8 banks offering cheapest repo rate-linked home loan interest rates in April 2025

The repo rate cut announcement by the Reserve Bank of India (RBI) has put the spotlight on home loan interest rates.

As most of the home loans these days are linked to the RBI's repo rate, any cut in the latter leads to a proportional reduction in the home loan interest rates. In other words, both the home loan interest rate and the repo rate are directly proportional.

If you are looking for the cheapest home loan interest rates in April 2025, you should aim for public sector banks as they are currently offering interest rates starting at 8.1% to 8.25%. In contrast, the home loan interest rate for most private sector banks starts at 8.5% or above.

That said, the following is the list of public sector banks offering the cheapest home loan interest rates as of April 9, 2025.

Cheapest home loan interest rates in April 2025

Source: Respective bank websites

The list shows that Union Bank of India, Central Bank of India, and Bank of Maharashtra are currently offering the cheapest home loan interest rates starting at 8.1%. They are followed by Canara Bank, Bank of Baroda, and Punjab National Bank, with loans starting at 8.15% interest rates.

The State Bank of India and Punjab & Sind Bank are offering home loans at 8.25%. We have omitted Bank of India from the list as it is offering home loans at 8.4% interest rate, which is a little higher than other public sector banks.