Home and Car Loan Rates in January 2026: Competitive Bank Offers and HFC Challenges

In mid-January 2026, home loan interest rates offered by public sector banks range from 7.10% to around 10.70%, with some private lenders charging higher rates depending on borrower profiles. Banks like Bank of India and Indian Overseas Bank provide competitive rates starting at 7.10%. Meanwhile, large housing finance companies face margin pressures due to aggressive bank competition and lower rates, while affordable housing lenders maintain profitability by keeping rates steady. Car loan rates start at 7.35%, with EMIs varying by lender and loan terms.