If you are thinking of buying a new house, then the interest rate of the loan is the most important factor for you. Earlier, when people used to turn to the bank, now non-banking financial companies (NBFCs) are also providing home loans at affordable interest rates. The rates of these companies are not directly linked to the repo rate of the Reserve Bank of India (RBI), but the customer can get benefits in EMI calculation.
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Interest rate from 7.35% to 9.50%
According to a report by Bankbazaar.com, as of August 15, 2025, interest rates on a 20-year home loan of Rs 50 lakh have ranged from 7.35% to 9.50%. The rates are decided according to your credit score, income, and profile. Customers who have a good credit score can get a loan at the lowest interest rate.
Bajaj Finserv
Bajaj Finserv is the most attractive option at the moment. If you take a 20-year home loan of Rs 50 lakh from here, the EMI at the rate of 7.35% comes to around Rs 39,822. It is considered to be the cheapest NBFC home loan in the market.
LIC Housing Finance
LIC Housing Finance has an initial interest rate of 7.50%. Here, the 20-year EMI on a loan of Rs 50 lakh is around Rs 40,280. LIC has long been a name of trust among customers and is suitable for those looking for budget-friendly options.
Tata Capital
Tata Capital is offering home loans at an interest rate of 7.75%. At this rate, the EMI on a 20-year loan of Rs 50 lakh is around Rs 41,047. The Tata Group brand is a symbol of trust and stability, so it is a good option for customers who prefer private NBFCs.
PNB Housing Finance
PNB Housing Finance is offering interest rates from 8.25%. The EMI on a 20-year loan of Rs 50 lakh is around Rs 42,603. This rate is slightly higher than Bajaj and LIC, but customers get the trust of the banking network in it.
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Piramal Housing Finance
Piramal Capital and Housing Finance is offering home loans at an initial interest rate of 9.50%. At this rate, the EMI of a loan of Rs 50 lakh is Rs 46,607. Usually, this option is given to those customers whose risk profile is a little higher.
