Home Loan Interest Rates – Compare SBI, HDFC, PNB, Axis, LIC HFL Home Loans

 

(Updated on 23.05.17) Home Loan Interest Rates May 2017Compare Home Loan on the basis of ☛ Eligibility ☛ Rate of Interest (ROI) ☛ Processing Fee ☛ Prepayment Charges from top PSU & Private Banks such like ✓ SBI ✓ HDFC ✓ ICICI ✓ Axis ✓ Bank of Baroda ✓ Union Bank & more.

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Credit Linked Interest Subsidy Scheme (CLSS-MIG)

The interest subsidy scheme announced by Prime Minister of India to fulfill the dreams of middle class income group to have their own house has been named as “Credit Linked Subsidy Scheme for Middle Income group (CLSS-MIG)”. The interest subsidy of 4% on housing loan of up to Rs.9lakh will be given to those Middle income groups who earns an annual income of 12 lakh and for those individual who earn Rs.18 lakh per year the Interest subsidy is 3% on housing loan of up to Rs.12lakh. The interest subsidy of 4% under Credit Linked Subsidy Scheme will bring down the EMIs of beneficiaries by Rs.2,062 per month on housing loan of Rs.9lakh and EMI on interest subsidy of 3% for housing loan of Rs.12lakh will come down by Rs.2,019 per month. No processing fee will be charged by the banks or housing finance institution under Credit Linked Subsidy Scheme.

Pay Your Home Loan EMI Through EPF

To give boost to “Housing for all” scheme, the Government has tweaked the rules pertaining to employees’ Provident fund scheme by enabling the individuals to pay equated monthly installments (EMI) of home loans through EPF Read More.

What will be the benefits?

Earlier banks were using Base rate to determine interest rate in which RBI’s Repo rate was not part of it. RBI’s new Marginal Cost of Funds based Lending Rate (MCLR) method has helped banks to lower down their interest rates on every loan, making it reachable to the common masses. Last year RBI’s decision to reduce repo rate by 25 bps have led all banks to provide loans to every borrower at a lower rate of interest. Due to huge fund flows, it can be foreseen that MCLR may change and in turn, it will have impacts on home loan interest rates and also on other loans. This would come as a relief to people who cannot afford the high EMIs on housing loans.

Suppose, there is 1 bps rate cut by the apex bank from the existing repo rate 6.25% to 5.25%, then there will be a huge impact on the lending rates. As all commercial banks will get money at a cheaper rate from RBI then all banks are compelled to cut down their lending rates from 1% to 2%. If there is a cut down of 1% to 2% interest rates then Home loan interest rates are likely to go down from 9.25% to 8.25% or 7.25% and this will led to the cheapest home Loan EMIs. This would come as a relief to people who cannot afford the high EMIs on housing loans.

So, a lower interest rate means lower EMIs, longer tenure, cut down in total interest amount paid and other benefits to count on. ‘Achee din’ for all home buyers is not a distant dream any more.

HOME LOAN MCLR RATE (HISTORICAL DATA) MAY 2017

Bank Name Reduced MCLR Basis Points (bps) Previous MCLR (%) Current MCLR (%) Date Effective From
State Bank of India – SBI _ 9.15% 8.00% 01.01.2017 01.01.2017
Punjab National Bank – PNB _  9.40% 8.45% 01.01.2017 01.01.2017
Union Bank of India – UBI _ 9.50% 8.50% 01.01.2017 01.01.2017
Bank of Baroda – BOB _ 9.30% 8.35% 01.01.2017 01.01.2017
ICICI Bank _ 9.15% 8.20% 01.01.2017 01.01.2017
HDFC Bank _  9.20% 8.15% 01.01.2017 01.01.2017
Axis Bank  _ 9.35% 8.25% 01.01.2017 01.01.2017
Kotak Mahindra Bank  _ 9.60% 8.85% 01.01.2017 01.01.2017
Standard Chartered Bank _ 9.45% 9.00% 01.01.2017 01.01.2017

Which is the best Home Loan rates provider in India?

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What is Home Loan?

Home Loan is a Secured Loan offered against the security of a house/property which is funded by the bank’s loan, the property could be a personal property or a commercial one. The Housing Loan is a loan taken by a borrower from the bank issued against the property/security intended to be bought on the part by the borrower giving the banker a conditional ownership over the property i.e. if the borrower is failed to pay back the loan, the banker can retrieve the lent money by selling the property.

