An Overview of Home Loan Interest Rates

The simplest definition of the home loan interest is the percentage of the principal amount charged by the lender. The interest rate can vary from lender to lender. Apart from that, interest rates depend on several other parameters also.

Almost all bank is offering lower interest rates after the pandemic era, compared to previous financial years. However, there are a few factors that determine the interest amount. The comparison can be done using the mortgage loan calculator. It will help you to decide the estimated amount you have to pay every year.

EMI Calculation Formula

EMI = [P x r x (1+r)^n]/[(1+r)^n-1]

Wherein,

P is Principal,

r is rate of interest, and

n is number of instalments

Several major banks and housing finance companies have reduced their interest rates to revive housing demand after the pandemic. In some cases, the interest rates are as low as 6.5%.

Now we will discuss what other most lenders are offering as interest rates and how you can save lakhs of rupees!

Home Loan Interest Rate of all Banks 2021

Banks	Starting Interest Rate (p.a.)	Processing Fees
Kotak Mahindra Bank	6.50%	0.50%
Citibank	6.75%	Rs. 10,000
Union Bank of India	6.40%	–
Bank of Baroda	6.50%	Rs. 8,500 – Rs. 25,000
Central Bank of India	6.85%	Rs. 20,000
Bank of India	6.85%	Rs. 1,500 – Rs. 20,000
State Bank of India	6.75%	0% – 0.35%
HDFC LTD	6.70%*	Rs. 3,000 – Rs. 5,000 (plus taxes)*
ICICI Bank	6.90%	Rs. 3,000
LIC Housing Finance	6.90%	Rs. 10,000 -Rs. 15,000
Axis Bank	6.90%	Rs. 10,000
Canara Bank	6.90%	Rs. 1,500 – Rs. 10,000
Punjab and Sind Bank	6.85%	Full Waiver
IDFC First Bank	6.90%	Rs. 5,000 – Rs. 5,000
Bank of Maharashtra	6.90%	Rs. 10,000
Indian Overseas Bank	7.05%	0.50% (Max Rs. 20,000)
Punjab National Bank	6.50%	0.35% (Max Rs. 15,000)
United Bank of India	8.00%	0.59% (Rs. 1,180 – Rs. 11,800)
UCO Bank	6.90%	0.15% (Rs. 1,500 – Rs. 15,000)
DBS Bank	7.30%	0.25% (Rs. 10,000)
IDBI Bank	6.75%	0.50% (Rs. 2,500 – Rs.5,000)
HSBC Bank	6.64%	1% (Rs. 10,000)
Karur Vysya Bank	7.20%	Rs. 5,000
Saraswat Bank Home Loan	6.70%	Nil
Jammu and Kashmir Bank	7.20%	Rs. 500 – Rs. 10,000
South Indian Bank	7.85%	0.50% (Rs. 5,000 – Rs. 10,000)
PNB Housing Finance	6.99%	0.25% – 0.50% (Rs. 10,000)
Federal Bank	7.65%	Rs. 3,000 – Rs. 7,500
Standard Chartered Bank	7.99%	1%
Aavas Financiers	8.00%	1.00%
Karnataka Bank	7.50%	Rs. 250
Sundaram Home Finance	6.95%	Rs.3,000 (for salaried)
Dhanlaxmi Bank	7.85%	Rs. 10,000
Tata Capital	6.90%	0.50%
Tamilnad Mercantile Bank	8.25%	Rs. 15,000
IIFL	10.50%	1.25%
DHFL Housing Finance	8.75%	Rs. 2500
Bandhan Bank	8.50%	1% (Rs.5,000)
Yes Bank	8.95%	1% (Rs. 10,000)
Hudco Home Loan	9.45%	NA
Indiabulls	8.65%	2%
Aditya Birla	9.00%	1%
GIC Housing Finance	7.45%	Rs. 2,500
Reliance Home Finance	9.75%	Rs. 3,000 – Rs. 6,500
Shriram Housing	8.90%	NA
India Shelter Finance	12.00%	2.00%

In the End

I hope you have got a clear idea about the interest rate and EMI for home loans. In case you have any doubt, please feel free to contact us at info@roodland.com.

We have a devoted team to answer your concerns and queries. We assure you to provide the needed guidance in the best possible manner. Thank you!