Home Loan Interest Rates

Usually, a home loan is a type of loan that is offered by various banks and credit unions to established and self-employed individuals to purchase a plot of land to build their house or to purchase a previously built property, so finding a great and affordable home loan in 2024 with amazing features and low-interest rates is a very hard task, but in this article, we are going to help you find out the perfect home loan that can help you stabilize your finances and also offer flexible terms and conditions with an affordable and cheapest interest rate.

If you want to get a large amount of money from a home loan, it depends on various factors, including your monthly income, credit score, repayment tenure, the amount of the loan, and your relationship with the bank 🏦. So before giving you a home loan, the bank or the organization will definitely check your credit score and your monthly income.

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Home Loan Interest Rates in 2024

Previously, we mentioned that the home loan interest rates totally depend on the application, guarantor or co-applicant, down payment of the margin, collateral, monthly income, credit score, debt, and others. In 2024, various government and private banks will offer concessions to women and senior home loan applicants. In this area, we try to provide the latest and current interest rates of various government and private banks. We also want to mention that these interest rates are for all general Indian citizens who are employed and established.

Name of organizationInterest Rate (For salaried)Interest Rate (For self-employed)Loan AmountLoan tenureProcessing FeesEligibility
HDFC Bank8.45%8.50%1 lakh to Rs. 10 croresUp to 30 years₹3000age, monthly income, credit score, and debt
ICICI Bank9.25%9.40%5 lacs to Rs. 1 croreUp to 30 years₹3000age, monthly income, credit score, and debt
Axis Bank8.75%8.85%–9.15%Up to 5 croresUp to 20 years1% of the loan amountage, monthly income, credit score, and debt
Bank of Baroda8.60%8.60%Up to 20 croresUp to 30 years0.25% of the loan amountage, monthly income, credit score, and debt
Punjab National Bank8.75%8.80%8 lacs to Rs. 35 lacsUp to 30 years0.50% of the loan amountage, monthly income, credit score, and debt
Citibank7.45%7.45%10 lacs to Rs. 10 lacsUp to 25 years0.50% of the loan amountage, monthly income, credit score, and debt
Canara Bank9.8%–10.30%9.8%–10.30%Up to 50 lacsUp to 30 years0.50% of the loan amountage, monthly income, credit score, and debt
State Bank of India8.50%9.25%–10.45%According to the customer’s eligibilityUp to 30 years0.35%–0.50% of the loan amountage, monthly income, credit score, and debt
Bank of Maharashtra8.60%8.80%15 lacs to Rs. 25 lacsUp to 30 years0.15% of the loan amountage, monthly income, credit score, LTV, and debt
Godrej Finance8.64%9.14%According to the customer’s credit profileUp to 30 years2% of the loan amount23 to 62 age, monthly income, credit score, LTV, and debt
LIC Housing Finance8.45%8.60%1 lacs to Rs. 5 croreUp to 30 years0.5%–7% of the loan amount21 to 50 age, monthly income, credit score, LTV, and debt
Bajaj House Finance8.60%9.10% 5 croresUp to 30 years0.50% of the loan amount23 to 62 age, monthly income, credit score, LTV, and debt
Kotak Mahindra8.85%8.90%5 lacs to Rs. 5 croresUp to 25 years0.5% of the loan amount18 to 65 age, monthly income, credit score, LTV, and debt
Union Bank of India8.60%8.60%1 lacs to Rs. 10 croresUp to 30 years0.50% of the loan amount18 to 75 age, monthly income, credit score, LTV, and debt
IDBI Bank8.64%8.64%30 lacs to Rs. 75 lacs Up to 30 years0.30% of the loan amount20 to 70 age, monthly income, credit score, LTV, and debt
Indian Bank8.45%9.20%According to the customer’s credit profile and loan amountUp to 30 yearsbased on loan amount18+, salaried. businessmen, professionals, and pensioners are eligible
Indiabulls Home Loans9.75%9.95%up to 90% of the property valueUp to 30 years1% of the loan amount21-65 age, monthly income, credit score, Indian nationality, and debt
Tata Capital8.70%8.85%5 lacs to Rs. 5 croresUp to 30 years0.10%-0.20%minimum salary of 30,000 rs., 2 years of work experience
Federal Bank8.80%8.80%1500 lakhs30 years for residents and 20 years for NRI3000+GSTage, monthly income, credit score, and debt
IIFL Home Finance Limited8.90%8.90%According to the customer’s eligibilityUp to 25 years1.75% of the loan amount18-75 age, monthly income, credit score, Indian nationality, and debt

How do banks calculate the interest rates on home loans?

Usually, the interest rates for different home loans provided by different banks in India are floating. On the other hand, various home loans also come with fixed interest rates. A fixed interest rate can help you give your monthly installment at the perfect time for the overall duration of the loan. In many cases, banks and financial organizations considered several factors, including the existing repo rate, MCLR rate, credit score, monthly earnings, and repayment capabilities, when determining home loan interest rates.

