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Home Loan Interest Rates

Avail affordable Home Loans at the lowest interest rates starting at 8.35%. Eligible salaried and self-employed professionals/non-professionals can buy their dream homes with ease by using a home loan interest rate calculator. Lenders like HDFC, PNB, HSBC, Kotak Bank are offering competitive housing loan interest rates and processing fees. Compare home loan interest rates of all banks and apply for a quick, hassle-free disbursal.

Best Home Loan Offers Starting @8.50% p.a.

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You are just a few clicks away from the best Home Loan offer in your city. Currently home loan interest rate starts at 8.35% p.a for all loan amounts. Share your name, mobile number & email to check your eligibility and get a list of most affordable home loan schemes.

Best Home Loan Offers Starting @8.50% p.a.

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Updated:

Current Home Loan Interest Rates 2024

Interest Rate

Starting @8.55% - 9.10%

Apply for Home Loan

Processing FeeUp to 0.25%
Loan TenureUp to 30 Years
Lowest EMI Per LakhRs. 769
Prepayment ChargesNil
  • Home loan interest rates can be floating or fixed in nature.
  • Interest rates remain unchanged throughout the tenure for fixed interest rate home loans.
  • Interest rates fluctuate depending on the RBI or bank’s policies, and other external factors for floating interest rate based home loans.
  • Interest rates on home loans can be linked to Repo Rate or MCLR (Marginal Cost of Funds Based Lending Rate). 
  • The Best interest rates for home loans have become highly affordable in the last couple of years.

Compare and Apply for Lowest Home Loan Interest Rates in India - 2024

Bank NameInterest RateProcessing Fees 
HDFC Bank Home Loan8.55% - 9.10%Up to 0.50% of loan amount or Rs. 4,500, whichever is higher + applicable taxes.
HSBC Bank Home Loan8.45%Up to 1.00% of the loan amount + applicable taxes
Kotak Bank Home Loan8.70%Up to 0.50% of loan amount + GST & other statutory levies
PNB Housing Finance8.50%Up to 1% of loan amount + GST
Federal Bank Home Loan8.80%0.50% of loan amount (Min. Rs. 3,000 - Rs. 7,500)
IDFC First Bank Home Loan8.75%Up to Rs. 10,000
Central Bank of India8.50% - 9.50%Up to 0.50% of loan amount (Maximum Rs. 20,000)
Bank of Baroda Home Loan8.40% - 10.60%Up to 0.50% of loan amount (Minimum Rs. 8,500 & Maximum Rs. 25,000)
Bajaj Finserv Home Loan8.50% - 15.00%Up to 1% of loan amount (Minimum Rs. 700)
SBI Bank Home Loan8.40% - 10.05%Up to 0.50% of loan amount + GST 
ICICI Bank Home Loan9.00% - 10.05%Up to 0.50% of loan amount or Rs. 2,000, whichever is higher + GST
LIC Housing Finance8.35% - 10.50%0.50% of loan amount + GST
Bandhan Bank Home Loan9.16% - 15%0.50% of loan amount
Bank of Maharashtra Home Loan8.35% - 8.90%0.25% of loan amount (Maximum Rs. 25,000)
Bank of India Home Loan8.30%Maximum Rs. 50,000
Indian Bank Home Loan8.40%Up to 0.30% of loan amount (Maximum Rs. 20,470)
Union Bank of India Home Loan8.35%Up to 0.50% of loan amount (Maximum Rs. 15,000) + GST
Canara Bank Home  Loan8.40% to 11.75%0.50% of loan amount (Minimum Rs. 1,500 & Maximum Rs. 10,000)
South Indian Bank Ltd.8.35%0.50% of loan amount (Minimum Rs. 5,000 & Maximum Rs. 10,000)
YES Bank Home Loan9.40% - 10.25%1% of loan amount or Rs. 10,000, whichever is higher + GST

You can now check BOI MCLR Online.

Kotak Home Loan Apply

How to get Lowest Home Loan Interest Rates in India?