Home Loan Interest Rates Updated on

Saving up for that first home isn’t easy – especially during these days of unreasonably high house prices. A clear understanding and comparison of these costs can help you choose between two loan providers offering similar interest rates.

State Bank of India (SBI)

SBI Home Loans come to you on the solid foundation of trust and transparency built in the tradition of State Bank of India.

✓ Borrowers’ category (Women): 8.35% p.a. (Effective from 01.01.2017)

✓ Borrowers’ category (Others): 8.40% p.a. (Effective from 01.01.2017)

Know Saving after MCLR effective from 01.01.2017 : SBI Home Loan Interest Rate EMI (Monthly):

Loan Amount ₹ 10 lakh ₹ 15 lakh ₹ 20 lakh
Tenure 20 Years 20 Years 20 Years
Old Interest Rate 9.40% 9.40% 9.40%
New Interest Rate 9.35% 9.35% 9.35%
OLD EMI ₹ 9256 ₹ 13884 ₹ 18512
New EMI ₹ 9224 ₹ 13835 ₹ 18447
Savings ₹ 32 ₹ 49 ₹ 65

Note:
✓ The woman should be the sole applicant or first co-applicant of Home Loan and also

✓ The property proposed to be financed should be either in the sole name of the woman borrower or she should be the first owner in case of joint ownership

SBI Home Loans Unique Advantage

✓ No Processing Charges (Limited Period Offer)
✓ Package of exclusive benefits.
✓ Low-interest rates. Further, we charge interest on a daily reducing balance!!
✓ No hidden costs or administrative charges.
✓ No prepayment penalties. Reduce your interest burden and optimally utilize your surplus funds by prepaying the loan.
✓ Over 15,969 branches nationwide, you can get your Home Loan account parked at a branch nearest to your present or proposed residence.

LIC Housing Finance

LIC Housing Finance Ltd. is one of the largest Housing Finance company in India. Incorporated on 19th June 1989 under the Companies Act, 1956, the Company was promoted by LIC of India and went public in the year 1994.

LIC Housing Finance offers competitive interest rates, no hidden cost, loan approval on the basis of customer financials.

✓ Home Loan Interest Rate: 8.65% for women upto Rs 50 Lakh, 8.70% for Others upto Rs 50 Lakh

✓ Processing Fee: 1.5% (For ING Salary Account Holder), otherwise 1.75% – 2%

Know Saving after 30 bps cut in LIC Housing Finance Interest Rate (Monthly):

Loan Amount ₹ 15 lakh ₹ 20 lakh ₹ 25 lakh
Tenure 15 Years 15 Years 15 Years
Old Interest Rate 9.90% 9.90% 9.90%
New Interest Rate 9.60% 9.60% 9.60%
OLD EMI 16027 21370 26712
New EMI 15754 21005 26257
Savings ₹ 273 ₹ 365 ₹ 455

HDFC Ltd.

HDFC is a leading provider of Housing Finance in India. HDFC Ltd offers pleasant interest rates, no hidden charges, repayment options, best services & more.

✓ Home Loan Interest Rate: For Women* (loan up to 30 lakhs): 8.35% & For others (Loan up to 30 lakhs): 8.40%. For loan up to 75 lakhs, the interest rate is 8.50%. 

✓ Processing Fee: Up to 0.50% of the loan amount

Know Saving after 25 bps cut in HDFC Ltd. Home Loan Interest Rate (Monthly):

Loan Amount ₹ 20 lakh ₹ 25 lakh ₹ 30 lakh
Tenure 25 Years 25 Years 25 Years
Old Interest Rate 9.45% 9.45% 9.45%
New Interest Rate 9.40% 9.40% 9.40%
OLD EMI ₹ 17404 ₹ 21756 ₹ 26107
New EMI ₹ 17335 ₹ 21669  ₹ 26003 
Savings ₹ 69 ₹ 87 ₹ 104

Union Bank of India (UBI)

Union Bank of India was established on 11th November 1919 with its headquarters in the city of Bombay now known as Mumbai.

Union Bank has been playing a very proactive role in the economic growth of India and it extends credit for the requirements of different sectors of economy. Industries, exports, trading, agriculture, infrastructure and the individual segments are sectors in which the bank has deployed credit to spur economic growth and to earn from a well diversified portfolio of assets.

