Home loan interest rates offered by different banks to its customers in India. The normal range of Home loan interest rates are from 8.35% to 14.00%. In this race, Government banks along with some private numbers and financial institutions are running in a front panel by offering lowest interest rates on home loans @ 8.35% to 14.00%. The front runners are SBI, ICICI, Standard chartered bank and LIC. SBI and ICICI bank has given a privilege to its women borrowers by providing them a home loan interest rate at 8.35% and 9.50% which is 0.05% lesser than the home loan interest rate provided to the male borrowers. So, women are going to be benefited with this revolution in home loan interest rate and this will encourage women to put a hand for buying her own house.
BankBazaar facilitates you to compare the home loan interest rates offered by different banks and then to take the most important decision of your life. After comparing the interest rates offered by different banks, you can also calculate your EMI based upon that by just entering few particulars in the EMI calculator provided by the BankBazaar. This calculation will help you decide the loan amount that you can easily pay off and the loan tenure in which you can easily pay off the debt without compromising on your other needy expenses.
|Bank Name||Home loan interest rates||Processing Fee|
Aditya Birla Housing Finance Home loan
|8.55% to 8.99%||₹ 5,000 to ₹ 10,000 plus applicable tax|
Aspire Home Finance Corporation Limited
Au Housing Finance
|11.50% to 13%||2%|
Axis Bank Home loan
|8.35% to 11.75%||0.5% (min. ₹10,000)|
|8.40% to 8.45%||₹ 10,000 plus applicable tax|
|8.55% to 8.65%||0.5%|
|9.59% to 9.84%||0.5% (min. ₹8,625)|
Gruh Finance Limited
HDFC LTD Bank Home loan
|8.35% to 8.60%||Up to 0.5% (max. ₹11,800)|
ICICI Bank Home loan
|8.40% to 8.85%||0.5% (max. ₹11,800)|
Indiabulls Home loan
|8.40% to 10.05%||Up to 0.5%|
Oriental bank of Commerce
|8.45% to 8.55%||₹0|
PNB Housing Finance Limited Home loan
|8.60% - 8.95%||Up to 0.50%(min.₹5900)|
Sundaram BNP Paribas Home loan
|8.35% - 9.25%||0.50% (min. ₹ 10000) plus applicable tax|
Yes Bank Home loan
|10.25% to 10.75%||Up to ₹11,500|
Before going for a home loan, you must be careful enough to see the nature of its interest rates. There are two types of interest rates i.e. fixed interest rates and floating interest rates. You have to carefully choose between the two. Fixed home loan interest rates will remain fixed all over the tenure and floating home loan interest rate will keep on changing with the change in the base rate. 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.
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.
SBI follows the Marginal Cost of Lending Rate (MCLR) formula to decide the interest rates. Here’s what the current interest rate looks like:
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:
Oriental Bank of Commerce, one of the most well-known banks in the country, also changed its home loan interest rates to remain in contention with the prevailing market rates. Here’s all the details about the bank’s interest rates and other related charges.
|Bank Name||Home Loan Interest Rates||Home Loan Amount|
|Aditya Birla Housing Finance||8.55% to 8.99%||Min. - 20 Lakhs Max. - 10 Crs|
|Aspire Home finance Corporation Limited||14.00%||Min. - 2 Lakhs Max. - 25 Lakhs|
|Au Housing Finance||11.50% to 13%||Min. - 25 Lakhs Max. - 3 Cr|
|Axis Bank||8.35% to 11.75%||Min. - 5 Lakhs Max. - 10 Crs|
|Bank of Baroda||8.35% to 9.35%||Min. - 1 Lakhs Max. - 2 Crs|
|Bank of India||Men : 8.60% Women : 8.55%||Min. - Depends on income Max. - 5 Crs|
|Canara Bank||Men : 8.50% to 8.65% Women : 8.45% to 8.60%||Min. - Depends on income Max. - Depends on income|
|DBS Bank||8.25%||Min. - 40 Lakhs Max. - 5 Crs|
|Dena Bank||8.55% to 8.65%||Min. - 20 Lakhs Max. - 10 Cr|
|HDFC LTD||8.35% to 8.60%||Min. - 5 Lakhs Max. - 10 Crs|
|ICICI Bank||General Borrowers - 8.40% to 8.85% Women Borrowers - 8.35% to 8.80%||Min. - 5 Lakhs Max. - 10 Crs|
|India Bulls||General Borrowers - 8.40% to 10.05% Women Borrowers - 8.35% to 10%||Min. - 2 Lakhs Max. - 3 Crs|
|Indian Overseas Bank||8.55% to 9.05%||Min. - Depends on income Max. - Depends on income|
|Punjab National Bank||8.65% to 8.75%||Min. - 20 Lakhs Max. - Depends on income|
|Sundaram BNP Paribas||8.35% - 9.25%||Min. - 12 Lakhs Max. - 5 Crs|
|Yes Bank||9.35% to 10.50%||Min. - Depends on income Max. - Depends on income|
In India, two of the most predominant methods of computing interest charges on the principal amount are as below. Depending in the bank in question, you may be offered both or either of them at the time of availing the loan.
