Home improvement

Home Loan Interest Rates Offered by Various Banks

When you apply for a home loan and a loan amount is disbursed, your lender charges interest on it. It is what they earn from you for providing you with the funds. Yes, home loan interest rates charges are to be paid by a borrower. 

As per your home loan eligibility and lender’s terms, your home loan interest rate charges may differ. It is possible to know about your precise interest charges these days. You can do that using the home loan interest rate calculator

Let’s know about factors determining home loan rates, different home loan rates offered by various lenders and steps to calculate it! Read on!

What are home loan interest rates offered by different lenders?

Home loans are offered by both banks and non-banking finance companies (NBFCs). Home loan interest rates are on the lower side because it’s a secured facility. 

Let’s check out different home loan interest rate charges offered by different lenders: 

  1. State Bank of India – 6.7%. 
  2. HDFC Bank – 6.75%. 
  3. ICICI Bank – 6.75%. 
  4. Axis Bank – 6.7%. 
  5. Citibank – 6.65%.

Here’s a quick look at different home loan interest rate charges offered by top non-banking finance companies (NBFCs) in India: 

  1. Bajaj Finserv – 6.75%. 
  2. Bajaj Housing Finance Limited – 6.75%. 
  3. Tata Capital Housing Finance – 6.9%. 
  4. Indiabulls Housing Finance – 8.65%. 
  5. Aditya Birla Housing Finance Limited – 9%. 

It is possible to calculate your home loan interest rate using the home loan interest rate calculator available online on a lender’s site. This way, you can know how much to pay on a desired home loan amount. 

How to use the home loan interest rate calculator?

Using the home loan interest rate calculator online is easy. All that you have to do is follow a few steps: 

  1. Open the home loan EMI calculator on your lender’s website. 
  2. Select your desired housing loan amount, the applicable home loan interest rate, and the repayment tenor. 
  3. Once done, the home loan calculator will showcase the exact home loan EMI you will pay. It will also display the payable home loan interest rate charges. You will come to know about the total loan cost (principle + interest). 

What factors affect your home loan interest rate?

Different factors determine the final home loan interest rate offered by a bank or an NBFC. Let’s take a look: 

  1. Your CIBIL score

If your CIBIL score is higher, it means that you have paid your previous and ongoing EMIs on time. It also signifies that you can be trusted to make timely repayments. A higher credit score can help you enjoy a lower home loan interest rate. In turn, you can save and pay lower EMIs. You can maintain your credit score by repaying your loan EMIs, credit card outstanding and more. 

  1. Your age

If you are a young applicant, you can enjoy a lower home loan interest rate, along with a large amount. It is because you have more workable years left compared to an older applicant. Thus, you should apply for a loan while you are still young. 

  1. The location of your property 

If your property is centrally located in a city with all amenities available, you can avail of a reduced home loan interest rate. It is because if you fail to repay, a lender may liquidate the property at a higher amount to recover its funds. The home loan interest rate on a property located on the outskirts of the city will be higher. 

You are now aware of different home loan interest rates, steps to calculate and factors determining it. 

If you are dealing with a higher rate, you can switch your loan using the home loan balance transfer. This way, you can manage to pay the lower home loan EMIs.  

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