BankBazaar facilitates you to compare the home loan interest rates offered by different banks to its customers in India and then to take the most important decision of your life. The normal range of Home loan interest rates are from 8.25% to 14.00%.
| Home Loan Interest Rate Details | |
|---|---|
| Interest Rate | Min. 8.30% - Max. 11.75% |
| Processing fees | Upto 1.00% |
| Loan Amount | Min. 1L to Max. 20 Crs |
| Loan Tenure | Min. 1 Year to Max. 30 Years |
| Partial pre-payment Charges | Nil |
| Pre-closure Charges | Nil |
| Bank Name | Rates | Processing Fees |
|---|---|---|
| PNBHFL Home Loan | 9.00% - 9.50% | Upto 0.50% |
| ICICI Bank Home Loan | 8.90% - 9.10% | Upto 0.25% |
| ICICI Bank Home Loan (Women) | 8.85% - 9.05% | Upto 0.25% |
| Karnataka Bank Home Loan | 8.60% - 9.00% | Rs. 12,000 |
| HDFC Ltd. Home Loan | 8.80% - 9.05% | Upto 0.50% |
| Indiabulls Home Loan | 8.75% - 11.0% | Upto 0.50% |
| Sundaram BNP Paribas Home Finance Home Loan | 8.90% - 9.55% | 0.50% - 1% |
| Axis Bank Home Loan (Women) | 8.80% - 11.75% | Upto 0.50% |
| Axis Bank Home Loan | 9.25% | Upto 0.50% |
| DBS Home Loan | 9% | Rs. 10,000 |
| Kotak Mahindra Bank Home Loan | 8.90% | Rs. 10,000 |
| Aditya Birla Capital Home Loan | 8.55% - 8.99% | Upto 1.00% |
| Indiabulls Home Loan | 9.25% - 11.20% | Upto 0.50% |
| Indiabulls Home Loan (Women) | 8.70% - 10.95% | Upto 0.50% |
| IDFC Home Loan | 8.90% | Rs. 5,000 |
| Federal Home Loan | 8.60% - 9.20% | Rs. 3,000 - 7,500 |
| State Bank of India Home Loan | 8.30% - 8.65% | Rs. 2,000 - 10,000 |
| Andhra Bank Home Loan | 8.75% - 8.85% | Upto 0.50% |
| Dhanalakshmi Bank Home Loan | 9.75% - 10.00% | Upto 1.00% |
| Bank Of Baroda Home Loan | 8.30% - 9.35% | Upto 0.50% |
| Bank of India Home Loan | 8.45% - 8.6% | Rs. 1,000 - 20,000 |
| Bank of Maharashtra Home Loan | 8.70% - 8.80% | - |
| Canara Bank Home Loan | 8.35% - 8.55% | Rs. 1,500 - 10,000 |
| Dena Bank Home Loan | 8.25% - 8.35% | Upto 0.50% |
| IDBI Bank Home Loan | 8.35% - 8.65% | - |
| Indian Overseas Bank Home Loan | 8.55% - 9.05% | Upto 0.53% |
| Karur Vysya Bank Home Loan | 9.00% | Rs. 3,750 - 12,500 |
| South Indian Bank Home Loan | 9.10% | Rs. 10,000 |
| Tamilnad Mercantile Bank Home Loan | 8.95% - 9.20% | Upto 0.50% |
| Central Bank of India Home Loan | 8.30% | Upto 0.50% |
| Tata Capital Limited Home Loan | 8.75% - 8.85% | - |
| Yes Bank Home Loan | 9.35% - 10.50% | Upto 0.50% |
| Jammu And Kashmir Bank Home Loan | 8.9% - 9.25% | Upto 0.25% |
| Aavas Financiers Limited Home Loan | 10% - 19% | Upto 2% |
| India Shelter Finance Corporation Home Loan | 11.75% - 22% | 2% - 3% |
*GST rates could be applicable depending on banks.
Before going for a home loan, please check below points to see the nature of its interest rates:
Note: But, the floating home loan interest rates are cheaper than the fixed home loan interest rates on the first front.
So, check and compare your home loan interest rates at BankBazaar and get your dream home at just few simple steps.
State Bank of India slashes Home Loan Interest Rate to 8.30%
There are mainly two types of home loan interest rates offered by most of the banks.
