Public sector bank home loan interest rates start at 7% for October 2026. Before buying a home, compare rates, EMIs, processing fees, and credit score terms from 12 banks to make the right choice.

Home Loan Rates October 2026: Comparison of 12 Public Sector Banks

When you're considering a home loan to buy your own home, it's not enough to simply calculate the property price and down payment. You also need to consider the monthly EMIs you'll have to pay for years to come.

Even small differences in bank interest rates can impact your finances in the long run. This is why home loan offers from public sector banks for October 2026 are in the news.

Rates starting from 7 percent in two government banks

According to available data, Bank of Maharashtra and Central Bank of India offer home loan interest rates starting at 7 percent. Other public sector banks offer varying rates. State Bank of India offers a starting rate of 7.25 percent, while Bank of India offers a starting rate of 7.10 percent.

Canara Bank's introductory rate may vary depending on the loan amount. Punjab National Bank also has different introductory interest rates for different loan categories. Therefore, it's not wise to base your decision on one bank's rate.

What is special in the offers of 12 banks?

Public sector banks include Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Indian Bank, Indian Overseas Bank, Punjab & Sind Bank, Punjab National Bank, SBI, UCO Bank, and Union Bank of India. Some banks offer interest rates within a fixed range, while Indian Overseas Bank's rate starts at 7.20 percent. Actual rates may vary depending on the customer and loan terms.

Keep these expenses in mind before applying.

Before choosing a home loan, research the bank's processing fees, repayment period, and prepayment or late repayment terms. Also, understand the EMI you can comfortably afford based on your monthly income.

Credit score also plays an important role

Banks typically consider a customer's income, employment, credit score, and past loan repayment record. Therefore, the lowest interest rate advertised may not be available to every applicant. Therefore, before making a final decision, consult with different banks to determine the applicable loan rate and all applicable fees. This will help you better plan your home purchase budget.