HOME LOAN INTEREST RATRS ALL BANKS 2021
- Lowest Home loan interest rates starting at 6.50%* per annum
- NO prepayment charges on home loans linked to floating rate of interest
Compare online the lowest home loan interest rate starting from 6.50% p.a. and apply for the best home loan. Get the complete list of current housing loan rate of interest in India from all leading Banks and NBFC institutions.
Compare All Banks Home Loan Interest Rates in India 2021
Below is the table showing the interest rates and processing fee of home loans offered by several lenders.
| Bank | Starting Interest Rate (p.a.) | Processing Fees (p.a.) |
|---|---|---|
| Kotak Mahindra Bank | 6.50% | 0.50% |
| Citibank | 6.75% | Rs. 10,000 |
| Union Bank of India | 6.80%* | - |
| Bank of Baroda | 6.75% | Rs. 8,500 - Rs. 25,000 |
| Central Bank of India | 6.85% | Rs. 20,000 |
| Bank of India | 6.85% | Rs. 1,500 - Rs. 20,000 |
| State Bank of India | 6.75% | 0% - 0.35% |
| HDFC LTD | 6.70%* | Rs. 3,000 - Rs. 5,000(plus taxes)* |
| ICICI Bank | 6.90% | Rs. 3,000 |
| LIC Housing Finance | 6.90% | Rs. 10,000 -Rs. 15,000 |
| Axis Bank | 6.90% | Rs. 10,000 |
| Canara Bank | 6.90% | Rs. 1,500 - Rs. 10,000 |
| Punjab and Sind Bank | 6.85% | Full Waiver |
| IDFC First Bank | 6.90% | Rs. 5,000 - Rs. 5,000 |
| Bank of Maharashtra | 6.90% | Rs. 10,000 |
| Indian Overseas Bank | 7.05% | 0.50% (Max Rs. 20,000) |
| Punjab National Bank | 6.95% | 0.35% (Max Rs. 15,000) |
| United Bank of India | 8.00% | 0.59% (Rs. 1,180 - Rs. 11,800) |
| UCO Bank | 6.90% | 0.15% (Rs. 1,500 - Rs. 15,000) |
| DBS Bank | 7.30% | 0.25% (Rs. 10,000) |
| IDBI Bank | 6.95% | 0.50% (Rs. 2,500 - Rs.5,000) |
| HSBC Bank | 6.64% | 1% (Rs. 10,000) |
| Karur Vysya Bank | 7.20% | Rs. 5,000 |
| Saraswat Bank Home Loan | 6.70% | Nil |
| Jammu and Kashmir Bank | 7.20% | Rs. 500 - Rs. 10,000 |
| South Indian Bank | 7.85% | 0.50% (Rs. 5,000 - Rs. 10,000) |
| PNB Housing Finance | 7.20% | 0.25% - 0.50% (Rs. 10,000) |
| Federal Bank | 7.65% | Rs. 3,000 - Rs. 7,500 |
| Standard Chartered Bank | 7.99% | 0.50% (Rs. 5,000 - Rs. 10,000) |
| Karnataka Bank | 7.50% | Rs. 250 |
| Aavas Financiers | 8.00% | 1.00% |
| Sundaram Home Finance | 6.95% | Rs.3,000 (for salaried) |
| Dhanlaxmi Bank | 7.85% | Rs. 10,000 |
| Tata Capital | 6.90% | 0.50% |
| IIFL | 10.50% | 1.25% |
| DHFL Housing Finance | 8.75% | Rs. 2500 |
| Tamilnad Mercantile Bank | 8.25% | Rs. 15,000 |
| Hudco Home Loan | 9.45% | NA |
| Bandhan Bank | 8.50% | 1% (Rs.5,000) |
| Yes Bank | 8.95% | 1% (Rs. 10,000) |
| Aditya Birla | 9.00% | 1% |
| GIC Housing Finance | 7.45% | Rs. 2,500 |
| Indiabulls | 8.65% | 2% |
| Reliance Home Finance | 9.75% | Rs. 3,000 - Rs. 6,500 |
| Shriram Housing | 8.90% | NA |
| India Shelter Finance | 12.00% | 2.00% |
Note: As per RBI guidelines, prepayment of home loans linked to floating rate of interest attracts no prepayment charges.
How to Get Lowest Home Loan Interest Rates?
There are certain factors based on which a home loan interest rate is offered which are as follows:
Property in a good location – Property in a approved society has more chance of getting loan amount up to 75-90% of the property value.
Make use of your good credit score – You must have CIBIL score of 650 or above to get approval for it.
