Cheapest home loan interest rates on offer in April 2026 after RBI keeps repo rate unchanged

Against the backdrop of rising geopolitical uncertainty and inflationary concerns, the Reserve Bank of India (RBI) today (April 8, 2026) maintained the status quo on interest rates after its first monetary policy review of the new financial year. With this, the repo rate has been held unchanged at 5.25% for the second-consecutive time. The RBI last resorted to a rate cut in December 2025.

"Since the last policy meeting, geopolitical uncertainties have heightened significantly. Headline inflation remains contained and below the target, but upside risks to the inflation outlook have increased, driven by increased energy price pressures and probable weather disturbances affecting food prices.," the RBI Monetary Policy Statement said.

Repo rate is the rate at which commercial banks in India borrow money from the RBI. So, now as this rate remains unchanged, there will be no change in the borrowing costs for bankers. Consequently, repo-rate-linked home loans are unlikely to see any major change in interest rates hereafter.

Now as the key repo rate continues to be the same, this article provides you with a quick check on some of the banks that offer the cheapest home loan interest rates to borrowers as of April 8, 2026.

EBLR-linked home loans in India

In India, most home loans offered by different banks are linked to the EBLR or external benchmark lending rate, which is most often the RBI's repo rate. The EBLR-linked home loans bearing floating rate of interest enable better policy rate transmission and are adjusted automatically after the rate revision.

EBLR or external benchmark lending rate regime as the name suggests links your borrowings to an external benchmark set by the RBI or any other approved financial entity. The system is devised for quicker transmission of policy rate changes into your loan interest rates. Before, the EBLR regime, banks adhered to the MCLR or marginal cost of funds-based lending rate and the base rate.

The above interest rates are the starting interest rates offered by banks after the RBI's policy outcome announcement. They are unlikely to see a revision until the next policy meet.