The interest rate is one of the most important factors to consider when choosing a home loan. The lower the interest rate, the lower your monthly EMI will be, which can result in significant savings over the loan term. To get the lowest interest rate, it's important to compare rates offered by different banks and non-banking financial institutions. You can also consider the following tips to get the best deal on your home loan:

Maintain a good credit score: 

A good credit score is an important factor that lenders consider when deciding on the interest rate for your home loan. Make sure to keep your credit score high by paying bills on time and keeping your credit utilization low.

Choose a short loan tenure:

A shorter loan tenure means lower interest payments over the loan term. Consider choosing a shorter loan tenure to get a lower interest rate.

Make a higher down payment:

A higher down payment can result in a lower interest rate, as it reduces the amount you need to borrow from the lender.

Negotiate with the lender: 

If you have a good credit score and a steady income, you can negotiate with the lender for a lower interest rate.

You can also check How to Apply for Pradhan Mantri Awas Yojana

How Can You Save Big by Choosing a Lower Tenure for Your Home Loan?

The loan tenure is another important factor to consider when choosing a home loan. Choosing a lower tenure for your home loan can result in lower interest rates and help you save big over the long-term. The longer the loan tenure, the lower the interest rate as the lender is able to spread the risk of loan default over a longer period of time. A longer loan tenure can result in lower monthly EMIs, but it also means paying more in interest over the long-term. On the other hand, a shorter loan tenure can result in higher monthly EMIs but lower interest payments over the loan term.

To help you understand the impact of loan tenure on your home loan, let's take an example:

Suppose you are taking a home loan of Rs. 50 Lakhs at an interest rate of 8.35%. If you choose a longer loan tenure of 25 years, your monthly EMI would be Rs. 39,925, and the total interest paid over the loan term would be Rs. 69,77,490. However, if you choose a shorter loan tenure of 20 years, your monthly EMI would be Rs. 43,075, but the total interest paid over the loan term would be Rs. 53,38,054. As you can see, while the monthly EMI is higher with a shorter loan tenure, you end up paying much less in interest over the long-term.

You can now check ICICI Bank Home Loan Status Online.

Factors that Affect Your Home Loan apart from Interest Rate

There are several other factors that can impact your home loan interest rate, apart from the interest rate itself. Some of these include:

  1. Loan to Value (LTV) Ratio: The LTV ratio is the ratio of the loan amount to the value of the property. A higher LTV ratio can result in a higher interest rate, as it increases the risk for the lender.
  2. Loan amount: The loan amount also affects the interest rate. A higher loan amount can result in a higher interest rate, as it increases the risk for the lender.
  3. Credit Score: Your credit score is a reflection of your creditworthiness and repayment history. A good credit score can result in a lower interest rate, while a lower credit score can result in a higher interest rate.
  4. Type of property: The type of property you are buying can also impact the interest rate. For example, a home loan for a ready-to-occupy property may have a lower interest rate than a home loan for an under-construction property.
  5. Employment: Your employment status and income can also impact the interest rate. Salaried individuals with a stable job and a high income may be offered a lower interest rate compared to self-employed individuals or those with a lower income.
  6. Loan Tenure: The longer the loan tenure, the lower the monthly repayment amount, but the higher the overall interest paid over the loan term.

Factors affecting Home Loan Interest Rate

How to Calculate Your EMI and Interest for Your Home Loan?

To calculate your Equated Monthly Installment (EMI) and interest for your home loan, you can use an online home loan calculator. This tool will take into account the loan amount, interest rate, and loan tenure to calculate the monthly repayment amount and overall interest paid over the loan term.

Alternatively, you can manually calculate your EMI using the following formula:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where:

P = Loan amount

R = Monthly interest rate (interest rate/12)

N = Loan tenure in months

To calculate the total interest payable, you can subtract the principal amount from the total repayment amount.

HDFC HLBT Offers

Types of Home Loan Interest Rates 

There are two main types of home loan interest rates in India - fixed and floating.

Fixed Interest Rates: 

In this type of interest rate, the interest rate remains the same for the entire loan tenure, regardless of any changes in the market interest rate.