Apply at existing bank – A good understanding with the bank help you avail a high loan amount and that too at competitive rate of interest on your home loan without any hassle.
High Income – A person earning high income has more chances of getting lower rate and higher amount.
Keep all property related documents – It is very important to maintain and keep all the property documents with you as it helps the lender identify your property and its worth properly and thus trust your profile.
Make sure you have income proof – Many people do not know that your loan application may be rejected if you do not have a income proof or salary slip. Only a few NBFCs accept such cases but then they give high rates.
Apply at young age – If you age at the time of applying is in early 30s or late 20s, you are more eligible for a higher loan amount as you have less financial liabilities.
Transfer your home loan to a lower EMI – You can transfer your existing home loan to a lender offering a lower rate on your home loan to save your money.
Calculate Interest on Home Loan?
In general, home loans are long-term loans and it is important to figure out your overall interest liability towards the loan at the first place. You can calculate the same using one of the two methods listed below:
- EMI Calculation Formula: Alternatively, you can also use the following formula to calculate your EMI liability for your home loan-
EMI = [P x r x (1+r)^n]/[(1+r)^n-1]
Wherein, P is Principal, r is rate of interest, and n is number of instalments or loan tenure in months.
Calculate the Effective Interest Rate?
The applicable interest rate on home loan consists of two components, the base rate and markup rate. The combination of two is what you will be paying on the loan. Let's explore these components to give you a better understanding.
· Base Rate: It is the standard lending rate of the bank, applicable for all retail loans. This rate is subject to frequent changes on the basis of multiple inputs.
Markup: This component of a small percentage is added to the base rate to arrive at the EIR (Effective interest rate) for a specific type of home loan and varies from one type to another. Effective Interest Rate (EIR) = Base Rate + Markup
From April 2016 onwards, the Reserve Bank of India (RBI) has mandated a new method for computing lending rate to replace the base rate system. The Marginal Cost of Funds based Lending Rate (MCLR) is aimed at bringing more accountability and flexibility to the way rates are published by banks and financial institutions in India. RBI mandates banks to fix the interest rate after studying the risk factor associated with lending to borrowers. It takes into account, various factors involved such as repo rate, deposits etc. This MCLR based computation works out to be slightly lower than the erstwhile base rate.
How Can You Make the Most of Lower Home Loan Interest Rates?
If you are eligible for lower interest rates, not only should you grab it at the earliest, but also make sure the loan tenure is optimized to save you more. An optimized tenure means neither too short nor too long. An example below can help you understand it better.
Example – You are earning INR 80,000 (Net) in a month. A lender has come with a loan offer of INR 40 lakh at 7.60% per annum. Now, you are looking for a 20-year deal. But what if you curtail it to 15 years? Let’s check out the table below to know the differences of payment between these two tenure options.
| Tenure Options | EMI | Interest Outgo |
|---|---|---|
| 15 Years | INR 37,308 | INR 27,15,497 |
| 20 Years | INR 32,469 | INR 37,92,453 |
So, you can see a savings of around INR 10,76,956 (37,92,453-27,15,497) on reducing the tenure to 15 years instead of continuing it for 20 years. Yes, the EMI will rise by around INR 4,839 (37,308-32,469) when you choose a tenure of 15 years. Despite that, the EMI constitutes below 50% of your net monthly income. The lender can approve such a repayment tenure if you don’t have any other obligation.
Lenders Do Give You the Interest Rate Conversion Facility on a Home Loan?
Home loans are offered at both fixed and floating interest rates. Fixed rate loans come with the same rate of interest throughout the tenure, whereas floating rate loans will see changes in the interest rate as and when changes take place in the market. Even with rate changes, floating rate home loans have lesser interest obligations for borrowers than what could be the case with fixed rate loans. So, if your home loan is on a fixed rate, you can get it converted into a floating rate and save on the interest. However, banks can charge on the conversion. Check out the table below to know the conversion fee applicable to changing from a fixed rate to a floating rate.
| Lenders | Conversion Charges |
|---|---|
| State Bank of India (SBI) | INR 5,000 |
| ICICI Bank | 1.75% of the principal outstanding |
| HDFC Limited | As Applicable |
| LIC Housing Finance (LIC HFL) | INR 10,000 |
| Punjab National Bank (PNB) | As Applicable |
| PNB Housing Finance (PNBHFL) | 0.50% of the principal outstanding |
| Axis Bank | 2% on the drawing power |
| Kotak Mahindra Bank | As Applicable |
| YES BANK | 0.50% of the principal outstanding |
Comments
Post a Comment
please don't share spam link