Interest Rates

Interest rate charged on any home loan scheme is one of the primary features. The rate of interest is what generally helps a customer decide in favor of or against a home loan scheme or lending entity. Fixed rate of interest and floating rate of interest are the two types of interest rates that banks normally ask customers to choose from at the time of home loan application. The table below will let you examine the best floating interest rates from various banks/financial institutions in Indian according to the tenure of the home loan.

Interest rates differ across various lenders. You will find most of the lender offering you either fixed rate or floating rate home loans.

Fixed Home Loan rates: In true Fixed Rate Home Loans the rates remain fixed throughout the tenure of the loan no matter what. These kind of rates are very expensive (13.50%+ for a 20 year home loan in November 2010) and are offered by a limited number of lenders in the market.

Resettable Fixed Rates: Most of the so called Fixed Rates available in the market are of this variety. Here the interest rate is fixed for a period of 2-5 years and is then reset for a further period of 2-5 years and so on. These rates are more reasonable than the true fixed rates dealt with above. You just need to be clear about the nature of fixed rate contract you are getting into.

Floating Home Loan rates(also called variable rate loans or adjustable rate loans)

For Banks:The effective rate is linked to the Bank’s Base Rate. The base rate would have to be declared by the banks at least once every quarter. It is open to each bank to decide its own methodology for fixing the base rate but it is not allowed to change the methodology after selecting one methodology. The banks will have to document how it has arrived at the base rate and follow the same system consistently.

The calculation of the base rate will be open to the RBI for review (which should at least ensure that a set system is actually followed while calculating the Base Rate). This is of course a much better stipulation than the earlier system of BPLR, where no such system was required to be documented by the bank and there was no question of any calculation that could be reviewed by RBI.

So even though composition of the base rate from the customer’s perspective might continue to remain opaque still it is a better situation than the erstwhile BPLR since the regulator will ensure calculation of Base rate is done in a consistent and fair manner.

