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. I have taken home loan of 41 lakhs from DHFL at the rate of floating interest 11%. Now i am planning to transfer the existing  DHFL to LICHL home loan where LICHL is offering me at 10.10 % floating which looks better as compared to DHFL. I need your inputs which Bank is better to go for transfering.

    1. Hi Manjunath, Check whether they are charging any pre-payment charges / penalty / processing for new loan. Based on this you can take decisoin. LICHFL is good. But you can look for SBI home loans too which are cheaper

  2. Sir please advise I want avail housing loan of 20lac for the teenier of 15years. I can keep 10 lac of FD.

    pls advise which, where and how to avail.  

  3. Hi,

    I want to take Home loans from State bank of Mysore. I want to know how floating intersts rates are changing from past 1 year. Now interst rate is 10.3%. How about SBI floating rates changing from last 1 year.

    So whether i have to go with SBM or SBI. Please help me on this.

  4. Hai Nitin,
    I am looking for plot +construction loan from SBI. What if I dont construct house within the two years time and I pay the outstanding amount by the end of two year which I lend for plot purchase? Pls clarify

  5. Hi Suresh,

    Is there any restriction impose upon the finance companis or bank by the RBI to charge maximum interst rate upon the Home Loan. is there any rules or regulation of RBI in that respect.

    My friend has obtained home laon from A U Housing Finance Ltd. Jaipur. they are charging interest upon the loan amount @ 19.13. is this legal to charge such huge interest rate on home loan account.

    thanking you

     

    Sachin 

    1. Sachin, There are no restrictions on home loan rates or personal loan rates. These are charged by banks or financial institutions at their own rates.

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