Best-Buy Home Loans: Top Government Banks with Lowest Interest Rates in 2026
Which government bank is offering the cheapest home loan? See the complete list here: Owning a home is a dream for most Indians, but high home loan interest rates often make it difficult. Even a small difference in interest rates can increase EMIs and total repayment by lakhs over the years. That’s why middle-class families usually prefer government banks for home loans. Public sector banks are known for transparency, lower charges, and trust.
Home Loan Interest Rates of Government Banks:
Here is a comparison of current home loan rates offered by major government banks:
-Bank of India: 7.10%
-Canara Bank: 7.15%
-Punjab National Bank: 7.20%
-State Bank of India: 7.25%
-Punjab & Sind Bank: 7.30%
Bank of India Offers the Lowest Rate
Among all, Bank of India is offering the cheapest home loan at 7.10%. Canara Bank follows closely at 7.15%. SBI’s rate of 7.25% is also competitive, considering its wide network and reliability.
Why Choose Government Banks? Government banks offer clear terms, fewer hidden charges, and sometimes waive processing fees during special offers. They also pass on RBI rate cuts faster to customers.
Important Thing to Remember: A good CIBIL score helps you get a lower interest rate. A score of 750 or above usually qualifies for the best rates, while lower scores may lead to higher interest.
