Home loan interest rates in India start from 7.90% p.a. After the borrower is found eligible for the home loan, they get their home loan interest rates from lending institutions. Being a secured loan, the approval process that involves getting the sanction letter for your Home Loan is not a tough task. You can also choose between fixed and floating, the different types of home loan interest rates for your house loan.
|Bank Name||Interest Rate||EMI/Lakh (in Rs. for 30 year tenure)||Processing Fees|
|Central Bank of India||7% – 7.65%||Rs. 665 – Rs. 710||Up to 0.50% of loan amount (Maximum Rs. 20,000)|
|Jammu & Kashmir Bank Ltd.||7.35% p.a. onwards||Rs. 689||0.25% of loan amount + GST (Minimum Rs. 5,000 & Maximum Rs. 25,000)|
|Citibank||Starting @7.40%||Rs. 692||Up to Rs. 5000|
|IDBI Bank Limited||7.50% – 10.65%||Rs. 699 – Rs. 926||Up to Rs. 20,000 + taxes|
|Bajaj Finserv||Starting from 7.70%||Rs. 713||Up to 1% of loan amount (Minimum Rs. 700)|
|Bandhan Bank||7.80% – 13.50%||Rs. 720 – Rs. 1,145||0.50% of loan amount|
|Bank of Maharashtra||7.80% – 9.20%||Rs. 720 – Rs. 819||0.25% of loan amount (Maximum Rs. 25,000)|
|Bank of India||7.80% – 9.65%||Rs. 720 – Rs. 852||Maximum Rs. 50,000|
|Indian Bank||7.90% – 8.95%||Rs. 727 – Rs. 801||Up to 0.30% of loan amount (Maximum Rs. 20,470)|
|PNB Home Loan||7.90% – 9.35%||Rs. 727 – Rs. 830||Up to 0.35% of loan amount (Maximum Rs. 15,000)|
|Union Bank of India||7.90% – 9.85%||Rs. 727 – Rs. 867||Up to 0.50% of loan amount (Maximum Rs. 15,000) + GST|
|UCO Bank||7.90%– 8.10%||Rs. 727 – Rs. 741||0.5% of loan amount (Minimum Rs. 1,500 & Maximum Rs. 15,000)|
|Bank of Baroda||7.95% 9.30%||Rs. 730 – Rs. 826||Up to 0.50% of loan amount (Minimum Rs. 8,500 & Maximum Rs. 25,000)|
|Tamilnad Mercantile Bank Ltd.||Starting @7.95%||Rs. 730||0.50% of loan amount + taxes|
|Karnataka Bank Ltd.||7.96% – 9.31%||Rs. 731 – Rs. 827||As mentioned by the bank|
|Kotak Mahindra Bank Ltd||7.99% – 8.50%||Rs. 733 – Rs. 769||Up to 2% of loan amount + GST & other statutory levies|
|Karur Vysya Bank Ltd.||8.05% – 10.25%||Rs. 737 – Rs. 896||Minimum Rs. 2,500 & Maximum Rs. 7,500 + GST|
|SBI||8.05% – 9.05%||Rs. 737 – Rs. 808||Up to 0.50% of loan amount + GST|
|LIC Housing Finance||8.05% – 9.25%||Rs. 737 – Rs. 823||0.50% of loan amount + GST|
|Canara Bank||8.05% 12.85%||Rs. 737 – Rs. 1094||0.50% of loan amount (Minimum Rs. 1,500 & Maximum Rs. 10,000)|
|Axis Bank||8.10% – 8.55%||Rs. 741 – Rs. 772||Up to 1% of loan amount (Minimum Rs. 10,000)|
|ICICI Bank||8.10% – 8.95%||Rs. 741 – Rs. 801||Up to 2% of loan amount or Rs. 2,000, whichever is higher + GST|
|HDFC Bank||8.10% – 9.00%||Rs. 741 – Rs. 805||Up to 1.50% of loan amount or Rs. 4,500, whichever is higher + applicable taxes.|
|South Indian Bank Ltd.||8.25% – 11%||Rs. 751 – Rs. 952||0.50% of loan amount (Minimum Rs. 5,000 & Maximum Rs. 10,000)|
|Dhanlaxmi Bank Ltd.||8.35% – 9.50%||Rs. 758 – Rs. 841||1% of loan amount (Minimum Rs. 10,000) + service tax|
|Indian Overseas Bank||8.45% – 8.80%||Rs. 765- Rs. 790||Up to 0.50% (Maximum Rs. 25,000)|
|YES Bank Ltd.||8.95% – 12.00%||Rs. 801 – Rs. 1,029||1% of loan amount or Rs. 10,000, whichever is higher + GST|
|Federal Bank Ltd.||9.05% – 9.20%||Rs. 808 – Rs. 819||0.50% of loan amount (Min. Rs. 3,000 – Rs. 7,500)|
|IDFC First||7.95%||Rs. 730||Up to Rs. 10,000|
|Piramal Housing Finance||Starting from 10.50%||Rs. 915 onwards||Up to 3% of loan amount + applicable taxes|
Additional Info: Also check Home Loan for Salaried Employees
If you are eyeing the dream house you always wanted, this question is surely the first thing that comes to your mind. Let’s check out these aspects that define the course of your home loan interest rate –
Property in an approved society has more chance of getting a loan amount up to 75-90% of the property value.
