Planning to buy your dream home and worried about home loans and interest rates? Well, worry not, if you are searching for ‘low interest home loans’ or ‘all bank home loan interest rate list’, you are at the right place!
A small difference in the interest rate can cost you a huge sum of money in the long run. So let’s take a look at the interest rates on home loans taken from top banks.
Latest News
The Reserve Bank of India or the RBI has reduced repo rates by 50 basis points. This is expected to bring the home loan rates below 8%.
The following table lists the interest rates charged by the top banks and their processing fees. These banks and institutions give home loans at the lowest interest rates.
|
Name of the Bank |
Interest Rate |
Processing Fee |
|---|---|---|
|
Starting from 7.50% |
Contact the bank branch for more information |
|
|
7.40% to 10.25% |
0.50% (minimum ₹1,500 and maximum ₹10,000) |
|
|
9.00% to 10.50% |
₹1,500+GST to ₹5,000+GST or 0.25% to 1.00%, depending on the loan amount and type of home loan |
|
|
8.65% to 11.20% |
0.35% (minimum ₹2,500 and maximum ₹15,000) |
|
|
7.50% to 10.50% |
0.35% (minimum ₹2,000 and maximum ₹10,000) |
|
|
7.45% to 12.65% |
0.50% (maximum ₹15,000) |
|
|
7.35% to 12.50% |
Contact the bank branch for more information |
|
|
7.45% - 9.50% |
0.25% to 0.50% (minimum ₹1,000 and maximum ₹15,000), depending on the type of home loan |
|
|
7.35% to 12.95% |
0.25% of the loan amount, up to a maximum of ₹25,000 |
|
|
7.60% to 10.75% |
0.15% - 0.25% (minimum ₹1,000 to maximum ₹15,000) |
|
|
10.65% to 12.15% |
0.35% (minimum ₹3,500 and maximum ₹30,000) |
|
|
7.35% to 9.40% |
0.50% (minimum ₹2,500 and maximum ₹20,000) |
|
|
8.35% to 14% |
Upfront ₹5,000+GST, and up to 1.00% of the loan amount, or ₹10,000 (whichever is higher) + GST |
|
|
7.90% to 13.20% |
Up to 0.50% or ₹3,300 whichever is higher |
|
|
8.75% to 9.80% |
0.50% of the loan amount + applicable taxes |
|
|
8.85% onwards |
Up to 3.00% of the loan amount |
|
|
10% to 14% |
Up to 1.00% of the loan amount |
|
|
7.75% to 12.25% |
Contact the bank branch for more information |
|
|
Starting from 7.99% |
Up to 2% of the loan amount |
|
|
8.60% to 9.80% |
1.00% (minimum ₹10,000) |
|
|
9.00% to 11.50% |
1.5% or ₹10,000 whichever is higher |
|
|
8.40% to 13.25% |
Nil to 1.00%+GST |
|
|
8.45% to 11.40% |
₹2,500 to ₹7,500 + GST |
|
|
8.30% to 10.60% |
0.50% of the loan amount + GST, minimum amount of ₹10,000.00 + GST |
|
|
Starting from 7.70% |
1% of the loan amount + taxes, or ₹10,000 + taxes, whichever is higher |
|
|
8.40-10.86 |
Contact the bank branch for more information |
|
|
7.50% to 8.90% |
₹2,500 + taxes to ₹7,500 + taxes |
|
|
Starting from 7.99% |
Starting from ₹5,000 + GST |
|
|
Starting from 9.15% |
Contact the bank branch for more information |
In India, lenders usually offer three types of home loan interest rates. Each has its pros and cons depending on the borrower's financial situation and risk tolerance. Let’s try to understand what they are -
The interest rate remains fixed for a specified period or the entire duration of the loan.
Repayment rates are predictable as the monthly payment amount does not change.
Borrowers with fixed rates are not affected if the market rates rise or fall.
The interest rate can change at any time as per the market rates.
Monthly payments can vary, which makes budgeting difficult.
Borrowers may benefit when the rates decrease, but may have to pay higher monthly payments as the rates increase.
Hybrid home loans combine the elements of fixed and floating rates.
For a specified period, the rates will be charged at a fixed rate, after which floating interest rates will apply.
This type of home loan gives you the balance between a predetermined monthly repayment amount and the flexibility of floating rates.
Interest rates for loans are calculated using a standard formula that takes into account the principal amount, the loan tenure, and the interest. The formula to calculate EMI for home loans is:
EMI = P x R x (1+R)^N / [(1+R)^N-1]
Where:
P = loan principal amount
R = monthly interest rate
N = number of monthly instalments (loan tenure)
Alternatively, you can use the Moneyview Home Loan EMI Calculator to do the math for you.
Your home loan interest rate will lie somewhere in the range described in the table. It depends on multiple factors and also varies from person to person. Let us take a look at the various factors that affect interest rates for home loans -
The higher your credit score, the easier it will be for you to negotiate a lower rate of interest rate.
How much you earn and whether you are self-employed or salaried have a great impact on both your loan amount and your interest rate.
In most cases, salaried people are able to get lower interest rates as they have a steady source of income.
The location and size of the property obviously have a big impact on your loan. If your property is located at a prime location, you can get a lower interest rate.
If your loan amount is higher, your interest rate will be lower. Also, if you are willing to take a longer tenure, your interest rates might be lower.
But with a longer tenure, even though your interest rate will be lower, you will end up paying more money in interest.
There are two types of interest rates - floating and fixed.
Floating rates depend on the market and keep fluctuating, whereas the fixed rate is decided at the time of the loan disbursal.
Floating interest rates are lower in the beginning, but it might be a gamble as the market is volatile, and your interest might go up in the near future.
Banks and the government often run various schemes to help you own a home. There are discounts on interest for houses bought in the name of women as well. Thus, the scheme you choose can impact your home loan interest rate greatly.
There are proven strategies to improve your chances of getting better interest rates on your home loan. Here are a few tips on how to get a lower interest rate on your home loan.
Improve your CIBIL score: A higher CIBIL score will help you get a loan at a lower interest rate.
Choose the right loan tenure: A longer tenure means your EMI will be low, but the interest will end up paying will be higher. You can use the Moneyview Home Loan EMI Calculator to choose the right loan tenure.
Get a home loan balance transfer: If other lenders are offering a lower interest rate, you can opt for a balance transfer. Just remember to calculate all charges and related fees to understand how much you will save with a balance transfer.
Pay more as a down payment: If you pay a larger down payment, the loan amount will be less. This will reduce the interest you will have to pay.
Securing a lower interest rate can make a significant difference for borrowers. Lenders may offer very low interest rates but it is also important to consider other factors such as service charges, lender’s reputation, additional charges, etc.
Ultimately a combination of good credit score, smart loan tenure selection, and strategic down payments can help you obtain the most advantageous home loan package.
And in case you want to apply for a home loan through an app, you can choose Moneyview.
You can get home loans starting from 7.75% p.a. from lending partners of Moneyview.
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Home Loan Types & Eligibility Guide
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Loan Schemes and MSME Loans
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