If you are planning for a Home Loan or already borrowed one then you must be aware of latest housing load interest rates. Home Loan Interest Rates differs bank to bank & Financial Institutes. So, to keep you updated, I’ve collated Interest Rates for Home loans from All Banks & Financial Institutions here.
In below table I’ve mentioned all House Loan Interest Rates:
Home Loan Interest Rates 2023
| Bank Name | Interest Rates | Processing Fees |
|---|---|---|
| SBI Home Loan | 8.05% | 0.25% Max Rs. 10,000 |
| HDFC Home Loan | 8.40% | 0.50% Min Rs. 3,000 – Max Rs. 10,000 |
| ICICI Bank Home Loan | 9.05% | 0.25% Min Rs. 5,000 – Max Rs. 5,000 |
| Axis Bank | 8.60% | 0.50% Min Rs. 2,500 – Max Rs. 25,000 |
| PNB Housing Finance | 9.25% | 1.00% Min Rs. 10,000 – Max Rs. 10,000 |
| Bank of Baroda | 8.35% | 0.50% Min Rs. 7,500 – Max Rs. 25,000 |
| LIC Housing finance | 8.70% | 0.50% |
| Indiabulls | 9.25% | Min Rs. 7,500 – Max Rs. 10,000 |
| Citibank | 8.50% | Nil |
| DBS Bank | 9.45% | Max Rs. 10,000 |
| DHFL | 9.75% | 0.50% Min Rs. 2,500 – Max Rs. 20,000 |
| Kotak Bank | 8.90% | Max Rs. 10,000 |
| RBL Bank | 10.45% | Min Rs. 5,000 – Max Rs. 15,000 |
| PNB | 8.45% | 0.35% Min Rs. 2,500 – Max Rs. 50,000 |
| Karur Vysya Bank | 9.65% | Min Rs. 5,000 |
| Indian Overseas Bank | 8.65% | 0.53% Min Rs. 8,900 – Max Rs. 13,350 |
Historical Home Loan Interest Rates
As per the current rates, SBI offers the lowest home loan interest rate of 8.05% on Home loans. These interest rates can vary depending upon the value of the property and your loan repayment capacity. The higher the Home loan amount higher will be the rate of interest. You can calculate EMI for your Home Loan using our free Home Loan EMI Calculator. Also, you must check the required documents for a home loan.
Recently, the home loan rate revision announced by SBI in 2023, new home loan interest rates start from 6,7% for home buyers as well as for those who want to transfer their loan from other banks to State Bank of India.
| Year | Interest Rate |
|---|---|
| 2023 | 6.9 to 8.5% |
| 2022 | 6.7 to 7.9% |
| 2021 | 6.7 to 9.75% |
| 2020 | 7.9 to 9.75% |
| 2019 | 8.45 to 9.75% |
| 2018 | 8.50 to 9.75% |
| 2017 | 8.60 to 9.75% |
| 2016 | 9.50 to 11.75% |
| 2015 | 10.00 to 10.65% |
| 2014 | 10.10 to 11.00% |
Quick Guide on Home Loan
Purpose: Home loan can be borrowed by an individual for purchasing a new house, construction of a house on a plot, home improvement, extension and renovation of your existing house.
Key Features of Home Loan
- Eligibility: Both salaried and self-employed borrowers within the age group of 18 and 70 years are eligible for Home Loan.
- Security: Mortgage of house you are planning to purchase, renovate or construct.
- Home Loan Amount: Individuals can get the loan in the range of ₹ 1 Lakh to ₹ 15 Cr.
- Loan to Property Value Ratio: It varies from 65% to 90%.
- Loan Tenure: Repayment term can range from 5 to 30 years.
- Interest rates: Home loan Interest Rates starting from 8.05% & going up to 10.45%. Special rates are available for women borrowers.
- Lowest EMI: Lowest EMI of ₹ 737 per lakh by SBI.
- Processing Fees: Up to 1% of the loan amount or Maximum up to Rs. 10,000.
- Prepayment Charges: Nil charges on floating rate home loans
- Other Charges: Legal charges, technical charges, etc.
- Documents Required: Address Proof, Identity Proof, Income Documents, Income Tax Returns & Property Documents.
Top Home Loan Providers in India
The leading Home Loan Providers are Banks and Home loan companies such as SBI, ICICI Bank, HDFC Bank, Axis Bank, HDFC, PNB Housing, DHFL, Indiabulls Home Finance & LIC.
Popular Home Loan offers
Banks offer schemes for special categories of borrowers including women borrowers, senior citizens, NRIs, Armed Forces Personal, etc. Banks also offer an overdraft facility to save interest on running house loans. Some of the popular & best home loan schemes are SBI special rates for women, HDFC Reach, Axis Bank 12 EMIs offer, Bank of Baroda pre-approved loans, Indiabulls e-home loans, etc.
