Home Loan Interest Rates

If you are taking a home loan, it's interest rate is a major factor that affects the total cost of your home. Since the home loan amount is high and the tenure of the home loan is also long, home loan interest can have long-term financial implications. Getting a lower interest rate for a home loan will not only result in lower EMIs but also lower interest payments. If we talk about the interest rate, then the lowest interest rate till date is 7.0%* p. a. Hence, home loan borrowers should try to get a home loan at the lowest possible interest rate.


The rate of interest also depends on your selection of interest rate type.

There are two types of interest rates:

Fixed interest rate- In fixed interest rate, there is no increase or reduction in your EMI, it remains the same for the entire tenure.

Floating interest rates- It changes in floating rate, in this your interest rate can increase or decrease.


Fixed interest rates: On a fixed rate loan, your EMI does not change for the entire loan tenure. In fixed rate, banks fix the interest rate of the loan at the beginning. This rate is applicable for the entire tenure of the loan. At the time of taking the loan, it is known that how much installment will you have to pay every month.

  • Advantages- Fixed rate home loans can prove beneficial only if the Reserve Bank of India (RBI) hikes the repo rate in the coming years. You can save your money if the bank will hike their interest rates.
  • Disadvantages- If RBI will announce to decrease rate of interest of all banks so, you will have pay your EMIs on your old and fixed interest rates and you will be not applicable to take advantages of the decrease interest rates.

Floating interest rates: In floating rate, the interest rate of your home loan is decided on the basis of the floating rate along with the base rate. In such a situation, the fluctuation of the base rate has an effect on the EMI. In the case of floating interest rates there are chances to increase or decrease interest rates.

  • Advantages- This is beneficial when interest rates are expected to come down in the future. It can be too helpful in decreasing your monthly EMIs and save your money too.
  • Disadvantages- In the rare cases, if the standard rates will increase, then the loan will also increase and the borrower has pay his loan at a higher rate of interest.
Factors that Affect Rate of Interest for Personal Loan

Repayment capabilities- Your loan interest rate directly affects how affordable the loan is and the ease with which you can repay it. Your repayment is in the form of EMI, which includes both interest and principal. Low interest rate home loan lowers your EMI.


Credit score- If your credit score will be good i.e. between 750 to 900 then you can get loan at the lowest interest rate. If you don't have a good credit score, it could increase your interest.


Employment status-  People who do permanent jobs, the banks or other financial institutions, they get loans at very reasonable interest rates, because the repayment risk is less with job professions than the self employed.

EMI Calculator & Schedule

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Loan EMI

24,959

Total Interest Payable

34,90,279

Total Payment
(Principal + Interest)

59,90,279

Loan Eligibility Calculator
%
Comparison Chart
LenderInterest RateProcessing FeeEMI / LakhLoan Tenure
7.05 %Upto 0.53 (Min Rs 8900 Max 13350)Rs 66930 Years Max
7.49 %Upto 1.00 (Min Rs 5000 Max Rs 10000)Rs 80520 Years Max
7.50 %Min Rs 10000Rs 69930 Years Max
7.70 %upto 0.30Rs 81820 Years Max
7.75 %Upto 0.15 (Min Rs 10000)Rs 71630 Years Max
7.75 %Upto 0.35 (Min Rs 2500 Max 15000)Rs 71630 Years Max
7.80 %upto 0.25Rs 72030 Years Max
7.90 %Upto 0.23 (Min Rs 20381)Rs 83020 Years Max
7.95 %Min Rs 10030Rs 73030 Years Max
7.99 %Min Rs 10000Rs 83620 Years Max
8.00 %Min Rs 2500Rs 73430 Years Max
8.05 %NILRs 73730 Years Max
8.05 %Min Rs 5000Rs 77525 Years Max
8.10 %Min Rs 3000Rs 74130 Years Max
8.10 %Min Rs 3000Rs 74130 Years Max
8.10 %Min Rs 10000Rs 74130 Years Max
8.40 %Min Rs 10000Rs 76230 Years Max
8.40 %Upto 0.50 (Max Rs 15000)Rs 76230 Years Max
8.85 %Upto 0.50 (Min Rs 50000)Rs 79430 Years Max
8.95 %Upto 1.50 (Max Rs 10000)Rs 83625 Years Max

RELATED BLOGS (22)

News Update on Home Loan Interest Rates

Home Loan Top Up: Eligibility, key benefits, interest rate – All you need to know

Admin 2022-08-30 12:19:20

A disciplined borrower can use multiple financial products available in the market to make their financial journey smoother. A top-up home loan is one of the easiest ways to borrow money without too much documentation and verification. It also offers more flexibility and better features than other borrowing instruments. One of the main eligibility requirements for a top-up home loan is that you need to be an existing home loan borrower.

A top-up home loan has many benefits. Let’s check out how a top-up home loan works and its key benefits.

Mumbai property registrations double for the first time since 2019

Admin 2022-09-23 11:50:49

Mumbai saw average quarterly value of registered propertied at Rs 44,520 crore in the first half of current year, which is the highest in the past five years.

Heightened property buying activity in the Mumbai Municipal Region (MMR) after the Covid-19-induced slowdown has taken the home sales registration numbers to their highest levels in the last five years. Mumbai saw total registered value of residential properties at Rs 89,039 crore in the first half of the current calendar year (2022), with average quarterly value of Rs 44,520 crore, which is the highest in the past five years, according to a research report by property consultant Prop Equity.

Bandhan Bank aims to double business at Rs 4 trillion by 2025

Admin 2022-09-23 11:52:39

Bandhan Bank is aiming to double its banking business at Rs 4 trillion in next three years considering its current year-on-year (y-o-y) growth, said the bank’s founder Chandra Shekhar Ghosh.

“At present our pan-India business is more than Rs 2 trillion. We have strong presence in the eastern part of the country, but now we are expanding in the western and southern states aggressively including that of Gujarat. In the process, the bank is all set to further broaden its customer base from 2.83 crore to over 4 crore by the end of 2025,” said Ghosh who is also managing director and CEO of the bank.

RBI Monetary Policy Live Updates: Shaktikanta Das hikes repo rate by 50 bps

Admin 2022-09-30 11:31:51

The Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) announced a 50 basis points (bps) hike in the repo rate to 5.90 per cent on Friday in order to bring elevated  back to its target.

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