Having your own house is one of the biggest successes in life and a home loan helps an individual to buy his dream house. But, getting a loan is not the only thing, there are so many things which an individual should check before applying for a home loan like home loan eligibility, EMI, tenure and the most important factor interest rate. The Interest rate is the most decisive factor which helps us in choosing a specific home loan.
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Home Loan Interest Rates in India
**Home Loan Interest Rates, Interest Rates Comparison In India April 2017**
|Bank Name||Interest Rates|
|Andhra Bank||9.50% – 9.70%|
|Bank of Baroda||8.35% – 8.55%|
|Bank of India||8.65% – 8.70%|
|Bank of Maharashtra
||8.95% – 9.05%|
|Canara Bank||8.65% – 8.75%|
|Central Bank of India||8.50%|
|Dena Bank||8.55% – 8.80%|
|Development Credit Bank||10.60%|
|Dhanalakshmi Bank||10.35% – 10.60%|
|DHFL||8.60% – 8.70%|
|DHFL Vyasa Housing Finance||9.75% – 10.25%|
|Federal Bank||9.57% – 9.82%|
|GIC Housing Finance||10.25%|
|Gruh Finance Limited||9.75% – 15.25%|
|HDFC Ltd||8.50% – 9.00%|
|IDBI||8.55% – 8.60%|
|India Infoline Housing Finance Ltd.||9.55% – 10.50%|
|Indiabulls Housing Finance Limited||8.65%(For Women) – 8.70%(For others)|
|Indian Overseas Bank||8.65% – 8.90%|
|Karnataka Bank||9.50% – 9.75%|
|L&T Housing Finance||9.65% – 10.25% (for Salaried/ SEP) 9.65%-10.50%(SENP)|
|LIC Housing||8.50% – 8.70%|
|Oriental Bank of Commerce||8.60% – 8.70%|
|PNB Housing Finance||8.50% (for Salaried/ SEP for first 12 Months) 9.10% (For SENP for first 12 months)|
|Punjab National Bank||8.65% – 8.75%|
|Reliance Home Finance Private Ltd.||10.60%|
|SBI – State Bank Of India||8.60% – 8.65% (For Women), 8.65% – 8.70% (For Others)|
|Shriram housing finance||15.00%|
|Shubham Housing Development Finance Company||12%-14%(For Salaried) – 15%-17%(For Self-employed)|
|State Bank of Travancore||9.20% – 9.45%|
|Syndicate Bank||9.55% – 10.50%|
|Tata capital Housing Finance ltd||8.65%(For Women) – 8.90%(For Others)|
|UCO Bank||8.75% – 8.90%|
|Union Bank of India||8.75% – 8.80%|
|United Bank of India||8.80%|
Interest rate is the amount charged as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as an annual percentage rate (APR).
Interest rates on home loan are different for different banks, according to their policies. Some banks offer home loan at lower interest rates and some banks offer home loan at higher interest rates. But, few people know that the interest rates also depend on home loan products as every bank provides different home loan products and schemes and interest rates for these products are different.
These home loan products are as follows
1. Home Purchase Loan:
This type of home loan can be availed for the purpose of buying a new house.
2. Home Construction Loan:
This type of home loan can be availed for the construction of an existing house or flat.
3. Home Improvement Loan:
Home improvement loan can be availed for the renovation and repair of your house. People usually avail this loan for giving their home a new look.
4. Home Extension Loan:
With time people usually feel the need to add more space to their existing house. Home extension loan helps you to increase the area of your house.
The home loan interest rates are currently based on the MCLR (Marginal cost lending rate) method. Almost every bank offers competitive interest rate on home loan to attract customers. The normal range of home loan interest rates are from 8.35% to 10.60%. The front runners in home loan are Bank of Baroda, SBI, LIC and HDFC bank. Some banks have given a privilege to its women borrowers by providing them a home loan at lower interest rate than others.
Loan providers offer home loan either on fixed interest rates or floating interest rates. Fixed interest implies that the home loan interest rate will be fixed and you will need to pay fixed equal installments over the repayment tenure, while on the other hand floating interest rate changes with the market conditions.
How to compare home loan interest rates?
At loansninsurances.com you can compare interest rates of different banks. Individuals can also calculate their home loan EMI with our EMI calculator and can easily check their home loan eligibility just in few steps.