Home Loan Interest Rates
As a potential homebuyer, it is essential to compare home loan interest rates offered by different banks to make an informed decision and secure the best deal for your dream home. You should always remember that, Home loan interest rate of all banks can vary based on the factors like loan tenure, loan amount, and the borrower's credit profile. Here is a brief overview of current housing loan interest rates across different banks in India.
Home Loan Interest Rates of Top Private Bank
Starting Interest Rate (p.a.)
8.85%
Processing Fee
Up to 3%
Maximum Loan Amount
₹1L - ₹5Cr
Tenure
Tenure(1 - 30 Years)
4.5
Starting Interest Rate (p.a.)
8.95%
Processing Fee
Up to 0.5%
Maximum Loan Amount
₹5L - ₹10Cr
Tenure
Tenure(1 - 30 Years)
4.5
Starting Interest Rate (p.a.)
8.75%
Processing Fee
0.05%
Maximum Loan Amount
₹5L - ₹1Cr
Tenure
Tenure(1 - 25 Years)
4.5
Starting Interest Rate (p.a.)
8.9%
Processing Fee
0.5% - 1%
Maximum Loan Amount
₹1L - ₹1Cr
Tenure
Tenure(1 - 20 Years)
4.5
Starting Interest Rate (p.a.)
9.15%
Processing Fee
1.5%
Maximum Loan Amount
₹10L - ₹10Cr
Tenure
Tenure(1 - 35 Years)
4.5
Starting Interest Rate (p.a.)
9.25%
Processing Fee
0.5%
Maximum Loan Amount
₹3L - ₹75L
Tenure
Tenure(5 - 30 Years)
Starting Interest Rate (p.a.)
6.6%
Processing Fee
1% - 1%
Maximum Loan Amount
₹5L - ₹15Cr
Tenure
Tenure(5 - 20 Years)
Starting Interest Rate (p.a.)
9.75%
Processing Fee
0.5% - 2%
Maximum Loan Amount
₹7.5L
Tenure
Tenure(Up to 20 Years)
Starting Interest Rate (p.a.)
8.65%
Processing Fee
0.5% - 1.5%
Maximum Loan Amount
₹5L - ₹1Cr
Tenure
Tenure(1 - 30 Years)
4.5
Starting Interest Rate (p.a.)
7.55%
Processing Fee
Up to 0.5%
Maximum Loan Amount
₹5L - ₹10Cr
Tenure
Tenure(Up to 30 Years)
4.5
Starting Interest Rate (p.a.)
8.25%
Processing Fee
Up to 2%
Maximum Loan Amount
₹10L - ₹5Cr
Tenure
Tenure(Up to 20 Years)
4.5
Starting Interest Rate (p.a.)
8.45%
Processing Fee
Up to 2%
Maximum Loan Amount
Up to ₹10Cr
Tenure
Tenure(2 - 25 Years)
4.5
Starting Interest Rate (p.a.)
10.25%
Processing Fee
Up to 0.5%
Maximum Loan Amount
₹10L - ₹75L
Tenure
Tenure(1 - 30 Years)
4.5
Starting Interest Rate (p.a.)
8.85%
Processing Fee
Up to 1.5%
Maximum Loan Amount
₹1L - ₹1Cr
Tenure
Tenure(1 - 25 Years)
Starting Interest Rate (p.a.)
9.5%
Processing Fee
Up to 1%
Maximum Loan Amount
Up to ₹70L
Tenure
Tenure(1 - 20 Years)
4.5
Starting Interest Rate (p.a.)
8.05%
Processing Fee
1% - 5%
Maximum Loan Amount
₹10K - ₹50Cr
Tenure
Tenure(1 - 5 Years)
Starting Interest Rate (p.a.)
9.08%
Processing Fee
0.25%
Maximum Loan Amount
Up to ₹5Cr
Tenure
Tenure(1 - 30 Years)
Starting Interest Rate (p.a.)
