Home Loan Interest Rates offered by Top Banks & HFCs in India
Home loan interest rates offered to the applicants would depend on their credit scores, monthly income, loan amount, LTV ratio, job profile, employer’s profile, etc. Here are the interest rates on home loans offered by top banks and HFCs.
|Name of Lender||Interest Rate (p.a.)|
|State Bank of India||8.50% – 10.15%|
|HDFC Ltd.||8.50% – 10.70%||Apply Now|
|ICICI Bank||9.00% – 10.05%||Apply Now|
|Bank of Baroda||8.60% – 10.90%||Apply Now|
|Union Bank of India||8.50% – 10.95%||Apply Now|
|Axis Bank||8.75% – 12.70%|
|Kotak Mahindra Bank||8.85% onwards||Apply Now|
|LIC Housing Finance||8.45% – 10.75%||Apply Now|
|Federal Bank||10.15% – 10.30%||Apply Now|
|Bajaj Housing Finance||8.50% onwards||Apply Now|
|IDFC First Bank||8.85% onwards||Apply Now|
|PNB Housing Finance||8.75% – 14.50%||Apply Now|
|Tata Capital Housing Finance||9.15% onwards||Apply Now|
|L&T Housing Finance||8.60% onwards||Apply Now|
|Standard Chartered||8.75% onwards||Apply Now|
Interest rates as of 5th June 2023
Home Loan Rates offered by Other Banks & HFCs
|Name of Lender||Interest Rate (p.a.)|
|Punjab National Bank||8.60% – 9.60%|
|Canara Bank||8.55% – 11.25%|
|Bank of India||8.45% – 10.75%|
|Indian Overseas Bank||8.85% onwards|
|Bank of Maharashtra||8.60% – 11.05%|
|UCO Bank||8.45% – 10.30%|
|Bandhan Bank||9.15% – 15.00%|
|Punjab & Sind Bank||8.85% – 9.95%|
|South Indian Bank||9.85% – 12.60%|
|RBL Bank||9.10% – 11.55%|
|Karnataka Bank||8.75% – 10.43%|
|Indiabulls Housing Finance||8.75% onwards|
|Karur Vysya Bank||9.23% – 12.13%|
|Dhanlaxmi Bank||9.35% – 10.50%|
|Tamilnad Mercantile Bank||9.35% – 9.85%|
|Repco Home Finance||9.80% onwards|
|GIC Housing Finance||8.80% onwards|
|Aditya Birla Capital||8.80% – 14.75%|
|ICICI Home Finance||9.20% onwards|
|Godrej Housing Finance||8.64% onwards|
|L&T Housing Finance||8.60% onwards|
Interest rates as of 5th June 2023
Get Home Loan at Low Interest Rates Apply Now
Home Loan EMI Calculator
Monthly EMI ₹ 15,622
Total Amount Payble ₹ 5,62,395(Principal + interest)
Principal Amount ₹ 5,00,000
Total Interest Payble ₹ 62,395
Home Loan Eligibility Criteria
Home loan eligibility differs across lending institutions and loan schemes. However, a common set of housing loan eligibility criteria is given below:
- Nationality: Indian Residents, Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs)
- Credit Score: Preferably 750 and above
- Age Limit: 18 – 70 years
- Work Experience: At least 2 years (for salaried)
- Business Continuity: At least 3 years (for self-employed)
- Minimum Salary: At least Rs. 25,000 per month (varies across lenders & locations)
- Loan Amount: Up to 90% of property value
Note: Apart from the above parameters, your home loan eligibility also depends on the property you are buying and the location of the property.
Check your Home Loan Eligibility with Top Lenders Click Here
Types of Home Loans
- Home Purchase Loan is offered for buying ready-to-move-in properties, under-construction properties and pre-owned homes/resale properties. helps you buy a residential plot and build a house on it within a given time frame
- Composite Loan can be availed for buying a plot and building a house on it. The first disbursement in composite loan is made towards plot purchase. Subsequent payments depend on the stages of construction of the house.
- Home Construction Loan is offered to individuals for house construction. The disbursements depend on the stages of construction of the house.
- Home Renovation/ Improvement Loan is for meeting home renovation costs of an existing house. The interest rate for a home renovation/improvement loan and a regular home loan are usually same.
- Home Extension Loan is for those requiring funds to extend or add more space to their existing house. In this, lenders usually lend 75% – 90% of the construction estimate, depending on the loan amount and LTV ratio.
- Bridge Loan is a short-term home loan suitable for individuals planning to buy a new house with the sale proceeds of their existing house.
