Interest rates for home construction loans are floating and repo-linked, starting from around 7.35% p.a. for high-credit-score borrowers, slightly varying from standard home loans due to tranche disbursements.
| Bank/HFC | Starting Interest Rate (p.a.) | Max Tenure | Max Financing (LTV) | Processing Fee | Key Notes |
|---|---|---|---|---|---|
| Canara Bank | 7.35% onwards | Up to 30 years | Up to 80-90% | Up to 0.50% | Full repo benefit passed, quick approvals |
| Central Bank of India | 7.35% onwards | Up to 30 years | Up to 80% | 0.50% | Affordable for salaried, women concessions |
| Bank of Baroda | 7.45% onwards | Up to 30 years | Up to 80-90% | Min ₹8,500 - Max ₹25,000 | Balance transfer options available |
| SBI | 7.50% - 8.50% | Up to 30 years | Up to 80% | 0.35% + GST | Vast network, PMAY integration |
| HDFC Bank | 8.15% onwards | Up to 30 years | Up to 80-90% | Up to 0.50% | Digital process, NRI eligible |
| PNB Housing Finance | 8.90% onwards | Up to 20 years | Up to 80% | Up to 0.50% | Hassle-free for construction phases |
| Axis Bank | 8.75% onwards | Up to 20 years | Up to 75-80% | Up to 1% | Premium service, top-up facility |
| LIC Housing Finance | 8.75% - 9.00% | Up to 20 years | Up to 75% | Up to 0.50% | Long-term reliability |
Rates depend on CIBIL score (750+ for lowest), income, and construction stage. Public banks offer lower starting rates post-repo cuts.