If you are also planning to build your dream house or buy a new car this year, then there is good news for you. The Reserve Bank of India (RBI) has decided to keep the repo rate stable at 5.25% in its monetary policy review on Friday. Since there has been no increase in the repo rate, home and car loan EMIs of customers remain stable at present. Let us know where the cheapest home and car loans are available at present in all the banks of the country.
Home and car loan interest rates in big banks of the country (June 2026)
| bank name | home loan interest rate | car loan interest rate |
| State Bank of India (SBI) | Starting from 7.25% | Starting from 8.65% |
| Punjab National Bank (PNB) | Starting from 7.20% | Starting from 8.80% |
| Central Bank of India | Starting from 7.10% | Starting from 9.25% |
| Canara Bank | Starting from 7.15% | Starting from 8.80% |
| Bank of Baroda (BoB) | Starting from 7.20% | Starting from 8.70% |
| Union Bank of India | Starting from 7.15% | Starting from 8.85% |
| hdfc bank | Starting from 7.90% | Starting from 8.95% |
| ICICI Bank | Starting from 8.50% | Starting from 8.95% |
| Axis Bank | Starting from 8.35% | Starting from 9.15% |
Where to get the cheapest home loan?
If we compare the figures mentioned above, in the case of home loans, at present the interest rates of Central Bank of India, Canara Bank and Union Bank are the lowest (7.10% to 7.15%). At the same time, the rates in SBI and PNB also remain quite attractive around 7.20% to 7.25%. On the other hand, the interest rates of leading private sector banks like HDFC, ICICI and Axis Bank are starting from a slightly higher bracket (7.90% to 8.50%), but these banks provide better facilities to their customers like fast loan processing, digital approval and customized offers.
Where to get the cheapest car loan?
SBI has emerged as the cheapest option for new car buyers, with car loan rates starting from 8.65%. Right after this, Bank of Baroda is providing car finance to customers at the starting rate of 8.70% and PNB and Canara Bank at 8.80%.
Important advice for loan taking customers
To get the cheapest loan from banks amidst strong GDP figures and stable repo rate, customers should keep two things in mind.
- CIBIL Score: The lowest rates given above are available only to those whose credit score is between 750-800. If the score is low, banks can charge 0.50% to 1.5% more interest.
- hidden charges: While taking a loan, do not just look at the interest rate, but also compare the processing fees, pre-payment charges and documentation fees across all the banks.
SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
