Cheapest home loan rates after RBI repo rate cut in December 2025: 10 banks offering 7.3%–7.5%

"After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, the MPC voted unanimously to reduce the policy repo rate under the liquidity adjustment facility (LAF) to 5.25 per cent," the RBI Monetary Policy Statement said.

Banks have already passed on the benefit of the repo rate cuts till now to borrowers. The benefit of the latest rate cut is also likely to be passed on to eligible borrowers soon.

1. The above interest rates are the starting interest rates offered by banks ahead of the RBI repo rate cut announcement. They are likely to reduce further in view of the repo rate cut.

2. The starting interest rate may not apply to all individual borrowers, as banks adjust rates based on various other reasons (See below). However, borrowers can bargain for the best deal.

3. LIC Housing Finance is not a full bank, but we have included in the list above as it is currently offering one of the cheapest home loan interest rates

4. Many private banks are currently offering home loan interest rates below 8%. They are also likely to reduce their interest rates going ahead.

Who gets the cheapest home loan interest rates?

Most lenders offer their cheapest home loan interest rates to individuals having very high credit scores, generally 800 or above. The home loan rates in banks may also vary based on the employment status of a person.

At present, home loans rates are generally less for salaried employees compared to non-salaried and self-employed individuals.