In India, home loan interest rates start from 6.70% p.a. Borrowers meeting all the home loan eligibility conditions are offered the home loan at the lowest rate of interest. Lower the home loan interest rate, lower is the home loan EMI and the overall cost of the loan. Fixed and floating interest rate options further add to the convenience.
|Bank Name||Interest Rate||EMI/Lakh (in Rs. for 20 year tenure)||Processing Fees|
|PNB Home Loan||7.35% - 7.85%||689 - 723||Up to 0.35% of loan amount (Maximum Rs. 15,000)|
|Indian Bank||6.85% - 8%||766 - 836||Up to 0.230% of loan amount (Maximum Rs. 20,470)|
|Bank of India||6.85% - 8.85%||655 - 890||Maximum Rs. 50,000|
|Bank of Baroda||6.75% - 8.60%||760 - 874||Up to 0.50% of loan amount (Minimum Rs. 8,500 & Maximum Rs. 25,000)|
|Indian Overseas Bank||7.05% - 7.30%||778 - 793||Up to 0.50% (Maximum Rs. 25,000)|
|SBI||6.70% - 8.05%||645 - 737||Up to 0.50% of loan amount + GST|
|Union Bank of India||6.80% - 7.40%||763 - 799||Up to 0.50% of loan amount (Maximum Rs. 15,000) + GST|
|IDBI Bank Limited||6.95% - 10.05%||662 - 881||Up to Rs. 20,000 + taxes|
|Central Bank of India||6.85% - 7.30%||655 - 686||Up to 0.50% of loan amount (Maximum Rs. 20,000)|
|HDFC Bank||6.75% - 7.65%||649 - 710||Up to 1.50% of loan amount or Rs. 4,500, whichever is higher + applicable taxes.|
|Canara Bank||6.90% - 8.90%||769 - 893||0.50% of loan amount (Minimum Rs. 1,500 & Maximum Rs. 10,000)|
|UCO Bank||7.15% - 10.45%||784 - 995||0.5% of loan amount (Minimum Rs. 1,500 & Maximum Rs. 15,000)|
|Bank of Maharashtra||6.90% - 9.65%||769 - 942||0.25% of loan amount (Maximum Rs. 25,000)|
|Jammu & Kashmir Bank Ltd.||7.20% - 7.60%||787 - 812||0.25% of loan amount + GST (Minimum Rs. 5,000 & Maximum Rs. 25,000)|
|Punjab & Sind Bank||6.85% - 7.60%||766 - 812||Full waiver of processing charges during the Festival Campaign period|
|Citibank||6.65% - 6.90%||642 - 659||Up to Rs. 5000|
|Axis Bank||6.90% - 8.40%||769 - 862||Up to 1% of loan amount (Minimum Rs. 10,000)|
|Federal Bank Ltd.||7.65% - 7.80%||710 - 720||0.50% of loan amount (Min. Rs. 3,000 - Rs. 7,500)|
|Kotak Mahindra Bank Ltd||6.65% - 7.30%||642 - 686||Up to 2% of loan amount + GST & other statutory levies|
|Karnataka Bank Ltd.||7.50% - 8.85%||699 - 794||As mentioned by the bank|
|Karur Vysya Bank Ltd.||7.20% - 9.55%||679 - 855||Minimum Rs. 2,500 & Maximum Rs. 7,500 + GST|
|ICICI Bank||6.75% - 7.55%||649 - 703||Up to 2% of loan amount or Rs. 2,000, whichever is higher + GST|
|South Indian Bank Ltd.||7.95% - 9.45%||730 - 837||0.50% of loan amount (Minimum Rs. 5,000 & Maximum Rs. 10,000)|
|Tamilnad Mercantile Bank Ltd.||8.25%||751||0.50% of loan amount + taxes|
|Piramal Housing Finance||Starting from 9.75%||859 onwards||Up to 3% of loan amount + applicable taxes|
|IDFC First||6.90% - 8.50%||659 - 769||Up to Rs. 10,000|
|Catholic Syrian Bank Ltd.||8.43% - 10.03%||764 - 880||0.50% of loan amount|
|Dhanlaxmi Bank Ltd.||7.85% - 9%||723 - 805||1% of loan amount (Minimum Rs. 10,000) + service tax|
|YES Bank Ltd.||8.95% - 11.80%||801 - 1013||1% of loan amount or Rs. 10,000, whichever is higher + GST|
|City Union Bank Ltd.||10.25% - 12.75%||896 - 1087||Up to 1% of loan amount (Minimum Rs. 700)|
Calculate Home Loan EMI using MyMoneyMantra Home Loan Calculator. It is simple, free and convenient to use EMI Calculator for estimating monthly installments. All you need to do is share the loan amount, tenure and rate of interest and the Calculator will instantly share EMI for your home loan.
