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Best Home Loan Interest Rates

Check the best home loan interest rates 2024 and know which bank is giving the lowest interest rate on home loan at 8.50% p.a. even after numerous rate hikes! Find out the Current home loan interest rates for government employees, women, and find out the difference between floating-rate and fixed-rate home loans.

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Current Home Loan Interest Rates 2024

Interest RateStarting @ 8.50% p.a.
Processing FeeUp to 0.25%
Loan Tenure5 to 30 years
Lowest EMI Per LakhRs. 769 for 30 years
Prepayment ChargesNil
  • Home loan interest rates are mostly floating in nature, as a result of which any hike in the headline repo rates gets transferred to the home loan interest rates. On the other hand, the benefit of repo rate cuts is subsequently passed on to the customers.
  • The best home loan interest rates in 2024 are between the range of 8.35% and 8.50% p.a.
  • Home loan borrowers who want lesser interest charges and applicable GST should opt for a shorter tenure with higher EMIs.
  • A meaningful uptick in the repo rates could make your home loan repayment dearer as the interest component increases substantially.
  • Your home loan EMI (equated monthly instalment) changes based on the interest rate applicable on loan.

pnb housing home loan

Home Loan Interest Rates all Banks NBFCs 2024

Home Loan Interest Rates of Private Sector Banks

Bank NameInterest rate (%)Processing fee
HDFC Bank Home Loan8.75% - 9.65%Up to 0.50% of the loan amount + applicable taxes
HSBC Bank Home Loan8.45%Up to 1.00% of the loan amount + applicable taxes
Kotak Mahindra Bank Home Loan8.70%Up to 0.50% of the loan amount + GST 
IDFC Bank Home Loan8.75%Up to 3%
PNB Housing Finance8.50%Up to 0.50% of loan amount + GST
Federal Bank Home Loan8.80%0.50% of loan amount
Bajaj Finserv8.50% - 15.00%Up to 7% of loan amount + GST
L&T Housing Finance8.65%Up to 0.25% of loan amount + GST
ICICI Bank Home Loan8.75%0.50% - 2.00% of the loan + applicable taxes

Home Loan Interest Rates of Top Public Sector Banks

Bank NameInterest rate (%)Processing fee
SBI Bank Home Loan8.50% - 10.05%0.35% + GST
Central Bank of India8.50% - 9.50%Completely waived till 31.12.2023
Bank of Baroda Home Loan8.40% - 10.60%Rs. 8000 + GST
Bank of Maharashtra8.35% - 8.90%0.25% of the loan amount
Bank of India Home Loan8.30%Up to 0.50% of the loan amount
Punjab National Bank8.40% - 10.25%Full waiver of processing fees till 31.03.2024
Union Bank of India Home Loan8.35%0.50% of the loan amount (Max. Rs. 15,000) + GST

Best Home Loan Interest Rates for Government Employees

Many home loan lenders even factor in the income sources of their home loan applicants when deciding their rates. Generally, lenders charge lower rates from salaried individuals as compared to self-employed individuals.

Among self-employed, chartered accountants and doctors generally hold higher chances of getting their home loans approved at lower rates. Among salaried, government and PSU employees are most preferred by lenders owing to their job security and income certainty. They are followed by the ones employed in reputed and large private sector organisations as these companies are generally looked upon as stable and have increased potential to face economic downturns as compared to other private companies. It lowers the credit risk perception of the lenders resulting in them enticing such employees by offering them lower home loan rates.

Here, we will share the best home loan interest rates offered to government employees:

Name of LenderInterest Rate (%)

Punjab & Sind Bank (PSB Apna Ghar-Sahaj)

(Available to permanent employees of Central/State Governments/PSUs)

8.50% to 10%

Punjab National Bank (PNB Pride Housing Loan For Government Employees)

(For permanent employees of Central/State Governments/Defence Personnel & Paramilitary forces )

8.40% - 10.25%

Check for 50 lakh home loan EMI and apply easily on MyMoneyMantra.

Best Home Loan Interest Rates for Women 2024

To promote financial independence among women, most lenders usually offer the best home loan interest rates to women borrowers. Such rates are usually lower than other individual rates. Usually, the concessional interest rate offered to women borrowers by lenders is 5 bps.

