Indian Bank Home Loan Interest Rates

Highlights on Indian Bank Home Loan Interest Rate

Indian Bank’s home loan interest rates start at 8.15% per annum and go up to 10.55% per annum. These rates vary based on loan type, borrower’s credibility and other factors. Take a look at key details of Indian Bank’s housing loan interest rates below:

Interest Rate	8.15% – 10.55% per annum
Margin	10% – 30%
LTV	75% – 90%
Maximum Tenure	30 Years
Repayment Type	Equated Monthly Installments (EMIs) Progressive Monthly Instalment (PMI) Negotiated Repayment

Indian Bank Home Loan Interest Rates for Salaried vs. Self-employed Individuals

Indian Bank offers home loans for salaried and non-salaried applicants. Interest rates for these loans range from 8.15% – 10.55% per annum. The nature of an applicant’s employment plays a key role in determining interest rates. An applicant’s profession and income communicates the bank of their repayment capabilities. Applicants must check available home loan rate of Indian Bank for their employment profile before applying.

Indian Bank Home Loan Interest Rates – Scheme Wise

Indian Bank’s housing loan interest rates for different loan types are detailed in the table below:

Loan Product	Rate of Interest
Home Loan	8.15% – 10.05%
Home Loan to Corporate Identity	8.60% – 10.10%
Plot Loan/ Plot Loan (NRI)	9.15% – 10.55%
IB Home Improve	8.65% – 10.05%
IB Home Enrich	9.15% – 9.70%
IB Home Loan Plus	8.65% – 9.75%

How to Calculate EMIs on Indian Bank Home Loans?

Indian Bank’s home loan interest rate plays a crucial role in shaping monthly repayments. Borrowers can estimate their EMIs using this formula:

EMI= P×r×(1+r)n​/ (1+r)n−1

Where:

• P = Loan principal
• r = Monthly interest rate (Annual Rate/ 12/ 100)
• n = Loan tenure in months

As an alternative to manual calculations, borrowers can use Urban Money’s online home loan EMI calculator. Loan customers can simply enter their loan amount, interest rates and loan tenure to get EMI calculations within seconds.

List of Factors That Affect Indian Bank Home Loan Interest Rate and EMI

Take a look at some prominent factors influencing Indian Bank’s home loan interest percentage:

1. Credit Score: A high credit score (750 or above) indicates a positive repayment history and financial credibility. High scores, thus, attract low interest rates. While low scores result in high interest rates due to increased risk. 
2. Loan Amount: Higher loan amounts attract higher interest rates due to increased risk for the lender. Conversely, lower amounts are offered at cheaper rates due to lesser risk. 
3. Income and Employment Profile: Consistent employment and stable income increase an applicant’s chances of securing an affordable Indian Bank home loan interest rate. Applicants with unstable income, however, face high interest rates. 
4. Down Payment: A high down payment reduces the lender’s share in financing the property. This means lower risk for the bank and better interest rates for the borrower. 
5. Other Factors: The Indian Bank’s home loan percentage is also influenced by a range of other factors. These include RBI monetary policy, the bank’s internal policies, LTV ratio and more. 

Impact on Indian Bank Home Loan EMI Calculations After RBI’s Repo Rate Cut

Reserve Bank of India recently announced a 25-basis repo rate cut on 7th February 2025. Repo rate cuts typically reduce the effective rate of interest on home loans, leading to lower EMIs. Take a look at how this 25-basis cut can influence a home loan worth Rs. 50 lakhs for 10 and 20 years in the examples discussed below:

Case 1: Rs. 50 lakhs home loan for 10 years

Loan Amount	50 Lakhs
Loan Tenure	10 years
Original Interest Rate	8.15% p.a.
EMI	₹61,061
Revised Interest Rate	7.90% p.a. (8.15-0.25)
EMI	₹60,400

For a home loan of Rs. 50 lakhs borrowed for 10 years, the latest repo rate deduction offers a monthly savings of Rs. 661 (61,061-60,400).

Case 2: Rs. 50 lakhs home loan for 20 years

Loan Amount	50 Lakhs
Loan Tenure	20 years
Original Interest Rate	8.15% p.a.
EMI	₹ 42,290
Revised Interest Rate	7.90% p.a. (8.15-0.25)
EMI	₹ 41,511

For a home loan of Rs. 50 lakhs borrowed for 20 years, the latest repo rate deduction offers a monthly savings of Rs. 779 (42,290- 41,511). 

How to Get the Best Interest Rate on an Indian Bank Housing Loan?

Take a look at some effective tips to secure a low Indian Bank home loan interest percentage:

• Apply for a loan amount that matches your ability to repay.
• Keep a strong credit score, ideally above 750.
• Opt for a higher down payment to lower the LTV ratio and secure better interest rates.
• Demonstrate steady employment and a reliable income stream.
• Discuss terms with the lender before finalising the agreement.