|Bank||Home Loan Rate||Benchmark Type||Processing Fee|
|SBI Home Loan||6.95%||RLLR||0.20% , Min Rs. 4,000, Max Rs. 17,400|
|HDFC Home Loan||7.35%||PLR||0.50%, Min Rs. 3,000, Max Rs. 10,000|
|Citibank Home Loan||7.50%||TBLR||NIL|
|Bank of Baroda||7.25%||RLLR||Min Rs. 10,030|
|Axis Bank||7.70%||RLLR||0.20% , Min Rs. 5,000, Max Rs. 25,000|
|PNB Housing Finance||8.60%||PLR||0.50%, Min Rs. 10,000|
|LIC Housing Finance||7.50%||PLR||0.25%|
|Indiabulls||9.25%||PLR||Min Rs. 7,500, Max Rs. 10,000|
|DBS Bank||7.70%||RLLR||Max Rs. 10,000|
|DHFL||9.50%||PLR||0.50%, Min Rs. 2,500, Max Rs. 20,000|
|Kotak Bank||8.60%||RLLR||Max Rs. 10,000|
|PNB||7.15%||RLLR||0.35% , Min Rs. 2,500, Max Rs. 15,000|
|RBL Bank||10.45%||1 Year MCLR||Min Rs. 5,000, Max Rs. 15,000|
|Karur Vysya Bank||8.20%||RLLR||Min Rs. 5,000|
|Indian Overseas Bank||7.45%||RLLR||0.53% , Min Rs. 8,900, Max Rs. 13,350|
|HSBC Bank||8.65%||RLLR||1.00% , Max Rs. 10,000|
|DCB Bank||10.24%||1 Year MCLR||2.00%, Min Rs. 5,000|
|Central Bank of India||7.25%||RLLR||0.50% , Max Rs. 20,000|
|Piramal Housing Finance||9.00%||PLR||0.10%|
|Bank of India||7.25%||RLLR||0.25% , Min Rs. 1,500, Max Rs. 20,000|
|Yes Bank||9.85%||1 Year MCLR||1.00%, Max Rs. 15,000|
|Allahabad Bank||8.25%||RLLR||0.40% , Max Rs. 50,000|
|Union Bank of India||8.25%||RLLR||0.50% , Max Rs. 15,000|
|South Indian Bank||8.05%||RLLR||1.00% , Max Rs. 10,000|
|Punjab and Sind Bank||8.05%||RLLR||0.25% , Min Rs. 1,000, Max Rs. 15,000|
|Lakshmi Vilas Bank||9.70%||RLLR||0.40% , Min Rs. 10,000, Max Rs. 20,000|
|Karnataka Bank||8.55%||RLLR||0.25% , Min Rs. 250|
|Indian Bank||7.55%||RLLR||0.23% , Max Rs. 20,381|
|GIC Housing Finance||10.25%||PLR||Min Rs. 2,500|
|Canara Bank||8.05%||RLLR||0.50% , Min Rs. 1,500, Max Rs. 10,000|
|IDFC First Bank||9.50%||RLLR||Min Rs. 5,000, Max Rs. 5,000|
|LT Housing Finance||9.90%||PLR||2.00%, Min Rs. 4,999|
|UCO Bank||6.90%||RLLR||0.50% , Min Rs. 1,500, Max Rs. 15,000|
|Reliance Capital||10.00%||PLR||1.00%, Min Rs. 3,000, Max Rs. 6,500|
|OBC||8.00%||RLLR||0.50% , Max Rs. 20,000|
|Jammu And Kashmir Bank||7.70%||RLLR||0.25% , Min Rs. 500, Max Rs. 10,000|
|IDBI Bank||8.25%||RLLR||0.50% , Min Rs. 2,500|
|Federal Bank||8.35%||RLLR||0.50% , Min Rs. 3,000, Max Rs. 7,500|
|Dhan Laxmi Bank||8.85%||RLLR||1.00% , Min Rs. 10,000|
|Corporation Bank||8.35%||RLLR||0.50% , Max Rs. 50,000|
|Bank of Maharashtra||8.20%||RLLR||0.50%|
|Andhra Bank||8.15%||RLLR||0.50% , Max Rs. 10,000|
|United Bank of India||8.00%||RLLR||0.59% , Min Rs. 1,180, Max Rs. 11,800|
|Standard Chartered Bank||9.40%||3 Month MCLR||1.00%, Min Rs. 5,000, Max Rs. 10,000|
|Syndicate Bank||8.00%||RLLR||0.13% , Min Rs. 500, Max Rs. 5,000|
As per the current rates, SBI offers the lowest home loan interest rate of 6.95%. Home Loan rates have been reduced to an all-time low due to series of Repo Rate cuts by RBI. You are eligible to get the loan at cheapest rates if you are salaried and are purchasing a house with a property value of less than Rs 30 lakh. The rates are even better for women borrowers as banks run special discounted schemes on the property with primary applicant or co-applicant as a woman.