Name of LenderFor Women
HDFC Bank8.75% - 9.65%
Kotak Mahindra Bank8.70%
State Bank of India8.50% - 10.05%
Punjab National Bank8.40% - 10.25%

You can also check different features and benefits of SBI Home Loan EMI Calculator

How to Get a Home Loan at a Low-Interest Rate? - 2024

As a home loan is a big-ticket loan, lenders carefully conduct an in-depth evaluation of the applicant's credit history, income, repayment capacity etc. For the applicants looking for a home loan, it is important that they are well aware of the factors that lenders look upon when processing their home loans. Knowing such factors can help them get their home loan approved at lower rates.

Here is a list of some factors looked upon by home loan lenders to set your interest rate:

Credit score

Lenders consider the applicant's score to be one of the important factors when evaluating his home loan application. Those having a score of 750 and above are generally looked upon as creditworthy and have increased chances of home loan approval at lower rates. It is because those with lower scores are usually considered to be lacking financial discipline, which makes the lenders charge higher rates to make up for their increased risk of credit default.

Thus, if you are someone who have a poor credit score or is new to credit, consider building your credit score by using your credit cards regularly and in a disciplined manner. Once your credit score equals a score of 750 or above, apply for a home loan.

Income

Lenders generally consider applicants having income as safer bets as they have higher disposable income. Those having lower disposable income are considered by the lenders to have higher default chances. Thus, many lenders charge such applicants with higher home loan rates.

How to get a home loan at a low-interest rate

Employer’s profile

Also, many of the lenders check the income sources of their home loan applicants when deciding their interest rates. Generally, lenders charge lower home loan rates from the salaried than self-employed people.

Doctors and chartered accountants under the self-employed section generally have higher chances of getting their home loans approved at lower rates. Among the salaried class, government employees and PSU are favoured the most owing to their job security and income certainty. Next are those who are employed in reputed private sector organisations that are preferred by the lenders for home loan approval at a lower interest rate. It is because such companies where these individuals are working are considered to be highly stable with a higher potential to face economic downturns as compared to the other private companies. It lowers the lender's credit risk perception resulting in them enticing such staff/employees through lower home loan rates.

Existing consumer relation with lenders

There are many lenders offering preferential rates on home loans to their existing customers. Such relations can be in the form of current, savings or FD accounts or in the form of credit cards or various other loan options. Thus, those seeking a home loan should begin their loan search by directly contacting their banks or NBFCs with whom they share long term existing banking relationships. Interest rates offered to such individuals can be looked upon as a benchmark to compare home loan rates offered by other lenders.

Loan amount

The loan amount that you are looking to borrow can even impact the interest rate of a home loan. Usually, home loans of up to 30 lakh come at lower rates than loans available at higher amounts. For availing of the best home loan interest rates, you should choose to make a higher down payment contribution from your own resources. It lowers the lender's credit risk, which in turn helps at boosting your chances to avail home loan at a lower interest rate.

Thus, the prudent ways to get your home loan at lower interest rates are keeping a CIBIL score of 750 and above, making higher down payment contribution from your own funds, widening your home loan search horizon, which includes contacting those banks or NBFCs with whom you already share a banking relationship. Owing to your long term good relationship with a bank, you may get a home loan at a lower interest rate.

How to Reduce Home Loan Interest Rates? - 2024

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Best Home Loan Interest Rates FAQs

✅ Which banks are offering the lowest interest rate on a home loan?

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Lenders offering the lowest interest rate on a home loan is HDFC Bank. They are offering the best home loan interest rates of 8.75% - 9.65% p.a. Other lenders offering the best home loan interest rate of below 8.50% p.a. are Bank of Baroda, State Bank of India, Union Bank of India, ICICI Bank, Central Bank of India, Punjab National Bank, Canara Bank, Bank of India, UCO Bank, HDFC Ltd, IDBI Bank, Bajaj Finserv, Tata Capital and LIC Housing.

✅ What is the current HDFC home loan rate?

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Presently HDFC home loan rate ranges between 8.75% - 9.65% p.a.

✅ What is the EMI for Rs 50 lakh loan?

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Loan EMI for a home loan of Rs 50 lakh loan amount, 20 years tenure and interest rate of 8.50% p.a. would be Rs. 43,391. If the repayment tenure is increased to 30 years with other components, that is, loan amount and interest rate remaining the same, the loan EMI would be Rs 38,446. In case the repayment tenure is decreased to 10 years, with other components, i.e. loan amount and interest rate staying the same, loan EMI would equal Rs 61,993.

✅ How can I lower my home loan interest rate?

