Home Loan Interest Rates on a Falling Spree-Go & Get One Deal for You

home loan interest rates

Well, I must say what a tremendous start to the New Year! Yes, 2018 brings lots of happiness in the lives of many, especially those who are looking to buy their dream home. You wanted to avail a home loan for so long, but couldn’t find the best rate. Let me tell you, my friend, this is the right time to go for it as home loan rates have fallen to their lowest level in six years. Yup, you read that absolutely right buddy!

Below is the table showing Home Loan Interest Rate at top banks

Banks/NBFCsInterest Rate (p.a.)
State Bank of India (SBI)9.15% - 11.30%
HDFC Limited8.50% - 9.40%
ICICI Bank9.00% - 10.05%
Bank of Baroda (BoB)8.50% - 10.60%
LIC Housing Finance8.50% - 10.75%
Axis Bank8.75% - 9.15%
Indiabulls Housing Finance9.30% Onwards
DHFL (now Aadhar Housing Finance)9.05% - 9.95%
Citibank8.45% Onwards
Bajaj Finance9.05% - 11.15%
IDBI Bank8.80% - 12.25%
Kotak Mahindra Bank8.85% - 9.40%
PNB HFL8.50% - 11.95%
Standard Chartered BankStarting at 8.65%*

So much for the snowball effect, check out these salient features:

  • Country’s largest lender, State Bank of India (SBI) has slashed its MCLR rates by 0.90% points across all tenure of loans.
  • Earlier it was 9.10% per annum, but now the bank is offering the home loan at an interest rate of 8.60% per annum.
  • According to the statement issued by SBI, its 1-year Marginal Cost of Lending Rate (MCLR) is now 8 percent as compared to 8.9 percent earlier.
  • This rate cut will be applicable to all new home loan products. The impact on existing loans linked to MCLR regime will depend upon the re-pricing and renewal of the loan.
  • Not only this, SBI also made an announcement about teaser rate loan, wherein you can avail the loan at the floating interest rate of 8.5% per annum for the first two years.
  • Besides SBI, other banks such as Punjab National Bank (PNB) & Union Bank of India have also joined the bandwagon, thus offering you loans at cheaper interest rates.
  • In addition to this, those who had availed loans before April 2016 can enjoy the benefit of the new MCLR regime only when they sign a fresh contract with the bank by paying a small fee for the same.
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However, by looking at the current scenario, it would not be wrong to say that you can expect home loan rate cuts from many private sector banks as well, which is obviously a boon for all. Well, folks, the reduction in lending rates by public sector banks is going to make a huge difference in your overall home loan journey. Yes, if loan interest rates will reduce, your EMI, as well as your overall interest outgo will also reduce, thus making home loans pocket-friendly for you. Isn’t it great? Now, your dream home wish can easily be fulfilled and that too without hurting your budget as home loans are now affordable for all. It allows you to save more bucks now, sounds exciting right?

Let’s just get more clarity by looking at a table below showing the change in EMIs and Interest Outgo before and after home loan rate cuts.

Loan Amount (in ₹)Interest Rate (in p.a.)Tenure (in Years)EMI (₹)Interest Outgo (₹)
20000009.10 % (before)20181232349603
20000008.60% (after)20174832195981

Well, as you can clearly see on the table how the home loan rate cut created its impact on your EMI and interest outgo. The difference in EMIs may not be that high, but my friend have you calculated the interest difference? Let me tell you, it’s coming out to be ₹1,53,622, which is huge, don’t you think so?

All I can say is that now the time is right to get the keys of your dream home. So, what are you waiting for? Go and calculate your home loan eligibility and grab the best home loan interest rate deals to make your loan journey memorable 🙂

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(Updated on Jan 2, 2017)

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  • Home Loan Interest Rates September 2023
    Axis Bank8.75% - 9.15%
    Bank of Baroda8.50% - 10.60%
    Citibank8.75% - 9.15%
    HDFC8.50% - 9.40%
    ICICI Bank9.00% - 9.85%
    Indiabulls Housing Finance Limited8.65%
    Kotak Bank8.85% - 9.40%
    LIC Housing8.50% - 10.50%
    Piramal Capital & Housing Finance10.50%
    PNB Housing Finance8.50% - 10.95%
    Reliance Home Finance8.75% - 14.00%
    State Bank of India/SBI9.10% - 9.65%
    Tata Capital8.95% - 12.00%
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