Interest Rates for Rs. 1 Crore Home Loan
Most banks and HFCs provide home loans at floating interest rates. Although a few lenders do provide home loans at fixed interest rates, they usually charge higher rates of interest for it. Some lenders also give loan applicants the option of availing home loans at mixed/hybrid interest rates, wherein they levy a fixed interest rate on borrowers for the first 2/3 years of the loan tenure, following which they charge floating interest rates for the remaining Home Loan tenure. Note that existing borrowers who are availing Home Loans at high interest rates can use the Home Loan Balance Transfer facility to move their existing loans to another lender at lower interest rates.
Comparison Table for Rs. 1 Crore Home Loan Interest Rates and EMI offered by Banks/HFCs
|Lender’s name||Interest rate (% p.a.) of home loan amount of up to Rs. 1 Crore||EMI for 10 year tenure||EMI for 20 year tenure||EMI for 30 year tenure|
|SBI||7.55 – 8.45||Rs. 1,18,963 – Rs. 1,23,718||Rs. 80,865 – Rs. 86,466||Rs. 70,264 – Rs. 76,537|
|HDFC||7.55 – 9.10||Rs. 1,18,963 – Rs. 1,27,218||Rs. 80,865 – Rs. 90,617||Rs. 70,264 – Rs. 81,183|
|Axis Bank||7.60 – 8.05||Rs. 1,19,224 – Rs. 1,21,592||Rs. 81,172 – Rs. 83,955||Rs. 70,607 – Rs. 73,725|
|ICICI Bank||7.60 – 8.45||Rs. 1,19,224 – Rs. 1,23,718||Rs. 81,172 – Rs. 86,466||Rs. 70,607 – Rs. 76,537|
|Kotak Mahindra Bank||7.50 onwards||Rs. 1,18,702 onwards||Rs. 80,559 onwards||Rs. 69,921 onwards|
|PNB Housing Finance||7.50 – 10.70||Rs. 1,18,702 – Rs. 1,36,057||Rs. 80,559 – Rs. 1,01,185||Rs. 69,921 – Rs. 92,972|
|Punjab National Bank||7.45 – 8.50||Rs. 1,18,440 – Rs. 1,23,986||Rs. 80,254 – Rs. 86,782||Rs. 69,579 – Rs. 76,891|
|Bank of Baroda||7.45 – 9.20||Rs. 1,18,441 – Rs. 1,27,761||Rs. 80,254 – Rs. 91,263||Rs. 69,579 – Rs. 81,905|
|Union Bank of India||7.40 – 9.35||Rs. 1,18,181 – Rs. 1,28,578||Rs. 79,949 – Rs. 92,236||Rs. 69,238 – Rs. 82,993|
|IDFC First Bank||7.50 onwards||Rs. 1,18,702 onwards||Rs. 80,559 onwards||Rs. 69,921 onwards|
|L&T Housing Finance||7.70 – 8.70||Rs. 1,19,748 – Rs. 1,25,058||Rs. 81,787 – Rs. 88,052||Rs. 71,296 – Rs. 78,313|
|Bajaj Housing Finance||7.20 onwards||Rs. 1,17,141 onwards||Rs. 78,735 onwards||Rs. 67,879 onwards|
|Godrej Housing Finance||7.49 – 10.99||Rs. 1,18,650 – Rs. 1,37,693||Rs. 80,498 – Rs. 1,03,151||Rs. 69,853 – Rs. 95,157|
|Tata Capital||7.75 onwards||Rs. 1,20,011 onwards||Rs. 82,095 onwards||Rs. 71,641 onwards|
|LIC Housing Finance||7.50 – 9.00||Rs. 1,18,702 – Rs. 1,26,676||Rs. 80,559 – Rs. 89,973||Rs. 69,921 – Rs. 80,462|
Factors to Consider for Availing Home Loans of up to Rs. 1 Crore
The LTV Ratio for home loans is the total percentage of a property’s value that any bank/HFC can finance through their home loans. Home loan applicants should arrange the remaining loan amount from their own funds as down payment or margin contribution. Note that the final home loan LTV ratio should not exceed the regulatory caps as finalized by the RBI. The loan amount breakup for a home loan and the corresponding LTV ratios are mentioned below:
|Home Loan Amount||LTV Ratio|
|Up to Rs. 30 lakhs||Up to 90% of the property’s cost|
|Above Rs. 30 lakhs to Rs. 75 lakhs||Up to 80% of the property’s cost|
|Above Rs. 75 lakhs||Up to 75% of the property’s cost|
Lenders decide the final LTV ratio for a home loan applicant based on factors like their credit profile, property’s market value, repayment capacity, etc. Note that some lenders may offer lower interest rates to home loan applicants opting for lower LTV ratios by increasing their down payment contribution.