Simple steps to calculate home loan EMI & interest amount are:
Step 1: Click on MyMoneyMantra Home Loan Calculator.
Step 2: Share home loan amount, housing loan interest rates and tenure.
Step 3: Submit these loan parameters and instantly get Loan EMI & interest rate cost.
Completing these steps you will get:
Calculating your loan’s EMI is thus instant and hassle free at MyMoneyMantra Platform. Furthermore, you need not visit each bank’s website separately to know about loan terms or EMI calculations. You can try different combinations and choose the most affordable one according to your pocket.
You should also know about mathematical EMI Calculation.
Home Loan EMI Calculation Formula:
EMI= [P x R x (1+R) ^ N]/ [(1+R) ^ N-1]
Here, EMI is Equated Monthly Instalment
P is Principal Amount (Loan Amount)
R is effective rate of interest
Home loan interest rate in all banks are calculated on an annual basis. To calculate monthly home loan rate, divide annual rate by 12
For example, if the applicable home loan interest rate is 8%, your monthly interest would be 0.0066 (0.08/12 = 0.0066)
N – Loan tenure in months (EMIs to be paid)
So, if it is a 15-year home loan, N = 15×12 = 180
Currently, Citibank Home Loan and Kotak Mahindra Bank Home Loan are available at the lowest interest rate starting at 6.70% p.a. Other leading banks offering low home loan rates are SBI, HDFC, and ICICI. As current housing loan interest rate are at decadal low, you can seal the best housing finance deal ever this year from a lender of your choice.
Below are some common home loan details of various housing loan offers offered by different banks and other financial institutions:
|Loan Amount||Rs. 1 Lakh - Rs. 5 Crores|
|Tenure||5 year - 30 years|
|Interest Rate||6.70% - 12.75%|
|EMI Per 1 Lakh||Rs. 645 - Rs. 1087|
|Processing Fees||Up to 3% of the sanctioned loan amount|
|Prepayment Charges||Nil for floating interest rate based home loans|
|Purposes||House purchase, construction of residential property, plot purchase and house construction thereon, repair/renovation/extension of self-owned house.|
A home loan can be availed of as a fixed rate loan or a floating/ variable rate variant. However, currently maximum lenders in India are offering floating home loan schemes only.
Some banks also offer combination schemes wherein the loan switches to a floating rate after initial few years. Based on your current repayment capacity and market situation choose the loan regime.
A home loan is a secured loan. Key factors that affect home loan interest rate are your age, income, existing debt to income ratio, loan amount, interest rate regime, loan tenure and credit score.
To understand mathematics behind your home loan EMI you must understand the difference between Flat Rate and Reducing Balance Rate Calculations. Opting for reducing balance method can save your more money as against the flat rate, on the same interest rate home loan deal.
How? Let’s understand with the help of an example:
In flat rate method, the interest on home loan is calculated on the loan principal amount each month and thus EMIs are same during the tenure of loan. However, on reducing balance method, the interest rate will reduce each month/ EMI cycle. The calculation for instalment is made on the balance amount of principal after deducting the repaid principal amount. So reducing rate method is more affordable than flat rate method for the borrowers.
Let’s say, Mr A takes a Home Loan of Rs. 10, 00,000 at 10% p.a. for 10 years. Here is how interest rate calculations will vary:
|Rate of Interest||10% p.a||10% p.a|
|Tenure||10 years||10 years|
|Interest Calculation||Flat Rate||Reducing balance|
|Total Payment||16667 X 120 = 20,00,040||13215 X 120 = 15,85,800|
|Saving||2000040 -1585800 = 4,14,240|
The effective housing loan interest rate is assessed according to external and internal factors. The internal factors determine the lender's credit policy that helps in setting out parameters for calculating customers’ risk premium and repayment capacity. While external factors are net income, debt to income ratio, credit score and collateral value. Basis these factors, the lender will calculate effective interest for home loan.
To get the lowest home loan rate offer by the lender you should ensure that you score high on each of the requisite parameters for home loan eligibility. Some of the factors that require attention include:
Home loan is a long term commitment that runs for several years. Though maximum loan tenure range is usually up to 30 years, most borrowers take 10-15 years to pay their loans. The smaller is the tenure, smaller is your interest liability. Thus, one of the best ways to reduce your home loan interest rate burden is to opt for lower loan tenure.
Use any of the following paths to keep burden of current home loan interest rates low:
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Currently lowest home loan interest rate offer is available through Kotak Mahindra Bank and Citibank at 6.70% 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.
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.
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.
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.
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.
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.
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.
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