Home Loan Interest Rates And EMI Of Top 15 Banks In India

home loan interest rates

Owning your own house is a dream that most of us hope to achieve in our lifetime. However, realizing this dream becomes a little difficult, especially for the salaried and middle-class people for the kind of enormous rates banks charge against home loans. In addition, home loans also last anywhere between 2-30 years in most cases.

As a prospective home buyer, if you are to buy a house for yourself, you would naturally want to take a home loan from a bank that offers the lowest home loan interest rate. To help you achieve your dream at the best price possible, we have curated this exhaustive blog with a list of the home loan interest rates and EMIs offered by all the top 15 banks in India. We hope this helps you figure out the lowest home loan interest rate possible and takes you a step closer to your dream home!

Home Loan Interest Rates in India March 2022

Before we get to the comparison table of the home loan interest rates in India for March 2022, it should be noted that one needs to have the following in order to have their home loan processed by the bank-

  1. A sustainable income proof
  2. Favorable credit history and CIBIL score

List of Home Loan Interest Rates in India as Offered by all the Top Indian Banks & NBFCs as of March 2022

Home Loan Interest Rates

List of Banks/NBFCs

Home Loan Interest Rates

Processing Fees

Allahabad Bank

7.00% – 7.50%

Up to 0.40% of the loan amount to a max INR 50,000

Andhra Bank

6.40% – 7.40%

0.50 % of loan amount subject to maximum of INR 10,000 + GST

Axis Bank

6.75% – 7.20%

Up to 1% of the Loan amount subject to minimum of INR 10,000

Upfront processing fee of INR 2,500 + GST

Bandhan Bank

8.50% – 11.75%

1% of Loan Amount , Min INR 5,000 + GST

Bank of Baroda

6.75% – 8.25%

Up to 0.50% of the loan amount or a maximum of INR 7,500 + GST

Bank of India

6.85% – 8.35%

0.25% of the loan amount + GST

Bank of Maharashtra

7.05% – 8.40%

As applicable

Canara Bank

6.90% – 8.90%

0.5% of the loan amount + GST

Central Bank of India

6.85% – 7.30%

0.50% of the loan amount subject to maximum INR 20,000 + GST

Citibank

6.50% – 7.40%

Up to 0.40% of the loan amount + GST

Corporation Bank

6.40% – 7.40%

0.50% of loan amount. Max INR 50,000 + GST

Dena Bank

6.75% – 8.25%

As applicable

Federal Bank

7.65% – 7.80%

0.50% of the loan amount to a maximum of INR 7,500 + GST

Fullerton India

7.99% – 12.00%

3% of the loan amount + GST

HDFC Limited

6.70% – 8.00%

Up to 0.50% of the loan amount or INR 3,000 whichever is higher, plus applicable taxes.

HSBC

6.45% – 6.80%

1% of the loan amount + GST

ICICI Bank

6.70% – 7.55%

Up to 1.00% of the loan amount + GST

IDBI Bank

6.95% – 10.05%

0.50% of loan amount to a maximum of INR 2,500 + GST

IDFC First Bank

7%-11.00%

Upto INR 10,000 + GST

IndusInd Bank

6.70% – 8.00%

INR 10,000 + GST

Indiabulls Housing Finance

8.65% Onwards

0.50% of the loan amount to a maximum of INR 15,000 + GST

Jammu & Kashmir Bank

7.20% – 7.60%

0.25% of the loan amount to a maximum of INR 10,000 + GST

Karnataka Bank

8.08% – 8.85%

0.50% of the loan amount + GST

Karur Vysya Bank

7.25% – 9.55%

Up to INR 7,500 + GST

Kotak Mahindra Bank

6.55% – 7.10%

Zero processing fee for online application (Upto 1.25% of Loan amount for offline application)

LIC Housing Finance (LIC HFL)

6.66% – 7.90%

  • Loan Amount Upto INR 50 Lakh: – NIL
  • Loan Amount More than INR 50 Lakh to Upto INR 1 Crore – 50% of 0.25% of the loan amount + GST or 50% of INR 10,000 + GST, whichever is lower
  • Loans more than INR 1 Cr to Upto INR 5 Cr – 50% of INR 25000 + GST

Lakshmi Vilas Bank

8.55%

As applicable

Nainital Bank

7.00% – 7.65%

As applicable

Oriental Bank of Commerce

6.75% – 7.80%

0.50% of the loan amount to a maximum of INR 20,000/- + GST

Punjab National Bank (PNB)

6.75% – 7.80%

0.35% of the loan amount, subject to a minimum and maximum of INR 2,500 and INR 15,000 respectively

PNB Housing Finance (PNBHFL)

6.75% – 9.25%

INR 10,000 + GST

Punjab & Sind Bank

7.30% – 7.65%

Up to 0.25% of the loan amount to a maximum of INR 15,000 + GST

Reliance Home Finance

8.75% – 14.00%

Up to 0.75% of the loan amount + GST

RBL Bank

9.50% – 12.30%

INR 5,000 – INR 15,000 of the loan amount + GST

State Bank of India (SBI)

6.70%-6.90%

0.35 % of loan amount and maximum INR 10,000 +GST

Standard Chartered Bank

Starting at 6.99%*

INR 10,000 + GST

Syndicate Bank

6.90% – 8.90%

0.125% of loan amount or a maximum of INR 5,000 + GST

Tata Capital

6.90 – 8.75%

As applicable

UCO Bank

6.90% – 7.25%

0.5% of the loan amount, to a maximum INR 15,000 + GST

United Bank of India

6.75% – 7.80%

As applicable

Vijaya Bank

6.75% – 8.25%

INR 4,000 + GST

YES BANK

6.70% – 11.80%

0.5% of the loan amount or a maximum of INR 10,000 + GST

How to Get a Home Loan with a Low-Interest Rate?

