An Overview of Home Loan Interest Rates

Kishan Thakkar K

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]


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

BanksStarting Interest Rate (p.a.)Processing Fees
Kotak Mahindra Bank6.50%0.50%
Citibank6.75%Rs. 10,000
Union Bank of India6.40%
Bank of Baroda6.50%Rs. 8,500 – Rs. 25,000
Central Bank of India6.85%Rs. 20,000
Bank of India6.85%Rs. 1,500 – Rs. 20,000
State Bank of India6.75%0% – 0.35%
HDFC LTD6.70%*Rs. 3,000 – Rs. 5,000 (plus taxes)*
ICICI Bank6.90%Rs. 3,000
LIC Housing Finance6.90%Rs. 10,000 -Rs. 15,000
Axis Bank6.90%Rs. 10,000
Canara Bank6.90%Rs. 1,500 – Rs. 10,000
Punjab and Sind Bank6.85%Full Waiver
IDFC First Bank6.90%Rs. 5,000 – Rs. 5,000
Bank of Maharashtra6.90%Rs. 10,000
Indian Overseas Bank7.05%0.50% (Max Rs. 20,000)
Punjab National Bank6.50%0.35% (Max Rs. 15,000)
United Bank of India8.00%0.59% (Rs. 1,180 – Rs. 11,800)
UCO Bank6.90%0.15% (Rs. 1,500 – Rs. 15,000)
DBS Bank7.30%0.25% (Rs. 10,000)
IDBI Bank6.75%0.50% (Rs. 2,500 – Rs.5,000)
HSBC Bank6.64%1% (Rs. 10,000)
Karur Vysya Bank7.20%Rs. 5,000
Saraswat Bank Home Loan6.70%Nil
Jammu and Kashmir Bank7.20%Rs. 500 – Rs. 10,000
South Indian Bank7.85%0.50% (Rs. 5,000 – Rs. 10,000)
PNB Housing Finance6.99%0.25% – 0.50% (Rs. 10,000)
Federal Bank7.65%Rs. 3,000 – Rs. 7,500
Standard Chartered Bank7.99%1%
Aavas Financiers8.00%1.00%
Karnataka Bank7.50%Rs. 250
Sundaram Home Finance6.95%Rs.3,000 (for salaried)
Dhanlaxmi Bank7.85%Rs. 10,000
Tata Capital6.90%0.50%
Tamilnad Mercantile Bank8.25%Rs. 15,000
DHFL Housing Finance8.75%Rs. 2500
Bandhan Bank8.50%1% (Rs.5,000)
Yes Bank8.95%1% (Rs. 10,000)
Hudco Home Loan9.45%NA
Aditya Birla9.00%1%
GIC Housing Finance7.45%Rs. 2,500
Reliance Home Finance9.75%Rs. 3,000 – Rs. 6,500
Shriram Housing8.90%NA
India Shelter Finance12.00%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

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!


Subscribe To Our Newsletters

We don’t spam! Read our privacy policy for more info.


To be updated with all the latest blogs, news and special announcements.