Home Loan Interest Rates

A home loan is a type of secured loan used to buy a house, by using it as collateral. Home loans provide excellent value financing and extended payback terms. A home loan is paid back in EMIs (Equated Monthly Installments) at a pre-calculated interest rate. The title deed of the property is returned to the borrower upon complete repayment.

Banks/NBFCs List

Maximum Loan Amount

Maximum Tenure

Interest Rate

Processing Fees

Private Sectors Banks

HDFC Bank

10 Cr

30 Years

8.70%

0.50%

Get Loan Offer

Yes Bank

5 Cr

35 Years

9.15%

Get Loan Offer

Karnataka Bank

10 Cr

30 Years

9.26%

Nil

Get Loan Offer

IDFC First Bank

5 Cr

30 Years

8.75%

Get Loan Offer

South Indian Bank Bank

15 Cr

75 Years

9.85%

0.50%

Get Loan Offer

AU Small Finance Bank

40 L

20 Years

9.50%

Get Loan Offer

Standard Chartered Bank

3.5 Cr

25 Years

8.75%

Get Loan Offer

Bandhan Bank

40 L

30 Years

13.50%

Nil

Get Loan Offer

IDBI Bank

75 L

30 Years

9.5%

Nil

Get Loan Offer

IndusInd Bank

50 L

30 Years

8.50%

Up to 2%

Get Loan Offer

Utkarsh Small Finance Bank

1 Cr

30 Years

9.50%

Up to 1%

Get Loan Offer

RBL Bank

10 Cr

25 Years

11.60%

Nil

Get Loan Offer

Dhanalakshmi Bank

25 Cr

20 Years

9.35%

Up to 1%

Get Loan Offer

Kotak Mahindra Bank

10 Cr

25 Years

8.70%

0.50%

Get Loan Offer

Federal Bank

15 Cr

30 Years

10.15%

0.50%

Get Loan Offer

Axis Bank

5 Cr

30 Years

8.75%

Get Loan Offer

Public Sectors Banks

Bangiya Gramin Vikash Bank

75 L

20 Years

9.50%

0.50%

Get Loan Offer

SBI

15 Cr

30 Years

8.73%

0.35%

Get Loan Offer

Bank of Maharashtra

50 L

30 Years

8.50%

0.50%

Get Loan Offer

Bank of India

5 Cr

30 Years

9.25%

0.25%

Get Loan Offer

Central Bank of India

50 L

30 Years

8.60%

0.50%

Get Loan Offer

PNB

3 Cr

30 Years

8.75%

0.35%

Get Loan Offer

Union Bank of India

5 Cr

30 Years

8.35%

Nil

Get Loan Offer

Bank of Baroda

20 Cr

30 Years

8.40%

Nil

Get Loan Offer

UCO Bank

75 L

30 Years

8.85%

0.50%

Get Loan Offer

Indian Overseas Bank

75 L

30 Years

8.85%

0.50%

Get Loan Offer

Indian Bank

15 L

30 Years

8.50%

Nil

Get Loan Offer

NBFCs

Home Credit

75 Cr

20 Years

9.50%

3 %

Get Loan Offer

Bajaj Housing Finance

5 Cr

40 Years

8.50%

Get Loan Offer

CanFin

75 L

30 Years

9.6%

0.75%

Get Loan Offer

Tata Capital

5 Cr

30 Years

8.70%

Get Loan Offer

Aditya Birla

3 Cr

30 Years

9.05%

Get Loan Offer

LIC Housing Finance

15 Cr

30 Years

8.6%

0.50%

Get Loan Offer

L&T Housing Finance ltd

10 Cr

30 Years

8.60%

0.50%

Get Loan Offer

Mahindra Home Finance

35 L

25 Years

9.50%

Get Loan Offer

Poonawalla HFL

1 Cr

30 Years

9.0%

0.50%

Get Loan Offer

Muthoot Housing Finance Company Limited

25 L

20 Years

9.5%

Nil

Get Loan Offer

Home First Finance Company (HFFC)

25 L

20 Years

10.75%

1.50%

Get Loan Offer

Piramal Capital & Housing Finance (PCHFL)

