Top 10 Banks Home Loan Interest Rates

Top 10 Banks Home Loan Interest Rates

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:

BankHome Loan Rate and TypeProcessing Fee
SBI6.95% RLLR0.20%, Min ₹ 4,000, Max ₹ 17,400
HDFC6.90% PLR0.25%, Min ₹ 3,000, Max ₹ 10,000
City Bank6.75% TBLRNIL
Bank of Baroda6.85% RLLRMin ₹ 7,500
ICICI Bank7.10% RLLR1.00%
Axis Bank6.90% RLLR0.20%, Min ₹ 5,000, Max ₹ 25,000
PNB Housing Finance7.90% PLR0.50%, Min ₹ 10,000
LIC Housing Finance6.90% PLRNIL
Indiabulls9.25% PLRMin ₹ 7,500, Max ₹ 10,000
DBS Bank7.30% RLLRMax ₹ 10,000
Aavas Financiers8.00% PLR1.00%
Aadhar Housing Finance11.00% PLRMin ₹ 3,500
Kotak Bank8.60% RLLRMax ₹ 10,000
Yes Bank9.85% 1 Year MCLR1.00%, Max ₹ 15,000
Allahabad Bank8.25% RLLR0.40%, Max ₹ 50,000
United Bank of India8.00% RLLR0.59%, Min ₹ 1,180, Max ₹ 11,800
Syndicate Bank8.00% RLLR0.13%, Min ₹ 500, Max ₹ 5,000
RBL Bank10.45% 1 Year MCLRMin ₹ 5,000, Max ₹ 15,000
Karur Vysya Bank8.20% RLLRMin ₹ 5,000
Indian Overseas Bank7.45% RLLR0.53%, Min ₹ 8,900, Max ₹ 13,350
HSBC Bank8.65% RLLR1.00%, Max ₹ 10,000
Edelweiss10.50% PLR0.25%
Canara Bank8.05% RLLR0.50%, Min ₹ 1,500, Max ₹ 10,000
IDFC Fist Bank9.50% RLLRMin ₹ 5,000, Max ₹ 5,000
IIFL8.70% PLR1.25%
Union Bank of India8.25% RLLR0.50%, Max ₹ 15,000
South Indian Bank8.05% RLLR1.00%, Max ₹ 10,000
Punjab & Sind Bank8.05% RLLR0.25%, Min ₹ 1,000, Max ₹ 15,000
Lakshmi Vilas Bank9.70% RLLR0.40%, Min ₹ 10,000, Max ₹ 20,000
Karnataka Bank8.55% RLLR0.25%, Min ₹ 250
Indian Bank7.55% RLLR0.23%, Max ₹ 20,381
GIC Housing Finance10.25% PLRMin ₹ 2,500
Dhanlaxmi Bank7.40% RLLR1.00%, Min ₹ 10,000
Sundaram Home Finance8.60% PLR0.50%
Corporation Bank8.35% RLLR0.50%, Max ₹ 50,000
Bajaj Finserv7.25% PLR0.35%
Bank of Maharashtra8.20% RLLR0.50%
Tata Capital9.05% PLR0.50%
Andhra Bank8.15% RLLR0.50%, Max ₹ 10,000
LT Housing Finance9.90% PLR2.00%, Min ₹ 4,999
Standard Chartered Bank9.40% 3 Month MCLR1.00%, Min ₹ 5,000, Max ₹ 10,000
UCO Bank6.90% RLLR0.50%, Min ₹ 1,500, Max ₹ 15,000
PNB7.15% RLLR0.35%, Min ₹ 2,500, Max ₹ 15,000
Reliance Capital10.00% PLR1.00%, Min ₹ 3,000, Max ₹ 6,500
OBC8.00% RLLR0.50%, Max ₹ 20,000
Jammu and Kashmir Bank7.70% RLLR0.25%, Min ₹ 500, Max ₹ 10,000
IDBI Bank7.40% RLLR0.50%, Min ₹ 2,500
Federal bank8.35% RLLR0.50%, Min ₹ 3,000, Max ₹ 7,500
DCB Bank10.24% 1 Year MCLR2.00%, Min ₹ 5,000
Central Bank of India6.85% RLLR0.50%, Max ₹ 20,000
Piramal Housing Finance9.00% PLR0.10%

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.