- Interest Saver Loan is a home loan overdraft wherein the borrowers’ home loan account is linked to their bank account. Any amount deposited in the bank account over and above the EMI is considered as a prepayment towards the loan, thus, saving on the interest amount.
- Step Up Loan allows borrowers to pay lower EMIs during the initial years of the loan tenure and have the provision of increasing the EMI amount over time. This makes the loan affordable for young professionals who have just started their career.
Processing Fees & Other Charges Related to Home Loan
|Processing Fee||1% – 2% of loan amount|
|Foreclosure/Prepayment Charges||For floating rate: Nil|
|For fixed rate: Around 2% – 4% on the principal outstanding|
|Overdue Charges on EMI||2% per month of the unpaid EMI|
|EMI Bounce Charges||Around Rs 400|
|Legal Fee||As per Actuals|
Check home loan processing fees and other charges of top banks and HFCs.
Documents Required for Applying for a Home Loan
Proof of Identity: Copy of any one (PAN Card, Passport, Aadhaar Card, Voter’s ID Card, and Driving License)
Proof of Age: Copy of any one (Aadhaar Card, PAN Card, Passport, Birth Certificate, 10th Class Mark-sheet, Bank Passbook, and Driving License)
Proof of Residence: Copy of anyone (Bank Passbook, Voter’s ID, Ration Card. Passport, Utility Bills (Telephone Bill, Electricity Bill, Water Bill, Gas Bill) and LIC Policy Receipt
Proof of Income for Salaried: Copy of Form 16, latest payslips, IT returns (ITR) of past 3 years, and investment proofs (if any)Proof of Income for Self Employed: Details of ITR of last 3 years, Balance Sheet and Profit & Loss Account Statement of the Company/Firm, Business License Details, and Proof of Business Address
Property-related Documents: NOC from Society/Builder, detailed estimate of the cost of construction of the house, registered sale deed, allotment letter, and an approved copy of the building plan.
Note: The above list is indicative and your lender might ask for additional documents.
Also Check: The complete checklist of the home loan documents required
Tax Benefits on Home Loans
House loan borrowers can avail tax benefits under various sections of the Income Tax Act. These home loan tax benefits help borrowers save a substantial amount of money every year. Below are the tax benefits that you can get on your home loan EMI payments:
|Section of Income Tax Act||Nature of Home Loan Tax Deduction||Max. Tax Deductible Amt.|
|Section 24(b)||Interest paid||Rs. 2 lakh|
|Section 80C||Principal (including stamp duty and registration fee)||Rs. 1.5 lakh|
Apply for Home Loan & Enjoy Tax Benefits Click Here
How to Apply for Home Loan Online at Paisabazaar
At Paisabazaar.com, you can compare and apply for eligible home loan offers in three simple steps:
Step 1- Share Your Details
Enter personal information as well as the details related to your loan requirements.
Step 2- View Offers
As per the details shared, a list of eligible home loan offers will appear. Compare interest rate, processing fee, and eligible loan amount from the list of eligible home loan offers.
Step 3- Submit the Application
Apply for the home loan offer that suits your loan requirements the best.
Once your application is successfully submitted, you will get a confirmation of your home loan application along with a reference number for future reference. Next, our loan expert will get in touch within 24 hours to take this application forward.
1. Can I get a home loan for the entire property value?
Ans. No, you cannot get a home loan for the entire property value as the Reserve Bank of India (RBI) has capped the Loan-to-Value (LTV) ratio of housing loans. As per the RBI guidelines, the LTV ratio can go up to 90% of the property value for loan amounts up to Rs 30 lakh; for loan amounts above Rs 30 lakh and up to Rs 75 lakh, the LTV ratio limit is up to 80% of the property value and for loan amounts above Rs 75 lakh, the LTV ratio can go up to 75% of the property value. This implies that at least 10% of the remaining value must be shelled out by the borrower as down payment.
Subject to the caps set by the RBI on LTV ratios, banks/HFCs further fix the LTV ratio on the basis of the risk assessment and credit profile of the loan applicant. Those with lower creditworthiness are usually offered lower LTV ratio.
2. How do lenders check the EMI affordability for their home loan applicants?
Ans. Lenders consider the repayment capacity of home loan applicants while evaluating their loan application and loan amount eligibility. house loan lenders usually prefer lending to home loan applicants having total EMIs, including EMI of the proposed home loan, to be within 50-60% of their monthly income. Hence, home loan applicants can use online home loan EMI calculator to find out the optimum house loan amount and tenure based on their repayment capacity.