To decide about the best bank for a home loan make a detailed comparison of different banks on various parameters like current interest rates, charges like processing fees, prepayment charges, lending process, documents required and customer service of banks regularly
The essential factors that you need to consider while choosing a home loan are as follows.
While all banks and HFCs in India offer multiple home loan schemes, some new schemes like Pradhan Mantri Awas Yojana and DDA are quite popular in India due to their unique features and special discounted rates. Banks like SBI, Axis Bank, Citibank, ICICI Bank, PNB and HDFC have many popular schemes for women loan borrowers, businessmen and existing bank customers. Some of the popular housing loan schemes have been captured in the table below
|SBI||For Women Borrowers||Loan is offered at concessional rate starting @ 8.25%.|
|Maxgain||Home loan with overdraft facility @ 8.30%|
|Axis Bank||Home Loan Top Up||Loan to get additional loan amount. Interest rate of top up loan starts @ 7.70%|
|Shubh Aarambh Home Loan||Avail 12 EMI waiver offer at 7.75%|
|HDFC||HDFC Reach||Home loan with less documentation starting @ 9.25%|
|Bank of Baroda||Pre-approved Home Loan||Loan pre-approved by the bank @ 8.65% before the property is purchased by the applicant with a validity of 4 months|
|Citibank||Home Credit Loan||Home loan with overdraft scheme @ 8.60%|
|Citibank T-Bill Home Loan||Innovative scheme in which floating rate home loans are benchmarked to 91 days Govt. T-Bill rate, thus making them completely transparent|
|Documents Required||Salaried||Self Employed|
|Application Form||Signed with photographs||Signed with photographs|
|Identity Proof||PAN card, Passport, Driving License, Aadhaar Card, Voter id, Govt issued i-card||PAN card, Passport, Driving License, Aadhaar Card, Voter id, Govt issued i-card|
|Certificate and Proof of Business Existence||NA||PAN, Sales tax/ Excise/ VAT/ Service tax registration, Copy of partnership deed, Trade license, Certificate of practice, Registration certificate issued by RBI, SEBI|
|Address Proof||Passport, Driving License, Election ID card, Electricity/ Telephone/ Mobile bill/ Bank statement (not more than 3 months old)||Bank statement, Utility bill, Registry copy, Lease or rent agreement, TAN allotment letter|
|Income Proof||Form 16, Latest 6 months salary slip, Last 6 months bank statement||Last 2 years ITR, Last 6 months bank statement|
|Age Proof||PAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate||PAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate|
|Property Documents||Past title chain – Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension||Past title chain – Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension|
What is the current interest rate for home loans?
The present home loan interest rates ranges between 6.95% to 14.25%.
How is Home Loan interest rate calculated?
The interest rate of home loan is linked to the repo rate. Thus, banks add a margin on the repo rate to arrive at Repo Linked Lending Rate (RLLR). Based on RLLR s small percentage is added to arrive at the home loan rate based on factors like the risk involved, the income of the borrower, and loan amount.
What is the minimum and maximum tenure of house loan?
House Loans are generally long tenure loans and can range from 5 years to 30 years depending on the need of the borrower, his age and his repayment capacity.
What is the EMI for 20 lakhs home loan?
The EMI for 20 lakhs loan at the latest home loan interest rate of 6.95% for the tenure of 30 years is Rs. 661.95.
Which home loan is best fixed or floating?
The fixed home loan is best when you know that there will be a significant increase in the interest rate in the near future. Fixed home loan will secure you from any fluctuations of interest rate in the market. Floating home loan is best when you think that interest rate going to drop in the near future or the increase in the rate will neither be significant nor long term. In the case of floating rate, your interest rate is directly affected by the market rate.
Can I switch from a fixed rate to a floating rate during my home loan tenure?
Yes, most banks allow switching from fixed-rate home loan to floating rate home loan at any time during the tenure upon paying a small fee.
How can I reduce my home loan interest rate?
The interest rate of home loan is decided based on the loan amount, and risk factor associated with a property and borrower. As the loan amount increases, the rate of interest is also expected to increase. However, some banks also offer discounted rates where a woman is the main applicant.
How do I calculate the interest rate on my Home Loan taken some time back? Has it gone up or down?
Can I apply for housing loan jointly with my spouse?
Yes, you can apply home loan jointly with an earning co-applicant (either be your spouse or your parents). Adding co-applicant can increase your eligibility and you can also avail for a higher amount of loan as your co-applicant’s income also gets added with your income, and that total is taken into consideration for calculating the loan amount you will be eligible for.
Which banks give cheapest home loan?
Lowest home loan interest rate in India is 6.95% which is offered by SBI. Even after including the processing fees they charge on the loan, SBI are the cheapest home loan providers in India.
Is balance transfer a good idea for home loan?
Yes, if you are getting paying a higher interest rate than the market rate and paying higher EMI than other banks, then you can opt for housing loan balance transfer and reduce your monthly burden.