Bank NameFloating Interest ratePer lac EMIMCLR RatesProcessing FeePrepayment Charges% Change in last 6 mths
SBI – State Bank Of India8.60% – 8.90%Rs.855 – Rs.8748.15%0.35% of Loan Amount or Rs 10000 plus GST whichever is less, subject to minimum of Rs 2000 plus taxesNil
ICICI Bank8.35% – 8.80%Rs.858 – Rs.8868.20%0.50% – 1.00% of the loan amount or Rs. 1500/- (Rs. 2000/- for Mumbai, Delhi & Bangalore) + GSTN.A
HDFC Ltd8.65% – 9.35%Rs.858 – Rs.87116.35%Up to 1.25% of the loan amount or ₹ 3,000 whichever is higher, plus applicable taxesNilNo Change
LIC Housing8.35% – 8.80%Rs.858 – Rs.8868.15%Upto 1 crore – 5000 + GST 1 crore & above – 10000 + GSTNilNo Change
Bank of Baroda8.30%Rs.8558.30%Upto 0.5 % of loan amount + GSTN.A.No Change
AXIS Bank8.35% – 8.75%Rs.858 – Rs.8848.15%Up to 1% of the Loan amount subject to minimum of Rs.10,000/-Nil
DHFL8.35%Rs.858INR.5000 to 20000/-NIL
IDBI8.35% – 8.40%Rs.858 – Rs.8618.80%NILNil
Union Bank of India8.30% – 8.35%Rs.855 – Rs.8588.20%Nil till 31.03.2018NIL
Bank of India8.35% – 8.40%Rs.858 – Rs.8618.30%NILNilNo Change
Indiabulls Housing Finance Limited8.35% – 8.80%Rs.858 – Rs.886Upto 28 lacs = Rs.7500 – Rs.10000
28 lacs – 1.5 Cr = Rs. 10000 – 0.5%
1.5 Cr – 3 Cr = Rs. 25000 – 0.5
Above 3 Cr – 0.5% – 1%
Corporation Bank8.65% – 9.15%Rs.877 – Rs.9098.65%NILNILNo Change
L&T Housing Finance8.35%Rs.8580.25% plus taxes (for salaried & for self employed)NIL
United Bank of India8.45%Rs.8658.45%Upto 0.59% of loan amount + GSTN.ANo Change
Tata capital Housing Finance ltd8.70%(For Women) -9.05%(For Others)Rs.881(For Women) – Rs.903(For Others)Upto 0.5% of loan amount + GSTN.AN.A
Shubham Housing Development Finance Company12%-14%(For Salaried) – 15%-17%(For Self-employed)Rs.1101-Rs.1244(For Salaried) – Rs.1317-Rs.1466(For Self-employed)up to 3% of loan amount + GSTN.A
HSBC Bank8.65% – 8.75%Rs.877 – Rs.8848.15%N.ANilN.A
Deutsche Bank11%Rs.10329.35%12000 + Service TaxNil
Standard Chartered8.51%Rs.8688.95%Rs.10000 + GSTNIL
Federal Bank8.95% – 9.20%Rs.897 – Rs.9138.9%Upto Rs.7500 + GSTN.ANo Change
Allahabad Bank8.30% – 8.40%Rs.855 – Rs.8618.25%NIL under All bank Utsav till 31.03.2018NIL
Central Bank of India8.30%Rs.8558.30%0.50% of the loan amount + GSTNil
UCO Bank8.45% – 8.75%Rs.865 – Rs.8848.45%0.5% of the loan amount, minimum Rs.1500/- & maximum Rs. 15000/-NIL
Canara Bank8.35% – 8.55%Rs.858 – Rs.8718.30%0.50% of the loan amount + GST
Kotak Bank8.35%Rs.8588.60%Upto 1.25% of Loan amountNilN.A
Dena Bank8.25% – 8.35%Rs.852 – Rs.8588.25%N.ANil
Vijaya Bank8.50%Rs.8688.50%Upto Rs.4000 + GSTN.A
Syndicate Bank8.45%Rs.8658.45%N.AN.A
Citibank8.60% – 8.85%Rs.874 – Rs.8908.05%Rs. 5000 (Application fee)NILNo Change
PNB Housing Finance8.35% – 9.25%Rs.858 – Rs.9160.50% Or 10,000 + GST , whichever is higher.NILNo Change
Oriental Bank of Commerce8.35% – 8.45%Rs.858 – Rs.8658.35%0.50% of the loan amount + GSTNILNo Change
Indian Overseas Bank8.40% – 8.65%Rs.862 – Rs.8778.40%0.50% of the loan amount + GSTN.A
Indian Bank8.35% – 9.35%Rs.858 – Rs.9228.35%1.173% on loan amount + GSTNil
Punjab National Bank8.35% – 8.45%Rs.858 – Rs.8658.15%0.50% of loan amount + GSTNIL
State Bank of Travancore8.30% – 8.60%Rs.855 – Rs.8747.95%0.35% of Loan Amount or Rs 10000 plus GST whichever is less, subject to minimum of Rs 2000 plus taxesNILN.A
Bank of Maharastra8.65% – 8.75%Rs.877 – Rs.8848.65%As applicable at the time of disbursementNilNo Change
Dhanalakshmi Bank9.80% – 10.05%Rs.952 – Rs.9689.8%1.00 % of loan amount + GSTN.A
Development Credit Bank8.50% – 16.00%Rs.868 – Rs.13919.72%1.00 % of loan amount + GSTNilN.A
DHFL Vyasa Housing Finance9.75% – 10.25%Rs.945 – Rs.9821% of the loan amountN.A
GIC Housing Finance10.25%Rs.982Rs.2500 + service taxN.A
Gruh Finance Limited8.35% – 15.05%Rs.858 – Rs.1320Up to 1% of the loan amount + taxesN.A
India Infoline Housing Finance Ltd.8.50%Rs.868Up to 1% of the home loanN.A
Karnataka Bank8.50% – 8.90%Rs.868 – Rs.8938.75%0.25% with a minimum of Rs.250N.A
Sundaram BNP Paribas Home Finance Ltd.9.80% – 11.05%Rs.952 – Rs.1036Up to 0.75% of the loan amount or maximum of Rs.5,000 + taxesN.A
National Trust Housing Finance Ltd.13.5% – 15.5%Rs.1207 – Rs.13542.50% of the amount Or Rs.5000/-N.A
Orange City Housing Ltd.14%Rs.12441% of the loan amount + taxesN.A
Reliance Home Finance Private Ltd.8.35%Rs.8581% of the loan amount + taxesN.A
Repco Home Finance Ltd.8.30%Rs.855Up to 1% of the loan amount + taxesN.A

Before apply for home loan, Calculate your home loan emi with Home Loan EMI Calculator