July-2015: 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 July-2015)

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 July-2015)

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: 9.7% for Women and 9.75% for Others
  • EMI would be Rs 945 (Women) and Rs 948 (Others) for every 1 Lakh of home loan
  • Processing fees: Up to Rs 25 lakhs – 0.25% 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: 9.95 to 10.45% (Fixed for 2-3 Yrs)
  • EMI would be Rs 961 to Rs 995 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 : 9.95%
  • EMI would be Rs 962 for every 1 Lakh of home loan
  • Processing fees             : 0.25% on home loan amount and maximum of RS 20,000
  • Prepayment charges     : Nil

4) ICICI Bank home loans

  • Home loan interest rate: 9.85% (For Female),9.9% (For Others)
  • EMI would be Rs 955 (Women) and Rs 958 (for others) 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:9.9% (Fixed for 2 yrs);  Scheme II: 10.25% (Fixed for 5 yrs);  Scheme III: 10.5% onwards (Fixed for 10 years)
  • EMI would be Rs 972 (Scheme-1)
  • 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 July-2015)

Latest Home Loan Interest Rates in India-July-2015

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

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Suresh
Best home loan interest rates in India

 

Suresh KP

156 comments

  1. hi Suresh, i m confused on issue—-  to go for home loan for 35 lac or go for lesser amt i.e 25-30,  n use my PF savings, which one is better option….i m govt employee with 10 yrs bal service……thnaks

    1. Hi Bobby, It depends. e.g. PF savings are used for retirement savings. Since you are govt employee, you would get good amount of pension after retirement. Is this sufficient for you? If yes, you can use PF savings. Else, you should not touch PF savings as of now. Go to higher loan. Some people even look that PF savings get interest of 8% (approx) whereas you are paying more than 10% for housing loan. People think PF money can be used. Take call based on these facts.

  2. Hi Suresh,

    I have opted a HL from SBI @ 9.95% for 20 years & loan amount is 15000 & ECS is going around 14095 appx.I would like to close HL ASAP for which I also did a repayment of 6 lakhs just after ECS started from first month itself.Knowing the fact that initial years EMI goes into interest & later in principle which would be best option to close the HL ASAP doing repayments in 50 thousands in month or lumsum closing amount in lakhs.

    Thanks in advance

    1. There are two ways of doing this. You can check with your bank whether you can reduce your tenure for home loan. Means instead of 20 years, you can take 10 years. Means your EMI would be doubled. Means instead of 15K, you need to pay 30K. Paralelly you can pay-off as and when you have lumpsum amounts. I agree that in early years, only interest would be collected and principal get repaid in later years of loan tenure.

  3. i want to take 5 lac as home loan from ICICI bank. what will be the monthly interest for the above mentioned amount?

    1. Hi Das, I have suggested some of the best rates. You can check with Banks about exact EMI or any other process involved in taking home loan.

  4. Hi Suresh,

    I am looking for a home loan for 20Lacs. Standard Chartered is offering me @9.85%.

    But i do not know much about the trends of this bank. Would it be safe to go ahead with them, considering the long term entitled with home loans?

    Regards,

    Bhavin.

    1. Standard Chartered is an international bank. Hence you need not worry. Also you are the loan taker, why do you worry. 9.85% is good rate. SBI is offering still lower than this, you can try that oo.

    2. Suresh,

      I am worried about the fluctuations that will be seen over the years. I know we dont have control over it, but the past trends would give us a faint picture, isnt it?

      There is consolidated chart of rise and fall in interest rates on SBI website for past 10 years but i could not find any such data for Standard Chartered. Do you have any knowledge with the rate of interest trends associated with Standard Chartered?

      Regards,
      Bhavin.

      1. Hi Bhavin, Even I could not locate on internet. I am writing an article about floating rate Vs fixed rates and would do some more analysis next week on home loans. It may provide some helpful details to you.

  5. Hi Suresh,

                     Thank you so much for this valuable piece of information on 5 best home loan interest rates in India as I'm in the verge of applying for one.

    Regards

    Anandh

     

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