Home loans are the best options to buy a home as you can get higher loan amount and hence buy your dream which otherwise would have been out of your budget. In the loan segment, there has always been a rage among which lender is offering the best rate. One cannot say that one lender is better than the other, but as a borrower, you have the choice to apply for a loan to the bank that is offering you the lowest interest rate as per your repayment capacity.
Since a interest rate is the most important thing that matters in a loan as it will decide the monthly EMI. Here we are providing you the home loan rates at top banks like SBI, HDFC Bank, Axis Bank and LIC Housing Finance Ltd., Also, the interest rate calculator is described briefly for your understanding.
Home Loan interest rates all banks
Before you apply for a home loan, you must go for home loan interest rate comparison. By doing so, you will be able to choose the right lender and hence the affordable rate. So, here are the lowest home loan interest rates at top banks in India:
Home Loan interest rates SBI
At present, the home loan interest rate at SBI is the lowest. There is a special concession for women applicants and also the rates are subject to change from the kind of profession. If you are a salaried person, you can get the rate of 8.35% to 8.55% per annum (8.35% is the special rate for women applicants only). Other than this, if you are a self-employed professional, the rate ranges from 8.45% to 8.65% per annum (8.45% is the special rate for women applicants only). Since the interest rate on home loans is dependent on MCLR, it is subject to change as per the policy of the bank.
Home Loan Interest Rates HDFC
The home loan at HDFC is disbursed through HDFC Ltd. AT present, the interest rate on a home loan at HDFC is starting from 8.35% per annum and goes up to 9.05% per annum.
LIC Housing Finance Home Loan Interest Rates
The home loan interest rate at LIC is one of the lowest interest rates in India presently. The minimum interest rate on housing loan is 8.35% per annum for women applicants. Below is the rate chart for the variable loan amounts and for different applicants:
- Up to ₹25 lakhs- 8.35% p.a. (for women) and 8.40% p.a. (for others)
- From ₹25 lakhs and ₹1 crore- 8.50% p.a. (for all)
- From ₹1 crore to ₹3 crores- 8.70% p.a. (for all)
- From ₹3 crores to ₹5 crores- 8.80% p.a. (for all)
Axis Bank Home Loan interest rate
At present, the home loan rate at Axis Bank is presently similar to SBI bank home loan interest rate that is 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. With the implementation of GST, there has been a slight increase in the processing fee.
Home Loan interest rate calculator
A home loan EMI calculator is the easiest tool that can help you calculate home loan EMI in a few minutes. This tool would take into account the basic details of your home loan which are:
- Loan amount
- Interest rate
Now, when you mention the above details in the calculator, it would give you the data of the EMI, the total interest outgo, and the total 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)