Home Loan Interest Rate: HDFC, Axis, UBI, KOTAK, BOB, BOI, Others

Home Loan Interest Rate: The interest rate on a mortgage is a proportion of the principle that the lender charges the borrower. It establishes how much a mortgage will cost. Use the HDFC Bank EMI Calculator to determine interest. The calculator aids in planning cashflows and making well-informed decisions on the purchase of a new home.

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Home Loan Interest Rate

Home loans from HDFC Bank come with features like flexible repayment options and top-up loans, with EMIs starting at 769 per lac and interest rates at 8.50%* p.a. Apply for the best house loan after comparing the lowest interest rates, which start at 8.40% p.a.

Home Loan Interest Rate : Overview

Starting Interest Rate (p.a.)  BankProcessing Fees
8.70% p.a. onwards Union Bank of India0.50% of the loan amount
8.75% p.a. onwards  Kotak Mahindra Bank  2%
8.60% p.a. onwards Bank of Baroda Up to 0.50% (Min. Rs. 8,500; Max. Rs. 25,000)
8.45% p.a. onwardsBank of IndiaUp to 0.25% for individuals (Min. Rs. 1,500; Max. Rs. 20,000)
8.35% p.a. onwardsCentral Bank of IndiaNIL or up to 0.50%
8.45% p.a. onwards*HDFC Home Loans0.5% or Rs.3,000 whichever is higher
9.00% p.a. onwards  Axis Bank      Up to 1% or min. Rs. 10,000
8.40% p.a. onwards State Bank of India0.17%
9.25% p.a. onwardsCanara Bank0.50% of the loan amount (min. Rs. 1,500 and max. Rs. 10,000)
8.45% p.a. onwards LIC Housing FinanceUp to 0.50%

Maximum tenure for a home loan

The maximum loan term varies depending on the borrower’s and lender’s income; NoBroker reports a 30-year term, whereas Bank of Baroda advises up to 30 years if you apply early.

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EMI payment per month

According to the most recent statistics from BankBazaar, the cost of a home loan is defined by the interest rates charged by banks and non-financial institutions, and the lowest home loan interest rate in India starts at 8.40% p.a.

Your monthly interest rate (EMI) can be calculated using an EMI calculator that is online at. You must give the following details in order to utilize it.

  • Loan amount
  • Interest rate
  • Loan tenure

Based on the loan amount, interest rate, and loan tenure, the calculator determines the EMI payment, total interest due, and total payment (principal + interest). Depending on the conditions of the lender, the actual EMI may change. For a manual calculation formula, see this article: EMI is calculated as P x r x (1+r)n / (1+r)n-1. The monthly interest rate, loan amount, and loan term in months are all factors in the formula. You may determine your EMI by changing the values of P, r, and n in the formula.

Interest rate for a home loan

As of October 3, 2023, 8.40% p.a. is the lowest house loan interest rate in India, depending on the creditworthiness of both the lender and the borrower. However, the cost of the loan is also based on the interest rate that banks and other non-financial institutions charge.

Calculation for a home loan

A calculator for mortgage eligibility determines borrowing capacity by taking into account variables including income, age, credit score, debt, and credit history.

The Home Loan Eligibility Calculator from ICICI Bank is an easy-to-use tool that determines how much of a home loan you are qualified for depending on your profile. In order to calculate the total amount of home loan you can afford, it takes into account variables like your occupation, monthly income, past EMIs, loan tenure, and interest rate.

Time taken to home loan approved

Home loan approval times range from 3 to 4 weeks depending on the lender and the intricacy of the deal. Information that is lacking or documents that are missing can cause delays.

Applications for house loans must be submitted promptly, since failure to do so could lead to rejection of any supporting documentation, especially IT returns.

Pre-approved loans and net banking services are provided by some banks, however the necessity of document submission and verification is still present.

Current interest rate for home loans

The State Bank of India, Bank of Baroda, and Union Bank of India provide the lowest house loan interest rates at 8.40% annually, according to a website that compares interest rates from all Indian banks and housing financing companies. A number of variables, including credit score, loan amount, occupation, and employer profile, will affect the ultimate interest rate. It’s advised to compare rates before submitting an application for a mortgage.

Maximum loan amount

The maximum loan amount is determined by variables like income, credit history, employment status, age, and prior debts. Based on income and repayment capacity, the personal loan eligibility calculator from Axis Bank can assist in determining eligibility. A solid credit history and a high credit score are necessary to access the maximum loan amount, which is established by examining debt-to-income ratio and credit history.

Process time to home loan application

The length of time it takes to process a home loan application varies depending on the lender and how thorough the application is. A home loan is typically sanctioned in 3 to 4 weeks, according to BankBazaar, although there is always a chance of delays because of incomplete or missing paperwork. Depending on the policies and processes of the lender, the processing time will actually vary. If everything is in order, ICICI Bank can execute a house loan application in 1-2 weeks. Keep all paperwork prepared and submit them on time to prevent delays. Check the property’s credentials as well, as banks could reject applications if the builder doesn’t have the required permits or the land doesn’t have a clear title.

Joint home loan with my spouse

Yes, with your spouse borrowers can apply for a joint house loan. joint home loan gives you more advantages like- more loan amount. In case of tax advantages, both can claimed on interest and principle amount. For getting joint loan, only close relatives can apply and they can be maximum 6.

Documents required for a home loan

The documentation needed to apply for a home loan in India is largely the same across all banks and Housing Finance Companies (HFCs), however it may differ based on the loan type, the kind of property, and the applicant’s credit history. Important documentation for mortgage applications include:

How much tax benefit can I claim on a joint home loan?

