Home Loan Interest of All Banks and Housing Finance Companies 2023

Buying your own home can be one of the best feelings that bring great excitement and enthusiasm. Buying a house is a big step not just for one individual as generally the whole family is involved. So as much exciting it is, it can also be a little bit scary and hectic comparing in between different home loan providers. They are numerous banks and housing finance companies that offer home loans at different interest and processing charges to the customers. To decide which home loan is best for you, we have compiled Home Loan Interest of All Banks and Housing Finance Companies 2023 and presented it here in this article. The article also discusses other important information that a person will require for acquiring a loan for their house of dreams.

Banks and Housing Finance Companies Home Loan Interest Rate 2023

Check out the list of all major Banks and Housing Finance Companies offering home loan along with their starting interest and processing fees.

Banks/ Housing Finance Companies Interest Rate per annum Processing fees
Bandhan Bank 6.40% 1%
Citibank 6.65% Rs. 10,000
IDBI Bank 6.75% 0.50%
Bank of India 6.90% ——-
United Bank of India 6.90% 0.59%
UCO Bank 6.90% 0.15%
Sundaram Home Finance 6.95% Rs.3,000
Canara Bank 7.05% 0.50%
Indian Overseas Bank 7.05% 0.50%
Karur Vysya Bank 7.15% Rs. 5,000
Jammu and Kashmir Bank 7.20% Rs. 500
Standard Chartered Bank 7.25% 1%
Bank of Maharashtra 7.30% Rs. 10,000
DBS Bank 7.30% 0.25%
Union Bank of India 7.40% ——-
Central Bank of India 7.40% Rs. 20,000
Punjab and Sind Bank 7.40% NIL
Punjab National Bank 7.40% 0.35%
HSBC Bank 7.44% 1%
Bank of Baroda 7.45% ——-
Kotak Mahindra Bank 7.50% 0.50%
IDFC First Bank 7.50% Rs. 5,000
Saraswat Bank Home Loan 7.50% NIL
PNB Housing Finance 7.50% 0.50%
State Bank of India 7.55% 0.35%
HDFC LTD 7.55% 0.5%
LIC Housing Finance 7.55% Rs. 10,000
Axis Bank 7.60% Rs. 10,000
Indiabulls 7.60% 0.50%
Tata Capital 7.75% 0.50%
Dhanlaxmi Bank 7.85% Rs. 10,000
Karnataka Bank 7.89% Rs. 250
Tamilnad Mercantile Bank 7.95% Rs. 15,000
Aavas Financiers 8.00% 1.00%
GIC Housing Finance 8.20% Rs. 2,500
Federal Bank 8.55% Rs. 3,000
DHFL Housing Finance 8.75% Rs. 2500
Aditya Birla 8.90% 1%
Shriram Housing 8.90% ——-
Yes Bank 8.95% 1%
Hudco Home Loan 9.45% ——-
Reliance Home Finance 9.75% Rs. 3,000
IIFL 10.50% 1.25%
India Shelter Finance 12.00% 2.00%
South Indian Bank Repo Rate + 3.35% 0.50%

Types of Home Loan Interest

All banks and housing finance companies generally charge two different types of home loan interests. These are Fixed Interest Rate, Floating Interest Rate and Hybrid Interest Rate. Let us discuss them one by one.

Fixed Interest Rate

As the name suggests, when the rate does not vary with changes in the market forces, it is termed as fixed home loan interest rate. This means that the interest rate will not change till the complete tenure of the loan.

Advantages of Fixed Interest Rate

  • Fixed interest rates make the forecasting of future EMIs very simple.
  • Repayment can be calculated and planned easily with fixed interest rates.
  • People find the fixed rate more comfortable as it does not give an uncertainty.

Who should go for Fixed Interest Rate?

  1. People with little to no knowledge of real estates should opt for fixed home loan interest rates since they are unaware of the changing market situations.
  2. If you find the rate of interest is minimum at the time of availing the loan and the tenure of loan is going to be small, go for fixed interest rates.

Disadvantage:

  • In case the rates of home loan go down, you will still be repaying with the fixed higher rates.

Floating Interest Rate

When the rate of interest varies over the tenure of home loan, it is called as floating interest rate. Although it makes calculation of future EMIs difficult, but in case the interest goes down in future it will be beneficial. On the other hand, if the rate increases, the EMIs will increase as well.

Advantages of Floating Interest Rate

  • When home loan rates drop, the amount of EMI goes down too.
  • Borrowers do not have to pay any charges on part-prepayment or foreclosure.

Who should go for Floating Interest Rate?

  1. People with knowledge of real estates can go for floating interest rates.
  2. If you know that rate of home loan is going down in the coming future, you can opt for floating interest rates.

Disadvantage:

  • In case the rates of home loan go up, you will be repaying with the higher rates.

Hybrid Interest Rate

There is a third type of home loan interest rate which is a mix of fixed rate and floating rate. Under this scheme, the borrower initially has to pay a fixed interest rate for a set period and after some time, the rate changes into floating interest rate.

Home Loan EMI Calculator

There are two different ways by which EMI on home loan can be calculated at the given rate of interest. One is by calculating EMI using mathematical formula and the other is direct calculation form EMI calculator based on the same formula.

Formula for calculation of EMI on home loan

The formula for calculating EMI on home loan goes like this:

EMI = [P x r x (1+r)^n]/[(1+r)^n-1]

Here, P stands for Principal amount, r stands for rate of interest, and n is number of installments or tenure of loan in months.

Direct calculation of home loan via EMI calculator

You can directly calculate the monthly installments for your home loan by using a home loan EMI calculator. On the calculator, you only need to enter the details of your Home Loan Amount, Loan Repayment Tenure and Rate of Interest. After providing these details, just click on the ‘Calculate’ button to get the complete details about your loan repayment.

FAQs

What things should I make myself familiar with before applying for home loan?

As a home loan borrower, there are few things that you should keep in mind before applying for the loan.

  • You should compare the interest rates offered by different banks and housing finance companies.
  • Lower rate of interest should however be not the sole point for deciding a particular bank or housing finance company. You should look into their history and make sure that they are trustworthy.
  • You should also decide beforehand how much money you will be giving as down payment as this will lower your principal and thus your EMIs.
  • Make sure that you understand all the charges and terms and conditions before availing the home loan.

While applying for banks and HFCs home loan, what criteria are considered for approving the loan?

The banks and housing finance companies consider the following parameters for providing the loan:

  • Income of the individual applying for loan
  • Amount and tenure of loan required
  • Credit score of the borrower
  • Type of employment, salaried or self-employed
  • Interest of loan rates
  • Details of the property you are taking loan for

Which type of home loan interest rate should I go for, fixed, flexible or hybrid?

In the article above, we have discussed complete details about both types of loan and who should opt for which loan type under the Types of Home Loan Interest section. You can find the right answer there.

What is the eligibility for getting a home loan?

Different banks and HFCs have prescribed different criteria for home loan. The factors that they take into consideration are however same. These are age, credit score, employment type and repayment capacity. To find exact details, you need to vista the official age of the bank you wish to take loan from.

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