Home Loan Interest Rates in India 2024:- Owning a home is a cherished dream for many in India, and with the right financial support, it can become a reality. In 2024, the landscape of home loan interest rates in India continues to evolve, influenced by various economic factors and competitive strategies among banks and financial institutions. Understanding the intricacies of home loan interest rates, eligibility criteria, and offerings from different banks can empower prospective homebuyers to make informed decisions. Let’s delve into the details of home loan interest rates in India in 2024.
Home Loan Interest Rates in India
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Thinking about purchasing a house this year? If so, it’s essential to familiarize yourself with the various home loan options available from banks and Non-Banking Financial Companies (NBFCs). Buying a home is often an emotional decision, but it’s crucial to approach it with a clear head and careful consideration. Rushing into a purchase can lead to financial strain down the line, potentially impacting your savings. To help you make an informed decision, we’ve compiled a list of home loan interest rates offered by several banks in India. Each bank determines its rates based on factors such as loan amount, tenure, credit score, and type of interest rate. Among these options, Bank Of India stands out with the lowest home loan interest rate at 8.30% p.a. Take a look at the comprehensive list below to explore the rates offered by different banks.
Home Loan Interest Rates in India Overview 2024
| Article For | Home Loan Interest Rates in India 2024: Top Banks, Rates, Eligibility & More! |
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| Year | 2024 |
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Top Banks For Home Loan Interest Rates 2024
Below are the leading banks renowned for their competitive home loan interest rates nationwide:
State Bank of India (SBI)
- Up to Rs. 30 Lakh: 8.40% – 10.15%
- Above Rs. 30 Lakh & Up to Rs. 75 Lakh: 8.40% – 10.05%
- Above Rs. 75 Lakh: 8.40% – 10.05%
SBI is a preferred choice for home loans due to its competitive interest rates and flexible loan amounts. Renowned for its excellent customer service and swift loan processing, SBI has garnered positive feedback from many customers who appreciate the quick disbursal of funds at low-interest rates. Additionally, SBI offers extended repayment tenures of up to 30 years, alleviating the burden on customers and resulting in lower Equated Monthly Installments (EMIs).
Punjab National Bank (PNB)
- Up to Rs. 30 Lakh: 8.45% – 10.25%
- Above Rs. 30 Lakh & Up to Rs. 75 Lakh: 8.40% – 10.15%
- Above Rs. 75 Lakh: 8.40% – 10.15%
Known for its customer-centric approach, Punjab National Bank (PNB) is a preferred option for home loans. PNB offers competitive rates based on tenure, loan amount, and credit score, often surpassing those of other banks. With flexible loan services catering to various needs such as home purchasing, construction, or renovation, PNB ensures quick approvals and transparent processes throughout.
HDFC Bank Ltd
- Up to Rs. 30 Lakh: 8.50% onwards
- Above Rs. 30 Lakh & Up to Rs. 75 Lakh: 8.50% onwards
- Above Rs. 75 Lakh: 8.50% onwards
HDFC Bank, or Housing Development Finance Corporation Limited, is a leading housing finance company known for its streamlined home loan application process and competitive interest rates. Under the adjustable rate home loan scheme, HDFC offers standard home loan rates with a floating interest rate. Additionally, special home loan categories provide preferential interest rates for extended tenures. HDFC Bank offers extended loan tenures of up to 30 years, coupled with comprehensive customer support.
Bank of Baroda (BOB)
- Up to Rs. 30 Lakh: 8.40% – 10.65%
- Above Rs. 30 Lakh & Up to Rs. 75 Lakh: 8.40% – 10.65%
- Above Rs. 75 Lakh: 8.40% – 10.90%
Bank of Baroda offers competitive interest rates tailored to the loan amount and type. The interest rate on BOB Home loans varies based on factors such as the applicant’s credit score, income, and relationship with the bank. With a wide range of loan amounts available, Bank of Baroda efficiently processes requests and provides customised loan solutions, along with extended repayment tenures.
Bank of India (BOI)
- Up to Rs. 30 Lakh: 8.30% – 10.75%
- Above Rs. 30 Lakh & Up to Rs. 75 Lakh: 8.30% – 10.75%
- Above Rs. 75 Lakh: 8.30% – 10.75%
Bank of India (BOI) extends considerate home loan options with varying interest rates based on the loan amount and type. It stands out as a favorable choice compared to several private banks, offering attractive loan amounts and extended repayment tenures, enabling customers to realize their dream of owning a home. Renowned for its superior customer service, BOI ensures accessibility and convenience for customers nationwide.
ICICI Bank
- Up to Rs. 30 Lakh: 8.75% onwards
- Above Rs. 30 Lakh & Up to Rs. 75 Lakh: 8.75% onwards
- Above Rs. 75 Lakh: 8.75% onwards
ICICI Bank offers attractive home loan options, including the “Pratham Home Loan” plan, featuring the lowest interest rates for customers earning as little as Rs. 10,000 per month. Renowned for its customer-centric approach, ICICI Bank also offers the “ICICI Bank Extra Home Loans” scheme, providing loans secured by a Mortgage Guarantee. With a simple and swift loan process, lower EMIs, and doorstep service for select home loans, ICICI Bank stands out as one of the premier home loan providers in India.
