Cheapest home loans in July 2025: 10 banks offering lowest housing loan rates starting from 7.35%

After the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) cut the repo rate by 50 basis points (bps) in June to 5.5%, many banks reduced their home loan interest rates in line with the same. Several banks continue to revise their lending rates even now. Bank of Baroda on July 4 cut its home loan rate by 5 bps, bringing it down to 7.45%.

“This latest rate cut follows an earlier reduction by the Bank in its home loan interest rates from 8.00% p.a. to 7.50% p.a. in June, in response to the policy rate easing by the Reserve Bank of India,” Bank of Baroda said in a press release.

RBI rate cut and home loan

When the RBI cuts the repo rate, borrowing becomes cheaper for banks and other financial institutions, resulting in cheaper borrowing for general citizens as well.

RBI’s repo rate cuts impact home loans as well. Around 60% home loans follow Repo Linked Lending Rates (RLLR). A lower repo rate means lower RLLR, which in turn means lower interest for customers and fewer EMIs. Banks are offering home loans starting from as low as 7.35%.

These are just the starting rates offered by banks, which means that you will get home loans based on factors like your credit score, loan amount, tenure, and more. If you want to get the cheapest rate, your credit score must be 800 or above. Further, lenders take a look at many things before offering interest rates, like credit history and employment status. Interest rates are generally lower for salaried employees as compared to self-employed ones.

With the total repo rate cut for 2025 now at 100 bps (1%), other banks may also revise their lending rates again. To get the best deal, make sure you compare all banks and get a loan as per your requirements.