Most lenders provide home loans to loan applicants for tenures extending up to 30 years. Lenders usually take into account a loan applicant’s repayment capacity while deciding their loan tenure. Home loan applicants must note that lenders generally ask them to restrict their overall EMI payment, including EMIs both from their existing loans and proposed home loan, to within 50-60% of their net monthly income. Thus, any prospective home loan borrower should ideally opt for loan tenures that help limit his total EMIs, including that of their home loans, to within 50-60% of their monthly income. Doing so can increase their chance of getting home loan approval.
Credit scores of 750 and above are considered as ‘good’ or ‘healthy’ by most lenders. Hence, loan applicants having such credit scores stand a higher chance of getting their home loan sanctioned by the lender. Many lenders have also started offering home loans at preferential interest rates for loan applicants with good credit scores. Therefore, loan applicants are advised to review their credit reports before they apply for a home loan. Doing so will help customers having lower credit scores to undertake remedial measures to first improve their scores and then apply for a housing loan thus increasing their scope of loan approval.
Customers with low or zero credit scores should look for the Paisabazaar Step UP Credit Card in order to improve their scores and then subsequently enhance their eligibility for home loans.
Lenders charge a one-time processing fee to loan applicants to process their home loan applications. The processing charge for a home loan applicant usually goes up to 2% of the total loan amount, with some lenders charging a higher percentage from home loan borrowers. Some lenders also waive off the processing fees on a partial/complete basis for home loan applicants.
RBI guidelines prevent lenders from charging prepayment fees for home loans availed at floating interest rates. When it comes to fixed rate home loans, lenders have the discretion to either charge or waive off the prepayment fees. Furthermore, lenders can levy prepayment fees for home loans with mixed/hybrid rates during the part of the loan tenure when they are charging fixed interest rates.
Eligibility Criteria for availing Rs. 1 Crore Home Loan
- Banks and HFCs usually offer home loans to both Resident as well as Non-Resident Indians (NRIs).
- Age: Lenders usually approve the home loans applications made by loan applicants aged 18 years and above. Most banks and HFCs require their home loan borrowers to conclude their loan repayment by the time they are 70 years old. Most lenders also offer home loan balance transfer to existing home loan borrowers of other lenders, at lower interest rates.
- Lenders offer home loans to both salaried and self-employed individuals.
- Borrowers can add earning family members as co-borrower(s) or select a longer loan tenure to improve their home loan eligibility.
- Credit Score: Loan applicants with credit scores of 750 and above have better chances of availing home loans. Many banks and HFCs also provide home loans at lower interest rates to applicants having higher credit scores
Lenders might also determine a home loan applicant’s eligibility by considering additional factors like their monthly/annual income, employer’s profile, work experience (for salaried applicants) or business continuity (for business owners), occupation profile, age of the property, etc.
Check your Eligibility for Rs. 1 Crore Home Loan with top Banks/HFCs Click Here
Documents Required for Home Loans of up to Rs. 1 Crore
Most banks and HFCs ask home loan applicants to submit the below mentioned documents:
- Duly filled application form
- Identity proof
- Income proof (both for salaried and self-employed)
- Age proof
- Proof of business/employment
- Address proof
- Property documents
- Estimated cost of property
Note: Lenders have the discretion to ask home loan applicants to furnish additional documents.
EMI Calculator for Rs. 1 Crore Home Loan
Monthly EMI ₹ 15,622
Total Amount Payble ₹ 5,62,395(Principal + interest)
Principal Amount ₹ 5,00,000
Total Interest Payble ₹ 62,395
Apply for Home Loan at Attractive Interest Rates Click Here
Frequently Asked Questions (FAQ)
Q1. Can I get a Home Loan of Rs. 1 Crore?
Ans. Lenders would approve your home loan application of Rs 1 Crore on the basis of your repayment capacity, the market value of your property and the broader property features. Other factors that lenders would consider while evaluating your home loan eligibility are your credit score, your occupation profile, your employer’s profile (if you are a salaried applicant), business continuity (if you are a self-employed applicant), etc.
Q2. What is the Interest Rate for Rs. 1 Crore Home Loan?
Ans. As of 8th August 2022, the interest rate on home loans for top banks and HFCs starts from 7.2% p.a. The home loan interest rates differ widely across banks/HFCs based on the loan applicant’s credit score, monthly income, repayment capacity, employer’s profile, business continuity/work experience, LTV Ratio, loan amount, etc.
Q3. What is the EMI for Rs. 1 Crore Home Loan for 20 years?
Ans. The EMI for 20 year Home Loan of Rs. 1 Crore would depend primarily on the interest rate charged by the bank/HFC. For example, the EMI for Home Loan of Rs. 1 Crore with a 20 year loan tenure availed at 7.6% p.a. & @ 9% p.a. would be Rs. 81,172 and Rs. 89,973 respectively. Use online home loan EMI calculator to calculate the Home Loan EMIs for multiple loan amounts, tenures and interest rates.