Current Home Loan Interest Rates in India, April 2021
Lenders | Lowest Interest Rate | EMI/Lakh** | Processing Fees (exclusive of GST) |
Kotak Mahindra Bank | 6.65% | Rs. 641 | Up to 0.50% plus statutory dues |
HDFC Bank* | 6.70% | Rs. 646 | Flat Rs. 3,000 |
ICICI Bank | 6.70% | Rs. 646 | 0.50% – 2.00% of the loan amount or Rs. 1,500 (Rs. 2,000 for Mumbai, Delhi & Bangalore), whichever is higher |
Bank of Baroda | 6.75% | Rs. 648 | 0.25% – 0.50% of loan amount (Min. Rs. 8,500 & Max. Rs. 25,000) |
Union Bank of India | 6.80% | Rs. 652 | 0.50% of the loan amount (Max. Rs. 15,000) |
Punjab National Bank | 6.80% | Rs. 652 | Up to 0.35% of the loan amount (Min. Rs. 2,500 & Max. Rs. 15,000) |
Bajaj Finserv | 6.80% | Rs. 652 | For salaried individuals: Up to 0.80% of loan amount For self-employed individuals: Up to 1.20% of loan amount |
Punjab & Sind Bank | 6.85% | Rs. 655 | Nil processing/inspection charges |
Central Bank of India | 6.85% | Rs. 655 | 0.50% of loan amount (Max. Rs. 20,000) |
Tata Capital Housing Finance | 6.90% | Rs. 658 | Up to 0.5% of the loan amount |
Axis Bank | 6.90% | Rs. 659 | Up to 1% of the loan amount (Min. Rs. 10,000) |
Canara Bank | 6.90% | Rs. 659 | 0.50% of the loan amount (Min. Rs. 1,500; Max. Rs. 10,000) |
LIC Housing Finance | 6.90% | Rs. 659 | As applicable |
UCO Bank | 6.90% | Rs. 659 | 0.5% of the loan amount (Min. Rs. 1,500; Max. Rs. 15,000) |
IDBI Bank | 6.90% | Rs. 659 | For Inward Balance Transfer and PMAY Cases: Nil For Other Home Loan Cases: Up to Rs. 35 lakh: Rs. 3,500 to Rs. 7,500 Above Rs. 35 lakhs and up to Rs. 75 lakh: Rs. 6,000 to Rs. 10,000 Above Rs. 75 lakh and up to Rs. 125 lakh: Rs. 10,000 to Rs. 16,000 Above Rs. 125 lakh: Rs. 10,000 to Rs. 20,000 |
State Bank of India | 6.95% | Rs. 661 | Up to 0.4% of the loan amount (Min. of Rs 10,000 & Max. of Rs. 30,000) |
Bank of India | 6.95% | Rs. 661 | 0.25 % of loan amount (Min. Rs. 1500 & Max. Rs. 20,000) |
Indian Overseas Bank | 7.05% | Rs. 669 | Up to 0.50% of loan amount (Max. Rs. 25,000) |
PNB Housing Finance | 7.35% | Rs. 689 | Up to 1% of loan amount (Min. Rs. 10,000) |
Federal Bank | 7.65% | Rs. 709 | 0.50% of loan amount (Min. Rs. 10,000; Max. Rs. 45,000) |
Standard Chartered Bank | 7.99% | Rs. 733 | 0.50% to 1% of loan amount |
Fullerton Grihashakti | 7.99% | Rs. 733 | Up to 3% of loan amount |
Karnataka Bank | 8.08% | Rs. 739 | Up to 0.25% of loan amount |
IIFL | 8.20% | Rs. 747 | Up to 2% of loan amount |
Indiabulls Housing Finance | 8.65% | Rs. 779 | Up to 2% of loan amount |
DHFL | 8.75% | Rs. 786 | Salaried/Self Employed Professional – 0.5% of loan amount (Min. Rs. 2,500) Self Employed Non Professional – Net PAT: 0.5%, Others: 1.0% of loan amount |
YES Bank | 8.95% | Rs. 801 | Up to 2% of loan amount or Rs. 10,000, whichever is higher |
Aditya Birla Housing Finance Ltd. | 9.00% | Rs. 805 | Up to 1% of loan amount |
India Shelter Finance Corp. Ltd. | 12.00% | Rs. 1,106 | 2% – 3% of loan amount |
Home loan interest rates for all lenders as of 7th April 2021. Housing loan interest rates in the table are subject to change anytime without prior notice.