In this system of computation, the rate remains even throughout the loan tenor. There will be no change in the interest charges since the rate remains fixed. Depending on the offer, you may be allowed to switch over to the floating rate system after completing a certain duration into the loan tenure.
Advantages: Since the rate remains fixed, you know how much interest charges you’re paying upfront. Your loan will be shielded from frequent rate fluctuations and saves money in a longer run if there is a hike in lending rates.
Disadvantage: If the standard lending rates fall, you will not benefit since the interest component remains frozen.
The interest charges on your home loan is subject to the current most lending rates of the bank. The rate is linked to the latest published rate of the bank which in turn depends on multiple factors such as RBIs monetary policy and lending rate revisions, the bank’s response to the revision etc.
Advantage: The most visible perk of opting for the floating rate is that you have the advantage of being billed on the basis of the latest rate. If the rates fall, you save on interest charges.
Disadvantage: In rare scenario, if the standard rates go up, the loan has to be bear the brunt of being billed a higher rate.
Important Note: Some banks allow you to switch from fixed to floating or vice versa, after a stipulated time, say 5 years into the loan. Make sure to inquire about switching at the time of availing the loan and opt for it to make the best use of fluctuating rates in your favour.
HDFC Bank has implemented the MCLR formula for its interest rate calculation, where rate changes are seen at a regular time interval. Here’s all the key fees and charges related to HDFC Home Loans:
ICICI Bank has updated its fees and charges for its home loan borrowers. You will find all the key details mentioned below:
Axis Bank, one of the largest private financial institutions in the country, rejigged its home loan interest rate offerings. Here’s what the updated rates look like:
PNB Housing Finance released its latest interest rate offering on its Home Loan products. The updated rate is as follows:
Seeing as how several leading banks changed their home loan interest rates, IndiaBulls took updated its lending rates. Here’s what the latest edition looks like:
TATA Capital, one of the recent entrants into the home loan market also changed the interest rates recently. The new interest rates are as follows:
Owning a house is a smart investment and comes with great tax benefits. Explore Home Loans
The most important thing that you have look at is the cost of the house and the way you plan to finance it. One of the best ways is to apply for a home loan.
There are many banks in India that offer amazing home loan schemes at affordable rates of interest. If you are confused and unable to decide which scheme you should apply for, then you must follow the rules mentioned below:
Compare Interest Rates – If you find a home loan scheme with the lowest rate of interest, do not apply for it in a haste. Look at all the terms and conditions associated with the scheme and try to find out why the rate is so low compared to other house loans. Experts advise people to compare the interest rates of different house loan schemes before applying.
Read Lender’s History – Before you borrow a home loan from a bank or any other lender, ensure that you are familiar with its history. Loans are a liability and can result in huge financial problems if you borrow money from an unknown or untrusted lender. You have to look for news about the different lenders online, read up on their history and check out reviews of the services and products they offer. You can also contact mortgage brokers or experts to find out information about any lender.
Make a Down Payment – While applying for a home loan, ensure that you make a down payment. Do not be attracted by schemes that do not require any down payment. If you apply for a home loan without paying any money upfront, then you might not realise and pay more interest. Also, the more money you pay as down payment, the lower your EMIs will be, which means that you will be able to repay your loan earlier.
Read the Fine Print – It is very important that you read the fine print before you take a home loan. It may look long and you may be lazy, but reading it will save you from future shocks. The fine print document will contain all the information and term and conditions related to the loan you plan to apply for. If you are unable to understand the clauses mentioned in this document, then ask the help of a Chartered Accountant.
Understand the Fees and Charges – There are many fees and charges associated with a home loan such as late payment fee, prepayment fee, processing fee, legal charges, documentation charge, etc. You should make yourself aware of all these fees and charges. Ask the lender to give you a list of all the fees in writing.
These are only some of the many rules that you must follow while applying for a home loan. Apart from the above, you should also find out about the tax benefits on home loan and how you can claim them. Once you get your home loan, make sure you pay the EMI on time every month.
The applicable interest rate on home loan consists of two components, the base rate and markup rate. The combination of two is what you will be paying on the loan. Let's explore these components to give you a better understanding.
Base Rate: It is the standard lending rate of the bank, applicable for all retail loans. This rate is subject to frequent changes on the basis of multiple inputs.
Markup: This component of a small percentage is added to the base rate to arrive at the EIR (Effective interest rate) for a specific type of home loan and varies from one type to another.
