The home loan interest rates are determined by various factors including the applicant's credit score, loan amount, and tenure. The applicant should review the current interest rates offered by different lenders before proceeding with a home loan application, as even a small variation in rates can significantly impact the borrower's overall interest expense.
This web page will provide an overview of the current home loan interest rates offered by all banks in India:
Banks and Housing Finance Companies (HFCs) utilize the monthly reducing balance method for determining interest rates on home loans. Under this calculation method, interest is computed on the remaining principal amount after each EMI payment.
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Home Loan Interest Rates of All Banks 2024
Below are the home loan interest rates for 2024 offered by various top verified banks in India:
Home Loan Interest Rates of Private Sector Banks
| Private Sector Banks | Interest Rate (p.a.) |
|---|---|
| IndusInd Bank | 8.35% |
| Kotak Mahindra Bank | 8.70% |
| Axis Bank | 8.75% |
| Karnataka Bank | 8.75% |
| ICICI Bank | 8.75% |
| HDFC Bank | 8.75% |
| Federal Bank | 8.80% |
| IDFC First Bank | 8.85% |
| RBL Bank | 8.90% |
| Karur Vysya Bank | 9.00% |
| Bandhan Bank | 9.16% |
| Dhanlaxmi Bank | 9.35% |
| DCB Bank | 9.75% |
| South Indian Bank | 9.85% |
| City Union Bank | 10.50% |
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Note: The interest rates are subject to change. Please visit the official website for updated rates.Home Loan Interest Rates of Public Sector Banks
| Top Lenders | Interest Rate (p.a) |
|---|---|
| Bank of India | 8.30% |
| Bank of Maharashtra | 8.35% |
| Union Bank of India | 8.35% |
| Indian Overseas Bank | 8.40% |
| Bank of Baroda | 8.40% |
| Indian Bank | 8.40% |
| UCO Bank | 8.45% |
| Punjab & Sind Bank | 8.50% |
| State Bank of India | 8.50% |
| Canara Bank | 8.50% |
| Punjab National Bank | 9.40% |
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Note: The interest rates are subject to change. Please visit the official website for updated rates.Home Loan Interest Rates of Foreign Banks
| Top Lenders | Interest Rate |
|---|---|
| Standard Chartered | 8.75% p.a. |
| HSBC | 8.60% p.a. |
Home Loan Interest Rates of Housing Finance Companies (HFCs)
| Top Lenders | Interest Rate |
|---|---|
| LIC Housing Finance | 8.35% p.a. |
| Bajaj Housing Finance | 8.50% p.a. |
| PNB Housing Finance | 8.50% p.a. |
| Godrej Housing Finance | 8.55% p.a. |
| L&T Housing Finance | 8.60% p.a. |
| Tata Capital Housing Finance | 8.70% p.a. |
| Indiabulls Housing Finance | 8.75% p.a. |
| GIC Housing Finance | 8.80% p.a. |
| Aditya Birla Capital | 8.80% p.a. |
| ICICI Home Finance | 9.20% p.a. |
| Repco Home Finance | 9.50% p.a. |
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Note: The interest rates are subject to change. Please visit the official website for updated rates.Home Loan EMI Calculator
A home loan EMI calculator is a powerful tool that allows you to estimate your monthly repayment based on the loan amount, interest rate, and tenure you're considering. By inputting these key parameters, you can get a clear picture of the financial commitment involved and plan your expenditures and EMI payouts accordingly.
| Monthly EMI | ₹86 |
| Principal Amount | ₹1,000 |
| Total Interest | ₹32 |
| Total Amount | ₹1,032.00 |
You can also calculate the EMI for a home loan manually by using the following formula:
E = P x R x (1+R)^N / [(1+R)^N-1]
Where:
E = Monthly EMI
P = Principal home loan amount
R = Monthly interest rate
N = Repayment tenure in months
For example,
EMI for a ₹50 lakh home loan at an interest rate of 12% p.a., and a tenure of 20 years, will be:
E = 50,00,000 × 0.01 × (1 + 0.01)^240 / [(1 + 0.01)^240 - 1]
E = 50,00,000 × 0.01 × 4.352392033
E = 21,76,196.017 / 4.352392033
E ≈ 4,98,686.08
The approximate Home Loan EMI for a loan amount of ₹50,00,000 at an annual interest rate of 12% for a tenure of 240 months is approximately ₹4,98,687.
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Types of Home Loan Interest Rates
Types of Home Loan Interest Rates
- Fixed Rate Loans: The interest rate remains constant throughout the loan period, keeping the home loan EMI consistent. It is advisable to apply for a home loan at a fixed rate when the current interest rate is low and expected to rise in the future.
- Floating Rate Loans: The interest rate is subject to market lending rates and may change during the loan tenure. This will cause the home loan EMIs to increase or decrease based on the interest rate movement.
- Hybrid Loans: These loans have a combination of fixed-rate and floating-rate components. They start with a fixed interest rate for a specific period before transitioning into a floating rate. This type of housing loan is suitable for those who obtained the loan at a low fixed rate and intend to prepay or foreclose it before the floating rate comes into effect.
Factors Affecting Home Loan Interest Rate
Here are the key factors that determine your home loan interest rate, summarized in points:
- Credit Score: Lenders offer lower interest rates to borrowers with a credit score of 750 or above, as it reflects responsible credit behavior.
- Income and Employment: Borrowers employed with government, PSUs, or large/reputed private companies are offered lower interest rates due to higher job/income stability.
- Loan Amount: Home loans up to ₹30 lakhs generally have lower interest rates compared to higher loan amounts. Making a higher down payment can also help get a lower interest rate.
- Type of Home Loan: Regular home loans have standard rates, while specialized loans like Plot Loan or NRI Home Loan may have higher interest rates.
- Interest Rate Concession for Women: Some lenders provide a small interest rate concession (around 0.05%) to women borrowers.
- Type of Interest Rate: Fixed-rate home loans usually have higher interest rates due to the higher interest rate risk involved, compared to floating-rate loans.
Tips for Getting a Home Loan at Low Interest
If you're considering taking out a home loan, you can increase your chances of getting a lower interest rate by following these tips:
- Maintain a high credit score, aiming for at least 750 if possible.
- Consider applying for a joint home loan, especially with a female family member, as some lenders offer lower interest rates to female applicants.
- Existing home loan borrowers can reduce their interest rates by transferring their remaining balance to a different lender offering a lower interest rate.
- Many lenders offer lower interest rates to applicants with lower Loan-to-Value (LTV) ratios. Therefore, potential home loan borrowers should try to contribute as much as possible towards their down payment to reduce the loan amount, which could lead to lower interest rates on their home loans.
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Frequently Asked Questions
Key factors include your credit score, income and employment, loan amount, property type, and the prevailing market interest rates.
Home loan interest rates can change frequently, often based on changes in the benchmark lending rates set by the central bank.
Yes, you may be able to negotiate the interest rate, especially if you have a strong credit profile and can provide a larger down payment.
Typically, a credit score of 750 or above is considered excellent and can help you qualify for the lowest interest rates.
Fixed rates provide stability while floating rates can be more advantageous when interest rates decline.
You can reduce your home loan interest rates by making a larger down payment, opting for a shorter loan tenure, and prepaying the loan whenever possible.
Home loan interest rates currently range from around 8.50% to 9.50% p.a., depending on the lender and your profile.
The monthly EMI for a 20 lakh Home Loan varies based on the loan tenure. For example, with a 25-year tenure and an indicative interest rate of 8.75%, the approximate EMI is Rs. 16,443 per month.
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