Home Loans are generally extended for purposes such as the purchase of houses, construction of residential properties, extensions and renovations thereof. To ease your home buying decision, the 10 Best Home Loans Interest Rates in the Indian market in the year 2022 are discussed below.
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|Banks||Interest rate (%)||Processing fee|
|SBI Home Loan Interest Rate||7.05% – 7.65%||Up to 0.50% of the loan amount + applicable GST|
|HDFC Home Loan Interest Rate||7.05% - 8.05%||Up to 0.50% of loan amount subject to maximum of Rs.3000|
|Axis Bank Home Loan Interest Rate||7.00%-7.35%||Up to 1% of the loan amount subject to minimum of Rs.10000|
|ICICI Home Loan Interest Rate||7.10%-7.95%||0.50-1% of loan amount subject to maximum of Rs.1500+ GST, Rs.2000-Mumbai, Delhi & Bangalore|
|Bank of Baroda Home Loan Interest Rate||6.90% – 8.25%||Rs. 8,500 + GST|
|PNB Home Loan Interest Rate||7.15% – 8.20%||Up to 0.35% of the loan amount (Min. Rs. 2,500 and Max. Rs. 15,000)|
|LIC Housing Finance Interest Rate||6.70%||Up to 1.0% of the loan amount + applicable GST|
|Aditya Birla Home Loan Interest Rate||8.0% - 11.00%||Up to 1.0% of the loan amount + applicable GST|
|Citibank Home Loan Interest Rate||6.50%-8.60%||Application Fee- Upto Rs.5000|
|Bajaj Finserv Home Loan Interest Rate||7.95%||Up to 1.0% of the loan amount + applicable GST|
SBI is the largest PSB in the country and exercises stringent verification of property papers.
Interest rates: However, SBI Home Loans are synonymous to the best rate loans in the market.
Some of the salient features are:
They do not provide fixed interest Home Loans.
Interests are offered at floating rates of interest ranging from 7.05% to 7.65%. p.a.
They also have a unique offering called SBI MaxGain Home Loan or Overdraft facility whereby a Home Loan is offered against the surplus cash held in your Savings Account. This results in a reduction of interest paid because the account balance acts the principle component.
MaxGain interest rate ranges from 7.95% to 8.15%. p.a.
Additional Info: Also check SBI Home Loan EMI Calculator
Other applicable charges: A processing charge of upto Rs. 10,000 may be charged when the loan is disbursed. No charges for pre-payment or part payment are levied.
Logic of interest calculation: Interest is charged on daily reducing balance. A part of principle paid today will result in lesser interest paid from the very next day.
Tenure of loan: Maximum tenure for which loan is extended is 30 years.
Types of Home Loans: HDFC Bank offers a loan on fixed, floating, and TruFixed types.
Unique feature offered by HDFC for its Home Loan customers: They offer multiple options for repayment of the loan. This is a unique feature and favourable to customers who look for such a differentiating factor while selecting a bank for availing Home Loan.
Additional Info: Also check HDFC Home Loan EMI Calculator
Step up Repayment Facility: Repayment schedule linked to the expected increase in your income.
Flexible Loan Instalments Plan: High EMIs in the starting months and declines as time progresses.
Tranche based EMI: For under construction properties, you may pay for the entire amount of applied loan rather than the amount of loan disbursed.
Accelerated Repayment system: This provides flexibility to increase EMI every year to have it commensurate with the level of your income.
Telescopic Repayment system: This extends the repayment tenure to 30 years, thereby enhancing loan eligibility and resulting in low EMIs.
Axis bank specialises in extending loans for various home related purposes.
Size of loan: Axis Bank also extends Home Loans of low ticket size as low as Rs. 3 Lakh.
Rates of interest applicable: They extend Axis Home Loans at fixed as well as floating rates of interest.
Additional Info: Also check Pan Number for Banks
Rate of 10% is applicable on loans extended on fixed rates of interest.
Floating loans have a rate of interest ranging from 7.00% to 7.35% p.a.
Processing fees: A flat processing fee of Rs. 10,000 is applicable irrespective of the loan amount.
Pre- Closure charges: Nil for loans on floating basis; 2% for fixed interest rate loans.
Part payment charges: 2% for fixed-rate loans.
Unique features of EMI Holiday: Axis Bank allows EMI Holidays to its valuable loan customers. Fast Forward Home Loan seekers get extended EMI holiday for 6 months on completion of 10 and 15 years respectively, provided they maintain a regular payment record.
Additional Info: You can also check BestHome Loan Interest Rates
Interest rates: ICICI Bank offers Home Loans for fixed as well as floating rates of interest.
