Compare the lowest home loan interest rate starting from 6.64% p.a. and apply for the best home loan. Get the complete list of current housing loan rate of interest in India from all leading banks and financial institutions.
|Banks||Interest Rate (p.a.)||Processing Fees|
|Kotak Mahindra Bank||6.65%||0.50%|
|Union Bank of India||6.80%*||-|
|Bank of Baroda||6.75%||Rs. 8,500 - Rs. 25,000|
|Central Bank of India||6.85%||Rs. 20,000|
|Bank of India||6.85%||Rs. 1,500 - Rs. 20,000|
|State Bank of India||6.75%||0% - 0.35%|
|HDFC LTD||6.75%*||Rs. 3,000 - Rs. 4,500|
|ICICI Bank||6.90%||Rs. 3,000|
|LIC Housing Finance||6.90%||Rs. 10,000 -Rs. 15,000|
|Axis Bank||6.90%||Rs. 10,000|
|Canara Bank||6.90%||Rs. 1,500 - Rs. 10,000|
|Punjab and Sind Bank||6.85%||Full Waiver|
|IDFC First Bank||6.90%||Rs. 5,000 - Rs. 5,000|
|Bank of Maharashtra||6.90%||Rs. 10,000|
|Indian Overseas Bank||7.05%||0.50% (Max Rs. 20,000)|
|Punjab National Bank||6.95%||0.35% (Max Rs. 15,000)|
|United Bank of India||8.00%||0.59% (Rs. 1,180 - Rs. 11,800)|
|UCO Bank||6.90%||0.15% (Rs. 1,500 - Rs. 15,000)|
|DBS Bank||7.30%||0.25% (Rs. 10,000)|
|IDBI Bank||6.95%||0.50% (Rs. 2,500 - Rs.5,000)|
|HSBC Bank||6.64%||1% (Rs. 10,000)|
|Karur Vysya Bank||7.20%||Rs. 5,000|
|Saraswat Bank Home Loan||6.70%||Nill|
|Jammu and Kashmir Bank||7.20%||Rs. 500 - Rs. 10,000|
|South Indian Bank||7.85%||0.50% (Rs. 5,000 - Rs. 10,000)|
|PNB Housing Finance||7.35%||0.25% - 0.50% (Rs. 10,000)|
|Federal Bank||7.65%||Rs. 3,000 - Rs. 7,500|
|Standard Chartered Bank||7.99%||1%|
|Karnataka Bank||7.50%||Rs. 250|
|Sundaram Home Finance||6.95%||Rs.3,000 (for salaried)|
|Dhanlaxmi Bank||7.85%||Rs. 10,000|
|Tamilnad Mercantile Bank||8.25%||Rs. 15,000|
|DHFL Housing Finance||8.75%||Rs. 2500|
|Bandhan Bank||8.50%||1% (Rs.5,000)|
|Yes Bank||8.95%||1% (Rs. 10,000)|
|Hudco Home Loan||9.45%||NA|
|GIC Housing Finance||7.45%||Rs. 2,500|
|Reliance Home Finance||9.75%||Rs. 3,000 - Rs. 6,500|
|India Shelter Finance||12.00%||2.00%|
*Union Bank of India home loan interest rate at 6.80% (Revised on 1st Nov 2020) is available for Salaried Women customers with Cibil score above 700 applying for a loan up to 30 Lakh.
*ICICI home loan interest rate at 6.90% onwards is for salaried borrower applying for loan up to 35 Lakh.
*All HDFC Home Loans are at the sole discretion of HDFC Ltd.
As part of the upcoming festive season in the country, leading banks are offering special home loan offers to attract customers to avail home loans. State Bank of India is offering attractive interest rates starting at 6.90% p.a. for home loans of up to Rs.30 lakh and 7.00% p.a. for home loans above Rs.30 lakh. Those applying through the bank’s YONO mobile application get an additional interest rate concession of 5 basis points. Applicants across 8 metro cities in India will get a concession in interest rate of 20 basis points for home loans of up to Rs.3 crore. In the rest of the country, this will be applicable for home loans ranging from Rs.30 lakh to Rs.2 crore. For home loans of above Rs.75 lakh, there will be an interest rate concession of 25 basis points. All interest rate concessions are also linked to the credit scores of applicants.