Best Bank for Home Loan
EMI Calculator does a detailed comparison of all banks and housing loan companies on parameters of interest rates, processing fees, prepayment charges, lending process and customer service of banks on a regular basis. Based on the latest schemes, the below-mentioned banks should be in your consideration list for getting a house loan at low-Interest Rates.
A Best Bank for Home Loan should have minimum interest rates and processing fees.
| Bank with | Name of Bank or Home Loan Company |
| Cheapest home loan in India at 8.05 – 8.1% | State Bank of India |
| Lowest EMI ₹ 737 per lakh of home loan for max loan tenure of 30 years | State Bank of India |
| Lowest Processing Fees of upto ₹ 5,000 on housing loan | ICICI Bank, IDFC First Bank, Syndicate Bank |
| Lowest Processing Fees as a percent of home loan of 0.10% | Piramal Housing Finance |
How to Get Best Home Loan Interest Rates in India
It has never been easier to get a housing loan, as today it is!
You can do online loan comparison based on interest rates, processing fees, loan tenure, other loan terms and conditions of all banks before choosing the right loan offer.
Step 1: Check Home Loan Eligibility & EMI
When you are done with the decision to take a home loan, always estimate your home loan eligibility to know the loan amount you will be eligible for and can apply for. Also, calculate the monthly EMI that you can comfortably repay according to your Salary and other existing fixed obligations including rent and EMIs on other existing loans if any. You can calculate the EMI with our Home Loan Calculator for free.
Your house loan eligibility is calculated based on your age, net income, existing obligations, property type, LTV ratio, existing loans & debts and other factors. EMI is totally dependent on the loan amount, interest rate and tenure. Once you understand your minimum loan requirement, your eligibility and monthly EMI you can comfortably repay, shortlist the banks which offer you the maximum loan amount to meet your requirements.
Step 2: Check property approval status and legal documents
If you are buying a property from a builder, then check for the banks which have approved the projects you have shortlisted to buy. For resale property, check the approved map plans and ensure that all property registration papers for the complete chain from the first owner to the current owner are in place, valid & correct. Shortlist the banks which lend on your chosen property for best interest rates.
Step 3: Decide on the type of home loan interest rate offers
As you narrow down the list of suitable banks in Step 2 and 3 (mentioned above), now you need to conduct an interest rate on home loan comparison of the loan offers of various banks. Some of the interest rates offer that need to be checked are mentioned below:
- Decide between fixed and floating rates – Fixed rates on loans come at a slightly higher rate of interest compared to floating rate loans and the interest rate remains constant during the tenure of home loans. In floating-rate loans, interest rates are reset at periodic intervals in response to changes in MCLR and PLR rates of banks or NBFCs. The majority of housing loans in India today are floating rate loans as it allows the borrowers to get home loan interest rate in line with the current interest rates.
- Decide if you need a home saver loan – This is a loan with an overdraft facility which allows you to deposit surplus amount in your home loan overdraft account as and when available, allowing you to reduce your overall interest amount on loan. This loan is highly recommended for salaried individuals with high bonuses and self-employed business which is seasonal and has fluctuating cash flows. The interest rates on overdraft loans are slightly higher compared to a regular housing loan interest rate.
- You can also evaluate a mortgage guarantee house loan as it covers any default risk and allows the lender to give you a loan at a low rate of interest. However, you need to pay a mortgage guarantee fee to the bank to whom you’ve taken a loan.
- You should check and compare the current home loan interest rates of the banks on various types of loan products and take an informed decision.
Step 4: Compare shortlisted banks
In addition to interest rates, banks also charge many other fees on home loans such as processing fees, documentation charges or pre-closure fees, etc. Along with interest rates, you should check other associated costs with your loan which include prepayment charges, processing fee, insurance premium and other charges applied by the shortlisted banks. You should calculate all inclusive costs (Loan & other charges) on home loans to be able to further shortlist the banks and reduce your choice to 2-3 banks.
You can take the help of loan advisors to be able to get details on home loan rates of all banks and take an informed decision but they charge small fees for advice. You can also visit our guide on the Best Banks for Home Loan to make better decision.
Step 5: Select the bank based on other service-related parameters
Finally, as you decided to take the home loan, here you should also consider other service and transparency related parameters of the chosen banks. Some of these factors are turnaround time offered by the banks, quick loan delivery, doorstep services, low processing fee, transparency in the loan process, etc. You also need to understand the trends and changes in MCLR rates over a period of time to get benefited. Last but not the least, read reviews of existing customers on banks on their services, interest rates and transparency to take your decision to borrow from a bank another you may get stuck.
If you are not sure about which bank is best for a home loan than you can read our guide on Best Banks for Home Loan.
I hope you’ve got an idea about Home loan Interest Rates and how to check eligibility for Home loan.
If you’ve any query don’t forget to leave a comment.
Thank You!