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One can avail of lower home loan interest rates by widening their home loan search horizon. Besides the interest rate, applicants should also factor in the processing fee and prepayment charges when zeroing on a particular lender. Doing so is crucial as the interest rate and various other linked charges vary across lenders basis their credit risk assessment of the loan applicant. For instance, many home loan lenders might offer lower home loan rates and processing charges to the ones with higher scores equalling 750 and above. Many lenders also decide their rates based on the applicant's job.

Hence, applicants should initially begin their home loan search by approaching those with whom they already share a relation. After this, such applicants should approach online lending marketplaces to compare rates and other features provided by other lenders. One's final application for a home loan must be with the lender offering the lowest home loan rate for the adequate loan amount and optimal loan tenure.

✅ How can I calculate my home loan EMI?

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Home loan applicants can use online EMI calculators for knowing their optimum EMI basis for their repayment capacity. They must factor in their contribution towards financial goals when calculating their monthly disposal income. Applying for a home loan after figuring out your EMI repayment capacity allows you to lower the chances of any EMI default in the near future or to compromise on monthly investment to attain financial goals.

Additional Reading: CIBIL Score Check Free Online by Pan Number

✅ How can I get the best interest rates for my home loan?

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To get the best interest rates, it's crucial to have a good credit score, stable income, and low debt-to-income ratio. Moreover, shopping around and comparing rates from various lenders can help you find the best rates. Sometimes, you may also get a lower rate by opting for a shorter loan term.

✅ Can I negotiate home loan interest rates with my lender?

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Yes, it's possible to negotiate home loan interest rates with your lender. However, your ability to negotiate will depend on your creditworthiness, the competition among lenders, and current market conditions.

✅ Is it better to get a fixed-rate or an adjustable-rate home loan?

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This will depend on your financial situation and how you expect it to change over time. Fixed-rate home loans are best if you prefer predictable payments and plan to stay in the house for a long time. Adjustable-rate home loans can be advantageous if you expect your income to increase in the future or plan to sell the house before the rate increases.

✅ How does my credit score affect my home loan interest rate?

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Your credit score plays a crucial role in determining your home loan interest rate. The higher your credit score, the lower the risk you pose to lenders, which can result in a lower interest rate. If your credit score is low, you might face higher interest rates or even struggle to get approved for a loan.

✅ How often do home loan interest rates change?

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Home loan interest rates can change daily as they're influenced by a variety of economic factors such as inflation, economic growth indicators, and the policies of the Federal Reserve.

✅ Can the home loan interest rate change after loan approval?

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If you have a fixed-rate mortgage, your interest rate will not change after loan approval. However, if you have an adjustable-rate mortgage, your rate can change according to the terms of the loan.

✅ How do home loan interest rates compare to other types of loan interest rates?

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Home loan interest rates are typically lower than rates for other types of consumer debt, like credit card debt or personal loans. This is primarily because home loans use your home as collateral, which reduces the risk for the lender.

✅ Does the size of my down payment affect the interest rate of my home loan?

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Yes, generally, a larger down payment can lead to a lower interest rate because it decreases the lender's risk. If you can afford to put down a larger down payment, it might be a good strategy to secure a lower interest rate.

✅ Which bank has lowest interest on house loan?

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At present, HDFC Bank charges the lowest interest rate on house loan varying between 8.75% - 9.65%.

✅ Which interest rate is good for home loan?

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Usually, floating interest rates are slightly lower than fixed interest rates. However, if you are comfortable with the current interest rate on your loan and are reasonably sure that rates will rise in future, opting for a fixed rate home loan is a better decision. If you are not sure about where interest rates are heading, take out a floating rate home loan.

✅ Which bank has highest interest rate on home loan?

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Currently, CSB Bank is one of the highest interest rate charging bank on home loan. The rates range from 9.50% to 11.65% p.a.

✅ What will be the home loan interest rate in 2024?

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Home loan interest rates in 2024 may vary for different lenders depending on the type of scheme offered, borrower’s income, credit history, prevailing repo rate and other factors.

✅ Which is best loan with low interest?

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Currently HDFC home loan interest rate starts from just 8.75% - 9.65% p.a., which is one of the lowest. 

✅ Which bank gives 100 percent home loan?

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Availing of a 100% home loan is not possible at any bank. According to the RBI’s guidelines, a borrower is required to pay 10% to 25% of the total property cost as own contribution depending on the loan amount. The bank will offer only 75% to 90% of the property cost as a housing loan.

✅ How to choose best bank for home loan?

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One must consider the following factors for choosing the best bank for availing of a home loan:

  • Interest rate & processing fee
  • Loan amount limit
  • Prepayment charges
  • Customer service of the bank