Each co-borrower may claim a deduction of up to Rs. 2,00,000 for interest and Rs. 1,50,000 for principle repayment under Section 80C of the Income Tax Act when making principal and interest payments on a joint house loan.

Can friends apply for a joint home loan?

According to a Business Today story, family members can co-apply for home loans but friends are typically not permitted to do so. This makes it possible for greater tax advantages and equal financial accountability. Co-ownership in property agreements is required by banks and other financial institutions to be eligible for a joint house loan application. For a combined home loan application, KYC documents such as identity, address, and income evidence are necessary.

Difference between interest and principal repayment?

The principal of a loan is the whole amount borrowed, excluding interest; interest is the cost charged by the lender. The principal and interest components of home loan repayments are paid back in a single monthly payment and are governed by separate provisions of the Income Tax Act. Principal repayments lower the loan balance while interest payments cover the cost of borrowing.

What happens if I miss a home loan payment?

Missing a mortgage payment can create serious problem, that can hit to your credit score and a designation as a risky loan borrower by lenders. Fines, interest charges, and other consequences can be faced by borrowers. Missing EMI payments may also create more difficult for you to refinance your debt amount with a lender. Your credit score will decrease if you miss a mortgage payment. A late fee will be charged to the missing payment beyond the required grace period.

If you are experiencing financial difficulty, your lender may provide a forbearance or loan modification. If you have a strong payment history but are late, you can also ask for the waiver of the late charge.

Improve your credit score after missing an EMI payment

Your credit score may suffer if you miss an EMI payment, but there are ways to raise it. Here are a few advices:

Your credit score will increase if you pay your bills on time. Set reminders and practice credit discipline. Keep your credit utilization ratio low—below 30%—to prevent harm to your score. Old credit accounts shouldn’t be closed because they reduce your credit history and may lower your score. Check your credit report frequently for any irregularities or inaccuracies that could be harming your score. You can maintain a solid credit history and raise your credit score with these techniques.

Avoid taking on too much debt at once by paying off one loan before taking another in order to keep your credit score high. Consider getting expert assistance from a financial advisor or debt counselor if you’re having debt problems.

Can the bank take away my house if I miss payments?

Bank property seizures are not immediately triggered by missed mortgage payments. However, the bank has the right to seize the property if the default continues for six months. Before taking legal action, banks are willing to negotiate and offer reminders. It is best to speak with the bank to find a solution if you are unable to make your home loan EMI payments. A lower CIBIL score might make obtaining future loans more challenging and raise interest rates charged by lenders.

Benefits of joint home loan

A loan that involves several people and is used to buy a home offers a number of advantages.

for joint house loans Applications enable to borrowers to combine their wages, increasing loan eligibility criteria and reducing interest rates. lenders may provide joint house loans at reduced interest rates when compared with individual loans. If co-applicants are co-owners of the introduced property and each one makes a repayment contribution, then they are eligible for tax deductions on mortgages. In case of self-occupied property, principal repayments are tax deductible up to Rs. 1.50 lakh and interest payments are tax deductible up to Rs. 2 lakh. The entire interest becomes deductible from income if the property is rented out. Only their income is taken into account for the credit/loan evaluation, and all co-applicants for the home loan must be co-applicants as well.

Bank take away house miss payments

The bank won’t confiscate your property right away if you can’t make your home loan payments. The first missed payment triggers a reminder, followed by a demand notice after three defaults, and finally a legal notice if you don’t answer, according to Indian law. The bank holds off on designating an asset as a non-performing asset for three months. Following this, the loan can be formally referred to as an NPA, and the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) is used to start the process of recovering the property. The last thing that banks typically want to do is attach a property, but they are prepared to negotiate. It is advised to speak with your bank and explain your position if you are unable to pay your EMI.

Add my spouse and parents for a joint home loan

Regardless of who owns the property, HDFC Bank accepts co-applicants for a combined house loan who are a spouse or parent. Since lenders take into account their income when determining a borrower’s capacity to repay, independent income sources can boost eligibility for house loans. Only family members, including parents, spouses, siblings, and children, may co-apply, and the maximum number of co-applicants is six. Co-ownership of the property being purchased may be a requirement of some lenders for co-applicants.

A joint home loan has two important benefits:

Co-applicants can pool their incomes when applying for a house loan jointly, which increases loan eligibility and tax advantages. As long as they are co-owners of the property and contribute to loan payments, this enables them to buy a bigger or better home and allows each co-applicant to benefit from tax savings independently.

Home loan lenders in India

The top home loan lenders in India are represented on the list.

HDFC Bank: Home loans from HDFC Bank come with a cheap interest rate of 0.5% per month, a range of products to meet different consumer demands, and online rapid approval.

LIC Housing Finance Limited: The largest housing finance firm in India, LIC Housing Finance Limited, offers house loans with reasonable interest rates starting at 6.90% annually. Applications can be submitted online or in person at any of their branches throughout the country.

Indiabulls Housing Finance Limited: A well-known Indian housing financing company, Indiabulls Housing financing Limited, provides house loans with affordable interest rates starting at 6.75% annually. These loans are available through online applications or branch locations all over India.

L&T Housing Finance Limited: Home loans from L&T Housing Finance Limited, a division of India’s top non-banking financial institution L&T Finance Holdings Limited, are offered at reasonable interest rates starting at 6.90% annually and may be applied for online or in person at any of their branches around the country.

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