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.
As the name suggests, 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 favor.
Buying a house is not easy. You have to make sure that the size is right, location is good, area is safe, electricity and water are present 24x7, etc. 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:
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. For example, the current base rate of Axis Bank is 9.45%. Base rate is published on the official website of the bank.
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.
There are multiple ways to apply for a home loan. You can do so offline at a designated branch or online, over the internet. It's highly recommended that you compare various loan offers from lenders on a neutral website like bankbazaar, draw conclusions and create an application, all under a single window.
This website provides you the right kind of resources and information to equip you with knowledge to apply and negotiate a good home loan deal. Bankbazaar has partnered with the likes of leading banks and financial institutions in public and private sector, to bring to you, customized loan deals on the basis of your background.
It is the interest applied on the loan amount disbursed by your bank. Such charges are payable every month from the time of disbursement on each release. Pre-EMI interest will continue to be applied until EMI payments start.
Yes, you can claim deduction for the interest charges paid on your home loan under Section 24 of the Income Tax Act. The cap on the tax deduction you can claim on interest paid is Rs.2 lacs for self-occupied property. For a let out property, there is no ceiling prescribed under this section.
Yes, there will be a fee derived on the basis of a percentage of the outstanding loan amount in the account, subject to a minimum amount. For loans with part disbursals, the fee is calculated on the outstanding principal along with the undisbursed value of the loan amount sanctioned.
With your consent, the bank will make an attempt to increase the loan term to save you from the burden of having to pay additional interest charges. After this change, if the EMI does not cover the interest charges, there will be an increase in the EMI amount. The standard system varies from bank to bank.
Generally, there is no charge levied for such changes. However, the amendment is subject to reassessment of your loan repayment history. You may be required to produce additional documents in this regard.
The Reserve Bank of India or RBI has decided to cut the lending rate by 25 bps or basis points. This is bring down the lending rates associated with auto loans and home loans. In the past 10 months, the Reserve Bank of India has cut its repo rate for the very first time. All individuals who are new borrowers of home loans can enjoy lower interest rates now. The old home loan borrowers will have to wait till the reset period for their interest rates arrives.
All the old borrowers who opted for the floating home loans on MCLR or marginal cost of funds based lending rate must wait for a little longer to enjoy the lower rates of interest. Several banks have switched to MCLR as the benchmark rate for lending. Options are provided by the banks to the borrowers to reset the marginal cost of funds based lending rate linked housing loans after a span of 6 months to 1 year.
8th August 2017
Reserve Bank of India was brought down its repo rate of 6%. The reduction has been done by 25 basis points. HSBC had stated earlier that they expected the Reserve Bank of India to take this step and bring the repo rate down to 6%. As per a report, if the CPI inflation continues the same way, another 25 basis point rate cut can happen after August.
Chief Economist of HDFC Bank, Abheek Barua stated that the Reserve Bank of India cannot afford to overlook the gentleness in core inflation, even though some inflation drivers are temporary. Sustained decline has been noticed in 40% of the components, validating the fact that the original economy is running way below its true potential.
7th August 2017
Reserve Bank of India has cut the repo rate by 25 bps to 6%. This is a record low in the past 6.5 years. This step was taken during the review of the bi-monthly policy. This has been done after a collapse in food prices in June. The consumer inflation went down to 1.54%.
The credit growth will get a boost from the rate cut done by the Reserve Bank of India which has been quite sluggish over the last few quarters.
4th August 2017
HDFC brought down home loan interest rates for new borrowers by 15 basis points. For an HDFC home loan of up to Rs.30 lakh, the interest rate for female borrowers will be 8.35% and for other borrowers, it will be 8.40%. These interest rates are currently the lowest interest rates in the industry. When you go for a loan of up to Rs.75 lakh, you will have to pay the same interest rate of 8.5% which has not been changed.