8.65%
Processing Fee
0.5%
Maximum Loan Amount
₹1L - ₹15Cr
Tenure
Tenure(Up to 10 Years)
4.5
Starting Interest Rate (p.a.)
8.75%
Processing Fee
1%
Maximum Loan Amount
₹3L - ₹30Cr
Tenure
Tenure(Up to 25 Years)
Home Loan Interest Rates of Top NBFC
4.5
Starting Interest Rate (p.a.)
9.3%
Processing Fee
0.5%
Maximum Loan Amount
₹2L - ₹5Cr
Tenure
Tenure(1 - 30 Years)
4.5
Starting Interest Rate (p.a.)
8.65%
Processing Fee
Up to 3%
Maximum Loan Amount
₹3L - ₹10Cr
Tenure
Tenure(Up to 30 Years)
Starting Interest Rate (p.a.)
8.95%
Processing Fee
0.5%
Maximum Loan Amount
₹5L - ₹5Cr
Tenure
Tenure(5 - 30 Years)
Starting Interest Rate (p.a.)
8.6%
Processing Fee
Up to 6%
Maximum Loan Amount
₹1L - ₹5Cr
Tenure
Tenure(1 - 30 Years)
4.5
Starting Interest Rate (p.a.)
9.5%
Processing Fee
Up to 3%
Maximum Loan Amount
₹10L - ₹5Cr
Tenure
Tenure(Up to 30 Years)
Starting Interest Rate (p.a.)
8.5%
Processing Fee
Up to 0.5%
Maximum Loan Amount
₹8L - ₹75L
Tenure
Tenure(1 - 30 Years)
Starting Interest Rate (p.a.)
8.64%
Processing Fee
Up to 3%
Maximum Loan Amount
₹5L - ₹2Cr
Tenure
Tenure(1 - 30 Years)
4.5
Starting Interest Rate (p.a.)
8%
Processing Fee
Up to 1.75%
Maximum Loan Amount
₹2L - ₹3Cr
Tenure
Tenure(5 - 20 Years)
Starting Interest Rate (p.a.)
11%
Processing Fee
Up to 1%
Maximum Loan Amount
₹10L - ₹75L
Tenure
Tenure(Up to 30 Years)
Starting Interest Rate (p.a.)
12.5%
Processing Fee
Up to 2%
Maximum Loan Amount
Up to ₹50L
Tenure
Tenure(Up to 20 Years)
4.5
Starting Interest Rate (p.a.)
11%
Processing Fee
0.5% - 3%
Maximum Loan Amount
₹1L - ₹7Cr
Tenure
Tenure(Up to 30 Years)
4.5
Starting Interest Rate (p.a.)
17%
Processing Fee
Up to 2%
Maximum Loan Amount
₹10L - ₹2Cr
Tenure
Tenure(Up to 25 Years)
Starting Interest Rate (p.a.)
13.75%
Processing Fee
1% - 2%
Maximum Loan Amount
₹2L - ₹75L
Tenure
Tenure(3 - 20 Years)
4.5
Starting Interest Rate (p.a.)
7.99%
Processing Fee
Up to 2%
Maximum Loan Amount
₹5L - ₹50L
Tenure
Tenure(Up to 25 Years)
Starting Interest Rate (p.a.)
8.9%
Processing Fee
Up to 2%
Maximum Loan Amount
₹5L - ₹25L
Tenure
Tenure(Up to 20 Years)
Starting Interest Rate (p.a.)
9.5%
Processing Fee
Up to 2%
Maximum Loan Amount
₹1L - ₹5Cr
Tenure
Tenure(Up to 30 Years)
Starting Interest Rate (p.a.)
11.75%
Processing Fee
0.2% - 0.5%
Maximum Loan Amount
₹20K - ₹1Cr
Tenure
Tenure(1 - 30 Years)
Starting Interest Rate (p.a.)
8%
Processing Fee
Up to 2%
Maximum Loan Amount
₹20K - ₹75L
Tenure
Tenure(Up to 25 Years)
Starting Interest Rate (p.a.)