✓ Union Bank Home Loan Interest Rate: One Year MCLR + 0.10%

✓ The applicable processing charges are 0.50% of loan amount subject to a maximum of Rs.15,000/- plus service tax as applicable)

Punjab National Bank (PNB)

Punjab National Bank (PNB) reaches out to you with fast, friendly and most convenient home loans under Normal and Flexible variants.

✓ PNB Home Loan Interest Rate: For Women 1 Year MCLR Upto Rs. 75 Lakhs, Others 1 Year MCLR + 0.20%

✓ Processing Fee: As applicable under Bank’s regular Housing Loan Scheme for public. 

Know Saving after MCLR effective from 01.09.2016 in PNB Home Loan Interest Rate EMI (Monthly):

Loan Amount ₹ 20 lakh ₹ 25 lakh Canara Bank Home Loan ₹ 30 lakh
Tenure 240 Months 240 Months 240 Months
Old Interest Rate 9.60% 9.60% 9.60%
New Interest Rate 9.45% 9.45% 9.45%
OLD EMI 18773 23467 28160
New EMI 18577 23222 27866
Savings ₹ 196.00 ₹ 245.00 ₹ 294.00

PNB Home Loans Unique Advantage

✓ Option to choose between Floating and Fixed interest rates.
✓ Longest Repayment period of 25 years
✓ Flexible/graduated repayment option
✓ No hidden charges
✓ Quick and Fast processing
✓ Lowest EMI of Rs.919/-* per lac for a 25 years loan
✓ EMI is applicable to all existing and new customers
✓ Avail benefit of lower EMI by shifting account with Punjab National Bank.

PNB Housing Finance

PNB Housing Finance Limited (PNBHFL) offers a comprehensive range of home loan such like Home Construction Loans, Home Improvement Loans, Home Extension Loans, Home Purchase Loans and Plot Loans. PNBHFL offers doorstep services, various repayment options & more.

Rates are applicable w.e.f. Jan 2017

✓ Home Loan Interest Rate: 8.90% (for salaried) 9.10%-9.60% (For Self Employed Non Professionals)

✓ Processing Fee: 0.5%.

DHFL Home Loan

DHFL was established by Late Shri Rajesh Kumar Wadhawan (16th April, 1949-30th September, 2000), a visionary Indian businessman.

Avail a Home Loan of up to Rs. 500,00,000 (minimum loan amount Rs. 1 lac) but not exceeding 85% of the cost of property (including stamp duty and registration fees) or 80% of market value, whichever is lower.

✓ Home Loan Interest Rate: 8.60% p.a

✓ Processing Fee:

☑ Salaried individuals (SAL) / Self-Employed Professionals (SEP) : ₹ 5000* to ₹ 20,000*

☑ Self-Employed Non Professionals (SENP) : 1.5%*

*Service Tax and Cess as applicable

Loan Amount ₹ 30 lakh ₹ 40 lakh ₹ 50 lakh
Tenure 20 Years 20 Years 20 Years
Interest Rate 9.55% 9.55% 9.55%
EMI ₹ 28,062 ₹ 37,416 ₹ 46770

Bank of Baroda (BOB)

It has been a long and eventful journey of almost a century across 25 countries. Starting in 1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda Corporate Centre in Mumbai, is a saga of vision, enterprise, financial prudence and corporate governance.

✓ Home Loan Interest Rate: 8.35%

✓ Processing Fee: 0.25% of loan amount Min.Rs.1, 000 and Max. Rs.20,000/-

ICICI Bank

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary.

ICICI Bank is India’s largest private sector bank with total assets of Rs. 5,946.42 billion (US$ 99 billion) at March 31, 2014 and profit after tax Rs. 98.10 billion (US$ 1,637 million) for the year ended March 31, 2014.ICICI Bank currently has a network of 3,845 Branches and 12,012 ATM’s across India.

✓ ICICI Home Loan Interest Rate: 8.35% (For Female, loan up to 30 lakhs), 8.40%  (For Others, loan up to 30 lakhs)

✓ Processing Fee: 0.50% – 1.00% of the loan amount or Rs. 2000/- whichever is higher + applicable Service Tax & Surcharge.

Bank of India

Bank of India was founded on 7th September, 1906 by a group of eminent businessmen from Mumbai. The Bank was under private ownership control till July 1969 until it was nationalized along with 13 other banks.

