Urban Money

Home Loan Interest Rates

Financial institutions operating in the Indian banking sector offer a variety of home loan schemes and products to fulfil the housing requirement of the customer base in India. The home loan interest rate on these for the same commences from 6.65% per annum. One can utilise funds from these instruments to obtain properties for residential or investment purposes.

Home Loan Interest Rates of Top Private Bank

  • Starting Interest Rate (p.a.)

    8.75%

  • Processing Fee

    Up to 3%

  • Maximum Loan Amount

    ₹1L - ₹5Cr

  • Tenure

    Tenure(1 - 30 Years)

  • Starting Interest Rate (p.a.)

    8.6%

  • Processing Fee

    Up to 0.5%

  • Maximum Loan Amount

    ₹5L - ₹10Cr

  • Tenure

    Tenure(1 - 30 Years)

  • Starting Interest Rate (p.a.)

    8.1%

  • Processing Fee

    0.05%

  • Maximum Loan Amount

    ₹5L - ₹1Cr

  • Tenure

    Tenure(1 - 25 Years)

  • Starting Interest Rate (p.a.)

    8.65%

  • Processing Fee

    0.5% - 1%

  • Maximum Loan Amount

    ₹1L - ₹1Cr

  • Tenure

    Tenure(1 - 20 Years)

  • Starting Interest Rate (p.a.)

    8.85%

  • Processing Fee

    0.25%

  • Maximum Loan Amount

    ₹3L - ₹75L

  • Tenure

    Tenure(5 - 30 Years)

  • Starting Interest Rate (p.a.)

    8.95%

  • Processing Fee

    1.5%

  • Maximum Loan Amount

    ₹10L - ₹10Cr

  • Tenure

    Tenure(1 - 35 Years)

  • Starting Interest Rate (p.a.)

    6.9%

  • Processing Fee

    0.5% - 1%

  • Maximum Loan Amount

    ₹5L - ₹25Cr

  • Tenure

    Tenure(5 - 20 Years)

  • Starting Interest Rate (p.a.)

    8.44%

  • Processing Fee

    0.5% - 1%

  • Maximum Loan Amount

    ₹5L - ₹35Cr

  • Tenure

    Tenure(Up to 25 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)

  • Starting Interest Rate (p.a.)

    7.55%

  • Processing Fee

    Up to 0.5%

  • Maximum Loan Amount

    ₹5L - ₹10Cr

  • Tenure

    Tenure(Up to 30 Years)

  • Starting Interest Rate (p.a.)

    8.25%

  • Processing Fee

    Up to 2%

  • Maximum Loan Amount

    ₹10L - ₹5Cr

  • Tenure

    Tenure(Up to 20 Years)

  • Starting Interest Rate (p.a.)

    6.65%

  • Processing Fee

    Up to 2%

  • Maximum Loan Amount

    Up to ₹10Cr

  • Tenure

    Tenure(2 - 25 Years)

  • Starting Interest Rate (p.a.)

    9.9%

  • Processing Fee

    Up to 0.5%

  • Maximum Loan Amount

    ₹10L - ₹1.5Cr

  • Tenure

    Tenure(1 - 30 Years)

  • Starting Interest Rate (p.a.)

    8.7%

  • 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)

  • Starting Interest Rate (p.a.)

    11.2%

  • Processing Fee

    1% - 5%

  • Maximum Loan Amount

    ₹10K - ₹50Cr

  • Tenure

    Tenure(1 - 5 Years)

  • Starting Interest Rate (p.a.)

    8.65%

  • Processing Fee

    0.5%

  • Maximum Loan Amount

    ₹1L - ₹15Cr

  • Tenure

    Tenure(Up to 10 Years)

HSBC Home loan Interest Rate
HSBC

4.5

  • Starting Interest Rate (p.a.)

    8.35%

  • Processing Fee

    1%

  • Maximum Loan Amount

    ₹3L - ₹30Cr

  • Tenure

    Tenure(Up to 25 Years)

Home Loan Interest Rates of Top NBFC

  • Starting Interest Rate (p.a.)

    9.3%

  • Processing Fee

    0.5%

  • Maximum Loan Amount

    ₹2L - ₹5Cr

  • Tenure

    Tenure(1 - 30 Years)

  • Starting Interest Rate (p.a.)

    7.7%

  • 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 2%

  • Maximum Loan Amount

    ₹1L - ₹5Cr

  • Tenure

    Tenure(1 - 30 Years)

  • 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.)

    8.75%

  • Processing Fee

    Up to 0.5%

  • Maximum Loan Amount

    ₹8L - ₹75L

  • Tenure

    Tenure(1 - 30 Years)

  • Starting Interest Rate (p.a.)

    8.39%

  • Processing Fee

    Up to 3%

  • Maximum Loan Amount

    ₹5L - ₹2Cr

  • Tenure

    Tenure(1 - 30 Years)

  • Starting Interest Rate (p.a.)

    8.2%

  • Processing Fee

    Up to 1.25%

  • Maximum Loan Amount

    ₹2L - ₹3Cr

  • Tenure

    Tenure(5 - 20 Years)

  • Starting Interest Rate (p.a.)

    10.24%

  • 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)

DHFL Home Loan Interest Rate
DHFL

4.5

  • Starting Interest Rate (p.a.)

    11%

  • Processing Fee

    0.5% - 3%

  • Maximum Loan Amount

    ₹1L - ₹7Cr

  • Tenure

    Tenure(Up to 30 Years)

  • 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)

  • 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.)

    6.9%

  • 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

    Up to 2%

  • 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.)

    8.6%

  • Processing Fee

    Up to 0.5%

  • Maximum Loan Amount

    ₹1L - ₹10Cr

  • Tenure

    Tenure(Up to 30 Years)

  • 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.)

    8.6%

  • 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.)

    6.75%

  • Processing Fee

    0.35%

  • Maximum Loan Amount

    Up to ₹1Cr

  • Tenure

    Tenure(Up to 30 Years)

  • Starting Interest Rate (p.a.)

    6.5%

  • 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.)

    8.35%

  • Processing Fee

    0.25%

  • Maximum Loan Amount

    -

  • Tenure

    Tenure(1 - 5 Years)

  • Starting Interest Rate (p.a.)

    7.05%

  • Processing Fee

    Up to 1%

  • Maximum Loan Amount

    ₹5L - ₹5Cr

  • Tenure

    Tenure(Up to 10 Years)

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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 Your Home Loan Interest Rate

The following factors impact the interest rate on home loans.

  • 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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