Bank of Baroda has cut the repo rate that is linked to the external benchmark by 15 basis points. The reduction in the interest rate has seen the home loan rates start at 6.75%. The Bank of India and Central Bank are now offering home loans at low interest rates. These home loans start at 6.75% p.a. and LIC Housing Finance offers home loans which start at 6.90% p.a. Now, India has five housing finance companies which offer home loans below 8% p.a.
In general, home loans are long-term loans and it is important to figure out your overall interest liability towards the loan at the first place. You can calculate the same using one of the two methods listed below:
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.
Effective Interest Rate (EIR) = Base Rate + Markup
There are mainly two types of home loan interest rates charged by most of the banks.1. Fixed Interest Rate:
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.
Read More: Fixed Home Loan Rates2. Floating Interest Rate:
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.
Note: But, the floating home loan interest rates are cheaper than the fixed home loan interest rates on the first front.
|Name of Bank||Rate of Interest (% p.a.)|
|HDFC Bank||7.40 to 8.20|
|State Bank of India (SBI)||9.50 to 10.50|
|Bajaj Finserv Home Loan*||7.50 to 11.15|
|HSBC Bank||Contact the bank|
|Banks||Interest Rate(% p.a.)|
|Union Bank of India*||6.70 to 7.15|
|Central Bank of India||6.85 to 7.30|
|Bank of India||6.85 to 7.15|
|Bank of Baroda||6.85 to 8.10|
|State Bank of India (SBI)||6.90 to 7.50|
|ICICI Bank||6.90 to 7.95|
|Canara Bank||6.90 to 7.25|
|HDFC Bank*||6.90 to 8.20|
|IDFC First Bank||7.00 to 8.00|
|Punjab National Bank||7.00 to 7.60|
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.
The most important thing that you have look at is the cost of the house and the way you plan to finance it. 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:
Home loan interest rate is the percentage of the principal amount charged by the lender to the borrower for using the principal amount. The interest rate charged by banks and non-financial institutions determine the cost of your home loan. So, when you are paying your home loan EMI (equated monthly instalment), the interest rate charged determines how much you have to pay your lender against your loan every month. Interest rates are usually linked to repo rate and can vary from lender to lender.2. Which Bank has lowest home loan interest rate?
Though interest rates offered by banks can increase or decrease as per the banks’ discretion, right now the Union Bank of India is offering the lowest home loan interest of 6.70% p.a. to its customers. However, note that this rate is applicable only on home loan for women applicants.3. How to Get Lowest Home Loan Rates in India?
Home loan interest rates are at a 15-year low, so almost all the banks are offering lower interest rates on home loans compared to what they were offering in the previous financial year. However, to get the lowest home loan interest rates, compare rates offered by lenders. Always use a home loan EMI calculator while comparing rates; it will help you estimate how much you have to pay every month against your loan.4. How to reduce home loan interest?
Reducing your home loan interest will help ease the EMI burden off your shoulders. There are several ways you can consider that will help reduce your loan interest.
An LTV or a loan-to-value ratio is the percentage of the property cost that the bank will finance while the rest of the amount is financed by the homebuyer. Most banks finance up to 90% of the property cost. This percentage may vary depending the loan amount. Lenders generally use LTVs to determine how risky the loan is and whether they will approve or deny it. For instance, for loans up to Rs.30 lakh with LTV ratio of less that 80%, the risk weightage is 35%. Similarly, for the same amount, if the LTV ratio is between 80% and 90%, the risk weightage is 50%. For home loans above R.s75 akh and LTV ratio above 75%, the risk weightage is 50%.6. Which bank has the lowest rate of interest for the self-employed?
Union Bank of India, Bank of India and SBI are the banks that are offering attractive interest rates for self-employed professionals and non-professionals, with the rates starting at 6.85% p.a,6.85% p.a. and 6.90% p.a. respectively..7. How can I check total interest payout for my housing loan?
Use a home loan EMI calculator to check your total interest payout against your loan. Just enter the loan amount, tenure, and interest rate. Upon calculation, you will not only be able to check your EMI, but also a detailed break-up of your repayment schedule through an amortisation table. Through the amortisation table representing your repayment schedule, you can check how much interest you have paid against your loan.
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