Check Home Loan Interest Rate Online – Loan Bazaar.
Easily compare and check the latest home loan interest rates online at Loan Bazaar. Our platform provides up-to-date information on the most competitive rates available in the market, helping you make an informed decision. Find the best rates for your budget and start your home ownership journey today.
* Onwards
| Lender | Interest Rate (ROI) | |
|---|---|---|
| Lender | ROI | |
| Cosmos Cooperative Bank | 7.95% Onwards * | Claim Claim |
| Union Bank of India | 8.10% Onwards * | Claim Claim |
| Central Bank of India | 8.10% Onwards * | Claim Claim |
| Bank of Maharashtra | 8.10% Onwards * | Claim Claim |
| Indian Overseas Bank | 8.15% Onwards * | Claim Claim |
| Indian Bank | 8.15% Onwards * | Claim Claim |
| Bank of Baroda | 8.15% Onwards * | Claim Claim |
| SVC co-operative bank ltd | 8.20% Onwards * | Claim Claim |
| Punjab National Bank | 8.20% Onwards * | Claim Claim |
| Bajaj Finance | 8.25% Onwards * | Claim Claim |
| State Bank of India | 8.25% Onwards * | Claim Claim |
| Dena Bank | 8.25% Onwards * | Claim Claim |
| Bank of India | 8.25% Onwards * | Claim Claim |
| Canara Bank | 8.25% Onwards * | Claim Claim |
| LIC Housing Finance | 8.30% Onwards * | Claim Claim |
| UCO Bank | 8.30% Onwards * | Claim Claim |
| TJSB Sahakari Bank Ltd | 8.35% Onwards * | Claim Claim |
| Punjab & Sind Bank | 8.35% Onwards * | Claim Claim |
| HSBC | 8.40% Onwards * | Claim Claim |
| Federal Bank | 8.40% Onwards * | Claim Claim |
| Saraswat Co-operative Bank | 8.40% Onwards * | Claim Claim |
| Andhra Bank | 8.40% Onwards * | Claim Claim |
| HDFC Bank | 8.45% Onwards * | Claim Claim |
| IDBI Bank | 8.45% Onwards * | Claim Claim |
| South Indian Bank | 8.50% Onwards * | Claim Claim |
| PNB Housing Finance | 8.50% Onwards * | Claim Claim |
| Godrej Housing Finance | 8.55% Onwards * | Claim Claim |
| Tamilnad Mercantile Bank | 8.60% Onwards * | Claim Claim |
| Aditya Birla Capital | 8.60% Onwards * | Claim Claim |
| Axis Bank | 8.60% Onwards * | Claim Claim |
| ICICI Bank | 8.60% Onwards * | Claim Claim |
| Kotak Mahindra | 8.60% Onwards * | Claim Claim |
| L&T Finance | 8.65% Onwards * | Claim Claim |
| Karur Vysya Bank | 8.75% Onwards * | Claim Claim |
| Ujjivan Small Finance Bank | 8.75% Onwards * | Claim Claim |
| Tata Capital | 8.75% Onwards * | Claim Claim |
| Axis Finance | 8.75% Onwards * | Claim Claim |
| Karnataka Bank | 8.75% Onwards * | Claim Claim |
| Dhanlaxmi Bank | 8.75% Onwards * | Claim Claim |
| Sammaan Capital Limited (Formerly Indiabulls Housing Finance) | 8.75% Onwards * | Claim Claim |
| GIC Housing Finance | 8.80% Onwards * | Claim Claim |
| IDFC First Bank | 8.85% Onwards * | Claim Claim |
| RBL | 9.00% Onwards * | Claim Claim |
| YES Bank | 9.00% Onwards * | Claim Claim |
| Bandhan Bank | 9.15% Onwards * | Claim Claim |
| AU Small Finance Bank | 9.25% Onwards * | Claim Claim |
| ICICI Home Finance | 9.30% Onwards * | Claim Claim |
| Repco Home Finance | 9.50% Onwards * | Claim Claim |
| Avas Finance | 9.50% Onwards * | Claim Claim |
Understanding Home Loan Interest Rates
A home loan interest rate is the percentage charged by a lender on the amount borrowed to finance the purchase of a home. This rate determines the cost of borrowing and directly impacts on the monthly EMIs (Equated Monthly Installments) that a borrower has to pay. Home loan interest rates in India generally range from 7% to 9% annually, but they can vary depending on factors like the borrower’s credit score, loan amount, tenure, the type of interest rate (fixed or floating), and the lender’s policies. It is typically expressed as a rate of interest (ROI). A lower interest rate can significantly reduce the overall cost of the loan over its tenure, making it a critical factor in choosing the right home loan.