Floating Interest Rates: 

A floating interest rate is linked to a benchmark rate, such as the repo rate set by the Reserve Bank of India (RBI). This means that the interest rate can change in line with changes in the benchmark rate.

You can also check Pan Number for All Banks

Interest Rate Conversion Facility on Your Home Loan

Many lenders offer the option of converting your floating interest rate home loan to a fixed interest rate home loan during the loan term. This can provide stability and predictability in the monthly repayment amount and can be a useful option for borrowers who are concerned about rising interest rates.

Banks/ NBFCsTransfer charges
Yes Bank0.50% of the principal outstanding
Kotak Mahindra BankAs applicable
PNB Housing Finance0.50% of the principal outstanding
State Bank of IndiaRs. 5000
HDFC BankAs applicable
Bank of BarodaAs applicable

How to Reduce Home Loan Interest Rate Burden?

There are several ways to reduce the interest burden on your home loan, including:

  1. Choosing a shorter loan tenure: As discussed earlier, choosing a shorter loan tenure can result in a higher monthly EMI, but it also results in lower total interest costs over the loan term.
  2. Making prepayments: Most home loan lenders allow borrowers to make prepayments, which can reduce the outstanding loan amount and result in lower interest costs. However, there may be a charge for prepayments, so it is important to check the terms and conditions before making a decision.
  3. Negotiating with the lender: Borrowers can try to negotiate with the lender for a lower interest rate, especially if they have a good credit score and a stable income.
  4. Opting for balance transfer: If you have an existing home loan with a higher interest rate, you can consider a balance transfer to another lender offering a lower interest rate.
  5. Selecting the right type of interest rate: As discussed earlier, choosing the right type of interest rate can also have a significant impact on the interest burden on your home loan. Borrowers should carefully consider their financial situation and future plans before deciding on a fixed or floating interest rate.

Apply for Lowest Home Loan Online @ Rs. 769/Lakh* EMI

Apply for instant home loan online at Interest Rate starting from as low as 8.35% p.a. Pay EMI of just Rs. 769 per Lakh. Loan can be repaid in flexible tenure of up to 30 years. Apply now with minimal documentation. Check eligibility & get instant approval here.

Home Loan Interest Rates FAQs

✅ Which Bank has the lowest home loan interest rate?

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Currently lowest home loan interest rate offer is available through Kotak Mahindra Bank and Citibank at 8.75% p.a. Other top banks offering minimum home loan interest rate are HDFC, ICICI, Bajaj Finserv & SBI. Home loan interest rates are at lowest levels in the past 15 years. Women borrowers can tap further concessions on the available rates.

✅ How to Get Lowest Home Loan Rates in India?

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Use professional advice and compare the best deals online to grab the lowest today home loan rate offer. Use EMI Calculator and negotiate for the best rate.

✅ What factors do banks consider before approving a Home Loan application?

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Factors that affect the home loan approval process include age, income & job/business stability, debt to income ratio, Credit Score, dependants, co borrower’s financial health, LAP etc.

✅ What are the minimum and maximum tenure for Home Loans?

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Home Loans are available at maximum flexible repayment terms. The tenure can range from 5 years to 30 years. Choose the lowest possible tenure to keep the interest burden low.

✅ Can a co-applicant apply for a home loan?

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Yes, home loan can be applied by co-applicants jointly. Normally the loan is availed in joint names to increase the loan eligibility. You can avail the loan jointly with spouse, children or parents.

✅ Is a balance transfer option available for a Home Loan?

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Yes, a balance transfer option is available for a Home Loan. You can avail of current best offers on new home loan interest rate by transferring your ongoing home loan to other bank. It is recommended to transfer a loan in the early years. A loan that has already been served, i.e. max interest liability is already being paid, should not be considered for balance transfer.

✅ Is a top-up facility available with Home Loan?

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The availability of top up facility will varies as per lender’s policy. However, in most cases, you will be eligible for the top up scheme if you have been regular in repaying your EMIs. The rate of interest on the top-up loan will be slightly higher than the Home Loan (still lower than personal loan), yet the approval & processing will be faster than a fresh loan application. You also get repayment flexibility with top up home loan.