Home Loan Interest Rates

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Banks In India

Indian Nationalized Banks

Are you ready to make what could probably be the greatest financial investment in your life? Buying a house entails tremendous financial planning and commitment. Just building a down payment and signing on for a bank loan do not guarantee that your dream home will materialize. Owning a home is a wonderful feeling since it confers emotional financial security – if planned well. A house is a generally appreciating asset and is one of the safe long-term investments to make. Again, this depends on how well you plan your finances.

Homeownership is something that almost every Indian dreams of and it is to fulfil that very purpose that banks have come up with various financial instruments. A home loan is one of the major financial instrument in the banking arena today.

Whether you are thinking about buying a property, or already looking at properties, the most important deciding factor of a home loan is its interest rate. It becomes doubly important to compare and contrast different features of a housing loan before zeroing in on one. Home loan interest rates generally range from 8%–9% p.a. in India. Home loan interest rate is dependent on your credit history, age, income, employment stability and existing debt obligations amongst others.

How do I land a low interest rate home loan?

In order to land the best deal on a home loan, you need to make sure you have a healthy credit score. Only a credit score of 750 and above would ensure you land a loan offer at attractive terms and interest rate. If you have a bad credit score, make sure you improve your score before applying for a loan, to maximize your chances of getting approved. Adopt healthy repayment behavior and avoid late payments.

Having a bad credit score can hinder your chances of loan approval. Lenders do not want to risk giving loans to customers who already have demonstrated poor credit behavior and might possibly default on EMI payments. However, each lender has a different set of requirements and criteria for sanctioning loans. So, it is possible that even if multiple lenders reject you, you might have a small chance to qualify with a different lender who has different requirements.

Generally, if you have a credit score below 750, it is difficult to get approved for a loan.

Home Loan Interest Rates Comparison

Once you ensure you have a good credit rating, you can use an online home loan comparison website in order to contrast and compare various loan offers. Don’t just solely rely on one site for comparison. If you are an existing customer of a bank and have a good relationship with your lender, then obviously, they make the first choice. You would be given preferential interest rates and other attractive terms and conditions if you have been a loyal customer. Make sure to check with your lender before approaching new lenders.

Name of the lender Interest rate
Canara Bank 8.65% -- 8.75%
Bank of India 8.65% -- 8.70%
Dena Bank 8.60% -- 8.85%
DBS Bank 8.50% -- 8.55%
ICICI Bank 8.75% -- 8.85%
Aditya Birla Housing Finance 8.65% -- 8.89%
HDFC LTD 8.65% -- 8.75%
State Bank Of India 8.60% -- 8.70%
Punjab National Bank 8.65% -- 8.75%
Indian Overseas Bank 8.65% -- 9.15%
Aspire Home finance Corporation Limited 14.00%
Yes Bank 10.25% -- 10.75%
India Bulls 8.70% -- 10.40%
Jammu and Kashmir Bank 8.8% -- 9.15%
Bank of Baroda 8.35% -- 9.35%
Tata Capital 8.65% -- 8.85%
Sundaram BNP Paribas 8.70% -- 9.25%
Axis Bank 8.65% -- 11.75%
SBI 9.00% onwards

Home Loan Interest Calculator

Before you jump on the first home loan offer on a house that you absolutely love, you should first check the interest rate on home loan. You must ask yourself this question – “How much can I afford, and how do I calculate the interest amount I would pay?”

You can use CreditMantri’s home loan calculator to find out how much interest amount you will pay towards your loan. Just enter the interest rate, the loan amount and the tenure, and the calculator will show a breakup of the home loan rate of interest. You can use the home loan EMI calculator as an interest calculator for different combinations of loan amounts, interest rates and tenures to get an accurate picture of what your financial outgo would be.

Using a Home Loan EMI also calculator takes the guesswork out of figuring out what kind of loan you can afford. There is no need to manually calculate the cost of different loan products offered by various lenders. It is quick, simple, accurate, and you need to know only three things when using the home loan calculator: the loan amount, the interest rate and the tenure. CreditMantri’s Home Loan EMI calculator will do the hard number crunching and present you with a breakup of the EMI amount. The whole process of calculating your EMI only takes a few minutes. Using an EMI calculator will help you gauge an understanding of the actual amounts involved in an EMI.

How do I choose the best loan offer?

The only way to decide which loan offer to apply for is to research the various options thoroughly. Once you have a good idea of the offers and schemes available, you can judge which offer suits your financial situation and requirements the best.

How is my loan eligibility determined?

Your credit history and repayment capacity will be considered while making a lending decision. Also, your home loan interest depends on your credit history. Having a good credit history and an impeccable repayment tracks ensures that you land the lowest interest rate for home loan as per your unique credit profile.

Your credit score and history also influences how much you can borrow. Your annual income, loan amount as compared to your income, savings history, number of dependents, existing loan obligations is also taken into account while making a loan sanctioning decision.

How to apply for a home loan

You can check your eligibility and apply for a home loan by signing up with CreditMantri. It is quick, simple and above all, free. You can compare the interest rate for home loan offered by different lenders on a single page and make an informed decision.

CreditMantri matches your credit and demographic profile to the lender's lending criteria and presents you a shortlist of only those lenders willing to lend to you based on your unique credit profile. In effect, we prescreen your application to make sure you are likely to qualify as per the lender’s credit criteria. Hence, the chances of your home loan application getting approved is higher.

Click here to sign up and apply for loans and credit cards, the CreditMantri way!

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