Effective Interest Rate (EIR) = Base Rate + Markup:
From April 2016 onwards, the Reserve Bank of India (RBI) has mandated a new method for computing lending rate to replace the base rate system. The Marginal Cost of Funds based Lending Rate (MCLR) is aimed at bringing more accountability and flexibility to the way rates are published by banks and financial institutions in India. RBI mandates banks to fix the interest rate after studying the risk factor associated with lending to borrowers. It takes into account, various factors involved such as repo rate, deposits etc.
This MCLR based computation works out to be slightly lower than the erstwhile base rate.
There are multiple factors driven by your background and income group which influence the rate bank offers you. Let’s look at some of leading factors to help you negotiate the best rate.
Income: The industry you work and your employer both has a say along with the income factor. A stable and high income, sufficient enough to afford the loan will be rewarded with a lower interest rate.
Credit Score: When you apply, the processing involves a thorough scrutiny of your credit report. It involves checks on your past and current credit. It you’re up to date with a good credit score, you’re likely to get a competitive rate. A good credit history also gives you the confidence to negotiate a good deal.
Location of the Property: The location and vicinity has a bearing too. If the property is situated in a prime location or is being procured from a trusted builder/agency, you can look forward to an optimal charge on the interest rate front.
Loan Amount: The proposed loan amount has the ability to influence the rate. The thumb rule is, higher the loan amount, chances are that you will get a lower rate.
Type of Loan: The rates offered also depends on the types of home loan you’re availing. Standard loans such as home purchasing will come at standard rates while its counterparts like home improvement can be charged a higher rate.
Loan Tenure: The loan tenure opted for has a say when the bank decides the interest rate to be offered to you. Chances are that if you’re willing to opt for a longer term, the interest rate offered is lower.
Type of Interest Rate: The interest charges on your home loan is dependent on the “Fixed” or the “Floating” rate you opt for. The fixed rate is slightly higher than its counterpart.
Employment Type: Salaried applicants are likely to get a slightly lower rate compared to the self-employed, owing to the risks involved. Banks’ maintain separate slabs for salaried and self-employed applicants.
Ongoing Promo Offers: Lookout for promo offers made by lenders on multiple fronts, made locally and some at the national level. In their quest to come up with the most customer centric schemes, lenders will tie up with multiple partners such as builders, aggregators to offer tailor made deals which includes competitive rates.
War Over Who Offer Cheaper Home Loan Interest Rates Continue: BoB Joins The Battle
Recently, State Bank of India made it to the news when they dropped their lending rates by 5 basis points. The bank claimed to be offering the cheapest interest rate in the market. However, Bank of Baroda has now has now joined the bandwagon stating that they are offering the lowest interest rate for their best rated customers across various categories, irrespective of the loan amount.
BoB also stated that other banks who claim that they offer low interest rate offer such benefit to few categories like women borrower who is availing a loan less than Rs.30 lakhs. If you do not fall within this bracket, you will land up paying higher interest rate. However, BoB offers low interest rates across all categories.
This will help you negotiate better. While many banks are offering low interest rates on home loans, make sure you compare various home loans and choose a lender who meets your requirements.
RBI Decides to Cut Repo Rate
According to experts in the financial sector, this can prove to be a very good time for the consumers as the EMIs are going to decrease substantially.
This is also the beginning of the festive season. Lenders are going to come up with several festive offers that can help in bringing down the EMIs for the consumers even more Wishfin.com CEO Rishi Mehra stated that the rates associated can come down to 8.2% per annum.
He added that the existing borrowers under MCLR regime will need to wait for the next reset period. However, if the borrowers see that rate charged is more than the present rate, they can switch the loan to a different lender offering a lower rate of interest.
The base rate customers can choose to switch to MCLT regime if they wish to avail the perks of lower rates. Although there is a fee for the switchover, but in the long run, interest will be reduced substantially.
CEO of Bankbazaar, Adhil Shetty stated that the car loan rates and the housing loan rates are going to reduce and this can be a great time for market growth in different sectors. He added that much traction will be visible in markets like automobile, realty and consumer durables with festivals like Eid, Ganesh Chaturthi and Dusshera coming up in the next few months.
RBI Leaves the Repo Rate Unchanged @ 6%, Cuts SLR to 19.5%
Reserve Bank of India’s six member MPC (Monetary Policy Committee) is headed by Urjit Patel. The committee kept the repo rate or short-term lending rate at 6%. The CRR or cash reserve ratio was also not tweaked by the Monetary Policy Committee.
