Best Home Loan Interest Rates in India 2024

A home loan is a specialized finance facility that a bank provides to the user where a big amount is offered for purchasing a property in return for interest.

You can purchase a property with this loan and get to own your dream home. It is a long-term loan for which you’ll have to pay an EMI every month to slowly settle the debt.

Houses are extremely expensive and generally, people do not have access to that kind of cash therefore, they get their home purchase financed by the Bank or any other financial institution.

There are various loan providers in the market offering interesting interest rates on the home loan. In this list of Home Loans, you can find the list of home loan rates at which the bank currently offers the home loan to the individual.

Before finding the list of best home loan interest rates in India 2024 let’s learn how to calculate interest on Hoe Loan, Types of Interest rates, etc.

Best Home Loan Interest Rates in India 2024

Bank Name	Floating Interest rate	Per lac EMI	Processing Fee	Prepayment Charges
SBI – State Bank Of India	8.60% – 9.40%	Rs.874 – Rs.926	Nil	Nil
ICICI Bank	8.75% – 9.80%	Rs.884 – Rs.952	2999+GST for CIBIL Score above 700, .50% + GST for Score below 700	N.A
HDFC Ltd	8.65% – 9.35%	Rs.877 – Rs.922	3000 + Tax (Salaried), 5000 + Tax (S. Employed)	Nil
LIC Housing	8.65% – 10.25%	Rs.877 – Rs.982	Below 1 Cr: Upto Rs.10000 + AT	Nil
			Above 1 Cr: Rs.20000 + AT
Bank of Baroda	8.45% – 9.80%	Rs.865 – Rs.952	Up to 0.5 % of loan amount + GST	N.A.
AXIS Bank	8.60% – 9.05%	Rs.874 – Rs.903	Up to 1% of the Loan amount subject to a minimum of Rs.10,000/-	Nil
PNB Housing Finance	8.50% – 10.35%	Rs.868 – Rs.988	0.50% Or 10,000 + GST, whichever is higher.	NIL
India Shelter Housing Finance	11.99% – 18.00 %	Rs.1100 – Rs.0	2% – 3%(Including GST)	NIL
DMI Housing Finance	12.00% – 18.00%		1.5% + GST	NIL
IDBI	8.00% – 11.15%	Rs.836 – Rs.1042	NIL	Nil
Union Bank of India	7.90% – 9.60%	Rs.830 – Rs.939	0.50% of loan amount subject to a maximum of 15000 + GST	NIL
Bank of India	7.80% – 9.65%	Rs.824 – Rs.942	0.25% of loan amount Min. Rs.1,000/- and Max. Rs.20,000/-	Nil
Piramal Housing Finance	0.095	Rs. 932	0.10% – 0.25% (GST)	N.A
L&T Housing Finance	0.0835	Rs.858	0.25% plus taxes (for salaried & for self-employed)	NIL
Tata capital Housing Finance ltd	0.0775	Rs.821 – Rs.0	Up to 0.5% of loan amount + GST	N.A
HSBC Bank	7.44% – 7.55%	Rs.802 – Rs.809	N.A	Nil
Federal Bank	9.05% – 9.20%	Rs.903 – Rs.913	Upto Rs.7500 + GST	N.A
Allahabad Bank	7.40% – 8.15%	Rs.799 – Rs.846	N.A	NIL
Central Bank of India	6.85% – 7.30%	Rs.766 – Rs.793	0.50% of the Loan Amount subject to a maximum of Rs.20,000/-	Nil
UCO Bank	7.15% – 7.25%	Rs.784 – Rs.790	0.5% of the loan amount, minimum Rs.1500/- & maximum Rs. 15000/-	NIL
Canara Bank	8.60 %- 10.80%	Rs.874 – Rs.1019	0.50% of loan amount + GST
Kotak Bank	8.30% – 8.90%	Rs.855 – Rs.893	Upto 1.25% of the Loan amount	Nil
				N.A
Citibank	8.50% onwards	Rs.868 onwards	Rs. 5000 (Application fee)	NIL
Oriental Bank of Commerce	7.00% – 7.60%	Rs.775 – Rs.812	0.50% of the loan amount, subject to a maximum of Rs.20000/- plus GST	NIL
Indian Overseas Bank	8.45% – 8.70%	Rs.865 – Rs.881	0.50 % (max. Rs.25,000/-)	N.A
Indian Bank	8.40%- 8.50%	Rs.862 – Rs.868	0.230% on loan amount + GST or Max Rs.20470/-	Nil
Punjab National Bank	8.40%- 9.55%	Rs.862 – Rs.935	0.50% of loan + GST	NIL
Bank of Maharastra	7.80% – 9.70%	Rs.824 – Rs.945	As per applicable	Nil
GIC Housing Finance	0.082	Rs.849 – Rs.0	Rs.2500 + GST	N.A
India Infoline Housing Finance Ltd.	0.09	Rs.900	Up to 1% of loan amount + GST	N.A
Karnataka Bank	8.24% – 10.31%	Rs.851 – Rs.986	N.A	N.A
Reliance Home Finance Private Ltd.	9.75% – 13.00%	Rs.949 – Rs.1172	Up to 2% + GST	N.A
Repco Home Finance Ltd.	7.70% – 10.40%	Rs.818 – Rs.992	1% of loan amount + GST	N.A

