The interest rates applied on home loans depend on several factors, such as the credit score of the applicant, loan amount, tenure, etc. It is suggested that the applicant go through the current home loan interest rates applied by different lenders before applying for a home loan. A slight difference in the interest rates can affect the overall interest rate of the borrower.
Here we have discussed the current home loan interest rates offered by all the banks in India and the methods to calculate them.
Here is the list of home loan interest rates 2024 for all the banks in India:
Name of Lender |
Current Home Loan Interest Rate |
8.75% – 12.70% |
|
9.23% – 12.13% |
|
9.26% – 10.53% |
|
9.00% – 10.05% |
|
9.10% – 9.60% |
|
8.85% onwards |
|
9.15% – 15.00% |
|
10.15% – 10.30% |
|
9.85% – 12.60% |
|
9.15% – 11.55% |
|
Dhanlaxmi Bank |
9.35% – 10.50% |
Name of Lender |
Rate |
8.85% – 9.95% |
|
8.65% – 9.50% |
|
9.15% – 10.15% |
|
9.55% – 10.95% |
|
9.25% – 10.75% |
|
8.45% – 10.30% |
|
8.40% – 10.65% |
|
8.85%- 11.25% |
|
9.15% – 10.65% |
|
8.45% – 10.40% |
|
9.00% – 10.75% |
Name of Lender |
Housing Loan Interest Rate |
Citibank |
8.45% onwards |
Standard Chartered |
8.75% onwards |
HSBC |
8.60% onwards |
Name of Lender |
Home Loan Interest Rate in India |
HDFC Ltd. |
8.50% – 10.70% |
8.95% onwards |
|
8.90% – 10.75% |
|
8.70% onwards |
|
PNB Housing Finance |
8.50% – 14.50% |
Repco Home Finance |
9.60% onwards |
Indiabulls Housing Finance |
8.75% onwards |
L&T Housing Finance |
8.60% onwards |
GIC Housing Finance |
8.45% onwards |
ICICI Home Finance |
9.20% onwards |
Aditya Birla Capital |
8.80% – 14.75% |
Godrej Housing Finance |
8.64% onwards |
There are three types of home loan interest rates: fixed, floating, and hybrid.
Here is the step-by-step process for a home loan application:
The process of obtaining a home loan begins by filling out the home loan application form. One must fill in the following details while submitting the application form:
The bank begins processing your Home Loan application after you submit the form and the essential documents. The bank also investigates your credit score thoroughly. As a result, it is important that you keep a positive credit history. You must submit accurate information during the application process. Any false information will lead to your loan application getting rejected.
All the documents that are submitted during the application process will be verified by the bank to process the application further. It normally takes 1-2 days, or even less, if the paperwork is found correct after the verification process.
In certain situations, the bank can also request the applicant to come for an in-person verification before the loan is approved. This is done to gather more information about the application and to ensure that he or she will be able to repay the loan plus interest.
The bank undertakes legal and technical inspections before disbursing the loan money. The property for which you have requested a loan will be verified by the bank representatives. If the property is under construction, they will inspect the construction progress and work quality.
The bank representatives will analyze the actual value of the property during the technical check. The property's status (under construction or for sale) will also be considered.
If the property is a resale, the bank will look at the age and upkeep of the property. In case of a resale, the bank may additionally investigate if the property has previously been mortgaged. They will also investigate the ownership rights of the property to see if there is any conflicting information in the documents and proofs provided.
After successfully verifying the paperwork and legal check, the applicant will have to pay the home loan processing fee to the bank. This processing fee is collected to maintain the loan account of the applicant.
Usually, the processing fee for a home loan ranges from 0.25 % to 0.50 % of the loan amount.
For example, suppose you have applied for a home loan of Rs. 15 lahks, then you will have to pay a processing fee of Rs. 3,750 (at 0.25%) and Rs. 7,500 (at 0.50%), respectively.
This is the final step of the home loan application process. After you have met all the eligibility criteria, a formal agreement letter will be sent to you. Following that, your loan will be disbursed to your bank account. You will receive a complete home loan EMI schedule at your registered email address.
There are two major methods for the calculation of the housing loan interest rate, and they are:
This is a manual form of calculation, and the below-mentioned formula is used:
[P x r x (1+r)^n]/[(1+r)^n-1]
Here, p = Principal, R = Rate, and n = term.
This is an online EMI calculator that is used to calculate the interest rate, monthly EMI, and total payable amount. You can find an EMI calculator option on your Bank's online website. You will have to enter these details to calculate your monthly EMI:
The following are the factors that determine your home loan eligibility and the final housing loan interest rates that will be offered:
You must check all the eligibility conditions before applying for a housing loan. You should go through the current home loan interest rates of all the banks and decide accordingly. You can also visit any bank branch in your city and seek professional assistance to get the options and offers available.