Key Factors Affecting & Influencing Home Loan Interest Rates:
1. Repo Rate: The repo rate, often referred to as the repurchase rate, is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks. This mechanism plays a crucial role in the RBI’s efforts to control inflation levels. The interest rate set by the RBI significantly influences home loan interest rates. When the RBI raises the repo rate, current home loan interest rates usually increase as well, and the same is true in the opposite scenario. The Repo Linked Lending Rate, or “RLLR,” fluctuates according to the repo rate. RLLR is a key factor in determining loan interest rates, especially for home loans.
2. Credit Score: A higher credit score often results in a lower interest rate. Banks see borrowers with higher credit scores as less risky.
3. Loan Amount & Tenure: Lenders may offer the best home loan rates for higher loan amounts or longer tenures, depending on the borrower’s financial health. Sometimes loan tenure also varies depending on an individual’s age.
4. Type of Interest Rate:
Home loans are available with two types of interest rates:
- Fixed Interest Rate: Throughout the term of the loan, the interest rate remains constant.
- Floating Interest Rate: Throughout the loan term, the interest rate may fluctuate and is correlated with a benchmark rate such as the Repo Rate or the MCLR (Marginal Cost of Funds Lending Rate).
5. Bank or Lender: Different banks and financial institutions have their own policies and pricing models for home loans, so it’s crucial to compare home loan interest rates before applying.
Home Loan ROI Insights
1. Lower EMI Burden:
Home loans typically come with long repayment tenures, ranging from 10 years to 30 years, which can help lower your EMIs (Equated Monthly Installments). This makes home loans more affordable, as you can stretch your payments over a longer period, reducing the monthly burden on your finances.
2. Affordable Rates with Competitive Offers:
Banks and financial institutions often offer competitive home loan interest rates, especially during festive seasons or promotional periods. By comparing rates across different lenders, you can secure a current home loan interest rate that fits your budget and provides you with the most cost-effective financing option.
3. Leverage Your Property:
Profiting from the value of your property is possible with a home loan. By owning your own home, you not only secure a place to live but also build equity over time. With the lowest housing loan interest rate options available, the cost of borrowing becomes more affordable.
4. Low Initial Down Payment:
Home loans typically require a down payment of 10% to 20% of the property value, depending on the lender. This allows you to own a home without saving much money upfront. This feature makes home loan for first-time buyers more accessible, especially for first-time buyers.
5. Access to Higher Loan Amounts:
With home loan interest rates being more affordable, you may be eligible for a higher loan amount based on your income, credit score, and repayment capacity. This enables you to purchase a property that suits your needs without being limited by available funds.
6. Capital Appreciation:
If you choose a home loan with a favorable interest rate, your property investment can appreciate over time. As real estate values generally increase, your property could become more valuable, offering you potential capital gains. This benefit is more prominent in well-developed or rapidly growing areas.
FAQs
Yes, many banks permit borrowers to transition from a fixed-rate loan to a floating-rate loan. However, conversion costs, processing fees, and other charges may apply, so it’s advisable to check with your lender before making the switch.
To qualify for the best rates, ensure that you:
- Maintain a high credit score of 750+.
- Ensure a stable income source.
- Keep a low debt-to-income ratio.
- Opt for a shorter loan tenure of 5-10 years.
If you have a floating interest rate loan, the rate can change during the loan tenure based on market conditions or the RBI’s monetary policy. A fixed-rate loan will maintain the same interest rate for the duration of the loan.
Yes, refinancing is an option. If you find a lender offering a lower interest rate, you can transfer your home loan to them, but consider the associated costs such as processing fees, legal charges, and prepayment penalties.
While banks typically offer standard interest rates based on your profile, you can negotiate, especially if you have a high credit score or a strong financial history. It may be easier to negotiate with your current bank or lender.