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Home Loan Interest Rates

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Home Loan Interest Rates

Find Home Loan Interest Rates From Various Banks

Your home loan interest rate is a cornerstone of your financial journey. A lower interest rate directly impacts your monthly EMIs and the overall cost of your loan. That's why it's crucial to invest time in research and find the best interest rate available.


Here's why a low interest rate matters:

  • Reduced EMIs: Lower interest rates translate to smaller monthly payments, making it easier to manage your finances.
  • Faster Loan Repayment: With lower interest rates, you can pay off your loan faster and save on interest costs.
  • Improved Financial Flexibility: Lower EMIs provide more financial flexibility to pursue other goals or handle unexpected expenses.


How to find the best interest rate:

  • Compare Lenders: Shop around and compare offers from multiple banks and NBFCs.
  • Consider Your Credit Score: A good credit score can improve your chances of getting a lower interest rate.
  • Explore Government Schemes: Research government-backed schemes that may offer subsidized interest rates.
  • Negotiate: Don't hesitate to negotiate with lenders to get the best possible deal.


HomeLoanAI.in can help you secure the lowest interest rate:

  • Expert Guidance: Our team of experts will assist you in finding the most suitable home loan option.
  • Competitive Rates: We have access to a wide range of lenders offering competitive interest rates.
  • Personalized Service: We tailor our recommendations to your specific financial needs and goals.


Ready to start your home purchasing journey with a low interest rate?

Home Loan Interest Rate FAQs



What is meant by interest rate on housing loan?

Home loan interest rates represent the percentage charged on the outstanding loan principal by lenders. This rate plays a crucial role in determining the overall cost of your home loan. Several factors influence the interest rate that a borrower receives on a housing loan, besides their eligibility and the lender’s specific policies are : credit score, loan amount, loan tenure, property location etc. .

How is the home loan interest rate calculated?

Your home loan interest rate is influenced by several key factors:

  • Your Credit Worthiness: A strong credit score can lead to lower interest rates.
  • Lender's Risk Assessment: Lenders evaluate your financial profile to assess the risk associated with lending to you.
  • Market Conditions: Interest rates fluctuate based on economic factors.
  • Income and Debt: Your income and existing debt obligations are considered.

What are the types of interest rates on home loans available?

There are two main types of interest rates on home loans:

  • Fixed interest rate
  • Floating interest rate

What are the advantages of choosing home loan through HomeLoanAI.in?

Here's what sets HomeLoanAI.in apart and makes it your perfect home loan partner:

  • Tailored Solutions: We match you with the ideal loan option based on your financial profile and dream home goals.
  • Competitive Rates: Access exclusive interest rates from our network of trusted lenders, ensuring you get the best deal on your home loan.
  • Fast Approvals: Our streamlined application process gets you pre-approved and funded quickly, so you can move in sooner.
  • Expert Support: Get personalized guidance from experienced professionals throughout your home loan journey.
  • Flexible Repayment: Choose a repayment plan that aligns with your budget and financial goals.
  • Transparent Process: No hidden fees or charges, ensuring a clear and hassle-free experience.
  • Easy Eligibility Check: Quickly check your eligibility online to save time and simplify the process.

How can I check the total loan interest rate for a home?

You can use a home loan EMI calculator to estimate the total interest on your loan. Simply enter the loan amount, interest rate, and loan tenure to get the results.

How to get the cheapest home loan in India?

To secure the most affordable home loan in India, follow these steps:

  • Compare offers from various lenders to find the best interest rates.
  • Boost your credit score to qualify for lower rates.

What are the current home loan interest rates?

Home loan interest rates vary based on the lender and the loan type. To find the most accurate rates, it's recommended to compare offers from multiple lenders.

Are there any other factors that determine the interest rates on home loans?

In addition to the factors mentioned above, other factors that can determine the interest rate on your home loan include:

  • Loan amount
  • Loan tenure
  • Type of property
  • Location of the property
  • Your income and employment status

What are the different methods for calculating interest rate payment?

There are two primary methods for calculating interest payments:

  • Reducing balance method: Interest is calculated on the remaining principal balance of the loan.
  • Flat rate method: Interest is calculated on the original principal amount for the entire loan term.

Can my credit score impact my home loan interest rate?

Yes, your credit score plays a crucial role in determining your home loan interest rate. A high credit score can help you secure a lower interest rate, while a low credit score may lead to higher rates or even rejection of your loan application.

What is APR (Annual Percentage Rate)?

APR, or Annual Percentage Rate, reflects the total cost of a loan by including both the interest rate and all associated fees and charges. It provides a clear, comprehensive view of the loan's overall cost.