Repo rate:

The repo rate is the benchmark rate, which is set by the Reserve Bank of India. With this rate, the Reserve Bank of India lends money to all government and private banks or financial organizations in India against government securities. Most government and private banks use the repo rate to calculate the home loan interest rate.

MCLR rates:

MCLR rates signify the minimum lending rate at which banks can offer loans. Once the MCLR rates fluctuate, it will have a direct impact on the prevailing home loan interest rate, which also influences affordability and the cost of borrowing for trusted home buyers.

Credit score:

A great credit score of an individual shows good financial responsibility, so lenders and banks look at the credit scores of the customers before fixing the interest rate. A better credit score can help you get an affordable interest rate.

LTV ratio:

The loan-to-value ratio is basically known as the LTV ratio; it is the percentage of the property value that a bank, lender, or any financial organization can lend to a property buyer. So if the LTV ratio becomes higher, then it will be very risky for any property buyer because, in this case, they have to face a large amount of interest.

Employment profile and monthly income:

Your employment profile and monthly income are very important to fixing your interest rate on a home loan. If you are a well-established person and self-employed, and if you have stability in your monthly income, this can help you get affordable and cheap interest rates.

Loan tenure:

The duration of the loan is known as the loan tenure. It can affect the interest rate of your home loan. If you want to get a home loan for a long period of time, then you have to pay a slightly higher interest rate per month than for shorter tenures.

Types of Home Loan Rates

When any property buyer or home buyer wants to get a home loan from a bank or financial organization, the bank or organization will provide different types of interest rates to the customers. The two most common types of home loans are floating interest rates and fixed interest rates.

Floating interest rates:

Floating interest rates can fluctuate and be influenced by the current market condition as well as the loan tenure. Therefore, various significant rates, including the MCLR or repo rate, can help all customers get a great reduction in their monthly interest rate so that they can get all the benefits with a lower and more affordable EMI. Even all borrowers can get flexibility in terms of prepayment, but on the other hand, customers may have to face higher and more costly monthly installments, and their home loan interest rates can also increase, so you have to be very careful before choosing a floating interest rate.

Fixed interest rates:

A fixed interest rate can give all customers stability throughout the duration of the loan. A fixed interest rate never fluctuates or is not influenced by market conditions, so with a fixed interest rate, you can give your monthly installment and EMI at the perfect time. Because the fixed interest rate is predictable, all customers can plan their monthly budget with confidence. so those customers who work in government offices and get a fixed monthly salary can choose a fixed interest rate.

How can you improve your home loan eligibility in 2024?

If you are able to fulfill all eligibility requirements, then you can get a perfect home loan with an affordable interest rate. In this area, we try to suggest to you all some great methods by which you can improve your home loan eligibility:

Credit score

If you have a good credit score and a great repayment history, you can apply for a large home loan with an affordable interest rate. Most government and private banks consider a credit score of 750 to be a good one.

Joint home loan

If you want to get a home loan as a co-borrower, with your spouse, or with your family members, it will definitely improve your eligibility chances and divide the repayment burden.

Longer duration of the loan

A longer tenure can assist all customers in reducing the EMI amount

Clear ongoing EMIs or existing debts

Before applying for a new home loan, if you are able to clear your ongoing EMI or existing debts, it will help you boost your eligibility, and you can also get a home loan with an affordable and cheap interest rate.

How do I pick the best home loan for me?

If you want to find out the best home loan for you, then it is very important to know which kind of home loan can fulfill your financial goals and dreams and which loans can totally suit your goals.

Rate of interest

Before applying for a home loan, you have to be very careful about its rate of interest, and you have to do great research on it. After researching it, you will be able to know how much you will pay when the EMI starts. You can also choose cheap and affordable interest rates to save money.

Processing charges

When you want to apply for a home loan, the bank or financial organization will charge some money to process your application. This is called processing charges. Nowadays, various government and private banks don’t charge any processing fees to process your application. Usually, the processing charges start at 0.25% up to 3.5% of your loan amount. For government employees and female customers, the processing charges are very cheap.

Prepayment charges

A prepayment charge is a fee that is charged by various banks when you want to close the loan before the maturity date. Various government and private banks charge different amounts of prepayment charges.

Maximum loan amount

The maximum loan amount totally depends on the current cost of your property and your monthly income level. Usually, most banks fund 77% to 90% of the value of the property-based factory, including joint loans, guarantors, security, and other crucial eligibility criteria.

Last words

In this article, we try our best to provide all important information and total guidance about home loan interest rates in 2024. By following all our methods and steps, you can easily find out the best and most affordable home loan interest rate for you. For more updates, you have to bookmark our website and don’t forget to share this article with your friends and relatives.

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