Compare the lowest home loan interest rate starting from 8.40% p.a. and apply for the best home loan. Get the complete list of current housing loan rates of interest in India from all leading banks and financial institutions.
|Banks||Starting Interest Rate (p.a.)||Processing Fees|
|Kotak Mahindra Bank||8.75% p.a. onwards||2%|
|Union Bank of India||8.70% p.a. onwards||0.50% of the loan amount|
|Bank of Baroda||8.60% p.a. onwards||Up to 0.50% (Min. Rs. 8,500; Max. Rs. 25,000)|
|Central Bank of India||8.35% p.a. onwards||NIL or up to 0.50%|
|Bank of India||8.45% p.a. onwards||Up to 0.25% for individuals (Min. Rs. 1,500; Max. Rs. 20,000)|
|State Bank of India||8.40% p.a. onwards||0.17%|
|HDFC Home Loans||8.45% p.a. onwards*||0.5% or Rs.3,000 whichever is higher|
|LIC Housing Finance||8.45% p.a. onwards||Up to 0.50%|
|Axis Bank||9.00% p.a. onwards||Up to 1% or min. Rs. 10,000|
|Canara Bank||9.25% p.a. onwards||0.50% of the loan amount (min. Rs. 1,500 and max. Rs. 10,000)|
|Punjab and Sind Bank||8.95% p.a. onwards||Full Waiver|
|IDFC First Bank||8.85% p.a. onwards||Up to 3% of the overall loan amount|
|Bank of Maharashtra||8.60% p.a. onwards||0.15% of the loan amount subject to a maximum of Rs. 25,000|
|Indian Overseas Bank||9.55% p.a. onwards||0.15% of the loan amount subject to a maximum of Rs. 25,000|
|Punjab National Bank||8.50% p.a. onwards||0.35% (Max Rs. 15,000)|
|UCO Bank||8.75% p.a. onwards||0.5% of loan amount min. Rs. 1500 and max. Rs. 15,000|
|IDBI Bank||8.65% p.a.||0.50% (Rs. 2,500 - Rs.5,000)|
|HSBC Bank||8.75% p.a. onwards||1% of loan amount or Rs. 10,000, whichever is higher|
|Karur Vysya Bank||7.15% p.a. onwards||1% of loan amount or Rs. 10,000, whichever is higher|
|Saraswat Bank Home Loan||8.60% p.a. onwards||
|Jammu and Kashmir Bank||8.75% p.a. onwards||0.25% + GST (min. Rs. 5,000 and max. Rs. 50,000)|
|South Indian Bank||Repo Rate + 3.35% p.a. onwards||0.50% of the loan amount or a minimum of Rs. 5,000 + GST|
|PNB Housing Finance Limited||8.75% p.a. onwards||Up to 0.50%|
|Federal Bank||8.80% p.a. onwards||
|Standard Chartered Bank||8.75% p.a. onwards||1%|
|Aavas Financiers||Contact the bank||1.00%|
|Karnataka Bank||8.75% p.a. onwards||Contact the bank|
|Sundaram Home Finance||7.85% p.a.||Rs.3,000 (for salaried)|
|Dhanlaxmi Bank||ranges up to 15% p.a.||1% of the loan amount|
|Tata Capital||8.60% p.a. onwards||0.50%|
|Tamilnad Mercantile Bank||9.35% p.a. onwards||0.50%|
|Bandhan Bank||9.15% p.a. onwards||Contact the bank|
|Yes Bank||9.40% p.a. to 10.25% p.a.||2% of the loan amount plus GST or Rs. 10,000, whichever is higher|
|Hudco Home Loan||8.95% p.a. onwards||NA|
|Indiabulls||8.75% p.a. onwards||0.50% onwards|
|Aditya Birla||8.80% p.a. onwards||Up to 1%|
|GIC Housing Finance||8.80% p.a. onwards||8.80% p.a. onwards|
|Reliance Home Finance||9.75% p.a onwards||Up to 2%|
|Shriram Housing||10.49% p.a. onwards||NA|
|India Shelter Finance||13.00% p.a. to 20% p.a.||2.00% to 3%|
*All HDFC Home Loans are at the sole discretion of HDFC Home Loans.
In general, home loans are long-term loans and it is important to figure out your overall interest liability towards the loan in the first place. You can calculate the same using one of the two methods listed below:
The applicable interest rate on a home loan consists of two components, the base rate and the markup rate. The combination of the 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 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.
When applying for a home loan, it's important to understand the factors that lenders consider while assessing your eligibility and determining the interest rate. Since home loans involve substantial amounts, banks and Housing Finance Companies (HFCs) conduct a thorough evaluation of your credit history, repayment capacity, income, and property details. It's worth noting that lower interest rates often come with stricter eligibility criteria. Here are the key factors that lenders take into account:
The 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 rates and can vary from lender to lender.
Though interest rates offered by banks can increase or decrease as per the banks’ discretion, right now the Bank of Maharashtra is offering the lowest home loan interest of 8.40% p.a. to its customers. However, note that this rate is applicable only on home loan for women applicants.
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.
Choose a shorter tenure – For long term loans, though the EMI is less, the overall cost of the loan drastically increases because you are paying interest for a longer period of time. So, choose shorter tenures as the interest amount will get much lower with time. Use a home loan EMI calculator while comparing long-term and short-term home loans.
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.
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. and 8.05% p.a. respectively.
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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