Home loan rates in the table are subject to the credit/ risk profile as assessed by the lender on the basis of parameters such as credit scores, age and repayment capacity of the applicant.
*HDFC home loan rates indicated are applicable for applicants/customers with the credit score of 800 and above and with Loan To Value ratio of <=80% as per the technical valuation of the property (ies) as assessed by HDFC.
**To calculate Home Loan EMI, the loan tenure is assumed as 30 years.
The interest rate on your home loan is perhaps the most important factor that can significantly influence the total cost of your house. As home loans are usually of higher value and longer tenure, even a small difference in the interest rate on your housing loan can have considerable financial implications, especially in the long run. Getting a lower interest rate for home loans would not only reduce your outgoing EMIs, but also the overall interest payout. Hence, it is imperative that if you are looking for a home loan, you consider all possible options available to you and choose the lowest rate of interest on offer.
Currently, the lowest home loan interest rate being offered is 6.65% p.a. by Kotak Mahindra Bank, followed by other top lenders such as HDFC Ltd. and ICICI Bank, Bank of Baroda, Union Bank of India, Punjab National Bank and State Bank of India.
Use a home loan EMI calculator to know the EMIs you would be paying against different interest rates and loan tenures. The online loan calculator also works as a home loan interest calculator as it helps you know the interest amount due on your home loan along with the overall EMI amount. Click to know how does the home loan calculator work?
Home Loan borrowers should be aware that along with the home loan rate of interest, there are several other fees and charges that impact the total cost of your loan, like processing fees, CERSAI charges and prepayment charges (in case you want to close the home loan before the tenure ends through lumpsum payments). It’s important you are aware and understand these additional charges so that you can identify which home loan offer will help you save more.
For instance, some lenders might have the same home loan interest rate but different associated fees and charges, which may make a large difference to the total cost of the home loan.
Must Read: Understanding 13 Important Home Loan Fees & Charges
Table of Contents |
How to get a Home Loan at a low interest rate?
Since home loans are usually high-ticket size loans, lender Banks and NBFCs do a careful and detailed assessment of the borrower’s credit history, repayment capacity, income along with stringent checks on the property to be purchased. For borrowers seeking a home loan, it’s crucial they are aware of the factors lenders look at while processing a home loan application, and have a deep awareness of their own eligibility. It needs to be noted that low interest rates also usually come with stricter eligibility conditions. Here are the factors that lenders evaluate, to determine your eligibility for a home loan and the interest rate to be offered:
- Credit Score: Your credit score is a result of your behaviour with credit in the past. Those who have paid their EMIs and Credit Card bills in full timely and have not been over-dependent on credit in the past are likely to have a good credit score. If your credit score from CIBIL and other bureaus is 750 and above, lenders would see you favourably for a home loan. Also, as per RBI guidelines, banks now use an applicant’s credit score to fix home loan rate of interest, over and above the external benchmark rate. Since a high credit score reflects responsible credit behaviour, applicants with an excellent credit score can get home loans at a lower rate of interest. Please note that if the home has co-ownership, credit score of each owner is likely to be checked by the lender, even if the loan is taken by a single co-owner.
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- Income and employment: Another key factor lenders evaluate is your income, type of employment and profile of your employer. Home Loan applicants, who have a stable job with a large and reputed organization like a MNC, or those employed by the Government, are usually preferred by lenders. On the other hand, if you are self-employed with erratic income flows or have an unstable job profile or have just begun your professional journey, getting a Home Loan at a lower rate of interest may be difficult.
- Loan amount: The loan amount you seek to borrow can also influence the rate at which you get the housing loan. Home loans up to Rs. 30 lakh usually have a lower interest rate as compared to home loans of higher amounts. To get a better rate of interest on your home loan, one should try and make the maximum down-payment possible. This will not just reduce the overall loan burden but may also help get a lower rate of interest on their loan.
Please note along with the above, there are certain other factors that may also impact the interest rate on home loans:
- Type of home loan: Home loan rate of interest also differs as per the types of home loan. Regular home loans have standard rates while its counterparts such as Plot Loans or NRI Home Loans usually have a higher rate of interest.
