A home loan is the secured type of loan, to purchase a home as there are many lenders available in the market who are ready to offer home loans with different interest rates. The right lender will help you get your dream house without putting much impact in your pocket. Factors like CIBIL Scores, income plays a major role in whether the individual is eligible for a home loan or not.
Points to be noted while applying for a home loan
- Check about your eligibility
- Compare different interest rates of different banks.
- Check for the maximum amount availed
- Select a suitable tenure that suits your financial liabilities
- Check if there are any other costs and hidden charges
- Know the information about late payments, default payment, pre-payment charges.
- Know about your monthly EMI
- Know if any pre-closure charges applicable
Home Loan Interest Rates of All Banks in India 2020:
|Bank||Home Loan Rate and Type||Processing Fee|
|SBI||6.95% RLLR||0.20%, Min ₹ 4,000, Max ₹ 17,400|
|HDFC||6.90% PLR||0.25%, Min ₹ 3,000, Max ₹ 10,000|
|City Bank||6.75% TBLR||NIL|
|Bank of Baroda||6.85% RLLR||Min ₹ 7,500|
|ICICI Bank||7.10% RLLR||1.00%|
|Axis Bank||6.90% RLLR||0.20%, Min ₹ 5,000, Max ₹ 25,000|
|PNB Housing Finance||7.90% PLR||0.50%, Min ₹ 10,000|
|LIC Housing Finance||6.90% PLR||NIL|
|Indiabulls||9.25% PLR||Min ₹ 7,500, Max ₹ 10,000|
|DBS Bank||7.30% RLLR||Max ₹ 10,000|
|Aavas Financiers||8.00% PLR||1.00%|
|Aadhar Housing Finance||11.00% PLR||Min ₹ 3,500|
|Kotak Bank||8.60% RLLR||Max ₹ 10,000|
|Yes Bank||9.85% 1 Year MCLR||1.00%, Max ₹ 15,000|
|Allahabad Bank||8.25% RLLR||0.40%, Max ₹ 50,000|
|United Bank of India||8.00% RLLR||0.59%, Min ₹ 1,180, Max ₹ 11,800|
|Syndicate Bank||8.00% RLLR||0.13%, Min ₹ 500, Max ₹ 5,000|
|RBL Bank||10.45% 1 Year MCLR||Min ₹ 5,000, Max ₹ 15,000|
|Karur Vysya Bank||8.20% RLLR||Min ₹ 5,000|
|Indian Overseas Bank||7.45% RLLR||0.53%, Min ₹ 8,900, Max ₹ 13,350|
|HSBC Bank||8.65% RLLR||1.00%, Max ₹ 10,000|
|Canara Bank||8.05% RLLR||0.50%, Min ₹ 1,500, Max ₹ 10,000|
|IDFC Fist Bank||9.50% RLLR||Min ₹ 5,000, Max ₹ 5,000|
|Union Bank of India||8.25% RLLR||0.50%, Max ₹ 15,000|
|South Indian Bank||8.05% RLLR||1.00%, Max ₹ 10,000|
|Punjab & Sind Bank||8.05% RLLR||0.25%, Min ₹ 1,000, Max ₹ 15,000|
|Lakshmi Vilas Bank||9.70% RLLR||0.40%, Min ₹ 10,000, Max ₹ 20,000|
|Karnataka Bank||8.55% RLLR||0.25%, Min ₹ 250|
|Indian Bank||7.55% RLLR||0.23%, Max ₹ 20,381|
|GIC Housing Finance||10.25% PLR||Min ₹ 2,500|
|Dhanlaxmi Bank||7.40% RLLR||1.00%, Min ₹ 10,000|
|Sundaram Home Finance||8.60% PLR||0.50%|
|Corporation Bank||8.35% RLLR||0.50%, Max ₹ 50,000|
|Bajaj Finserv||7.25% PLR||0.35%|
|Bank of Maharashtra||8.20% RLLR||0.50%|
|Tata Capital||9.05% PLR||0.50%|
|Andhra Bank||8.15% RLLR||0.50%, Max ₹ 10,000|
|LT Housing Finance||9.90% PLR||2.00%, Min ₹ 4,999|
|Standard Chartered Bank||9.40% 3 Month MCLR||1.00%, Min ₹ 5,000, Max ₹ 10,000|
|UCO Bank||6.90% RLLR||0.50%, Min ₹ 1,500, Max ₹ 15,000|
|PNB||7.15% RLLR||0.35%, Min ₹ 2,500, Max ₹ 15,000|
|Reliance Capital||10.00% PLR||1.00%, Min ₹ 3,000, Max ₹ 6,500|
|OBC||8.00% RLLR||0.50%, Max ₹ 20,000|
|Jammu and Kashmir Bank||7.70% RLLR||0.25%, Min ₹ 500, Max ₹ 10,000|
|IDBI Bank||7.40% RLLR||0.50%, Min ₹ 2,500|
|Federal bank||8.35% RLLR||0.50%, Min ₹ 3,000, Max ₹ 7,500|
|DCB Bank||10.24% 1 Year MCLR||2.00%, Min ₹ 5,000|
|Central Bank of India||6.85% RLLR||0.50%, Max ₹ 20,000|
|Piramal Housing Finance||9.00% PLR||0.10%|
What are the Types of Interest Rates Offered on Home Loans?
Fixed Interest Rates-
- These interest rates remain the same throughout the loan period.
- This type of loan will be very favorable as the interest rate remains constant.
- It will be a better option if you apply at the below interest rates.
Floating Interest Rates-
- These interest rates also known as Variable interest rates.
- These types of interest rates subject to change during the tenure of the loan.
Different methods of home loan interest calculation?
Fixed/Flat Rate Method of Interest Calculation-
- The interest rate is calculated on the principal amount that the individual has initially borrowed from the lender.
- This type of calculation is used in microfinance.
Reducing Balance Method of Interest Calculation-
- When the individual makes an EMI payment, some part of the amount is paid as principal amount and the other as interest, this will reduce the outstanding principal amount with time.
- On this reduced outstanding principal amount, interest rates calculated. In this way, you will be paying lesser interest as every time you pay loan EMI as the principal outstanding reduces.
Interest Formula and Calculation:
EMI Calculation by Flat Rate Method = (Principal + Total Interest Payable)/ Loan Tenure in Months
Where, Total interest payable = (principalinterest rateloan tenure)/100
EMI Calculation by Reducing Balance Method = [P x R x (1+R) ^N]/[(1+R)^ (N-1)]
Where, P = Principal amount R = Rate of interest on a monthly basis N = Loan repayment tenure in months (Principal + Total Interest Payable)/ Loan Tenure in Months
Tips to get a home loan at the lowest interest rate in India:
- Keep your Credit Score Close to 900
- Try to apply for a Home loan Jointly
- Avail Home Loan Balance Transfer
- Increase Your Home Down Payment
Hacks to reduce home loan interest burden:
An increase in home loan EMIs help reduces the total interest to be paid. By transferring the existing loan to another bank, helps lower home loan at lower interest rates. Decrease EMIs and save interest by the Part-Prepay on your home loan.