SBI, PNB, Bank of Baroda, and 4 other PSU banks offer home loan rates starting at 7.10% in May 2026. See comparison

Are you looking for a home loan? Home loans help people meet their home purchasing dreams, and, when carefully selected, can offer borrowers affordable credit options from prominent lending institutions.

Public sector banks continue to remain a preferred choice for borrowers across the country for availing home loans. This is because home loans offered by these lenders offer competitive interest rates, a seamless approval process, transparent disbursement, and government backing.

In case you wish to apply for a home loan through leading public sector banks in May 2026, here is a comparative table of the latest interest rates that you can refer to. The following is a comprehensive comparison of home loan rates offered by prominent public sector banks in May 2026, aspiring borrowers can check these rates, discuss with certified financial advisors and decide as per their long-term economic objectives.

Home loan interest rates – public sector banks (May 2026)

Data as on respective banks’ website on 1 May 2026; Loans up to ₹30 lakh; Actual rate may vary based on the applicant's profile; Compiled by BankBazaar.com.

5 factors to keep in mind before locking in an interest rate

1. Impact of credit score: Your current credit score matters a lot when you submit your home loan application. The final home loan interest rate will be lower if your credit score is high, preferably over 750, without any recent defaults. Whereas the applicable home loan interest rate will be higher with strict terms if you have a low credit score, i.e., any score of less than 650. You must pay heed to your current credit score and overall credit profile before locking in a home loan.
2. Processing fees, hidden charges: Given that interest rates can look lucrative and the power of persuasion deployed by prominent lenders is extremely strong, what you should not overlook is the processing fee, foreclosure charges and other hidden charges that apply to your home loan. If in doubt, ask your lending institution for these details in writing. Don’t sign up for any home loan offer without understanding this.
3. Loan tenure matters: A longer tenure is bound to increase the EMI burden and, in turn, the overall interest outgo. You should opt for a balanced repayment period based on your current financial health, repayment potential and overall affordability.
4. Eligibility criteria: Your current salary, employment tenure, existing debt obligations, recent defaults, if any, loan tenure, total loan amount, age, etc., are some factors that directly impact your home loan approval chances. You must match your eligibility criteria with the loan product you wish to apply for, and get complete clarity by discussing with the customer support executive before applying.
5. Fixed v floating rates: You should also understand the fundamental difference between the two, and whether the offered rate to you is fixed or floating. This directly impacts your EMI stability over time.

Public sector banks continue to offer lucrative home loan interest rates in May 2026. This makes them a reliable borrowing option for salaried and self-employed individuals.

Still, the ultimate lending rate depends on a host of factors discussed above. Any borrowing decision must be made only after proper due diligence, careful comparison, analysis of EMIs, and consultation with a certified financial advisor.

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