✓ Bank of India Home Loan Interest Rate: 8.65% for Women and 8.70% for Other

✓ Processing Fee: @0.25% of loan amount Min.Rs.1, 000 and Max. Rs.20,000/-

Allahabad Bank

Allahabad Bank, the oldest joint stock Bank of the country, was set up in Allahabad on April 24, 1865 by a group of Europeans. The first directors of the Bank were Mr. G. Brown, Mr. T. Moss, Mr. S. Bird and Mr. A. W. Wollaton. At that juncture, organized industry, trade and banking had just started taking shape in India.

Schemes

Rate of Interest

ALL BANK AASHIANA SCHEME

Up to Rs. 75 lakhs

MCLR + 0.15%

Housing Finance Scheme For NRI/PRO

Above Rs.75.00 Lacs & Up to Rs.300 Lacs

MCLR +0.25%

PREMIUM HOUSING FINANCE SCHEME FOR HIGH NET WORTH INDIVIDUALS (HNIs) (for loan amount above Rs.500 Lac)

Above Rs.300 Lacs up to Rs.500 Lacs

MCLR+0.50%

HOUSING LOAN SCHEME FOR PENSIONER

Above 500 lacs

MCLR+0.65%

HOUSE FURNISHING SCHEME

MCLR+3.00%

Canara Bank

Canara Bank offers home loans for the purpose of construction / purchase / repairs / additions / renovations of residential house / flat including the purchase of land and construction thereon.

Canara Bank offers Repayment, Prepayment options as per customer choice.

✓ Canara Bank Home Loan Interest Rate: Upto Rs. 75 lakhs 8.65% for Women and 8.70% for Others

✓ Processing Fee: Nominal processing fee of 0.50% (Min Rs.1500/- and Max. Rs.10,000/-) is charged.

Canara Bank MCLR Rates – effective from 01.03.2017

TENOR OF MCLR MCLR
Overnight MCLR 8.20%
One Month MCLR 8.25%
Three Month MCLR 8.30%
Six Month MCLR 8.40%
One year MCLR 8.45%

United Bank of India

United Bank of India (UBI) is one of the 14 major banks which were nationalized on July 19, 1969. Its predecessor the United Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Comilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Comilla Union Bank Ltd. (1922) and Hooghly Bank Ltd. (1932) (which were established in the years indicated in brackets after the names). The origin of the Bank thus goes as far back as to 1914. As against 174 branches, Rs. 147 crores of deposits and Rs. 112 crores of advances at the time of nationalization in July, 1969, today the Bank is 100% CBS enabled with 1999 branches and offices and is having a Total business of more than Rs 2 lac crore. Presently the Bank is having a Three-tier organizational set-up consisting of the Head Office, 35 Regional Offices and the Branches.

✓ United Bank Home Loan Interest Rate: 8.80% P.A ( One Year MCLR)

Processing Fee:  Upto 0.50% , Min Rs. 1,000 and Max Rs. 10,000

Dena Bank

Dena Bank, in July 1969 along with 13 other major banks was nationalized and is now a Public Sector Bank constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970. Under the provisions of the Banking Regulations Act 1949, in addition to the business of banking, the Bank can undertake other business as specified in Section 6 of the Banking Regulations Act, 1949.

✓ Dena Bank Home Loan Interest Rate: 11.25% to 11.75%

✓ Processing Fee: 0.50% of sanctioned limit..

Indian Bank

Established on 15th August 1907 as part of the Swadeshi movement Serving the nation with a team of over 19429 dedicated staff as on 31.03.2014, Total Business crossed Rs.2,86,633 Crores as on 31.03.2014

✓ Indian Bank Home Loan Interest Rate: 9.55% to 9.75%

✓ Processing Fee: 0.29% of loan amount with a maximum of Rs.20,381

Axis Bank

Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses.

✓ Axis Bank Home Loan Interest Rate: 8.65% p.a. to 8.70% p.a. (for salaried) & 8.70% p.a. to 8.75% p.a. (for self-employed)

✓ Processing Fee: Upto 1% of the loan amount subject to minimum of Rs.10,000/-

Axis Bank Home Loan Advantage

✓ Axis Bank offers flexible rates for home loan customers
✓ Axis Bank offers balance transfer facility
✓ Axis Bank offers doorstep service
✓ Nil prepayment charges*
* These benefits valid only on floating interest rate Home Loans.
✓ Accelerated and translucent processing
✓ High tenure for lesser EMIs.

