Hey everyone! So I’ve been noticing that home loan interest rates in India have started dropping again some banks are even offering rates around 8.4% to 8.6%. I took my loan two years ago at 9.2%, and now I’m seriously wondering if it’s worth doing a home loan refinance or balance transfer to reduce my monthly EMI. Has anyone here done it recently?
Here’s what I figured out after reading up and talking to a few people refinancing your home loan can make a real difference, but only if the math adds up. When your existing rate is 0.5% or more higher than the current market rate, switching banks can help you save thousands in interest over the loan period. For example, if your loan amount is ₹50 lakh and your EMI drops by even ₹1,000 per month, you’re saving ₹12,000 a year that’s big over 20 years.
Most people forget that banks don’t automatically reduce your rate, even if the RBI repo rate changes. You have to either:
- Ask for a rate reset from your current bank, or
- Do a balance transfer to another bank offering lower rates.
Before refinancing, check these points:
- Processing fee: Usually 0.25%–0.5% of the loan amount.
- Tenure left: If less than 5 years remain, savings might be minimal.
- CIBIL score: Keep it above 750 to qualify for the lowest home loan rates.
- Prepayment rules: Some banks charge penalties; others don’t.
| Bank Name | Current Floating Rate (Oct 2025) | Approx. Processing Fee |
|---|---|---|
| SBI Home Loan | 8.40% – 8.70% | Up to 0.35% |
| HDFC Bank | 8.45% – 8.95% | 0.50% |
| ICICI Bank | 8.50% – 9.00% | 0.50% |
| Axis Bank | 8.60% – 9.10% | 0.50% |
If your EMI feels too heavy or you’ve been paying the same high rate for years, this might be the perfect time to refinance your home loan. You could save a lot in the long run both in interest and peace of mind. Just do the math, compare rates, and negotiate smartly with your bank.