11%
Processing Fee
1% - 2%
Maximum Loan Amount
₹10L - ₹20Cr
Tenure
Tenure(1 - 15 Years)
Starting Interest Rate (p.a.)
9%
Processing Fee
Up to 1%
Maximum Loan Amount
₹20L - ₹10Cr
Tenure
Tenure(1 - 30 Years)
Starting Interest Rate (p.a.)
12%
Processing Fee
Up to 2%
Maximum Loan Amount
-
Tenure
Tenure(1 - 25 Years)
Starting Interest Rate (p.a.)
9.55%
Processing Fee
1% - 2%
Maximum Loan Amount
₹5L
Tenure
Tenure(1 - 30 Years)
Starting Interest Rate (p.a.)
9.5%
Processing Fee
Up to 3%
Maximum Loan Amount
Up to ₹5Cr
Tenure
Tenure(1 - 30 Years)
Starting Interest Rate (p.a.)
9%
Processing Fee
2%
Maximum Loan Amount
₹5L - ₹50L
Tenure
Tenure(15 - 30 Years)
Home Loan Interest Rates of Top Nationalized Bank
Starting Interest Rate (p.a.)
9.15%
Processing Fee
Up to 0.5%
Maximum Loan Amount
₹1L - ₹10Cr
Tenure
Tenure(Up to 30 Years)
4.5
Starting Interest Rate (p.a.)
8.1%
Processing Fee
Up to 0.5%
Maximum Loan Amount
₹10L - ₹50L
Tenure
Tenure(1 - 30 Years)
Starting Interest Rate (p.a.)
11.4%
Processing Fee
Up to 0.5%
Maximum Loan Amount
₹25L
Tenure
Tenure(1 - 30 Years)
Starting Interest Rate (p.a.)
9.7%
Processing Fee
Nil
Maximum Loan Amount
₹5L - ₹40L
Tenure
Starting Interest Rate (p.a.)
8.8%
Processing Fee
0.35%
Maximum Loan Amount
Up to ₹1Cr
Tenure
Tenure(Up to 30 Years)
4.5
Starting Interest Rate (p.a.)
8.6%
Processing Fee
Up to 1%
Maximum Loan Amount
Up to ₹75L
Tenure
Tenure(Up to 30 Years)
Starting Interest Rate (p.a.)
8.65%
Processing Fee
Up to 0.25%
Maximum Loan Amount
Up to ₹5Cr
Tenure
Tenure(1 - 30 Years)
Starting Interest Rate (p.a.)
8.4%
Processing Fee
0.25%
Maximum Loan Amount
-
Tenure
Tenure(1 - 5 Years)
Starting Interest Rate (p.a.)
8.48%
Processing Fee
Up to 1%
Maximum Loan Amount
₹5L - ₹5Cr
Tenure
Tenure(Up to 10 Years)
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Home Loan Top Banks
Loans
Home Loan Calculator
- Axis Bank Home Loan
- ICICI Bank Home Loan
- Bank of Baroda Home Loan
- Canara Bank Home Loan
- Union Bank of India Home Loan
- State Bank of India Home Loan
- IndusInd Bank Home Loan
- Punjab National Bank Home Loan
- YES Bank Home Loan
- Federal Bank Home Loan
- IDBI Bank Home Loan
- CITI Bank Home Loan
- IDFC FIRST Bank Home Loan
- Deutsche Bank Home Loan
- RBL Bank Home Loan
- Kotak Bank Home Loan
- HSBC Home Loan
- Bank of India Home Loan
- karnataka bank Home Loan
- Bank of Maharashtra Home Loan
Check Eligibility
Ifsc Codes
Investment
- Employee Provident Fund
- Systematic Investment Plan
- Fixed Deposit
- Mutual Funds
- Recurring Deposit
- Systematic Investment Plan (SIP)
- Employees Provident Fund (EPF)
- Public Provident Fund (PPF)
- Voluntary Provident Fund (VPF)
- ELSS
- National Pension Scheme (NPS)
- National Savings Certificate (NSC)
- Senior Citizen Saving Scheme
How to Calculate Interest Rate on Home Loan?