How To Get A Home Loan With A Low-Interest Rate

Banks consider a number of factors before offering a home loan. The following are some of the elements that influence the interest rate on a house loan:

Location of the property

People seeking properties on government-approved lands and areas have a higher chance of getting a loan sanctioned of as much as  75-90% of the property value.

Good credit score

You’ll need a CIBIL score of 650 or higher to be approved.

Apply at your current bank

A excellent working relationship with the bank allows you to get a large loan amount with a low-interest rate on your house loan without any worry.

High Income

A individual with a strong income has a better chance of receiving a lower rate and a larger sum.

Property-related paperwork

It is critical to maintain and keep all property-related documents on hand because they assist the bank in properly identifying your property and its value, allowing them to verify your profile.

Income proof

Applicants with valid income statements are more likely to get a home loan at a low rate from a bank. in case you do not have valid income proof, the only way for you to get a loan is by applying to NBFCs (a nonbanking financial company), and NBFCs attract a very high-interest rate.

Apply when you're young

Loan applications of applicants between 20-30 are given a higher priority and with low-interest rates as people of this age group have lesser financial liabilities.

How To Calculate Home Loan EMI?

How To Calculate Home Loan EMI

In order to calculate your home loan EMI, you will need the following figures handy:

  1. Housing loan interest rate
  2. Total loan amount
  3. The loan tenure

Apply the above numbers in the following formula to calculate your home loan EMI:

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

  1. EMI = Equated Monthly Installment
  2. P = Principal Loan Amount
  3. R = Monthly Interest Rate
  4. N = Number of Monthly Installments

Is Interest Rate Conversion Allowed on Fixed Rate Home Loans in India?

Home loans in India are typically offered on Fixed Interest Loans as well as Floating Interest Loans. While the fixed interest loans are offered at a ‘fixed’ interest for the entire tenure period, floating interest loans are offered at ‘changing’ interest rates through the period. The changing interest rates in the case of floating interest home loans are subjected to the changes that take place in the market.

Though the interest rate changes in the case of floating rate home loans, such loans offer lesser interest obligations as compared to fixed-rate home loans. Hence, if you take a home loan at a fixed rate, it can still be converted to a floating rate and you can then save on the total interest paid. It should be noted, however, that you will need to pay a ‘conversion’ fee to the bank for changing your home loan from a fixed rate to a floating rate. The said fee varies from bank to bank.

Is Interest Rate Conversion Allowed on a Floating Rate Home Loan in India?

Yes, floating rate home loans in India can be converted to the most cost-efficient floating interest rate benchmark for higher savings on the total home loan interest paid.

At current, there are three such benchmarks-

  1. Base rate
  2. Marginal cost of lending rate (MCLR)
  3. Repo-linked lending rate (RLLR)

Of these three, the repo-linked lending rate (RLLR) is the most transparent rate. RLLR-based home loans are, in fact, typically offered at a  0.30%-0.40% lesser rate than the marginal cost of lending rate. But again, it should be noted that if you wish to convert your floating interest rate home loan to an MCLR or RLLR-based home loan, a conversion fee will still be applicable. The said fee varies from bank to bank.

Final Thoughts: What to Do if the RLLR-Based Home Loan Rate is Higher than the Prevailing Market Rate?

If your repo-linked lending rate or RLLR-based home loan is at a higher interest rate than the average market rate, it is recommended to do a balance transfer to another lender at a lower rate. One of the immediate benefits you can then avail of is in the form of a lower EMI. This will also further help reduce your total owed interest as the new rate will be at least 0.25%-0.50% lower than the existing rate.

It should also be noted that the said balance transfer will attract a ‘switchover fee,’ which will either be a flat, upfront amount or a percentage of the transferred balance. Alternatively, some banks may also offer a waiver on the balance transfer fee.

Home Loan Interest Rates FAQs:

1. Will home loan interest rates increase in 2021?

The future of the home loan interest rate in India for 2021 cannot be determined given the global pandemic situation which has exposed all economies to volatile fluctuations. However, it should be noted that India's largest public lender State Bank of India hiked the minimum interest rate on home loans by 25 basis points (bps) from 6.70 % to 6.95 % in April 2021.

2. What is the EMI for a 15 lakhs home loan in India?

The EMI paid for a 15 lakh home loan in India depends on the interest rate at which the loan was availed. You can calculate the EMI on a home loan using the formula - EMI = [P x R x (1+R)^N]/[(1+R)^N-1]; (a.) EMI = Equated Monthly Installment (b. ) P = Principal Loan Amount (c. ) R = Monthly Interest Rate (d. ) N = Number of Monthly Installments

3. Which bank in India has the lowest home loan interest rates?

As of April 2021, Kotak Mahindra Bank in India is offering the lowest home loan interest rate at 6.65% - 7.30% per annum. Besides, Kotak Mahindra Bank also offers a "zero processing fee" on online home loan applications, but up to 1.25% of the loan amount for offline applications.

4. What are the home loan interest rates in SBI in India?

In India, the home loan interest rate in SBI is 6.95%.
Property Geek

Property Geek

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