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Rate of Interest

Home Loan Interest Rate

The term Interest Rate on a Home Loan or Mortgage Loan may be defined as an amount a lender charges you as a borrower in terms of a percentage of the Home Loan Principal Amount or Home Loan Value.

Also termed as Rate of Interest or ROI, this charge applies to the Principal Amount on an annual basis over the specified home loan tenure.

Bank Name Interest Rate Lowest EMI(per lack)
SBI Home Loan 6.7% Rs. 645
HDFC Home Loan 6.75% Rs. 649
Citibank Home Loan 6.5% Rs. 675
Bank of Baroda Home Loan 6.75% Rs. 649
ICICI Bank Home Loan 6.75% Rs. 649
Axis Bank 6.66% Rs. 643
PNB Housing Finance 7.35% Rs. 689
LIC Housing Finance 6.66% Rs. 643
Bajaj Home Finance 6.8% Rs. 763
Sundaram Home Finance 6.95% Rs. 772
Kotak Bank 6.5% Rs. 746
Yes Bank 8.95% Rs. 836
Syndicate Bank 6.95% Rs. 662
IDFC First Bank 6.9% Rs. 659
PNB 7.15% Rs. 675
Reliance Capital 9.75% Rs. 949
OBC 7.35% Rs. 729
Jammu And Kashmir Bank 7.2% Rs. 910
IDBI Bank 6.95% Rs. 662
Federal Bank 7.65% Rs. 710
DCB Bank 8.25% Rs. 852
Aavas Financiers 12% Rs. 1029
Central Bank of India 6.85% Rs. 655
Bank of India 6.95% Rs. 662
United Bank of India 6.95% Rs. 662
Allahabad Bank 8.25% Rs. 852
RBL Bank 9.5% Rs. 874
Karur Vysya Bank 7.15% Rs. 716
Indian Overseas Bank 7.05% Rs. 669
HSBC Bank 6.55% Rs. 678
India Shelters 12% Rs. 1101
DBS Bank 7.3% Rs.793
canara Bank 6.9% Rs.659
Priamal Housing Finance 9% Rs.805
IIFL 8.45% Rs.765
Indiabulls 8.65% Rs.815
Union Bank of India 8.25% Rs.751
South Indian Bank 8.05% Rs.737
punjab and sind bank 8.05% Rs.737
lakshmi vilas bank 9.7% Rs.945
Edelwessis 10.5% Rs.954

Home Loan Processing Fees and Charges

Banks, and NBFCs while processing your home loan application at Ruloans may charge fees and charges apart from interest rates applicable. These charges may differ from lender to lender and are of the following types.

  • Processing Fees

    Lenders charge a one-time non-refundable charge for processing your home loan application as Processing Fees. These fees can either be a specified percentage of the principal amount or a fixed sum.

  • Delayed EMI Payments

    Almost all lenders charge a Delayed or Late EMI Payment in case you miss or default on your home loan EMI.

  • Conversion Charges

    Lending Institutions generally offer two types of interest rates, which are fixed or floating. You may be charged a conversion charge when you choose to switch from one interest rate type to another. These are typically a percentage of your principal loan amount.

  • Prepayment Charges

    When you choose to repay your home loan before time using funds borrowed from another lender, your existing lender may charge you a prepayment charge as a penalty for prepayment. However, if you choose to pay off your home loan with your own funds, these charges will not apply.

  • Legal Charges

    Banks and NBFC hire third-party legal services to complete the task of verification of property and related documents for a Legal Charge. These charges depending on the lending institutions are typically based on the actually incurred expense.

  • Administrative Fees

    Some institutions may charge you an Administrative Fees for your Home Loan to pay for the back-end administrative processes related to processing your home loan application.

  • Other Charges

    Depending on the lender you select, other charges such as PDC or Post Dated Cheque Charges, Loan Cancellation Charges, Cheque Dishonour Charges or Cheque Bounce Charges, Rejection of Electronic Clearance Charges and more may be charged by your lender.

How to Calculate Interest on Home Loan

You may calculate your Home Loan Interest Rate or Rate of Interest manually by using the following formula -

Where:

  • P = Principal Amount, or Loan Amount
  • r = Rate of Interest or ROI
  • n = Loan Tenure or Period in Months
emi-calc

You may however choose to use Ruloans Home Loan EMI Calculator as the simplest option for easy, quick, and accurate results. Follow the instructions below.


Enter

1

Loan Amount
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Input

2

Rate of Interest
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Choose

3

Loan Tenure
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Check

4

Result
Home Loan Interest Rate Types

You will find different types of Home Loan Interest Rates offered by Ruloans Partner Banks and NBFCs. Let's take a brief look at both to plan accordingly for the cheapest home loan interest rate.

  • Fixed-Rate of Interest

    Fixed Home Loan Rates of Interest are those rates that remain constant for the entire term of your home loan. This type of rate allows you to arrive at the total repayment sum along with the interest sum payable at the time of estimation.

  • Floating Rate of Interest

    Floating Home Loan Interest Rates are likely to vary and change over the period of your home loan, and these interest rates increase or decrease according to changes to Housing Finance Benchmark Rates. This type of rate suits a changing market scenario where you expect falling rates.

  • Mixed Rate of Interest

    When you opt for a Mixed Rate Interest Home Loan, you go for a fixed rate of interest at the beginning of your home loan period. During the tenure when you convert to a floating rate after a set loan period, you opt for a Mixed Rate of Interest.

You may, however, depending on your financial situation opt for an interest rate conversion from fixed to floating, or from floating to fixed during your home loan tenure at a conversion charge.

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