- External benchmark rate: As per RBI’s notification, from October 2019, housing loan interest rates are linked to external benchmark rates such as RBI Policy Repo Rate, the Government of India 3-Months and 6-Months Treasury Bill yields published by Financial Benchmarks India Private Ltd (FBIL) and any other benchmark market interest rate published by FBIL. Under the new regime, any change in the external benchmark rate will affect the home loan interest rate of all banks in India.
- Lesser interest rate for Women Home Loan borrowers: Most banks provide concession on home loans, typically 0.5% lesser interest rate, to women borrowers. Hence, it is advised that married couples should consider taking a joint-home loan and make the wife the primary applicant, if they are able to get a lower rate of interest. Availing joint home loan will also increase your home loan eligibility as well as home loan tax benefits.
Check: What amount of home loan am I eligible for?
- Type of interest rate: Home loan rate of interest is of two types – fixed and floating. The type of interest rate you choose for your home loan will determine the rate at which you will repay to your lender. In case of fixed rate home loans, EMIs remain the same for the entire loan period. Floating rates, on the other hand, change as per change in its lending rate such as Repo Linked Lending Rate (RLLR).
Which types of Interest Rate should you choose – Fixed or Floating Interest Rate?
There are two types of home loan interest rates at which lenders sanction a home loan, fixed and floating.
1. Fixed Interest Rate – Fixed interest rate remains the same throughout the loan period, thereby, keeping the home loan EMI constant. Applying for a home loan at a fixed rate of interest is better when the current home loan rate of interest is quite low and an upward trend is anticipated in future. But considering the current trend of decreasing lending rates, banks provide customers with an option to switch over to the variable/floating housing loan interest rates after completing a specific period of time.
2. Floating Interest Rate – Floating interest rate, also known as the variable rate of interest, is subject to the current market lending rates; and thus, they may change during the loan tenure. The home loan EMIs will increase or decrease as per the interest rate movement. With the current trend of decreasing home loan rates, it will be advantageous for prospective home loan borrowers to apply for home loans at a floating rate of interest.
Read: Fixed Rate vs. Floating Rate – Which one is better?
How much interest do you need to pay on your home loan?
Home Loan interest can be calculated in two ways: Flat Rate Method and Reducing Balance Method.
1. Fixed/Flat Rate Method of Interest Calculation
In this method, the interest is calculated on the principal amount that you initially borrowed from the lender. This further implies that even after 10 years of loan repayment, the interest will be calculated on the same principal amount, making you pay more on your interest. This method of interest calculation is usually used in microfinance.
2. Reducing Balance Method of Interest Calculation
When you make an EMI payment, you pay some part of that amount as principal and the remaining part as interest on your loan. This reduces the outstanding principal amount with time. On this reduced outstanding balance, lenders calculate the interest. In this method, you pay lesser interest as every time your pay loan EMI, the principal outstanding decreases.
Reducing balance method further can either be annual reducing, monthly reducing or daily reducing. Banks use the daily reducing balance method to calculate interest for housing loans. Some housing finance companies, on the other hand, use the monthly method for calculating interest on a home loan.
Example of Flat Rate & Reducing Balance Method of Interest Calculation
Let’s assume Vivek takes a home loan of Rs. 30 lakh for 30 years at 7% p.a. rate of interest. Read the table below and see what the total charges would be under each method of interest calculation.
Parameters | Flat Rate Method | Reducing Balance Method |
Loan Amount | Rs. 30 lakh | Rs. 30 lakh |
Tenure | 360 months | 360 months |
Interest Rate | 7% p.a. | 7% p.a. |
Total Interest | Rs. 63 lakh | Rs. 41.9 lakh (approx.) |
EMI | Rs. 25,833 | Rs. 19,959 |
Savings* | – | Rs. 2,11,4913 |
*Savings occur due to lower total interest payout when reducing balance method of interest calculation is used.

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Interest Rate FAQs
What is today’s home loan interest rate?
Home loan interest rate today is 6.65% onwards. The final rate of interest at which your lender will give you a home loan will depend on multiple factors including your credit score, repayment capacity, loan amount and age.
Which bank offers the lowest interest rate on home loans?
Kotak Mahindra Bank offers home loan at the lowest rate of interest starting at 6.65% per annum. Following Kotak Mahindra Bank are HDFC Ltd. and ICICI Bank, which are currently offering housing loans at 6.70% p.a. Union Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank and the State Bank of India are some of the other notable banks that offer housing loans at low interest rates.
