Best home loan interest rates in India


Best home loan interest rates in India, Current home loan interest rates in India(Mar-13)5 Best home loan interest rates in India (Updated April-2014)

Home loans offer opportunity to buy home without the need of having 100% money in the pocket. Though the current home loan interest rates vary bank to bank, picking up a best home loan is critical as it is a long term debt. Small interest rates variances can make a huge difference in the payout. In this article we would compare the home loan interest rates, their features and pick-up best home loan interest rates.

Consider the following factors, before taking the home loan.

  • Prefer home loans with low interest.
  • Look at the interest rates trend, if they increasing quarter of quarter, or year on year, one should be ready for the increased EMI in coming years.
  • Low processing fee: Home loan institutions are charging 0.5% to 1% processing fees to process home loans. Pick up the home loan where there are low processing fees.
  • Look for zero pre-payment penalties: Earlier only a few banks used to waive pre-payment penalty. Currently almost all banks are waiving off the pre-payment penalty.

Also read: Why people are afraid of taking home loan.

Best Home loan interest rates in India  (Updated April-2014)

Let us look at some of the best home loan interest rates in India. We have picked-up these best home loans based on low interest rates, low processing fees and zero pre-payment charges (if the loans are paid either partially or fully during the tenure of the loan).

1) State Bank of India home loans

  • Home loan interest rate: 10.10% for Women and 10.30% for Others
  • EMI would be Rs 972 (Women) and Rs 975 (Others) for every 1 Lakh of home loan
  • Processing fees: Up to Rs 25 lakhs – 0.125% or Rs 1,000 minimum;     Rs 25 to Rs 75 lakhs – Rs 3,250;   Rs 75 lakhs and above – Rs 5,000
  • Prepayment charges: Nil

2) HDFC Limited home loans

  • Home loan interest rate: 10.25%
  • EMI would be Rs 982 for every 1 Lakh of home loan
  • Processing fees            : 0.5% of loan amount or max of Rs 10,000+service tax
  • Prepayment charges    : Nil

3) Indian Bank home loans


  • Home loan interest rate : 10.25%
  • EMI would be Rs 982 for every 1 Lakh of home loan
  • Processing fees             : Nil
  • Prepayment charges     : Nil

4) ICICI Bank home loans

  • Home loan interest rate: 10.10% (For Female),10.15% (For Others) (Upto 25Lacs), then 10.25%
  • EMI would be Rs 972 (Women) and Rs 975 (for others) for every 1 Lakh of home loan upto Rs 25 Lakhs home loan. Beyodnd this EMI would be Rs 982 for every 1 Lakh of home loan
  • Processing fees            : 0.5% of loan amount
  • Prepayment charges   : Nil

5) LIC Housing Finance Limited home loans

  • Home loan interest rate: Scheme I:10.20% (Fixed for 2 yrs);  Scheme II: 11.25% (Fixed for 10 yrs);  Scheme III: 12.25% onwards
  • EMI would be Rs 978 (Scheme-1); Rs 1,049 (Scheme-2); Rs 1,119 (Scheme-3) for every 1 lakh of home loan
  • Processing fees            : Upto Rs 50 Lakhs – Rs 10,000+service tax and beyond Rs 50 Lakhs – Rs 15,000 + service tax
  • Prepayment charges    : Nil

Interest article: 10 Tips to be considered before taking home loan

Below are the current home loan interest rates in India / comparison of home loan interest rates in India

Comparison chart for interest rates, processing fees charged by them and prepayment penalty details (Updated 15-February-2014)

Best home loan interest rates in India, Current home loan interest rates in India-Apr-2014

Readers, I invite your valuable comments and feedback about this article.

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Suresh
Best home loan interest rates in India

 


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  1. Hi,

    we are planning to buy plot in sarjapur,banglore. it cost around 18L.looking for loan amount for 13L.

    first apllicant will be my wife and second applicant as myself.

    loan looking for peroid of 3-5 years.

    can you suggest which bank will be the best with loan options with pros and cons.

    shortlist banks are SBI,LICHL or HDFC.

    Thanks,

    Harish.

     

    • Harish, You have become expert in this. You have kept them the order of preference. You should go for SBI Housing loan. Pls see this article. The interest rate would have changed now, given a choice to me, I prefer SBI. http://myinvestmentideas.com/2013/07/sbi-home-loans-cheapest-home-loans-in-india/

  2. Dear Suresh,

    Thanks for having such a wealth of info on your blog.

    I wanted to get some inputs from you .

    Below is my current Scenario :

    I have taken a home loan of 30L (15 yrs term) and its almost been 1.5 yrs since the EMI has started. My monthly EMI is 32500.  All my savings in MF and other funds have come to nill after house registration etc . My current annual investment is into LIC (52 K premium/annum ).

    After all our expenditures (Me n Wife ) , our monthly savings or cash in hand is 35K which i need to utilze effectively for  3 goals .

    1. To close my loan early

    2. Invest on child education (Corpus fund at the end of 15 yrs )

    3. Back up money for emergency

    Kindly give your suggestions

    Reg

    PraveenRaj

     

    • Praveenraj, I have the follwing suggestions 1) You need to first create emergency money of 5 to 6 months savings. My suggestion is to start an RD for 6 months and create this 2) 7th month onwards you can start investing in mutual funds. This would help you to manage loan closure and child education. Investing in large cap funds, 20% in mid-cap funds and 20% in balanced funds can help you to achieve these goals faster. 

      • Hi Suresh ,

        Thanks a lot for your revert, you have suggested me for 20% in mid-cap funds and 20% in balanced funds , what about the bal 60% of revenue .Where should that be invested.Please advice

        Regards

        PraveenRaj