Bank Interest Rates

(Revised on 5th October)
SNo Name Starting Interest Rate(p.a.) Processing Fees
1 Kotak Mahindra Bank 8.75% p.a. onwards Salaried: 0.5% Plus taxes; Self-Employed/Commercial: 1.0% Plus taxes.
2 Union Bank of India 8.35% p.a. onwards 0.50% of the loan amount.
3 Bank of Baroda 8.40% p.a. onwards No processing fee; discounted upfront fee.
4 Central Bank of India 8.50% p.a. onwards 0.50% up to Rs.20,000 Plus GST (waived till 31 March 2024)
5 Bank of India 8.40% p.a. onwards Nil
6 State Bank of India 8.50% p.a. onwards 0.35% of the loan amount plus GST.
7 HDFC Home Loans 8.75% p.a. onwards Up to 0.50% or Rs.3000 Plus taxes, whichever is higher. Minimum retention: 50% or Rs.3000 Plus taxes, whichever is higher. 
8 LIC Housing Finance 8.50% p.a. onwards For amounts up to Rs.1 crore, it is 0.25% of the loan amount, with a maximum of Rs.15,000 plus GST. For amounts above Rs.1 crore and up to Rs.2 crore, the fee is Rs.20,000 plus GST. For amounts above Rs.2 crore and up to Rs.5 crore, the fee is Rs.25,000 plus GST. For amounts above Rs.5 crore and up to Rs.15 crore, the fee is Rs.50,000 plus GST.
9 Axis Bank 8.75% p.a. onwards Up to 1% or min. Rs.10,000 Plus GST 
10 Canara Bank 8.50% p.a. onwards 0.50% of the loan amount.
11 Punjab and Sind Bank 8.50% p.a. onwards 0.15% of the loan amount will be charged, with a minimum of Rs.1,000 and a maximum of Rs.3,750. For loans above Rs.25 lakh and up to Rs.50 lakh, the fee is 0.25% of the loan amount, capped at a maximum of Rs.12,500. Similarly, loans above Rs.50 lakh but less than Rs.75 lakh incur a fee of 0.25% of the loan amount, with a maximum limit of Rs.15,000. Loans of Rs.75 lakh and above carry a charge of 0.25% of the loan amount.
12 IDFC First Bank 8.85% p.a. onwards Up to 3% of the overall loan amount.
13 Bank of Maharashtra 8.35% p.a. onwards No processing fees.
14 Punjab National Bank 8.40% p.a. onwards Nil
15 IDBI Bank 8.45% p.a. onwards 0.50% (Rs. 2,500 - Rs.5,000) 
16 HSBC Bank 8.50% p.a. onwards 1% of loan amount or Rs.10,000, whichever is higher.  
17 Karur Vysya Bank 9.00% p.a. onwards Loans up to Rs.25 Lakh incur a charge of Rs.2,500 Plus GST.Loans ranging from Rs.25 Lakhs to Rs.50 Lakh carry a processing fee of Rs.5,000 Plus GST.For loans exceeding Rs.50 Lakh, the processing fee is Rs.7,500 plus GST.  
18 Saraswat Bank Home Loan 8.70% p.a. onwards Up to Rs.35 lakh: NIL Nl 
Rs.35 lakh - Rs.50 lakh: 0.30% of loan amount  
Rs.50 lakh - Rs.70 lakh: 0.40% of loan amount  Rs.70 lakh - Rs.1.40 lakh: 0.50% of loan amount  
19 Jammu and Kashmir Bank 8.85% p.a. onwards 0.50% Plus GST (min. Rs.2,000 and max. Rs.50,000) 
20 South Indian Bank 8.35% p.a. onwards  0.50% of the loan amount plus GST 
21 Federal Bank 8.80% p.a. onwards 0.50% of the loan amount with a minimum of Rs. 10,000 and a maximum of Rs. 20,000.
22 Standard Chartered Bank 8.95% p.a. onwards Contact the bank 
23 Karnataka Bank 8.75% p.a. onwards Contact the bank 
24 Sundaram Home Finance Contact the bank for information on the floating/v Up to 0.75% of the loan amount plus applicable GST. 
25 Dhanlaxmi Bank 9.35% p.a. onwards 1.00% of the loan amount, plus service tax (with a minimum of Rs.10,000 Plus service tax).
26 Tata Capital 8.75% p.a. onwards 2.00% p.a. plus GST.
27 Tamilnad Mercantile Bank 8.60% p.a. onwards 0.50% of loan amount Plus GST 
28 Bandhan Bank 9.16% p.a. onwards Contact the bank
29 Yes Bank 9.40% p.a. onwards 1.5% of the loan amount plus GST or Rs.10,000, whichever is higher 
30 Hudco Home Loan Contact the bank Nil 
31 Aditya Birla 8.60% p.a. onwards Up to 1% 
32 GIC Housing Finance  8.80% p.a. onwards Rs.2,500 Plus Applicable GST 
33 Shriram Housing 9.50% p.a. onwards Up to 2.5% of the loan amount Plus applicable taxes. 
34 India Shelter Finance 12% p.a. onwards Contact the institute.
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