Citibank

Citi India began operations over a century ago in 1902 in Kolkata and today is a significant foreign investor in the Indian financial market. As promoter-shareholder, Citi has played a leading role in establishing important market intermediaries such as depositories, credit bureau, clearing and payment institutions. Operating 44 full-service Citibank branches in 28 cities, it is the preferred banker to 45,000 small and mid-sized companies.

✓ Citibank Home Loan Interest Rate: 8.80% to 9.30% p.a (Salaried), 9.05% to 9.55% p.a (Self Employed)

✓ Processing Fee: Upto Rs. 5000

Citibank Home Loan Unique Advantage

✓ Citibank offers easy home loan up to ₹ 10 crore on the basis of customers eligibility
✓ Citibank offers a flexible repayment option tenure up to 25 years
✓ Citibank offers home loan up to 80% of the property value.

Federal Bank

The history of Federal Bank dates back to the pre-independence era. Though initially it was known as the Travancore Federal Bank, it gradually transformed into a full-fledged bank under the able leadership of its Founder, Mr. K P Hormis. The name Federal Bank Limited was officially announced in the year 1947 with its headquarters nestled on the banks of the river Periyar. Since then there has been no looking back and the bank has become one of the strongest and most stable banks in the country.

✓ Federal Bank Home Loan Interest Rate: 9.59% to 9.84% p.a

Processing Fee: 0.50% of the loan amount or Rs. 8625 which ever is minimum

Corporation Bank

Started about 109 years ago in 1906, with an initial capital of just Rs.5000/-, Corporation Bank has recorded Rs. 3,27,294 Crore mark in business and even far more, with over 9339 service outlets across the nation, served by committed and dedicated 18,000 plus Corp Bankers. Proof of which is seen in its enviable track record in financial performance. We have many reasons to cheer, predominant of them is, being able to participate in nation building by empowering the rural and urban population alike. Today, we are proud that we are significant contributors to the growth of the country’s economy.

✓ Corporation Bank Home Loan Interest Rate:  8.85%

✓ Processing Fee: 100% waiver Under Festival Offer – 2016 (Till 31.01.2017)

Standard Chartered Bank

Standard Chartered Bank offers attractive interest rate, flexible tenures, refinancing options, tax benefits, repayment option & more on Home Loan.

✓ Standard Chartered Home Loan Interest Rate: 9.35% to 9.45% p.a

Processing Fee: Between 0.5 % – 1.50% of the loan Amount

State bank of Travancore

The bank was established in 1945 as the Travancore bank Ltd, at the initiative of C. P. Ramaswami Iyer, then Divan of Travancore. Following violent resentment against the dictatorial rule of Sir. C.P.Ramaswamy Iyer, the bank no longer credits his role. Instead, the Bank now credits the Maharaja of Travancore as the founder, though the Raja had little to do with the founding.

✓ State Bank of Travancore Home Loan Interest Rate: 9.20%

✓ Processing Fee: Upto Rs.25,000: NIL, Rs.25,001 to Rs.2.00 lacs: Rs. 500/
Above Rs.2.00 lacs: 0.50% of the loan amount + S.T., with a maximum of Rs. 10,000/

Vijaya Bank

Vijaya Bank today is a PAN India Institution, serving diverse sectors of the society. The bank has built a network of 1512 branches, 48 Extension Counters and 1528 ATMs, that span all 28 states and 4 union territories in the country. The Bank has the highest number of branches in its home state Karnataka.

✓ Vijaya Bank Home Loan Interest Rate: 8.90%

✓ Processing Fee: 0.25% of Loan Amount Till 31st March 2017.

Andhra Bank

Andhra Bank was founded by the eminent freedom fighter and a multifaceted genius, Dr. Bhogaraju Pattabhi Sitaramayya. The Bank was registered on 20th November 1923 and commenced business on 28th November 1923 with a paid up capital of Rs 1.00 lakh and an authorized capital of Rs 10.00 lakhs.

✓ Andhra Bank Home Loan Interest Rate: 9.65% p.a

✓ Processing Fee: 0.50 % of loan amount

How will Banks decide home loan eligibility?

Banks assess the customer’s repayment capacity while deciding on the home loan eligibility. Repayment capacity is based on factors such as income, age, qualifications, number of dependents, spouse’s income, assets, liabilities, stability and continuity of occupation and savings history.

What are the different interest rate options you offer?

✓ Adjustable Rate Home Loans

✓ Fixed Rate

What Documents do you need for a loan approval?
Salaried Customers Self Employed Professionals Self Employed Businessman
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