You must have a Credit Score of 750 or above to get approval for a home loan. The higher the credit score, the higher will be your chances of getting a low-interest rate.
A good understanding with the bank will always help you in getting a high loan amount and that too at a competitive rate of interest on your home loan without any hassle.
A person earning a high income has good chances of getting a lower rate and a higher amount. In case you have more than one earning member, you can also apply for a home loan keeping that person as a co-applicant in your loan process. This will increase the overall income of your house and so you will get a high loan amount.
It is very important to maintain and keep all the property documents with you. As it helps the lender identify your property and its worth properly and thus trust your profile.
Many people do not know that your loan application may be rejected. If you do not have income proof or a salary slip. Only a few NBFCs accept such cases but then they give high rates.
If your age at the time of applying is in your early 30s or late 20s. You are more eligible for a higher loan amount as you have fewer financial liabilities. Also, when you apply at a young age your loan tenure can go as far as 25-30 yrs resulting in smaller EMIs
You can balance transfer your existing home loan to a lender offering a lower rate on your home loan to save your money.
Additional Info: Also check How to Apply for Pradhan Mantri Awas Yojana
The six main factors that affect home loans apart from interest rates are explained below. These are just a few factors from the whole big list. It is important to consider each of these while applying for a home loan.
There could be a time in everyone’s life when you decide you are done living in a rented house. Home loans are always available as a great option for this decision and can lend hands during tax payments too. Though the amount paid by the bank has to be repaid, it is worth spending this money on a property that is expected to appreciate at all times. Investment in land or property is always a safe and smart move!
Additional Info: Looking for 50 Lakh Home Loan? Check EMI & Apply
Calculate Home Loan EMI using MyMoneyMantra Home Loan Calculator. It is simple, free and convenient to use EMI Calculator for estimating monthly installments. All you need to do is share the loan amount, tenure and rate of interest and the Calculator will instantly share EMI for your home loan.
Simple steps to calculate home loan EMI & interest amount are:
Step 1: Click on MyMoneyMantra Home Loan EMI Calculator.
Step 2: Share home loan amount, housing loan interest rates and tenure.
Step 3: Submit these loan parameters and instantly get Loan EMI & interest rate cost.
Completing these steps you will get:
Calculating your loan’s EMI is thus instant and hassle free at MyMoneyMantra Platform. Furthermore, you need not visit each bank’s website separately to know about loan terms or EMI calculations. You can try different combinations and choose the most affordable one according to your pocket.
You should also know about mathematical EMI Calculation:
Home Loan EMI Calculation Formula:
EMI= [P x R x (1+R) ^ N]/ [(1+R) ^ N-1]
Here, EMI is Equated Monthly Instalment
P is Principal Amount (Loan Amount)
R is effective rate of interest
Latest Home loan interest rate in all banks are calculated on an annual basis. To calculate monthly home loan rate, divide annual rate by 12
For example, if the applicable home loan interest rate is 8%, your monthly interest would be 0.0066 (0.08/12 = 0.0066)
N – Loan tenure in months (EMIs to be paid)
So, if it is a 15-year home loan, N = 15×12 = 180
Additional Info: Also check SBI Home Loan EMI Calculator
Many borrowers think choosing a lower tenure for their home loan will allow them to spend less monthly and that’s it. But, what they fail to realize is that by going for a longer tenure they are also increasing total interest outgo which when bended with the principal amount amounts to a considerably big sum than in a situation where your home loan tenure is lower.