3. How much credit score should I have to get a housing loan?
Ans. Lenders prefer sanctioning housing loans to applicants having credit scores of 750 and above as such high credit scores reflect responsible credit behaviour and reduce credit risk for lenders. This is also the reason why many lenders offer lower house loan interest rates to applicants having high credit scores. However, some lenders offer home loan to applicants having low credit score at higher interest rates. Therefore, one must check their credit scores at regular intervals. Individuals having no or low credit scores can build or rebuild their credit scores with the help of secured credit cards like Paisabazaar Step UP Credit Card.
4. Who can co-sign a home loan?
Ans. Your spouse or blood relatives such as your father, mother, siblings and children can co-sign a home loan with you. Also, all co-owners of the property must be co-applicants in housing loan.
5. Are there any prepayment charges in case of a house loan?
Ans. In the case of floating rate home loans, lenders don’t charge a pre-payment penalty as per RBI directives. However, lenders may levy prepayment penalty in case of prepayment of fixed rate home loans.
6. What is a home loan balance transfer?
Ans. Home loan balance transfer allows existing home loan borrowers to transfer their outstanding home loans to a new lender at lower interest rates and/or better loan terms. This facility is especially helpful for those borrowers who had availed housing loans at higher interest rates but are now eligible for lower interest rates due to their improved credit profile or reduction in market interest rates.
7. Can I take two home loans at the same time?
Ans. Yes, if the lender of your second home loan is satisfied with your repayment capacity, credit profile and the characteristics of the pledged property, you can avail a second house loan for another property.
8. How long does it take to get a home loan sanctioned?
Ans. Usually, it takes 1 to 2 weeks for lenders to sanction a housing loan. However, it may significantly vary depending on banks/HFCs loan approval process, credit profile of the applicant and the features of the property to be purchased/ constructed.
Know more about your lender’s house loan eligibility requirements and documentation process so that you’re prepared in advance, which in turn can reduce the time taken for loan approval process.
9. What is the difference between a fixed rate and floating rate home loan?
Ans. In a fixed rate home loan, the rate of interest applicable at the time of loan disbursal remains same throughout the loan period. As the interest rates remain the same throughout the loan tenure, you will be shielded from interest rates increases during the loan tenure. However, at any time during the loan tenure, if the lending rates fall, the fixed interest rates will remain unchanged, giving you no benefit of the reduced EMIs.
In case of floating rate home loans, the interest rates are subject to change as per the changes in the linked benchmark rates used by the lenders. Floating interest rate home loans are usually cheaper than the fixed interest rate home loans and the RBI mandates no prepayment or foreclosure charges for individuals borrowing a floating rate home loan.
10. Can I prepay my outstanding housing loan amount?
Ans. Yes, you can prepay your home loan. If you have floating rate home loans, no prepayment charges will be levied. However, in case of fixed rate home loans, lenders might levy around 2% to 4% of the prepayment charges.
11. Can I avail tax deductions on my home loan?
Ans. Yes. The repayment of principal amount would qualify for tax deductions under Section 80C of Income Tax Act. The repayment of interest component would qualify for tax deduction under Section 24(b) of the IT Act.
12. Can I switch from a fixed rate to a floating rate during my home loan tenure?
Ans. Yes, most lenders offering home loans at both fixed and floating rates allow their existing home loan borrowers to convert their fixed rate loans into floating rate loans and vice versa, on the payment of conversion or switching fee.
13. Which bank offers the best home loan interest rates?
Ans. To most consumer, lenders offering best home loan interest rates would be synonymous with the lender offering lowest interest. However, lenders set home loan interest rates for their loan applicants based on their credit risk assessment. As the credit risk assessment process followed by the lenders can vary widely, home loan applicants should compare the home loan offerings of as many lenders as possible to get the best possible home loan rates available on their credit profile.
14. Is it possible to avail a personal loan if I am currently servicing a home loan?
Ans. Yes, you can apply for personal loan even if you have an ongoing home loan. However, the odds of getting your personal loan application approved would depend on whether you have sufficient repayment capacity to pay off the proposed personal loan. Lenders usually prefer offering personal loans to applicants whose total loan repayment obligations, including EMI of the proposed personal loan, is within 50% to 55% of their monthly income.
Alternatively, home loan borrowers can consider availing top-up home loans. Like personal loan, top-up home loan does not have any end use restriction. The interest rates offered on top-up home loans are usually the same or slightly higher than the underlying home loan interest rates, which makes it a cheaper alternative to personal loans.
Moreover, personal loan tenures usually go up to 7 years whereas the tenure of top up home loans can go up to 15 years, depending on the residual tenure of the underlying home loan. Thus, longer loan tenure and lower interest rates of top-up home loans would allow lower EMIs than personal loans and thereby, increase the EMI affordability for the borrowers.