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Compare Reduced Lending Home Loan Rates & Make Best Decision

Updated on: 14 Dec 2021 // 27 min read // Home Loans
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In a recent move by the Reserve Bank of India (RBI), the lending rates of banks are mandated to be linked with external benchmarks. Several media reports have suggested that the RBI is also contemplating applying the same to Non-Banking Financial Companies (NBFCs).

If you’ve been planning to Apply for a Home Loan, you must stay up to date with the latest information and rate changes applicable.

Check Home Loan Interest Rates Online

To make it more convenient for you to stay abreast about the current lending rates, we have created a list of the leading banks of India, complete with their Home Loan lending rates, as well as processing fees.

1. State Bank of India

  • Home Loan Interest rate – 8.20% p.a. to 10.65% p.a.
  • Processing Fee – Rs.2,000 to Rs.10,000

2. HDFC Bank

  • Home Loan Interest rate – 8.35% p.a. to 9.60% p.a.
  • Processing Fee – Up to 0.5%, subject to a maximum of Rs. 3,000

3. ICICI Bank

  • Home Loan Interest rate – 8.95% p.a. to 9.40% p.a.
  • Processing Fee – 0.5 to 1%, subject to a minimum of Rs. 1,500 to Rs. 2,000. The amount varies as per the city where the loan is processed.

4. Axis Bank

  • Home Loan Interest rate – 8.85% p.a. to 11.50% p.a.
  • Processing Fee – Up to Rs. 1%, subject to a maximum of Rs. 10,000

5. Bank of Baroda

  • Home Loan Interest rate – 8.10% p.a. onwards
  • Processing Fee – 0.25 to 0.5%, subject to a minimum of Rs. 7,500 to a maximum of Rs. 20,000

6. PNB Housing Finance Ltd.

  • Home Loan Interest rate – 9.25% p.a. to 11.50% p.a.
  • Processing Fee – Up to 1%

7. Karnataka Bank

  • Home Loan Interest rate – 8.90% p.a. to 14.60% p.a.
  • Processing Fee –Rs. 12,000

8. DBS Bank Home Loan

  • Home Loan Interest rate -9.35% p.a. to 11.95% p.a.
  • Processing Fee – Up to Rs. 10,000

9. Kotak Mahindra Bank

  • Home Loan Interest rate – 8.90% p.a. to 9.25% p.a.
  • Processing Fee – Up to Rs. 10,000

10. IDFC Bank

  • Home Loan Interest rate – 8.00% p.a. to 14.00% p.a.
  • Processing Fee – Rs. 10,000

11. Canara Bank

  • Home Loan Interest rate – 8.50% p.a. to 9.50% p.a.
  • Processing Fee – 0.5%, subject to a minimum of 1,500 and a maximum of  Rs. 10,000

12. Federal Bank

  • Home Loan Interest rate – 8.90% p.a. to 9.10% p.a.
  • Processing Fee – 0.5%, subject to a minimum of Rs. 3,000 and a maximum of 7,500

13. Andhra Bank

  • Home Loan Interest rate – 8.55% p.a. to 9.65% p.a.
  • Processing Fee – 0.50% subject to a maximum of Rs. 10,000

14. Bank Of India

  • Home Loan Interest rate – 8.50% p.a. to 8.55% p.a.
  • Processing Fee – 0.25%, subject to a minimum of Rs. 1,000 and a maximum of Rs. 20,000

15. Karur Vysya Bank

  • Home Loan Interest rate – 8.80% to 12.45% p.a.
  • Processing Fee – Rs. 2,500 to Rs. 7,500

16. IDBI Bank

  • Home Loan Interest rate – 8.30% p.a. to 9.30% p.a.
  • Processing Fee – 0.5%

17. South Indian Bank

  • Home Loan Interest rate – 9.10% p.a. to 10.45% p.a.
  • Processing Fee – 0.5%, subject to a minimum of Rs.5,000 and a maximum of Rs. 10,000

18. Central Bank of India

  • Home Loan Interest rate – Starting from 8.55% p.a.
  • Processing Fee – 0.5%, subject to a maximum of Rs. 20,000

19. Yes Bank

  • Home Loan Interest rate – 9.85% p.a. to 12% p.a.
  • Processing Fee – 1% or Rs. 10,000, whichever is lower

20. LIC Home Loan

  • Home Loan Interest rate – 8.70% p.a. onwards
  • Processing Fee – 0.50% p.a.

Please Note: Home Loan rates are revised as per Current Repo Rate, and *GST rates are charged as applicable.

Factors Affecting Home Loan Interest Rate

While most banks offer Home Loans on their published lending rates, these rates can vary based on numerous factors pertaining to the borrower’s profile as well as to the property in question.

Below listed are some factors which may impact your Home Loan interest rate:

1. Disposable Income

The industry and organisation you work for, the stability of employment as well as the annual income, all have a significant impact on your Home Loan Interest Rates. Individuals with stable employment and high income often reflect high repayment ability, and therefore enjoy low-interest rates.

2. Your Credit Score

A high Credit Score of 700 or above assures the lender of your responsible behaviour as a borrower, thereby making you eligible for a competitive interest rate. If, on the other hand, your score is lower than the required parameter, you will be offered a higher interest rate.

3. Property

If the property that you intend to buy is situated on a prime location and comes from a trusted builder, you’re more likely to get a Home Loan at a favourable rate of interest.

4. Loan Amount

Banks are always on the lookout for borrowers who want big-ticket loans. If your loan amount is significantly high, you can expect a lower interest rate.

5. Your Employment Type

Since the stability of employment, as well as regularity of income,  is higher for salaried individuals, they can expect Home Loans at an affordable rate. Contrary to this, the risk proposition is higher for business owners and professionals, thereby implying that they get Home Loans on a relatively higher interest rate.

6. Type of Interest Rate

Fixed-rate Home Loans are more expensive than floating-rate loans. So, depending on the market situation, you can choose for a floating rate when lending rates are constantly stable or falling.

Knowing all these factors along with the lending rates for Home Loan products from different banks, you can certainly make a well-informed decision going forward.

Also Read: How to Save More on Home Loan Interest?

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