Relief from RBI’s decision: EMI will not increase in June, from SBI to HDFC, know where cheap home loan is available.

New Delhi, June 7. Buying your own home is still the biggest dream of most people, but amidst rising property prices, it is not easy to fulfill this dream without a home loan. In such a situation, people planning to buy a house first keep their eyes on the home loan interest rates. The good news for those taking home loans in June 2026 is that the Reserve Bank of India (RBI) has kept the repo rate at 5.25 percent in its latest monetary policy review.

At present, there is no possibility of additional burden on home loan EMI. Repo rate is the interest rate at which RBI provides funds to commercial banks. When the repo rate increases, the cost of raising funds for banks increases, which impacts loan interest rates and EMIs. This time RBI has not made any change in the rates and has also kept the policy stance neutral. In such a situation, both existing home loan customers and new borrowers are relieved, as there is less possibility of EMI increase in the near future.

Talking about government banks, many banks are offering home loans at competitive interest rates. State Bank of India (SBI) home loan rates start from 7.25 percent to 9.05 percent. Bank of Baroda is providing home loans between 7.20 percent to 9.25 percent. At the same time, the initial interest rate in both Central Bank of India and Bank of India is 7.10 percent. Union Bank of India is offering home loan at 7.15 percent, whereas in Canara Bank this rate starts from 7.25 percent.

Indian Overseas Bank is providing home loans to employed customers at an initial rate of 7.10 percent. There is competition among private sector banks also regarding home loans. The starting interest rate for home loan in ICICI Bank is 7.50 percent. Kotak Mahindra Bank is offering home loan at 7.60 percent. Whereas the starting rate of HDFC Bank is 7.75 percent.

Interest rates at Axis Bank can start from 8 percent and go up to 11.90 percent depending on the customer’s profile and eligibility. Experts say that interest rate should not be the only basis while choosing a home loan. Processing fees, pre-payment and foreclosure charges, loan tenure, credit score and other terms also affect the total cost. Sometimes a loan with a slightly higher interest rate may prove to be more beneficial due to better features and lower additional charges.

If you are planning to buy a home in the near future, do compare the interest rates and terms of different banks. Also keep your credit score strong, because customers with better CIBIL scores often have more chances of getting loans at lower interest rates. At present, there is stability in the home loan market after RBI kept the repo rate stable, which has brought relief to the people planning to buy a house.

Disclaimer: Home loan interest rates may change from time to time and depend on the customer’s profile, income, credit score and bank policies. Before taking any financial decision, please check the official information of the concerned bank.