If you are planning to buy a new house, you would surely no t go to do it taking money from your savings account, but you may prefer to go for a loan. However, people take loans from bank for that reason. Now, there are different interest rates of the banks for people. Some rates look pretty good though some people prefer to go for lower rates for more security and other facts.

Now let us check different bank rates in India.

SBI: 9.95% of home loan interests while the borrower does not have to make any pre-payment.
CiTibank India: It gives a floating rate of 10.50% up to 15 years.
LIC Housing: It allows the consumers to choose from its schemes as it has two different schemes respectively of shorter and longer term. One can enjoy the interest rate of 10.25% in shorter terms while 10.95% in longer terms.
AXIS bank: It would give you 10.25% up to 25 lacs and then it would go up till 10.50%.
Bank of India: It also gives a rate of 10.25% to the people who are ready to take loan from the bank for acquiring a housing or estate for him or family.

So, after having a primary look at the rates, it is quite clear that most of the banks allow a little over 10% of interest for housing loans. Now, people sometimes prefer public sector banks over the private sector banks. Actually, there are a number of clauses that may put the people into trouble. But the public sector banks always follow the government rules that may be violated by the terms and norms of the private banks.

That is why people prefer public sector over the private sectors sometimes. However, it is not something like all the private sector banks may put you in trouble. It is always better to know the interest rates and the clauses properly before taking the loans.