Top 10 Banks Offering Lowest Interest Rate for Home Loan in India

Highlights

  • Have a look at top banks offering lowest interest rates on home loans.
  • Compare the rates offering by top lenders before you apply for a home loan.

A home loan is a secured loan and is the best option to buy a home as there many lenders offering low-interest rate on home loans. The right lender can surely help you in buying your dream home without making much impact on your pocket. Home loans give you the opportunity to buy a house at an affordable EMI payment.

Banks and NBFCs have certain eligibility criteria on the basis of which they offer the interest rate on a home loan. The factors such as your income and CIBIL score play an important role in deciding whether or not you are eligible for the loan. So, the better your overall profile is, the higher is the possibility to get a lower rate. You can get the loan for up to 85% of the cost of the property and some banks even offer home loans up to 100%. You just need to do a proper research on the options and then finalize your home loan at any bank.

Home Loan

Eligibility & Quotes from top PSU & Pvt. Banks | Lowest Interest Rates | Comfortable Tenure

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    Home Loan Interest Rates

    The home loan rates have drastically declined and with customer benefiting schemes by the government like PMAY and RERA Act, this is definitely the best time to buy a home. The lowest home loan interest rates on home loans today are 8.45% per annum for  women and 8.50% per annum for others. Here are the top banks offering lowest interest rates on home loans in India.

    Top 10 Banks Lowest Home Loan Interest Rates

    With so many options available in the market today, it might get a little confusing to choose the best one. So, have a look at the table with home loan interest rates comparison to check the best home loan for yourself.

    Home Loan Interest Rates Sep 2018
    Axis Bank8.50% - 8.75%
    Bank of Baroda8.55% - 9.55%
    LIC Housing8.60% - 8.95%
    State Bank of India/SBI8.65% - 9.20%
    Kotak Bank8.65% - 8.75%
    Indiabulls Housing Finance Limited8.70% - 9.85%
    HDFC8.70% - 9.40%
    Citibank8.85% - 9.65%
    ICICI Bank8.85% - 9.10%
    PNB Housing Finance8.99% - 10.75%

    How can you calculate Housing Loan Interest?

    With the housing loan interest, we mean the EMI you have to pay on your housing loans. For the calculation purpose, a home loan calculator is used. The calculator takes into account the basic details of the loan that is the loan amount, the interest rate, and the maximum tenure. Below is an example for reference purpose.

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    Table Showing EMI, Interest Outgo, and Total Repayment Amount

    Loan AmountInterest RateTenureMonthly InstalmentTotal Interest AmountTotal Amount
    ₹ 30,00,0008.50%1₹ 2,61,659₹ 1,39,912₹ 31,39,912
    ₹ 30,00,0008.50%2₹ 1,36,367₹ 2,72,809₹ 32,72,809
    ₹ 30,00,0008.50%3₹ 94,703₹ 4,09,294₹ 34,09,294
    ₹ 30,00,0008.50%4₹ 73,945₹ 5,49,356₹ 35,49,356
    ₹ 30,00,0008.50%5₹ 61,550₹ 6,92,976₹ 36,92,976
    ₹ 30,00,0008.50%6₹ 53,335₹ 8,40,131₹ 38,40,131
    ₹ 30,00,0008.50%7₹ 47,509₹ 9,90,794₹ 39,90,794
    ₹ 30,00,0008.50%8₹ 43,176₹ 11,44,933₹ 41,44,933
    ₹ 30,00,0008.50%9₹ 39,838₹ 13,02,510₹ 43,02,510
    ₹ 30,00,0008.50%10₹ 37,196₹ 14,63,485₹ 44,63,485
    ₹ 30,00,0008.50%11₹ 35,059₹ 16,27,811₹ 46,27,811
    ₹ 30,00,0008.50%12₹ 33,302₹ 17,95,440₹ 47,95,440
    ₹ 30,00,0008.50%13₹ 31,835₹ 19,66,318₹ 49,66,318
    ₹ 30,00,0008.50%14₹ 30,598₹ 21,40,389₹ 51,40,389
    ₹ 30,00,0008.50%15₹ 29,542₹ 23,17,594₹ 53,17,594

    EMI, Total Interest Outgo, Total Repayment (Interest + Principal)

    YearPrincipalInterestBalance Amount
    1₹ 1,03,475₹ 2,51,030₹ 28,96,524
    2₹ 1,12,622₹ 2,41,884₹ 27,83,901
    3₹ 1,22,576₹ 2,31,929₹ 26,61,325
    4₹ 1,33,411₹ 2,21,095₹ 25,27,913
    5₹ 1,45,204₹ 2,09,302₹ 23,82,709
    6₹ 1,58,038₹ 1,96,468₹ 22,24,670
    7₹ 1,72,007₹ 1,82,498₹ 20,52,662
    8₹ 1,87,211₹ 1,67,294₹ 18,65,450
    9₹ 2,03,759₹ 1,50,747₹ 16,61,691
    10₹ 2,21,770₹ 1,32,736₹ 14,39,921
    11₹ 2,41,372₹ 1,13,134₹ 11,98,548
    12₹ 2,62,707₹ 91,798₹ 9,35,840
    13₹ 2,85,928₹ 68,577₹ 6,49,911
    14₹ 3,11,202₹ 43,304₹ 3,38,709
    15₹ 3,38,917₹ 15,797₹ 0

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    Things to consider while applying for a home loan

    • Know about your eligibility first
    • Check maximum availed amount
    • Compare rate of interest of different banks
    • Select a tenure as per your financial liabilities
    • Find out other cost and hidden charges
    • Get information about late payment, default payment, and pre-payment charges
    • Is the property valid for availing a loan as per the government norms?
    • What kind of benefits will you have with a home loan?
    • Find out information about the total interest outgo on your loan amount
    • What will be your monthly EMI?
    • Maximum tenure to repay the loan
    • Possibility of loan conversion
    • Pre-closure charges if any
    • Are you taking the loan on fixed or floating rate of interest?

    Personal Loan Interest Rates September 2018
    Bajaj Finserv10.99% - 16.00%
    Fullerton India14.00% - 33.00%
    HDFC Bank11.25% - 21.25%
    ICICI Bank10.99% - 18.40%
    IndusInd Bank11.25% - 16.00%
    Kotak Bank10.99% - 20.99%
    RBL13.00% - 18.00%
    Standard Chartered Bank10.99% - 14.49%
    Tata Capital10.99% - 18.00%
    Home Loan Interest Rates September 2018
    State Bank of India/SBI8.65% - 9.20%
    HDFC8.70% - 9.40%
    Bank of Baroda8.55% - 9.55%
    LIC Housing8.60% - 8.95%
    PNB Housing Finance8.99% - 10.75%
    ICICI Bank8.85% - 9.10%
    Axis Bank8.50% - 8.75%
    Citibank8.85% - 9.65%
    Indiabulls Housing Finance Limited8.70% - 9.85%
    Kotak Bank8.65% - 8.75%
    DHFL9.05% - 9.95%
    Reliance Home Finance8.75% - 10.00%
    EMI Calculator