As per the current rates, SBI, Axis Bank, Bank of Baroda, LIC Housing Finance, Indian Overseas Bank, HSBC Bank, IIFL offer the lowest home loan interest rate of 8.50%. These rates can vary depending upon the value of the property and your repayment capacity. Higher the loan amount, higher will be the rate of interest. After the latest home loan rate revision announced by SBI, Axis Bank, Bank of Baroda, LIC Housing Finance, Indian Overseas Bank, HSBC Bank, IIFL in 2018, new home loan interest rates start from 8.50% for home buyers as well as for those who want to transfer their loan from other banks.