75 L

25 Years

11%

Get Loan Offer

Indiabulls

50 L

30 Years

9.30%

Get Loan Offer

Shriram Housing Finance

10 Cr

25 Years

9.50%

0.50%

Get Loan Offer

Reliance

30 Cr

5 Years

9.75%

Get Loan Offer

DHFL

30 L

25 Years

11.00%

0.50%

Get Loan Offer

Adani Housing Finance

30 L

20 Years

12.00%

2% + GST

Get Loan Offer

Aadhar Housing Finance

1 Cr

30 Years

11.75%

Rs. 3500 + GST

Get Loan Offer

Mahindra Housing Finance

50 L

20 Years

9.50%

Up to 1%

Get Loan Offer

Cholamandalam HFL

50 L

30 Years

10.50%

Upto 1%+GST

Get Loan Offer

*The interest rates mentioned above are subject to change at any time without prior notice.

Last Updated: 12/08/2024

Home Loan Interest Calculator

₹ Loan Amount

Loan Tenure error

5 yrs
10 yrs
15 yrs
20 yrs
25 yrs
30 yrs

Interest Rate % (p.a.) error

Calculate Your EMI

You are Eligible for EMI Amount

₹ 39,388

Principal Amount

₹80,00,000

Interest Amount

₹29,53,299

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How do Banks and HFCs Calculate Home Loan Interest?

A housing loan's interest rate is compounded monthly, which means that monthly interest is charged on both the principal amount and any interest accrued each month. In a nutshell, the interest rate on your home loan influences both the amount of the total loan and the amount of the monthly instalments you must make.

The following formula is used for Home Loan EMI Calculation:

EMI = [P x r x (1+r)^n]/[(1+r)^n-1],
Here,
P = loan amount
r = monthly interest rate calculated monthly
n = loan duration in months
The interest rate (R) on your loan is calculated monthly.
R = Annual Rate of interest/12/100
If the rate of interest is 7.2% p.a., then r = 7.2/12/100 = 0.006

For example, for a loan of ₹10,00,000 for a tenure of 120 months at an annual interest rate of 7.2%,

The EMI is computed as follows:

EMI = ₹20,00,000 * 0.006 * (1 + 0.006)120 / ((1 + 0.006)120 - 1) = ₹12,100/-

The total amount payable will be ₹12,100 * 120 = ₹14,52,000/-

The principal loan amount is ₹20,00,000/-

The total Interest payable will be ₹4,52,000/-

However, calculating the EMI manually using this formula can be complex and inaccurate. Therefore, almost all banks and HFCs use online home loan interest calculators. These calculators are generally available on the websites of all lenders.

These calculators are straightforward and accurate. You simply have to enter your loan amount, interest rate, and tenure to get the EMI value. Additionally, you may view the entire amount payable (principal plus interest) and the total amount of interest

Types of Interest Rate on Home Loan

Most banks charge one of two primary interest rates for home loans.

Fixed Interest Rate: Under this computation system, the rate is fixed for the entire duration of the loan, so the EMI amount will not change.

Benefit: Since the interest rate is fixed, you know the whole amount you will pay upfront. Your loan will be protected from frequent rate changes, and cost less overall.

Drawback: Since the interest component stays fixed, you will not get any rebate if regular lending rates drop.

Floating Interest Rate: The floating interest rate fluctuates based on the market condition. It includes fluctuating interest rate components in addition to the base interest rate.

Benefit: A floating interest rate is one to two percent less expensive than a fixed interest rate. Because it is flexible, it can be applied to long-term loans.

Drawback: The primary drawback of variable interest rates on home loans is the hassle and unpredictability. They are complex to forecast and constantly evolving.

How can one get the Best Interest Rate?

A home loan always has the longest repayment period and thus attracts a higher interest rate. A small fraction of an increased/decreased interest rate can significantly impact the long term. Therefore, try to reduce house loan interest rates before and after taking a loan by adhering to a few basic rules.

Compare Home Loan Interest Rates online before you finalise one, to find the best deal
Always try to opt for the shortest possible term.
Partial pre-payment is a viable option to save interest over the years
Balance Transfer to another lending institution offering a lower interest rate can also be viable.
A larger upfront payment reduces your overall loan burden and, ultimately, lesser interest.
Change from a fixed-rate loan to a floating rate of interest
Paying an additional EMI every year significantly impacts your total repayment.

To pay less interest on your house loan, go for a little higher EMI, or decrease the loan's tenure. For instance, if you borrow Rs. 20 lakh for 115 months at an interest rate of 11%, your total interest payments will be Rs. 12,44,389, with each EMI being Rs. 28,212.

