What is the current home loan interest rate in India?

On average, the current home loan interest rate in India starts around 7.35% p.a. for several banks. Across various lenders and loan sizes, many competitive offers are hovering between 7.3% and 8.5% p.a. for standard housing loans. However, it depends on the bank, your profile, and whether the loan is linked to an external benchmark.

What are the Current Home Loan Rates in India?

On average, it is 7.3%. Most modern home loans are tied to the RBI’s repo rate or other external benchmark rates. As those rates move, your home loan rate can go up or down. This type offers the potential benefit of rate cuts passing on to you (or risk of increases).

Some lenders still offer fixed-rate home loans, where the interest rate stays constant for a specified period (or even the entire tenure). This provides predictability in EMIs but often comes at a slightly higher rate than the lowest floating offers.

Here are current (or very recent) home loan rate ranges for five leading banks:

1. State Bank of India (SBI): SBI offers home loans at around 7.50% to 9.45% p.a. for large-ticket loans.

2. HDFC Bank: HDFC home-loan rates start from about 7.90% p.a. and go upward, depending on your profile and loan size.

3. ICICI Bank: ICICI’s home loan interest currently starts at around 7.65% p.a. for certain loan segments.

4. Axis Bank: Axis Bank’s rates have a wider band (roughly 8.35% to 9.35% p.a.), depending on the product and customer.

5. Punjab National Bank (PNB): PNB’s home-loan rates range from 8.25% to around 10.45% p.a. for its standard home-loan offerings.

These are the current bank home loan interest rates in India.

When I was recently exploring home loan interest rates in India, I realised how much they vary based on the bank and loan type. It can feel overwhelming at first, but breaking it down really helped me. I found that different banks offer competitive rates depending on whether you’re salaried or self-employed, and even the loan amount makes a difference.

What are the Home Loan Interest Rates?

Here’s what I discovered while researching:

1. Bank of Maharashtra offers some of the lowest rates, starting at 8.35%.

2. Union Bank of India comes close with rates beginning at  8.60%.

3. Other banks like Punjab National Bank, Bank of India, and Canara Bank all start at around 8.40%.

4. For slightly higher rates, State Bank of India and LIC Housing Finance start at 8.50%, which still feels reasonable given their reputation.

5. Private lenders such as Indiabulls and HDFC Home Loans start at 8.75% but offer flexible options for repayment.

6. Interestingly, Repco Home Finance has rates starting at 9.60%, but they cater to niche borrowers, so the rates might suit specific needs.

I found that public sector banks generally had lower rates, while private lenders gave more tailored loan options. The best way to decide is by comparing rates based on your profile and needs.

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