Applicable rates of interest range from 7.10% to 7.95% p.a.
Cheaper rates are extended to women applicants. Joint applications with women as primary applicants are also entitled to rate reductions.
Other applicable charges: They have established rules for Processing fees, part payment, and pre-closure charges.
Additional Info: Also check ICICI Home Loan EMI Calculator
Processing fees- 0.50% to 1.00% of the loan amount or Rs. 1500 whichever is higher (Rs. 2000 for Mumbai, Bangalore, and Delhi)
Pre- Closure charges- Nil for loans on a floating basis, 2% for fixed interest rate loans.
Part payment charges- Nil charges are applicable. Amount re-paid should be equal or greater than one EMI.
Logic of interest calculation: Interest is charged on monthly reducing balance. A part of principle paid today will result in lesser interest paid with effect from the next month only.
Tenure of loan: Maximum tenure for loan is 30 years.
Other positives- ICICI Bank Home Loans come packed with a lot of advantages.
Interest rates applicable: Bank of Baroda offers loans at low and competitive rates. Bank of Baroda Home Loans can only be availed on a floating rate of interest basis, rates range from 6.90% to 8.25% p.a.
Loan approvals: A big advantage is that the loan can be approved even before the property for which it is being sought is finalised.
Reduced interest payable: Home Loan advantage is a specialised product wherein surplus funds held in the Savings Account are treated as principal, thereby reducing the amount of interest payable on the loan.
Enhancement of loan: They do permit an enhancement in the amount of loan sanctioned on grounds of cost escalations.
Purpose: PNB does not provide Top Up Loans.
Rates of interest applicable: Loans are available on fixed as well as floating rates. Floating Interest Rate loans varies from 7.15% to 8.20% p.a.
Other charges applicable: Processing charges are payable at the rate of .35%, however, these are subject to a minimum of Rs. 2500 and a maximum of Rs. 15000 capping.
Tenure: The maximum tenure of the loan is 30 years. However, it may be extended to 60 years in special cases.
Purpose: LIC Housing extends Top Up loans subject to special approvals in certain circumstances only.
Interest payable: LIC Home Loans are offered at very cheap rates; you may avail them at the lowest possible rates here. Interest is offered on floating rates only. The rates of interest vary from 6.70% p.a. Interest is computed on a monthly reducing basis.
Other charges payable: This is another big advantage to loan seekers.
Processing fees are applicable at the rate of 0.5% but is subject to a maximum of Rs. 10,000.
Pre-closure charges and part payment charges are not applicable.
Additional Info: You can also Check Banglarbhumi West Bengal Land Record
Purpose: Customers cannot get Top Up Loans from them.
Interest offering: Aditya Birla does not provide loans at fixed rates of interest. Loans are provided on a Floating rate basis; the rate of interest vary from 8.00% to 11.00% p.a.
Promptness: Fast pace at which applications are processed and the loan is disbursed as their biggest USP.
Home service: Specialise at delivering to your doorstep when you cannot make it to their branch.
Applicant may be salaried or self-employed but must have a regular source of income.
S/he must have a minimum of 2 years of work experience.
Minimum and maximum age for Citibank Home Loan approval are 23 years, and 65 years, respectively.
Purpose: Loan may be availed for purchase of a house property which is under construction or which is ready to move in.
Amount of loan: The amount of loan may range from 5 Lakh to 10 Crore.
Extent of financing: Home Loans may be extended to the extent of 80% of the property cost.
Rate of Interest: Interest is calculated on daily reducing balance method, thereby resulting in a reduction of EMI amount.
Rate of interest of 6.50% to 8.50% p.a. is applicable to all types of applicants if the amount of loan is less than Rs. 28 Lakh
Other charges: Pre-payment and foreclosure charges are not applicable.
Tenure: Loan may be availed for a maximum period of 25 years.
Unique features: Same terms and conditions are applicable for Indian residents as well as NRIs.
Age of the applicant should range from 23 to 62 years and 25 to 70 years for salaried and self-employed categories respectively.
Work experience should be above 3 years and 5 years for salaried and self- employed respectively.
Minimum property value for which loan is being sought should be more than Rs. 15 Lakh
Amount of loan: Maximum loan amount is Rs. 3.5 crore and 5 crores for salaried and self-employed people respectively. Top up options up to 50% of the loan amount is also available.
Other charges applicable: Nominal to none pre-payment and foreclosure charges.
Tenure: Maximum loan tenure is 20 years. The term is flexible according to the convenience of the loan seeker.
Unique features: Bajaj Finserv Home Loan products have attached insurance policies to take care of the family in case of any unforeseen exigency.
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