Owning your own house is a dream that most of us hope to achieve in our lifetime. However, realizing this dream becomes a little difficult, especially for the salaried and middle-class people for the kind of enormous rates banks charge against home loans. In addition, home loans also last anywhere between 2-30 years in most cases.
As a prospective home buyer, if you are to buy a house for yourself, you would naturally want to take a home loan from a bank that offers the lowest rate of interest. To help you achieve your dream at the best price possible, we have curated this exhaustive blog about the home loan interest rates and Emi’s offered by the top 15 banks in India. We hope this helps you figure out the lowest home loan rate possible and takes you a step closer to your dream home!
Home Loan Interest Rates in India April 2021
Before we get to the comparison table of the home loan rates in India for April 2021, it should be noted that one needs to have the following in order to have their home loan processed by the bank-
- A sustainable income proof
- Favorable credit history and CIBIL score
Home Loan Interest Rates in India April 2021 As Offered By Top Indian Banks & NBFCs
|Bank Name / Non-Banking Financial Company (NBFC)||Home Loan Interest Rates||Processing Fees|
|Bank of Baroda||6.85% – 8.25%||Up to 0.50% of the loan amount or a maximum of INR 7,500 + GST|
|Canara Bank||6.90% – 8.90%||0.5% of the loan amount + GST|
|HDFC Limited||6.70% – 8.00%||Up to 0.50% of the loan amount or INR 3,000 whichever is higher, plus applicable taxes.|
|ICICI Bank||6.70% – 8.05%||Up to 1.00% of the loan amount + GST|
|Citibank||6.65% – 7.40%||Up to 0.40% of the loan amount + GST|
|Axis Bank||6.90% – 8.55%||Up to 1% of the loan amount subject to a minimum of INR 10,000 Upfront processing fee of INR 2,500 + GST|
|YES BANK||8.95% – 11.80%||0.5% of the loan amount or a maximum of INR 10,000 + GST|
|State Bank of India (SBI)||6.95% onwards||0.35 % of loan amount and maximum INR 10,000 +GST|
|Bank of India||6.95% – 8.35%||0.25% of the loan amount + GST|
|Punjab National Bank (PNB)||6.80% – 7.75%||0.35% of the loan amount, subject to a minimum and maximum of INR 2,500 and INR 15,000 respectively|
|PNB Housing Finance (PNBHFL)||7.35% – 9.05%||INR 10,000 + GST|
|Standard Chartered Bank||7.99%-8.29%||INR 10,000 + GST|
|United Bank of India||6.80% – 7.75%||As applicable|
|Syndicate Bank||6.90% – 8.90%||0.125% of the loan amount or a maximum of INR 5,000 + GST|
|UCO Bank||7.15% – 7.25%||0.5% of the loan amount, to a maximum of INR 15,000 + GST|
|Central Bank of India||6.85% – 7.30%||0.50% of the loan amount subject to maximum INR 20,000 + GST|
|Allahabad Bank||7.00% – 7.50%||Up to 0.40% of the loan amount to a max INR 50,000|
|Punjab & Sind Bank||7.30% – 7.65%||Up to 0.25% of the loan amount to a maximum of INR 15,000 + GST|
|Bank of Maharashtra||7.05% – 8.40%||As applicable|
|Dena Bank||6.85% – 8.25%||As applicable|
|Karnataka Bank||8.07% – 8.84%||0.50% of the loan amount + GST|
|RBL Bank||10.30% – 12.50%||INR 5,000 – INR 15,000 of the loan amount + GST|
|Oriental Bank of Commerce||6.80% – 7.75%||0.50% of the loan amount to a maximum of INR 20,000/- + GST|
|Vijaya Bank||6.85% – 8.25%||INR 4,000 + GST|
|Indiabulls Housing Finance||8.65% Onwards||0.50% of the loan amount to a maximum of INR 15,000 + GST|
|IDFC First Bank||7%-11.00%||Up to INR 10,000 + GST|
|IDBI Bank||6.90% – 9.90%||0.50% of the loan amount to a maximum of INR 2,500 + GST|
|Kotak Mahindra Bank||6.65% – 7.30%||
|IndusInd Bank||7.55% – 8.45%||INR 10,000 + GST|
|HSBC||7.20% – 7.30%||1% of the loan amount + GST|
|Andhra Bank||6.80% – 7.40%||0.50 % of loan amount subject to a maximum of INR 10,000 + GST|
|LIC Housing Finance (LIC HFL)||6.90% – 7.90%||
|Bandhan Bank||8.50% – 11.75%||1% of Loan Amount, Min INR 5,000 + GST|
|Corporation Bank||6.80% – 7.40%||0.50% of the loan amount. Max INR 50,000 + GST|
|Nainital Bank||7.00% – 7.60%||As applicable|
|Reliance Home Finance||8.75% – 14.00%||Up to 0.75% of the loan amount + GST|
|Karur Vysya Bank||7.45% – 9.55%||Up to INR 7,500 + GST|
|Federal Bank||7.65% – 7.80%||0.50% of the loan amount to a maximum of INR 7,500 + GST|
|Tata Capital||7.50% – 8.75%||As applicable|
|Jammu & Kashmir Bank||7.20% – 7.60%||0.25% of the loan amount to a maximum of INR 10,000 + GST|
|Fullerton India||7.99% – 12.00%||3% of the loan amount + GST|
|Lakshmi Vilas Bank||8.55%||As applicable|
How To Get A Home Loan With A Low-Interest Rate?
