Compare Home Loan Interest Rates Before Applying in India

Compare Home Loan Interest Rates Before Applying in India

When you are planning to apply for a Home Loan, the first thought that comes to your mind is the interest rate. Which Bank offers the lowest Interest Rate? There are plenty of different banks in India that offer their customers with diverse Home Loan interest rates. In general, the interest rates for Home Loans in India typically range between 8.35% and 14%. Many public and private sector banks plus financial institutions offer competitiveinterest rates, all you need to do is do a thorough comparison of the same before finalisingon the one. Axis Bank Home Loan is one such option that you may want to explore as they offer some very exciting benefits apart from lowest interest rates.

The below chart would help you compare Home Loan Interest Rates of All Top Banks in India

Home Loan Provider Home Loan Interest Rates Home Loan Processing Fees Prepayment Charges
YES BANK 9.35% onwards 0.5% of loan amt. or Rs.10,000 whichever is higher +GST NIL for floating rate loans
State Bank of India 8.70% onwards NIL till 31.12.2018 NIL
HDFC Bank 8.80% onwards Up to 0.5% of loan amount (maximum Rs. 3,000) NIL
ICICI Bank 8.95% onwards 0.5% – 1% of loan amount (maximum Rs. 1,500) + GST NIL
IDFC Bank 8.90% onwards Up to Rs. 10,000 NIL
IndiaBulls 8.80% onwards Up to 1% of loan amount NIL
LIC Housing Finance 8.70% onwards For up to 1 Cr – Rs 5000 , Above 1 Cr Rs 10,000 NIL
PNB Housing 9% onwards Up to 1% of loan amt NIL
DHFL 9% onwards Up to 1% of loan amt NIL
Axis Bank 8.80% onwards Up to 1% of loan amt NIL
IDBI Bank 8.85% onwards 0.5% of loan amount NIL
Tata Capital 9.05% onwards 0.2% of loan amount NIL
Bank of India 8.75% onwards 0.25% of loan amount (mininumRs. 1,000 and maximum Rs. 20,000) NIL
Syndicate Bank 8.80% onwards minimumRs. 500 to maximum Rs. 5,000 NIL
Canara Bank 8.70% onwards 0.50% of loan amount (minimum Rs. 1,500 to maximum Rs. 10,000) NIL
United Bank of India 8.65% onwards 0.59% of loan amount (minimum Rs. 1,180 to maximum Rs. 11,800) NIL
IIFL 8.75% onwards 0.75% of loan amount (minimum Rs. 2,500) NIL

Interest Rateis one of the most vital factors based on which home loansare compared. This is well-thought-outimperative as your EMI (Equated Monthly Instalment) is completelyreliant on the interest rate even though there are some other factors such as the tenure period on which your EMI actually depends. However, let’s reflect on interest rates first.

There are Two Kinds of Home Loan Interest Rates

Fixed Interest Rate: When you choose a fixed interest rate for your Home Loan,the interest on your loan will be fixed all throughout the tenure of the loan. It means that your EMI amount will also continue to be the same all throughout the tenure.

FloatingInterest Rate: When you choose a floating interest rate for your Home Loan, the interest rate on your loan can differaccording to the market fluctuations and therefore there might be a change in the amount of your EMI.

Although, there are lot of options to compare, but sometimes too many options can also lead to excessivemisperception! Whether you are commencing to look at assets, or previouslyrecognised a property, one of the most significant factors when opting for a Home Loan is the interest rate. However small it may look but even a 0.5% reduction in the interest rate can interpret into huge savings each month on your EMI. Moreover, if you compute it annually and multiply it with your complete tenure of your loan, i.e.,extending to 10-30 years, it will surely turn up into a huge amount. Hence, while the loan amount or tenure is also imperative, you have to pay an extra attention to the diverse interest rate features of the housing loan choices before you finalizeon one.

There are various other factors as well that influence Home Loan interest rates. Here, let’s have a look at those factors:

  • Your Credit Score: Yes, your credit score also impacts the Home Loan interest rate that you would be eligible to get from the bank. If you have a high credit score, the probability of you getting a loan is much higher and the banks may also consider in some reduction in the interest rate as well as they know that you have a good repaying history.
  • Your Initial Deposit or Down Payment: A higher down payment would certainly call for a lower interest rate as banks know that the risk is lower with that amount.
  • Term of the Loan: The tenure of the loan also impacts the Home Loan interest rates.The shorter the term the lesser interest rate would be applicable and the repayment amount would also be less as compared to a long term option. A shorter tenure of Home Loan would definitely cost you more in terms of your monthly EMIs; however in totality you would pay much lesser towards the total repayment of the loan.
  • Type of Interest Rate: This factor, as discussed above, certainly influences your Home Loan repayment. A floating rate of interest is an ever changing rate whereas a fixed rate would give you a fixed EMI amount every month.

How Do I Calculate the EMII Need to Pay on Home Loan ?

You can use the Home Loan EMI Calculator to find out how much EMIyou need to pay for your loan.  The EMI Calculators are generally fast, precise, easy, and free to use.

You have to enter the interest rate, the loan amount and loan tenure, and the calculator will show you how much you have to pay as EMI.

Choosing on a Home Loan can be a quiteterrifying experience if you are doing it by yourself for the first time. Above features will assist you to compare home loans interest rates in a perfect way.

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