Axis Bank
- Up to Rs. 30 Lakh: 8.75% – 13.30%
- Above Rs. 30 Lakh & Up to Rs. 75 Lakh: 8.75% – 13.30%
- Above Rs. 75 Lakh: 8.75% – 9.65%
Axis Bank offers a range of home loan schemes tailored to diverse needs, including the Axis Bank Shubh Aarambh Home Loan, Axis Bank Fast Forward Home Loan, Axis Bank Asha Home Loan, Axis Bank Super Saver Home Loan, Axis Bank QuikPay Home Loan, and Axis Bank Power Advantage Home Loan. Each scheme features competitive interest rates and may include interest subsidies under the Pradhan Mantri Awas Yojana (PMAY). Axis Bank provides both fixed and floating-rate loans, allowing customers to choose according to their preferences.
Kotak Mahindra Bank (KMB)
- Up to Rs. 30 Lakh: 8.70% onwards
- Above Rs. 30 Lakh & Up to Rs. 75 Lakh: 8.70% onwards
- Above Rs. 75 Lakh: 8.70% onwards
Kotak Mahindra Bank offers an appealing home loan interest rate, facilitating comfortable EMI repayments starting from Rs. 819 per lakh. The interest rate varies based on factors such as loan amount, tenure, income, and credit score. Customers can avail up to 80% of the property cost as a home loan, distinguishing it from others. Additionally, doorstep service is provided, from application submission to fund disbursement, with no prepayment charges for floating home loans.
Bajaj Housing Finance (BHF)
- Up to Rs. 30 Lakh: 8.50% onwards
- Above Rs. 30 Lakh & Up to Rs. 75 Lakh: 8.50% onwards
- Above Rs. 75 Lakh: 8.50% onwards
Bajaj Housing Finance, a private company specializing in home financing, offers tailored home loan solutions to its customers. With schemes like Fresh Home Loan, Home Loan Balance Transfer, and Pre-approved Home Loan, it caters specifically to the housing finance needs of individuals. Bajaj Housing Finance provides competitive interest rates based on the customer’s financial history, ensuring that customers can fulfill their dream of owning a home with ease.
Increase Home Loan Eligibility in 2024
Factors Influencing Home Loan Eligibility:
- Credit Score: An applicant’s CIBIL or credit score plays a crucial role in determining home loan eligibility. A higher credit score, reflecting a history of timely repayments, increases the likelihood of securing a larger home loan amount. While many banks extend loans to individuals with lower scores, a score of 750 and above is generally considered favorable.
- Joint Home Loan: Opting for a co-borrower, typically a spouse, who possesses a strong credit score can significantly enhance eligibility and distribute the repayment responsibility.
- Extended Tenure: Choosing a longer repayment period can decrease the Equated Monthly Installment (EMI) amount, thereby improving eligibility.
- Debt Clearance: Clearing existing debts or ongoing EMIs before applying for a home loan can enhance eligibility by reducing the applicant’s overall debt burden.
- Higher Down Payment: Banks typically finance 75% to 90% of the property value, requiring the applicant to cover the remaining amount. Increasing the down payment can mitigate the risk for the bank and potentially lead to a lower interest rate and reduced EMI burden when repayment commences.
How to Banks Calculate Interest Rates for Home Loans?
Interest rates for home loans offered by banks in India typically come in two forms: floating and fixed rates. A fixed interest rate remains constant throughout the loan’s duration. On the other hand, with a floating rate, the Rate of Interest (RoI) on your Equated Monthly Installment (EMI) is determined by factors such as the bank’s base rate, repo-linked loan rate (RLLR), or marginal cost of fund-based lending rate (MCLR), in addition to a spread, which represents the difference between the interest rates a bank pays to depositors and the rates it charges on loans to customers.
For floating-rate home loans, the RoI for each bank is subject to change in line with adjustments made by the Reserve Bank of India (RBI) to the repo rate, the rate at which the central bank lends money to public and private banks. However, changes in the floating rate are typically applied after a “reset period,” during which the interest rate on your EMI is reviewed and potentially adjusted.
Conclusion
In conclusion, navigating the landscape of home loan interest rates in India requires a comprehensive understanding of the offerings from top banks. With competitive rates, flexible eligibility criteria, and various schemes, banks like State Bank of India, HDFC, and ICICI Bank stand out. Factors such as credit score, joint applicants, tenure, existing debts, and down payments significantly influence eligibility. As borrowers seek to make informed decisions, staying updated on current rates and eligibility criteria is crucial for securing the ideal home loan in 2024.
FAQ’s
Will home loan interest rates go down in 2024 in India?
Kathuria suggests that in 2024, the anticipated decrease in home loan interest rates could range from 0.5% to 1.5%, contingent upon the lender and loan category. While certain lenders may implement only a partial reduction in response to the repo rate cut, others might opt for more aggressive rate reductions to entice prospective borrowers.
Will interest rates be better in 2024?
However, until the Fed observes signs of decelerating economic growth, interest rates are projected to remain elevated for an extended period. It is anticipated that the 30-year fixed mortgage rate will hover around the mid-6% range by the conclusion of 2024, with the possibility of dipping into the high-5% range by the end of 2025.
Which bank gives 90% of a home loan?
SBI Bank offers home loans covering up to 90% of the property's value.
Which bank gives a 100% home loan in India?
In accordance with RBI regulations, lenders are not allowed to provide 100% home financing. A down payment of 10-15% of the property's purchase price is required. Generally, borrowers can secure housing loan financing of up to 85 to 90% of the property's value.
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