Banks consider a number of factors before offering a home loan. The subsequent home loan interest rate is also determined by these said factors which include-
Location of the property: People seeking properties on government-approved lands and areas have a higher chance of getting a loan sanctioned of as much as 75-90% of the property value.
Your income: Loan applicants with a high income tend to get home loans from banks at low-interest rates and rather hassle-free.
Age: Loan applications of applicants between 20-30 are given a higher priority and with low interest rates as people of this age group have lesser financial liabilities.
The bank: If you apply for a home loan with your current bank, the chances of getting a lower interest rate and an easy loan are better.
Income statements: Applicants with valid income statements are more likely to get a home loan at a low rate from a bank. in case you do not have valid income proof, the only way for you to get a loan is by applying to NBFCs (a nonbanking financial company), and NBFCs attract a very high interest rate.
How To Calculate Home Loan EMI?
In order to calculate your home loan EMI, you will need the following figures handy:
- Housing loan interest rate
- Total loan amount
- The loan tenure
Apply the above numbers in the following formula to calculate your home loan EMI:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
- EMI = Equated Monthly Installment
- P = Principal Loan Amount
- R = Monthly Interest Rate
- N = Number of Monthly Installments
Is Interest Rate Conversion Allowed On Fixed Rate Home Loans In India?
Home loans in India are typically offered on Fixed Interest Loans as well as Floating Interest Loans. While the fixed interest loans are offered at a ‘fixed’ interest for the entire tenure period, floating interest loans are offered at ‘changing’ interest rates through the period. The changing interest rates in the case of floating interest home loans are subjected to the changes that take place in the market.
Though the interest rate changes in the case of floating rate home loans, such loans offer lesser interest obligations as compared to fixed-rate home loans. Hence, if you take a home loan at a fixed rate, it can still be converted to a floating rate and you can then save on the total interest paid. It should be noted, however, that you will need to pay a ‘conversion’ fee to the bank for changing your home loan from a fixed rate to a floating rate. The said fee varies from bank to bank.
Is Interest Rate Conversion Allowed On A Floating Rate Home Loan In India?
Yes, floating rate home loans in India can be converted to the most cost-efficient floating interest rate benchmark for higher savings on the total home loan interest paid.
At current, there are three such benchmarks-
- Base rate
- Marginal cost of lending rate (MCLR)
- Repo-linked lending rate (RLLR)
Of these three, the repo-linked lending rate (RLLR) is the most transparent rate. RLLR-based home loans are, in fact, typically offered at a 0.30%-0.40% lesser rate than the marginal cost of lending rate. But again, it should be noted that if you wish to convert your floating interest rate home loan to an MCLR or RLLR-based home loan, a conversion fee will still be applicable. The said fee varies from bank to bank.
Final Thoughts: What To Do If The RLLR-Based Home Loan Rate Is Higher than the Prevailing Market Rate?
If your repo-linked lending rate or RLLR-based home loan is at a higher interest rate than the average market rate, it is recommended to do a balance transfer to another lender at a lower rate. One of the immediate benefits you can then avail of is in the form of a lower EMI. This will also further help reduce your total owed interest as the new rate will be at least 0.25%-0.50% lower than the existing rate.
It should also be noted that the said balance transfer will attract a ‘switchover fee,’ which will either be a flat, upfront amount or a percentage of the transferred balance. Alternatively, some banks may also offer a waiver on the balance transfer fee.
FAQs: Home Loan Interest Rates in India April 2021
1. Will home loan interest rates increase in 2021?
2. What is the EMI for a 15 lakhs home loan in India?
3. Which bank in India has the lowest home loan interest rates?
4. What is the home loan interest rate of SBI in India?
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