How to Calculate Interest on Home Loan?

To calculate interest on the home loan, you’ll have to evaluate various factors which help you calculate the interest amount on the home loan calculator.

The following are the factors that affect the Interest rate amount-

• Loan amount
• Tenure
• Interest rates

The formula for Calculating the Home Loan Interest Rate

The following is the formula for calculating the home loan interest rate-

P x R x (1+R)^N / [(1+R)^N-1], where-

P = Principal loan amount

N = Loan tenure in months

R = Monthly interest rate

R = Annual Rate of interest/12/100

Example-

Let’s say, A bank is offering you a loan of Rs.50 Lakhs for a 9.2% interest rate for 10 years. The calculation of the home loan is as follows-

When we imply the above data into the formula for finding the home loan EMI, i.e., 50,00,000 x 9.2% x (1+9.2)^10/(1+9.2)^10-1

The monthly EMI is calculated as Rs.63,880/-per month which you must pay for 10 years to the bank.  

Note- To calculate your home loan you can use the Mudra Nidhi home loan calculator

Types of Interest rates

There are two types of interest rates that a bank or financial institution provides you to choose from for getting the loan, which are explained as follows-

Fixed Interest Rate

Fixed Interest rates are those rates that are fixed in nature which are predefined and do not change during the tenure of the loan.

The entire structuring of this interest rate is fixed and no alteration can be done during the tenure which helps in determining the cost during the entire period.

Determining the fixed cost that you’ll have to bear helps in financial planning and no matter what the financial condition of the economy would be, you’ll have a fixed cost to bear. Due to this reason, the fixed interest rates are 1-2% higher than the floating interest rates.

Floating Interest Rate

Floating Interest rates are those that may vary from time to time and it highly depends on the RBI’s base rate.

RBI is the central bank of India which develops the monetary policy to aid the country in maintaining economic advancement.

To manage that RBI, lends the money itself to the banks so that the banks can further lend that money to the end users.

Floating interest rate charges with base rate + the interest decided by the bank. The base rate is the variable element that changes from time to time.

RBI decides the base rate depending on various factors like economic performance, inflation rate, the money supply in the market, etc.  

Which one to choose: Fixed Interest Rate or Floating Interest Rate?

Fixed Interest rates are a preferred choice of many as the fixed interest rate provides the end user with an assurance that whatever the market condition is, the fixed cost of the loan will not change.

On contrary, floating interest rate changes from time to time which might enforce pressure on your cash flow from time to time.

In general, if the loan amount is big and the payment tenure is also long then you should always go for a fixed interest rate and if the tenure is small and the loan amount is moderate to low then you can choose a floating interest rate.

In India, the inflation rate is generally 3-4% which keeps the economy growing well, however, during times of economic difficulties like COVID or depression, the inflation rate increase which affects the floating interest rates.

The above mention practice will help you in playing safe during any economic difficulty as generally, the economic performance of a country can be anticipated for a year or two in advance, and keeping the amount lower will not adversely affect your cash flow during the time of economic difficulty.

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