In India, the home purchase loan interest rates refer to the annual rate at which banks or housing finance companies charge you for borrowing funds to acquire or construct a house. These rates can be floating (changing over time) or fixed (locked in for a period). I have shared more information about this below.
What are the House Purchase Loan Interest Rates?
The effective interest rate you pay depends on your credit profile, loan amount, tenure, loan-to-value ratio, and whether the rate is benchmarked to an external index such as the repo rate plus a spread.
For instance, SBI currently advertises home loan rates starting from 7.50% p.a. But depending on one’s credit score, scheme, and risk premium, the actual interest may go higher.
Banks may also use a “card rate plus premiums/discounts” framework to decide exact rates.
On the other hand, Axis Bank offers floating home loan rates starting from 8.75% p.a. Its floating rate band depends on your CIBIL score, variant of the loan, and internal spreads. For high credit score borrowers, it may be REPO + 2.85% to REPO + 3.60%, translating to roughly 8.35%-9.10% p.a.
Banks may offer concessions or charge “spreads/premiums” based on risk grading, tenure, and loan amount.
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What is Home Purchase Loan Interest Rates?
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2025-10-05T15:42:54+00:00 2025-10-05T15:42:56+00:00Comment
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