yes | No |
| Long-Term Cost | Lower | Higher |
Tax Benefits on Home Loan
- Section 80C: Principal repayment
- Section 24(b): Interest deduction
- Section 80EE/80EEA (if applicable)
Conclusion
A well-planned home loan or mortgage helps you own a house while managing finances smartly. Always compare interest rates, tenure, and lender reputation before applying.