Home loan rate of interest is currently at its all-time low due to a series of repo rate cuts by RBI. You can get a home loan at the lowest home loan rate, provided you are salaried with property value of up to Rs. 30 lakh and credit score as close to 900 as possible. The home loan rates are even lower for women borrowers as lenders offer interest concession on properties with a primary owner of co-owner as a woman. Existing home loan borrowers too can benefit from the lower rates by transferring their home loan to another bank offering them a better home loan rate of interest.
What is the EMI for 20 lakhs home loan?
The EMI for 20 lakhs loan at the latest home loan interest rate of 6.70% for the tenure of 30 years is Rs. 12,906.
How can I check total interest payout for my home loan?
You can know your total home loan interest payout by using a home loan EMI calculator. The calculator also tells you about your home loan EMIs and total principal amount. To get the results, all you need to provide are a few details, loan amount, interest rate and loan tenure.
Which one offers home loan at a lower rate of interest – Banks or HFCs?
Banks, usually, offer home loans at a lower rate of interest than Housing Finance Companies (HFCs). However, the eligibility criteria for home loans from banks are often more stringent than that of HFCs.
Which bank will be the best to avail home loan depends on your loan requirements. Some of the tips that can help you choose the best home loan offer are as follows:
- Know how much loan amount you can afford to borrow with the help of a home loan eligibility calculator
- Compare home loan interest rates from the eligible offers. Opt for a lender offering home loans at lowest interest rates
- Check and compare other fees and charges applicable on home loans such as the processing fees and prepayment charges
- Check if the lender offers prepayment facility, customized home loan insurance scheme, online account access, etc.
- Also, check for different loan repayment options
Which is the best bank for home loan in India?
Top banks / NBFCs / HFCs offering best home loan in India are:
- State Bank of India (SBI)
- HDFC Ltd.
- Bajaj Housing Finance Ltd.
- ICICI Bank
- LIC Housing Finance Ltd.
- Axis Bank
- Bank of Baroda
- Kotak Mahindra Bank
- Aditya Birla Housing Finance Ltd.
- IDFC First Bank

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Home Loan Interest Rate News
SBI’s special home loan interest rate offer ends
01 April 2021: SBI had earlier offered limited period special interest and processing fee concessions on home loan during the festive season. Those special home loan interest rates came to an end on 31 March 2021. The bank has restored its original home loan interest rates starting from 6.95% p.a.. However, the special interest concession of five bps offered to women borrowers will continue.
Bank of Baroda cuts BRLLR by 10 bps to 6.75% p.a.
15 March 2021: Bank of Baroda (BoB) home loan interest rate is linked to Baroda Repo Linked Lending Rate (BRLLR). The public sector bank has reduced this BRLLR from 6.85% to 6.75% per annum. The revised Bank of Baroda housing loan interest rate is effective from March 15, 2021.
ICICI cuts home loan rates
05 March 2021: ICICI Bank has slashed its home loan rate of interest to 6.70% per annum, effective from 05 March 2021. The revised ICICI home loan interest rate is said to be the lowest in the past decade. Customers can avail the revised rates for housing loans amounting up to Rs. 75 lakh. For ICICI housing loans above Rs. 75 lakh, the interest rates will start at 6.75% onwards. The revised rates will be available till 31 March 2021.
HDFC reduces its home loan interest rates by 10 bps
04 March 2021: Housing Development Finance Corporation (HDFC) on Wednesday reduced home loans interest rates by 5 basis points, which changed its home loan rate from 6.80% to 6.70% with effect from 04 March 2021.
Kotak Mahindra Bank reduces home loan interest rate to 6.65% till March 31
02 March 2021: Kotak Mahindra Bank has reduced its home loan rate by 10 basis point (bps) from 01 March 2021. Customers can get Kotak Mahindra Home Loan starting at 6.65% per annum, which currently is the lowest in the home loan lending market. The bank says that this special rate that is applicable till March 31, 2021, across all loan accounts for both salaried and self-employed individuals. The Kotak Mahindra home loan rate of interest is linked to borrowers’ credit score and the Loan to Value (LTV) ratio.
Read Also: What is LTV Ratio?
SBI offers home loan at the low interest rate of 6.70% p.a.