Lets see this difference with a small example:
Assuming you avail a loan of Rs 30 Lacs at an interest of 7.90% for a tenure of 20 yrs.
You avail a home loan of Rs 30 Lacs at 7.90% for 15 yrs.
|20 yrs||Rs. 24,907||Rs. 29,77,636|
|15 yrs||Rs. 28,497||Rs. 21,29,396|
Comparison between both tenures clearly suggest that you are going to save around Rs 8,48,240 from your pocket.
Additional Info: Also Apply Section 80CCD
A home loan can be availed of as a fixed rate loan or a floating/ variable rate variant. However, currently maximum lenders in India are offering floating home loan schemes only.
Some banks also offer combination schemes wherein the loan switches to a floating rate after initial few years. Based on your current repayment capacity and market situation choose the loan regime
Additional Info: Also check Pan Number for Banks
You now know that you can avail two types of interest rates for your house loan. What is interesting to know is what are the charges levied by various banks when you try to transfer your home loan interest rate from fixed to floating or vice versa as banks can charge on the conversion. Check out the table below to know the conversion fee applicable to changing from a fixed rate to a floating rate.
Additional Info: Also Check Tax Benefit on Second Home Loan
|Banks/ NBFCs||Transfer charges|
|Yes Bank||0.50% of the principal outstanding|
|Kotak Mahindra Bank||As applicable|
|PNB Housing Finance||0.50% of the principal outstanding|
|State Bank of India||Rs. 5000|
|HDFC Ltd||As applicable|
|Bank of Baroda||As applicable|
Additional Info: Also check and Apply for SBI Plot Loan
To understand mathematics behind your home loan EMI you must understand the difference between Flat Rate and Reducing Balance Rate Calculations. Opting for reducing balance method can save your more money as against the flat rate, on the same interest rate home loan deal.
Additional Info: You can also Check AnyRoR Gujarat Land Record
How? Let’s understand with the help of an example:
In flat rate method, the interest on home loan is calculated on the loan principal amount each month and thus EMIs are same during the tenure of loan. However, on reducing balance method, the interest rate will reduce each month/ EMI cycle. The calculation for instalment is made on the balance amount of principal after deducting the repaid principal amount. So reducing rate method is more affordable than flat rate method for the borrowers.
Let’s say, Mr A takes a Home Loan of Rs. 10, 00,000 at 10% p.a. for 10 years. Here is how interest rate calculations will vary:
|Rate of Interest||10% p.a||10% p.a|
|Tenure||10 years||10 years|
|Interest Calculation||Flat Rate||Reducing balance|
|Total Payment||16667 X 120 = 20,00,040||13215 X 120 = 15,85,800|
|Saving||2000040 -1585800 = 4,14,240|
Additional Info: Also Check & Apply for Home Construction Loan
Home loan is a long term commitment that runs for several years. Though maximum loan tenure range is usually up to 30 years, most borrowers take 10-15 years to pay their loans. The smaller is the tenure, smaller is your interest liability. Thus, one of the best ways to reduce your home loan interest rate burden is to opt for lower loan tenure.
Additional Info: You can also avail Canfin Home Loan
Use any of the following paths to keep burden of current home loan interest rates low:
Additional Info: You can also avail Navi Home Loan
Home loan interest rates are the lowest ever in the past 15 years. With raining festival offers on home loan, currently you can avail of the best interest rate on Bajaj Finserv home loan @7.70% p.a for all loan amounts.
You can avail the lowest Home Loan EMI at Rs. 727/- per lakh with maximum repayment flexibility. Some options are Step-Up EMIs, Step Down EMIs, Moratorium, OD facility, balance transfer, top up and more.
Home Loans at floating interest rate (linked to repo rate) offer you ultimate prepayment flexibility. There is no part or full prepayment charge. You can prepay early & reduce interest cost as per your cash flows.
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