The data suggest that the dominant interest-rate bands have shifted over time, with the 7-8% and 8-9% categories accounting for a larger share of housing loans in the latest period.
How housing loan rates have shifted
The chart shows that housing loans were largely concentrated in the 7-8% interest-rate band in 2021 and early 2022. The distribution subsequently moved towards higher rates, with the 8-9% and 9-10% categories gaining prominence during 2023 and much of 2024.
By 2023, a substantial share of housing loans fell within the 8-10% range. The pattern began changing in 2025, when the share in the 7-8% band increased, while the distribution in the 8-9% category also remained significant.
By June 2026, the two bands between 7% and 9% had once again become the dominant categories in the chart. Shenoy's estimates underline the extent of this shift, although the chart also displays smaller shares across lower and higher interest-rate bands.
What the shift means for borrowers
A move towards lower interest-rate categories can reflect changes in lending rates, including adjustments to floating-rate loans, alongside fresh lending, repayments and changes in the composition of banks' housing loan portfolios.
However, the distribution does not establish that every existing borrower has received a rate reduction. Nor does it represent the average interest rate on newly sanctioned housing loans.
For borrowers, the distinction is important. Home loan rates can vary according to the lender, credit score, loan size, benchmark, lending spread and the terms of the individual loan agreement. Two borrowers with similar outstanding balances may therefore pay different rates.
Those paying substantially more than current comparable offers could review their loan terms and assess whether a rate reset or lender switch would be beneficial after accounting for associated fees.
The RBI chart provides a useful snapshot of how housing loan interest-rate bands have evolved over five years. The key takeaway is that the distribution has moved back towards the 7-9% range after a period when higher-rate categories accounted for a larger share of bank housing loans. It does not, by itself, establish the extent of savings for individual borrowers.