01 March 2021: The State Bank of India (SBI) has reduced its housing loan interest rate from 6.80% to 6.70%. For loans of up to Rs 75 lakh, home loan interest rates will start at 6.70 percent. Whereas, for loans in the range of Rs 75 lakh to Rs 5 crore, the interest rate charged will be 6.75 percent onwards. India’s largest public sector bank is also giving 100% waiver on home loan processing fees till 31 March 2021. The interest concession that SBI is offering is based on the loan amount and CIBIL score of the borrower. Hence, to get SBI home loan at its lowest interest rate, applicants must ensure that they have good repayment history.
SBI home loan interest rate at its lowest, no processing fee till Mar ’21
28 February 2021: The State Bank of India (SBI) has waived off processing fee on its floating rate home loans till March 31, 2021. SBI offers housing loans at 6.80% per annum.
Canara Bank reduces its MCLR
09 February 2021: Following HDFC Bank, Canara Bank also has decided to cut its Marginal Cost of Funds based Lending Rate (MCLR). The public sector bank has reduced its MCLR by 0.1% for one day and one month. So the revised Canara Bank MCLR rate for one month is 6.7%. Apart from the MCLR for three months and six months is 6.95% and 7.30%, respectively. And lastly, the Canara bank MCLR for one year is 7.35%.
HDFC Bank reduces its MCLR
08 February 2021: HDFC Bank has decided to cut its Marginal Cost of Funds based Lending Rate (MCLR). HDFC Bank’s overnight MCLR is at 6.85%. Its one-month and three-month MCLR stands at 6.9% and 6.95%, respectively. For six-month and one year, the bank’s MCLR is 7.05% and 7.2%, respectively. And lastly, for two years and three years, the bank’s MCLR stands at 7.3% and 7.4%, respectively.
DCHF slashes interest rates to 6.75%
08 February 2021: Delhi Cooperative Housing Finance Corporation Limited (DCHF) has cut its housing loan interest rates from 7.45% to 6.75%. The corporation has taken this step after the Delhi Government reduced circle rates on properties by 20% for a period of six months. The corporation is also planning to launch an attractive housing loan package for middle class and weaker sections in the near future.
RBI keeps its key rates unchanged
03 February 2021: The Reserve Bank of India (RBI) in its bi-monthly monetary meeting decides to keep the repo rate unchanged. This is the fourth time in a row that the central bank has decided to keep the key rates unchanged. So after this decision, we can say that the repo rate and the reverse repo rate will continue to stand at 4% and 3.35%, respectively. State Bank of India (SBI) has waived off processing fee on its floating rate home loans till March 31, 2021. SBI offers housing loans at 6.80% per annum.
HDFC offers special home loan rates
11 January 2021: HDFC Ltd. is offering special housing loan interest rates to its new customers. The HDFC bank home loan interest rate has been reduced from 6.90% to 6.80% per annum. For any loan amount, the HDFC home loan interest rate will range from 6.80% to 7.30% per annum. The reduced home loan rates are subject to credit risk profile assessed by HDFC Ltd. It will be offered to those with credit score of 730 & above. the should also avail disbursements (part/full) on or before 31.03.2021. The special housing loan interest rates are applicable to HDFC Home Loans, including HDFC Home Improvement, HDFC Home Extension and HDFC Home Loan Balance Transfer. The housing loan rate of interest are applicable for loans under the Adjustable Rate Home Loan Scheme and are subject to change at the time of disbursement. The special rate is effective from 11th January, 2021 for login(s) and disbursement (s) (part/full) availed on or before 31st March, 2021.
SBI cuts its home loan rates by 30 bps
09 January 2021: The State Bank of India (SBI) has reduced its home loan interest rates by 30 basis points. The current home loan interest rate is 6.80% p.a. for up to Rs. 30 lakhs offered by SBI. For housing loans above Rs. 30 lakhs, the rate of interest will start from 8.95% p.a. The final home loan rate at which applicants will get the loan will depend on multiple factors including their CIBIL Score. The home loan interest concessions up to 30 bps is also available in 8 metro cities for loans up to Rs. 5 Crore. Additionally, SBI is offering interest concession of 5 bps each to women borrowers, on home loan balance transfer and to those who apply for SBI home loans through SBI YONO App and other digital channels.
Click to Know: When should you go for home loan balance transfer facility