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

 

Article by Suresh

Suresh KP i.e. me have written 500+ articles on this blog. I love doing analysis and identifying the Best investment options.

150 Comments

  1. Ram says:

    which is better – SBI maxgain homeloan payment method or loan prepayment? kindly advise in terms of interest gained and also adjusted for inflation(to get real money value) for a 15 yrs regular home loan of 50 lakhs which is prepaid at 5 lakhs every year and SBI maxgain homeloan method of parking the 5 lakhs in the OD account. My view is prepayment of normal homeloan method is of advantage as loan tenure is finished quickly and also savings of money in real value(as value of money depreciates every year due to steady upward inflation).

  2. Abhishek says:

    Dear Sir,
    Could u pls advise me which bank is best either ICICI or IDBI. I m confused so kindly help me n advise me on the same in terms of services for long run.

  3. Praveen Kumar says:

    Dear Suresh,

    I am confuse between two banks for Home Loan, One is SBI and other is ICICI. Both are having same interest rate ie 10.15% and zero pre-payment charges. The difference comes in the processing charge and other fees.

    I just want you to help me in knowing that whether the title clearance, insurance, notary, stamp, valuation etc are part of processing fee only or they are the charges other processing fee. Also which bank is better option as overall to avail home loan.

  4. indramani sharma says:

    Sir, I want to transfer home loan amount from indiabulls to sbi. but i don't know system as well as indiabulls home loan closure condition?.customer care and agent of indiabulls are not clarified about the closure condition .pls help

    Regard,

    Indramani sharma

  5. Soundarya says:

    Indiabulls Housing finance is also great choice for Home loan. They have flexible home loan services.

    • Rama says:

      Hi Suresh,

      I have below questions. I have 2 homeloans for two prperty.

      Property 1: I have taken home loan of 30 lakhs@15 years (sanctioned) for a
      property which is in construction phase. Currently Bank (HDFC) home loan rate is 10.5%.
      As of now bank already disbursed 24 lakh. 6 lakhs is yet to disbursed.

      Property 2:  Another home loan in LIC against my native property for 6 lakhs.
      They are ready to pay another 6 lakhs (@fixed 10.1% for first 2 years) additional loan against in current loan.

      My plan is not to take rest 6 lakhs from HDFC for property 1.
      But to take 6 lakhs from LIC (against property 2) and pay to property 1.

      My question is

      – whether HDFC raise any objection if i will not take rest 6 lakhs.
      – In long term whether i will be benefited in terms of interest wise. if i will split loans in above 2 banks.
      – In long term my EMI will be less if i will pay additional (6 lakhs) loan in next 5 years?

      Please reply.

      Thanks
      Rama

       

  6. Vikrant says:

    Hi Suresh, I recently took home loan of 34L from HDFC. I came to know about benefits of SBI maxgain od account later. Is it advisable to transfer loan to SBI? If yes, will I be subject to penalty as I have only paid 6 EMI's till now to HDFC?

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