The real GVP growth projection for FY 2017-2018 has seen a downward revision from 7.3% to 6.7%. The risks have been evenly balanced. The Monetary Policy Committee’s decision has been consistent with unbiased attitude of the policy in accord with the aim of achieving the mid-term target for the CPI (Consumer Price Index) inflation of 4% within a band of 2%, while offering support for the growth.
Dr. Urjit R Patel, Dr. Viral V. Acharya, Dr. Michael Debabrata Patra, Dr. Pami Dua, and Dr. Chetan Ghate voted in favour of monetary policy decision. However, Dr. Ravindra H Dholakia voted for reduction of rate by 25 basis points. The economic activity has gone up globally since the meeting conducted by the MPC in August 2017.
Bank of Baroda cuts Home Loan Rate of Interest to 8.30%
Bank of Baroda has announced that they will be offering cheapest home loans to the A-rated borrowers. Such customers will be allowed to avail home loans at 8.3% MCLR (marginal cost of fund based lending rate).
Dena Bank offers Cheapest Home Loan Rate @ 8.25%
A retail loan carnival is being conducted by Dena Bank where the revised home loan rates will be offered. The rates will range between 8.25% and 9%. The carnival has already started and it will go on till the end of this year. According to the bank, this carnival’s objective is to promote the car loans and home loans offered by them. Home loan of up to Rs.75 lakh can be availed at an interest rate of 8.25% from Dena Bank.
A Reuters survey has revealed that the cost of homes in India has risen half the inflation rate. This is because the housing market has been hit with dwindling credit supply as per a survey conducted by Reuters. The national capital will have to face the hardest impact of all the major cities in the country. House rates in the country have risen in double digits over the years in a market which is one of the biggest in the world in the terms of the consumers it has. India is Asia’s third largest economy and the country is also currently facing a liquidity crunch with Infrastructure Leasing and Financial Services (IL&FS) which is a large firm defaulted on its payment in June. The government and the Reserve Bank of India are also at loggerheads with each other over the tight liquidity policy. The government is blaming the Reserve Bank of India for the problems in liquidity and has also directed it to relax the rules and regulations for lending for banks and financial firms. Experts have also predicted that a lack of credit line for is bad news for the housing industry along with the implementation of GST.
21 November 2018
Ever since the RBI announced MCLR and mandata for banks to announce rate changes on a monthly basis, all the participating banks have been compliant. Likewise, Bandhan Bank has decided to comply with the same and has announced its latest set of revisions to its MCLR rates. The rates, which were announced on the 12th of November were made available to all concerned parties on the bank’s official website. Overnight MCLR went up from 9.63% to 9.90%, one-month rates went from 9.68% to 9.94%, three months MCLR changed from 9.79% to 10.02% respectively. The bank also changed rates for six month, one year, two year, and three year locals which all stood at 9.94%, 10.45%, 11.54%, and 11.59%. These have been revised to 10.13%, 10.55%, 11.38%, and 11.39% respectively.
20 November 2018
Bank of Maharashtra is looking to wash its hands of some of its worst non-performing assets (NPAs) and is inviting takers to help it dispose itself of them. The bank is already part of the infamous 11 which are under stringent corrective measures put forth by the RBI to improve its standing and financial health in the market. Among the assets which are for sale there’s ISMT Limited which has over 3.53 billion rupees worth of uncleared loans, Farm Produced Limited, which has Rs.686.6 million worth of loans, and 453.2 million rupee worth loans from Automotive Coaches and Component Ltd. The banks is looking at takers from asset reconstruction companies, financial institutions, banks, NBFCs among other to get rid of the assets which are worth over Rs.6.53 billion. A major reason for the bank to come to this conclusion of selling these NPAs is to cut down its exposure and risking major losses.
19 November 2018
The Indiabulls Housing Finance company has reportedly announced an increase of 20 basis points on its home loan interest rates. Reports claim that the rise in rates can be attributed to the increased funding costs for the company. For women applicants and co-applicants, the rate of interest applicable on loans up to Rs.35 lakh starts at 8.80% while the rate of interest on the same loan amount for other applicants and co-applicants start at 8.85%. Similarly, for loans above Rs.35 lakh, the rate of interest applicable to women applicants and co-applicants is set at 8.95%. For other applicants and co-applicants, the interest rate on home loans above Rs.35 lakh starts at 9.00%.