ICICI Bank reduced its interest rates by 30 basis points. A salaried female borrower will be required to pay only 8.35% now. Other borrowers will have to pay only 8.4%. LIC Housing launched a brand new home loan scheme known as Griha Siddhi. This scheme is offered at an attractive interest rate of 8.35% to female borrowers. In the beginning of this month, State Bank of India reduced its home loan rates by 25 basis points.
Banks are working towards decreasing the home loan rates as the demand for other types of loans is comparatively less. The focus on home loans is also due to a programme known as Housing for All which has been started by the government that aims to make every Indian a house owner by 2022.
22nd May 2017
While new home loan borrowers get to benefit from low rates of interest being offered, existing loan borrowers will not quite be able to reap that benefit. Existing home loan borrowers who have taken home loans on a floating interest rate basis will not be getting any immediate respite and will have to wait until the next reset date for the marginal cost of funds based lending rate (MCLR). To add to this, existing borrowers may also have to pay some charges in order to lower their home loan interest rates.
Several leading banks like State Bank of India, ICICI Bank, HDFC Bank, Bank of Baroda and Bank of India have lowered interest rates to 8.35% on home loans of up to Rs.30 lakh. However, this rate is only applicable to salaried women borrowers. The interest rate for other borrowers is fixed at 8.40%, for home loans iup to Rs. 30 lakh.
18th May 2017
Following the reduction in home loan interest rates by the State Bank of India, HDFC Bank, and LIC Housing Finance, ICICI Bank has decided to slash its rate by up to 30 basis points to stand at 8.40%. This is applicable for home loans that amount to a maximum of Rs.30 lakhs.
This reduction will ensure that salaried borrowers can get home loans at the lowest rate from the bank. Salaried women borrowers are also eligible for home loans at a rate of 8.35% from ICICI Bank. The reduced rates are applicable from 15th May, 2017 for new customers.
Borrowers can also link their home loans with I-MCLR-6 Months or I-MCLR-1 Year, flexibility that is not offered by any other bank. Additionally, customers have the choice of opting for floating interest rates or a combination of fixed and floating interest rates on the loan.
17th May 2017
State Bank of India announced that there has been a reduction of 25 basis points in the housing loans. This has brought down the interest to 8.35% for all the new borrowers. According to the new scheme designed by the Government of India, loans worth Rs.30 lakh qualifies as affordable housing loans.
For all the male borrowers, the offer is valid till 31st of July, 2017. It is a limited period offer and there is a reduction of 20 bps. This information was stated by Rajnish Kumar, Managing Director of State Bank of India. For salaried women, reduction in rate will be 25% and for the non-salaried women, there will be a cut by 20 basis points. 100 basis points is equal to one percentage point. Rajnish Kumar added that people will be able to save an amount of Rs.530 on their monthly EMIs.
16th May 2017
The Goods and Services Tax (GST) roll out in July has forced Reserve Bank of India (RBI) to be cautious regarding the interest rates related to home loans. The borrowers will have to wait and figure out the new GST norms pertaining to the home loan policies. The government has already rolled out subsidy for the borrowers who fall in the middle income groups. The GST related to home loans are currently unclear for the borrowers. RBI’s interest rates for home loans might be reviewed in the coming days following the roll out of GST.
3rd May 2017
In February, RBI decided to follow a neutral monetary policy and keep interest rates stable for the next 18 months. Recently, the central bank increased a secondary rate and kept the repo rate steady to take care of the extra liquidity that was generated because of demonetization. Economists want the repo rate to stay 6.25% until the 4th quarter next year and reverse repo rate to stay at 6%. Consumer prices increased by 3.81% last month.
26th April 2017
Getting a home loan can be perceived as a complicated task, however, if you have a good CIBIL score, it can help you get a home loan effortlessly. When you apply for a home loan, your lender (Bank) will carry out a credit check to determine whether a loan can be provided to you. Your application's approval highly depends on the health of your credit score. Moreover, banks also rely on credit score to determine if a credit card can be given to you. By taking care of the timely payments of your debt and by managing your credit wisely can help you improve your credit score. You can get in touch with any of the credit bureaus in India to check your credit score before applying for a loan or a credit card. A good credit score helps in negotiating the loan interest amount as well.
22nd April 2017