In a home loan, a borrower wishes to get the lowest possible rate even though this loan has always been the cheapest loan. At present, almost all the top lenders have reduced the rate to 8.30% per annum.
Talking about the best home loan rate, the lender can offer you the lowest rate if you match the criteria and have all the documents as per the requirement.
The eligibility required to apply for home loans is different depending on the lender but the general criteria is mentioned here in the article. As you read this article, you can know the rates offered by top banks such as State Bank of India (SBI), Axis Bank, LIC HFL and HDFC.
What are the best home loan rates in India?
The moment you think of applying for a home loan, you must do a proper research regarding the rate and other offers. This will help you in choosing the right lender. For your reference, here are the lowest home loan interest rates at top banks in India:
What is the home loan rate at SBI?
The home loan rate offered by SBI is the lowest at present. There is a special concession for salaried women applicants. The starting rate of interest you can get for home loans is 8.30% per annum for women applicants and 8.35% per annum for other applicants.
If you are a self-employed professional, the rate starts from 8.40% for women applicants and 8.45% per annum. The interest rate on home loans is dependent on MCLR, it is subject to change. There is no processing fee on a home loan which means you can get the loan amount without paying the otherwise processing fee of an amount which is deducted from the disbursed amount.
What is the home loan rate at HDFC?
The home loan is disbursed through HDFC Ltd. and the present rate of interest on a home loan at HDFC starts from 8.35% per annum and goes up to 8.95% per annum.
What is the home loan rate at LIC Housing Finance?
LIC is one of the oldest housing finance company which is majorly the choice of Indians as there is security and reliability due to its vast experience in the field. The interest rate on a housing loan for variable loan amounts is mentioned below:
- Up to ₹1 lakh to 35 lakhs- 8.35% p.a. (for women) and 8.40% p.a. (for others)
- From ₹30 lakhs and ₹2 crores – 8.50% p.a. (for all)
- From ₹2 crore to ₹5 crores- 8.70% p.a. (for all)
What is the home loan rate at Axis Bank?
The home loan rate at Axis Bank is presently at 8.35% per annum onwards. The processing fee applicable to home loans is up to 1% of the loan amount plus applicable taxes that is GST.
What is the interest rate on a home loan Bank of Baroda?
At BoB, the interest rate on home loans starts from 8.30% per annum and goes up to 9.30% per annum. It is also important to note that Bank of Baroda was the first bank to reduce the rates to 8.30% per annum.
How can you calculate your home loan EMI?
Whenever you take a loan, the first thing that pops-up your mind is the EMI you will be liable to pay. In the case of home loans also, it is very important to choose the lender that is offering the lowest rate so that you get to pay an EMI which is suitable for you throughout the tenure.
A home loan EMI calculator is the most convenient tool for such purposes. It helps in calculating the EMI in a few minutes by taking into account the basic details of your loan which are:
- Loan amount
- Interest rate
When you provide the above details, the calculator shows EMI, the total interest outgo, and total repayment amount (principal+interest). Here is an example with the loan amount ₹20 lakhs with the tenure of 15 years and interest rate of 8.35% p.a.
Total interest outgo: ₹15,13,480
Total amount: ₹35,13,480
Here is the formula to calculate the EMI or equated monthly installment:
E= P.r. (1+r)n/((1+r)n -1)
P=Principal loan amount
r= Rate of interest on monthly basis (r= Annual rate of interest/12/100)
With all the above information on the rates offered by top lenders, you can choose the one that suits your requirement.