12 November 2018
PSU lender Punjab National Bank (PNB) has reportedly hiked the Marginal Cost of funds based Lending Rate (MCLR) across various tenures on Tuesday. The bank said in a statement that the benchmark lending rate has been raised by 0.05% or 5 basis points (bps) on all loan maturities. The revised MCLR will be in effect from 01 November 2018. The MCLR for one year tenor on which most retail loans are based has been raised by 0.05% from 8.45% to 8.050%. For six month tenors, the MCLR has been revised to 8.45% from the earlier set 8.40%. Similarly, the MCLR for three month and one month tenors have also been raised by 5 basis points each to 8.25% and 8.15% respectively. The MCLR for overnight tenors now stands at 8.15%.
8 November 2018
A week after the Reserve Bank of India’s (RBI) latest bi-monthly monetary policy meeting, the Bank of India has revised the Marginal Cost of funds based Lending Rates (MCLR) by 0.05% or 5 basis points (bps) on two of its loan maturities. The MCLR for overnight tenor has been raised to 8.05% while the MCLR for one month tenure has been increased to 8.15%. However, the bank has decided to leave the MCLR on other tenures unchanged with six months, three months and one year MCLR set at 8.50%, 8.30% and 8.60% respectively.
22 October 2018
The state-owned Syndicate Bank has reportedly hiked its marginal cost of funds based lending rate (MCLR) by 0.10% or 10 basis points (bps) for three-month loan tenures. The MCLR for three-month tenors has been raised from 8.40% by 0.10% to stand at 8.50%. However, the bank has decided to leave the MCLR for other tenors untouched with one-year, six months, one month and overnight tenors set at 8.80%, 8.60%, 8.35% and 8.30% respectively. Syndicate Bank reviews the MCLR rates every month.
15 October 2018
In the monetary policy review meeting held on 05 October 2018, the Reserve Bank of India (RBI) has decided to keep the key repo rate untouched at 6.50% after hiking the repo rate consecutively in its two previous policy meetings. The decision was taken in the view of the rising trend of the interest rates. However, banks can decide either to keep their interest rates unaltered or increase despite the RBI’s decision to keep the key policy rates untouched. Many commercial banks had already raised their marginal cost of funds based lending rates (MCLR) even before the RBI’s monetary policy review meeting. At present, the repo rate and the reverse repo rate stands at 6.50% and 6.25% respectively. Repo rate is defined as the the rate at which the central bank lends money to commercial banks in times of need. The reverse repo rate is defined as the rate at which the banks lends money to the Reserve Bank of India.
11 October 2018
The Bank of Maharashtra, one of the leading private lenders in the state, has announced that the marginal cost of funds based lending rates have been revised across various loan tenures. The announcement was made a few days after the Reserve Bank of India’s (RBI) fourth bi-monthly monetary policy review meeting held on 05 October 2018 where the central bank decided to keep the key repo unaltered at 6.50%. The MCLR for overnight tenures stands at 8.00% while the MCLR for one year tenor on which most retail loans are benchmarked is set at 8.75%. For one month and three-month tenures, the MCLR stands at 8.10% and 8.20% respectively. In the case of six-month tenures, the MCLR presently stands at 8.50%. The RBI decided to leave the key policy rates untouched after raising the repo rate twice in its previous two monetary policy meetings. Following the RBI guidelines, the Bank of Maharashtra has approved the MCLR with effect from 07 October 2018.
10 October 2018
With commercial banks and financial institutions the interest rates on home loans a week after the Reserve Bank of India’s (RBI) latest monetary policy review meeting where the central bank decided to keep the key policy rates unchanged, Indiabulls Housing Finance announced that the interest rates on their home loans had been raised by up to 20 basis points (bps) or 0.20%. The announcement was made in a filing to the Bombay Stock Exchange (BSE). As per the filing, the interest on home loans up to Rs.35 lakh for women borrowers stands at 8.80% while the rate of interest on home loans above Rs.35 lakh for women applicants/co-applicants has been raised to 8.95%. The lowest loan slab was increased to Rs.35 lakh from Rs.30 lakh in the month of August in order to widen the range of customers who can benefit the best interest rates. The RBI decided to keep the key policy rates untouched after consecutively raising it twice in the last two reviews.
9 October 2018
