Best Home Loan Interest Rates in India 2024

Whether it’s a small home or a big home, owning a home is like everyone’s dream. Home is a big-ticket investment that requires a lot of funds to be collected and invested.

Sometimes the funds required are so big that it may take a person his/her lifetime to get his hands on his home. In this case, taking a loan is the best way out, instead of saving the fund and then buying, you can own the home and pay Home Loan EMI monthly for the loan that you’ve taken.

Many banks provide individuals with loan facilities and the interest charged by them is low which makes it the best type of loan, but for getting the best loan offer, you’ll have a good Credit Score.

 The Good thing is that you can always improve your Credit score even if it has fallen. But one this that you should always check is the interest rate that is being offered to you.

The home loan interest rate usually is below 10% depending on your profile however, some banks may charge you more so, having a broad comparison of the interest rate is important. In this article, we have listed the best home loan interest rate in India where you can apply for a loan.

Best Home Loan Interest Rates in India 2024

The following are the various banks that offer Home Loan interest rates in India-

Bank Name	Floating Interest rate	Per lac EMI	Processing Fee	Prepayment Charges
SBI – State Bank Of India	8.60% – 9.40%	Rs.874 – Rs.926	Nil	Nil
ICICI Bank	8.75% – 9.80%	Rs.884 – Rs.952	2999+GST for CIBIL Score above 700, .50% + GST for Score below 700	N.A
HDFC Ltd	8.65% – 9.35%	Rs.877 – Rs.922	3000 + Tax (Salaried), 5000 + Tax (S. Employed)	Nil
LIC Housing	8.65% – 10.25%	Rs.877 – Rs.982	Below 1 Cr: Upto Rs.10000 + AT	Nil
			Above 1 Cr: Rs.20000 + AT
Bank of Baroda	8.45% – 9.80%	Rs.865 – Rs.952	Up to 0.5 % of loan amount + GST	N.A.
AXIS Bank	8.60% – 9.05%	Rs.874 – Rs.903	Up to 1% of the Loan amount subject to a minimum of Rs.10,000/-	Nil
PNB Housing Finance	8.50% – 10.35%	Rs.868 – Rs.988	0.50% Or 10,000 + GST, whichever is higher.	NIL
India Shelter Housing Finance	11.99% – 18.00 %	Rs.1100 – Rs.0	2% – 3%(Including GST)	NIL
DMI Housing Finance	12.00% – 18.00%		1.5% + GST	NIL
IDBI	8.00% – 11.15%	Rs.836 – Rs.1042	NIL	Nil
Union Bank of India	7.90% – 9.60%	Rs.830 – Rs.939	0.50% of loan amount subject to a maximum of 15000 + GST	NIL
Bank of India	7.80% – 9.65%	Rs.824 – Rs.942	0.25% of loan amount Min. Rs.1,000/- and Max. Rs.20,000/-	Nil
Piramal Housing Finance	0.095	Rs. 932	0.10% – 0.25% (GST)	N.A
L&T Housing Finance	0.0835	Rs.858	0.25% plus taxes (for salaried & for self-employed)	NIL
Tata Capital Housing Finance Ltd	0.0775	Rs.821 – Rs.0	Up to 0.5% of loan amount + GST	N.A
HSBC Bank	7.44% – 7.55%	Rs.802 – Rs.809	N.A	Nil
Federal Bank	9.05% – 9.20%	Rs.903 – Rs.913	Upto Rs.7500 + GST	N.A
Allahabad Bank	7.40% – 8.15%	Rs.799 – Rs.846	N.A	NIL
Central Bank of India	6.85% – 7.30%	Rs.766 – Rs.793	0.50% of the Loan Amount subject to a maximum of Rs.20,000/-	Nil
UCO Bank	7.15% – 7.25%	Rs.784 – Rs.790	0.5% of the loan amount, minimum Rs.1500/- & maximum Rs. 15000/-	NIL
Canara Bank	8.60 %- 10.80%	Rs.874 – Rs.1019	0.50% of loan amount + GST
Kotak Bank	8.30% – 8.90%	Rs.855 – Rs.893	Upto 1.25% of the Loan amount	Nil
Citibank	8.50% onwards	Rs.868 onwards	Rs. 5000 (Application fee)	NIL
Oriental Bank of Commerce	7.00% – 7.60%	Rs.775 – Rs.812	0.50% of the loan amount, subject to a maximum of Rs.20000/- plus GST	NIL
Indian Overseas Bank	8.45% – 8.70%	Rs.865 – Rs.881	0.50 % (max. Rs.25,000/-)	N.A
Indian Bank	8.40%- 8.50%	Rs.862 – Rs.868	0.230% on loan amount + GST or Max Rs.20470/-	Nil
Punjab National Bank	8.40%- 9.55%	Rs.862 – Rs.935	0.50% of loan + GST	NIL
Bank of Maharastra	7.80% – 9.70%	Rs.824 – Rs.945	As per applicable	Nil
GIC Housing Finance	0.082	Rs.849 – Rs.0	Rs.2500 + GST	N.A
India Infoline Housing Finance Ltd.	0.09	Rs.900	Up to 1% of loan amount + GST	N.A
Karnataka Bank	8.24% – 10.31%	Rs.851 – Rs.986	N.A	N.A
Reliance Home Finance Private Ltd.	9.75% – 13.00%	Rs.949 – Rs.1172	Up to 2% + GST	N.A
Repco Home Finance Ltd.	7.70% – 10.40%	Rs.818 – Rs.992	1% of loan amount + GST	N.A

Types of Interest Rate

Whenever you are applying for a loan, the bank charges you an interest rate. There are two types of interest rates which are as follows-

Fixed Interest Rate

As the name suggests, fixed interest rates are those interest rate which is fixed during the entire loan repayment tenure. There will be no changes in the interest rate payment whatsoever the market condition is.

Floating Interest Rate

Floating Interest rates are those loans that vary depending on the market conditions and monetary policy set by the Reserve Bank of India.

RBI is a bank in itself and lends money to other banks like HDFC Bank, ICICI Bank, SBI, etc. at a lower interest rate/Base Rate and these banks then lend to common people and corporates.

This is how the banks function and alteration of the base rate affects the lending pattern of the bank and is directly affected by the Floating Interest rate.

The Bank’s floating interest rate will be charged based on the Base Rate + Bank’s Profit, here the profit remains the same, and the base rate changes depending on the market conditions.

Which one to choose?

A fixed interest rate is a safe and easy option for individuals because of the fixed nature of the loan. Floating interest rates can lower or higher which depends on the market conditions.

So, if the market is up, your interest rate is low and if the market is down, your interest rate will be higher and this scenario might be dangerous.

Ideally, as a general rule, you should always go for a Fixed Interest rate because it will help you in budgeting beforehand, if you choose a floating interest rate, you’ll always be vulnerable to the market conditions and may disrupt your budget.

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