The repayment for home loans is long-term, and the borrower must gain knowledge of the interest liability beforehand to plan the loan's budgeting properly. One can compute the interest on the home loan by utilising the following methods.
EMI Calculator
Individuals inclined to avail of home loans from lending institutions can compute the interest on the loan by utilising the home loan EMI calculator. The user is required to mention the following information on this AI-powered tool to conclude the calculation.
- Loan Amount
- Repayment tenure
- Interest Rate
After mentioning the values in the fields mentioned above, the user must click on the ‘Calculate’ button, after which one would obtain a detailed break up of the repayment along with clarity on the interest and principal amount. The user can enter multiple values on the calculator and compare the varying interest rates and tenures to find the one that complements their budget.
EMI Calculation Formulae
One can also utilise the below-mentioned formulae to calculate the home loan's interest.
EMI = [P*r*(1+r)^n] / [(1+r)^n-1]
Here,- P is the principal amount
- r is the rate of interest charged on the home loan
- n is the number of instalments on the loan or the tenure of the loan
Types of Home Loan Interest Rates
Generally, lending institutions charge interest on the home loan in two ways:
Fixed Interest Rates
In the fixed interest rate option, interest on the home loan remains consistent throughout the loan tenure. There will be no variability in the loan interest charges since the loan rate is constant. Some banks allow switching to a floating interest rate method after the borrower completes a certain period of the repayment tenure. This option safeguards the borrower from fluctuating interest rates, but it also means that they wouldn’t be able to avail of the benefits in case the standard interest rate falls.
Floating Interest Rates
In this option, the interest charges on the home loan are subject to the current interest rates offered by the lending institution. The interest charges on loans are prone to other factors, such as RBI monetary policy and revisions in the lending rates. And also to the response of the bank on the revisions. If borrowers opt for the floating interest rate, they can benefit if there is a slash in the interest rates from the RBI.
Factors Determining Home Loan Interest Rate of All Banks
The following factors impact the home loan interest rate of all banks in India:
- Applicants with substantial income are offered lower interest rates on the home loan.
- The lending institutions also evaluate the creditworthiness of the applicant. Banks will examine the applicant's credit history before they decide to disburse the loan amount.
- The loan amount borrowed from the bank also influences the interest on the loan amount. A substantial loan amount will diminish the interest rate.
- Generally, salaried employees are offered a lower interest rate than self-employed individuals.
- The tenure directly impacts the home loan interest rates. A lengthier repayment tenure reduces the home loan interest rate.
Frequently Asked Questions (FAQs)
What is the home loan interest rate?
The home loan interest rate is the rate at which the interest shall be charged from the principal amount. Lending institutions charge interest as the fee for providing the funds to the applicant.
Which bank has the lowest home loan interest rate?
The interest rate charged by the banks is variable and changes at the bank’s discretion. Citibank offers the lowest interest rate on home loans at 6.65% per annum. However, it may vary based on the applicant.
How do you Get the Lowest Home Loan Rates in India?
One should meticulously research the home loan interest rates offered by various lending institutions. They can also utilise a Home loan calculator to ease the computation process.
How to reduce home loan interest?
One can utilise the methods such as selecting a shorter tenure, making regular repayments and getting a balance transfer to diminish the interest on the home loans.
How is Home Loan Risk weightage linked to LTV Ratio?
The loan-to-value ratio on the percentage of the property value that the lending institution will offer as opposed to the homebuyer. The banks use the LTV ratio to determine the risk of the loan.
Which bank has the lowest interest rate for the self-employed?
Financial institutions such as SBI and Union bank of India offer lucrative interest rates to self-employed individuals.
How can I check the total interest payout for my housing loan?
One can utilise many online home loan calculators to compute the home loan’s interest rate payout.
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