On the other hand, your EMI will be Rs. 30,633 and your total interest payment will decrease to Rs. 10,63,350 if you maintain all other parameters the same but shorten the term to 100 months.

Factors that Impact Home Loan Interest Rates

Several factors determine the interest rates that banks and NBFCs give. The following variables affect the interest rate on your home loan.

Credit Score

Your creditworthiness and financial history are reflected in your credit score. Lower interest rates are possible with a higher credit score, which indicates good credit management. On the other hand, a poor credit score could result in higher interest rates or even make it harder to secure a loan.
Tenure of Loan

The total duration of the house loan is referred to as the tenure of the loan. Generally, interest rates are more for long term loans than for shorter ones. Though your EMI would be lesser, overall you would be paying far more interest on a long-term loan.
Loan-to-Value ratio (LTV)

The loan amount measured as a percentage of the property's assessed value is known as the Loan-to-Value (LTV) ratio. All financial organizations use it to evaluate loan risks.
Type of Interest Rates Chosen

There are two different kinds of interest rates for house loans: Fixed interest rates and Floating interest rates.
Your relationship with Lender

Building a long-term and healthy relationship with your lending institution is always good. It puts you in a position to negotiate better.
Market Conditions

The Reserve Bank of India's monetary policy and other market conditions may also impact the interest rate on the House Loan.

How MagicBricks can help in getting the Best Home Loan Interest Rate

MagicBricks is a key home loan aggregator and has tie-ups with all major banks and housing finance companies. It can help you in the following ways:

Compare Rates

MagicBricks has a number of partner banks and HFCs. Our platform allows you to quickly and easily compare home loan interest rates from various banks and financial institutions, and choose the best one.
Personal Relationship Manager

We offer you the services of a personalized Relationship Manager who can help you choose the best rate and offer, based on your financial situation and needs.
Doorstep Service

We assist in making life more comfortable for you. We will pick all required documents from your doorstep and submit it to the bank. Thus saving you from bank visits.
Market Insights

Through articles, blogs, and financial advice sections, MagicBricks also provides valuable market insights into current housing loan trends and rates.

Bank Wise EMI Calculators

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Frequently Asked Questions

1. How do you reduce the Home Loan interest rate?

Your total home loan liability can be decreased by taking advantage of the various options that each lender offers. To determine which options are best for you, research and compare online.
2. Which rate of interest is considered to be the better option?

A floating interest rate is generally considered better than a fixed interest rate. However both have their pros and cons.
3. Are there other factors determining the Interest Rates on Home Loans?

Yes. The lending institution considers certain factors like your credit score, loan tenure, Loan-to-Value Ratio, Income and employment stability, and other market conditions before determining the interest on a home loan.
4. How can I know the EMI amount for a particular interest rate?
- The formula for EMI calculation is,
  P x R x (1+R)^N / [(1+R)^N-1]
  P = Principal loan amount
  R = Rate of Interest
  N = Number of installments every month
- An online EMI calculator can determine your EMI for different interest rates.
5. How do you save on interest expenses of your Home Loan?

This can be achieved by making on-time bill payments, maintaining a low credit utilization ratio, avoiding multiple loan applications at once, and avoiding opening an excessive number of credit accounts. Additionally, you should check your credit score for free online and take the appropriate action to raise it.
6. How to get the lowest Home Loan interest rates in India?

Maintaining a high credit score, utilizing the offer of concessional interest rates for female applicants, and maintaining a lower Loan-to-Value (LTV) ratio are some factors that help you pay lesser interest.
7. How does my credit score affect my home loan interest rate?

Different financial institutions have different credit score criteria for housing loan interest rates. Generally speaking, you can get the best interest rates if your credit score is 800 or above. Your interest rates could be higher, if your credit score is less than 600
8. Can I transfer my home loan to another bank offering lower interest rates?

Yes. This is called Balance Transfer, and you can easily transfer your existing loan balance to another bank offering a lower interest rate rate. However do note, the current bank would have certain pre-payment charges that you would need to bear, this could vary from 0.5 to 3 %.
9. Do women borrowers get any particular concession on home loans?

You can benefit from a discounted interest rate on your house loan if you are applying for it alone as a woman, or if you are a male, then with a woman as a co-applicant. In these situations, the interest rate is typically approximately 0.05% (5 basis points) less than the conventional rates.