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Compare Best Home Loan Interest Rates, All Banks in India

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
ICICI Bank 8.10% RLLR 1.00%
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
Edelweiss 10.50% PLR 0.25%
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
Bajaj Finserv 8.45% PLR 0.50%
Bank of Maharashtra 8.20% RLLR 0.50%
Tata Capital 9.05% PLR 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

Which bank is giving lowest interest rate on Home Loan?

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.

Best Bank for Home Loan

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

  • SBI banks are the best choice for home loans with their home loan interest rates starting from 6.95%.
  • Axis bank, ICICI Bank, and Kotak Bank are the best banks for home loan as they have quick loan disbursal with low-interest rates.
  • Citibank can be a preferred choice to take a housing loan as it charges zero processing fees.

List of top best banks for Housing Loans in India

  • State Bank of India
  • HDFC
  • ICICI Bank
  • Punjab National Bank
  • Bank of Baroda
  • Axis Bank
  • Kotak Bank
  • Citibank
  • Yes Bank

Home Loan Details

The essential factors that you need to consider while choosing a home loan are as follows.

  • Eligibility : Loan available for both salaried and self-employed borrowers within the age group of 18 and 70 years.
  • Security : Mortgage of home you are planning to purchase, renovate or construct.
  • Loan Amount : In the range of ₹ 2 Lakh to ₹ 15 Cr.
  • Loan to Property Value Ratio : Varies from 65% to 90%.
  • Loan Tenure : Can range from 5 to 30 years.
  • Home Loan Interest Rates Benchmark : As per RBI guidelines, most banks have now shifted to RLLR (Repo Linked Lending Rate) which is based on Repo rate. NBFCs use PLR (Prime Lending Rate), as a benchmark to advance loans.
  • Interest Rates : The new Home loan Interest Rates start from 6.95%. Special rates for women borrowers.
  • Lowest EMI : Lowest EMI of ₹ 662 per lakh.
  • Processing Fees : Up to 0.5% of loan amount or Maximum Rs. 10,000, whichever is higher.
  • Prepayment Charges : Nil charges on floating rate home loans
  • Other Charges : Legal charges, technical charges etc.
  • Documents Required : Address Proof, Identity Proof, Income Documents, Property Documents.
  • Top Home Loan Providers : SBI, ICICI Bank, HDFC Bank, Axis Bank, HDFC, PNB Housing, Bank of Baroda.
  • Popular Home Loan offers : Banks offer schemes for special category of borrowers including women borrowers, senior citizens, NRIs etc. Banks also offer overdraft facility to save interest on house loan. Some of the popular housing loan schemes are SBI home loan for women, HDFC Reach, Axis Bank 12 EMIs offer, Bank of Baroda pre-approved loans, Indiabulls e-home loans etc.

Home Loan Comparison on Popular Loan Schemes

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

Bank Scheme Features
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 for Home Loan

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

Home Loan Interest Rates FAQs

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?

  • In case your loan was taken as a fixed-rate loan. Most fixed rate loans would offer fixed interest rate for a period ranging from a few months to 15 years. From your sanction letter and loan agreement, check the period for which the interest on your house loan is to remain fixed. If your loan is still in the fixed rate period, your current rate of interest is the same as what it was originally taken at.
  • In case your loan has converted to a floating rate, the loan agreement would specify the formula for the same. The formula may be either RLLR base rate plus a given spread (in case of banks) or PLR minus spread (in case of housing finance companies). For RLLR rate plus spread housing loan, just read the spread mentioned in the loan agreement and add it to the current RLLR of the respective bank. For PLR minus spread loan, check the negative spread mentioned in the loan agreement and subtract it from the PLR of the respective home finance company. Before 1st October 2019, the interest rate of banks were based on MCLR. However, now, banks advance based on the RLLR rate. If your loan is still linked to MCLR, you can shift your benchmark rate to RLLR by contacting your respective bank.

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.

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