Buying a home is everyone’s dream, and it’s almost impossible without a home loan (mortgage)! As of January 2026, the interest rates are quite good – starting from 7.10% in some banks.
But every bank offers different rates, approval speeds, and extra charges. I’ve checked the latest information, and here I’m explaining in a simple way which banks are best for easy approval and low rates. Let’s look at the top options!
Best Banks For Mortgage Loan Approval In India
Currently, public sector banks are offering the cheapest rates. Such as:
- Bank of India, Bank of Maharashtra, and Central Bank of India – starting from 7.10%!
- Indian Overseas Bank and a few others – around 7.35%.
These rates are available with a good credit score, and because they are government banks, approval might take a little longer, but the rates are killer.
Private banks like HDFC, ICICI, and Axis offer slightly higher rates (above 8%), but their approval is faster, and you can manage everything through their apps.
Quick Approval and Easy Process
If you need a loan quickly, private banks are better:
- HDFC and ICICI – offer pre-approved loans to existing customers and require fewer documents.
- Axis and Kotak – have excellent digital processes; you can apply from the comfort of your home.
Public banks like SBI have more branches, so you can get local help, but the paperwork is a bit more extensive.
| Bank Name | Initial Interest Rate (2026) | Processing Fees | Tenure (Years) | Key Feature |
|---|---|---|---|---|
| Bank of Maharashtra | 7.10% onwards | Low | Up to 30 years | Cheapest |
| Bank of India | 7.10% onwards | Low | Up to 30 years | Good approval |
| Central Bank of India | 7.10% onwards | Low | Up to 30 years | Government backup |
| SBI | 8.40% onwards | 0-0.5% | Up to 30 years | Branches everywhere |
| HDFC Bank | 8.70% onwards | Low | Up to 30 years | Fast digital approval |
| ICICI Bank | 7.70% onwards | Low | Up to 30 years | Pre-approved options |
| Axis Bank | 8.35% onwards | 0.5-1% | Up to 30 years | Easy app process |
Pros and Cons
Pros:
- Public banks offer super low rates – you can save lakhs in the long term.
- Private banks offer quick approval and everything is online.
- There are no prepayment charges on floating rate loans anymore (due to RBI rule).
- You get the best rates if your credit score is 750+.
- You might get an extra discount if you have a female co-applicant.
Cons:
- Public banks require more documents and take more time.
- Private banks have slightly higher rates, but faster service.
- You need to check processing fees and hidden charges.
- Approval is difficult or rates are high if you have a low credit score.
- Property approval also matters.
Conclusion
If you want the cheapest loan and don’t mind waiting, try Bank of Maharashtra, Bank of India, or Central Bank. If you want a quick and smooth process, HDFC, ICICI, or Axis are the best.
Check your credit score, keep your documents ready, and compare multiple banks – use an EMI calculator to see how much difference it makes! Tell us in the comments which is your favorite bank and why?
