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)
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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dear suresh sir,good are your articles. doubts got cleared easily.thanks a lot
Can you provide a link for all past home loan rates in 2015 (if you have compiled the data previously)? It would be of great help. Thank you.
No Ratnakar, I am not maintaining repository. Also, it is not that useful
Hi Suresh,
I am so new to this field. But I really want to get into commitments. I want to construct a cottage in our farm, back in our home town. I want to apply for loan and the amount I require is Rs 6,00,000/- . Just read a few comments and seems like SBI is best for ladies. I want to clear my loan ASAP. But the property is not in my name, its an ancestral property. Here lies the confusion.
1) Please can you suggest best bank for a small amount of loan?
2) If the property is not in my name can I still apply under – SBI (Women)?
3) Any other suggestions that I need to be aware of?
4) I want to clear my loan ASAP – can the EMI I pay vary every month (considering minimum amount covered) ?
Please Help..
Thanks in Advance!!!
Have a Good Day!! 🙂
Why Indiabulls Housing Finance is not listed here, Indiabulls Housing Finance is also great choice for home loans
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).