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Lowest Home Loan Interest Rate

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Check the best home loan interest rates in 2024 and know which bank is giving the lowest home loan interest rate. Find out the current home loan interest rates for government employees, self-employed individuals, and women, and know the difference between floating-rate and fixed-rate home loans.

  • Interest Rate of All Banks
  • How to Calculate
  • Factors Affecting
  • How to Get a Home Loan
  • How to Apply

Home Loan Interest Rate of All Banks 2024

Following are the home loan interest rate all banks and NBFCs in India offer:

Bank NameInterest rate (p.a.)Processing fee
HDFC Bank Home Loan8.75%Up to 1.50% + applicable taxes/ statutory levies
HSBC Bank Home Loan8.50%1% or Rs. 10,000, whichever is higher
Kotak Mahindra Bank Home Loan8.75%Up to 0.50% + taxes & any other applicable statutory dues
IDFC Bank Home Loan8.85%Up to 3% + GST
PNB Housing Finance8.50%Up to 1% + GST
Federal Bank Home Loan8.80%0.50% 
Bajaj Finserv8.50% - 15.00%Up to 4% + GST
L&T Housing Finance8.65%Up to 3% + applicable taxes
ICICI Bank Home Loan8.75%0.50% + applicable taxes
SBI Bank Home Loan8.50% - 10.05%0.35% + GST
Central Bank of India8.50% - 9.50%Waived up to 31.12.2024
Bank of Baroda Home Loan8.40% - 10.60%Nil; Subject to recovery of out of pocket expenses of up to Rs. 10,000 + GST (Per Property) 
Bank of Maharashtra8.35% - 8.90%0.25%
Bank of India Home Loan8.40%Up to 0.50% 
Punjab National Bank8.40% - 10.25%Waived from 05.06.2024 to 31.03.2025
Union Bank of India Home Loan8.35%0.50% of the loan amount (up to Rs. 15,000) + GST

How to Calculate Interest on Home Loan?

You can use the formula mentioned below to calculate the housing loan interest rate: 

Interest = (Principal Amount x Rate of Interest x Time)/100. 

Interest is usually expressed as a percentage, known as the Annual Percentage Rate (APR). 

You can also use a home loan EMI calculator to determine your EMI as well as total interest outgo on your loan.

Factors Affecting the Housing Loan Interest Rates

Many factors can affect the home loan interest rate, including: 

  • Credit score: A CIBIL score is a reflection of a person's creditworthiness and is considered a major factor in determining the home loan interest rate. 
  • Repayment tenure: The duration available to repay the home loan can affect the interest rate. 
  • Employment and income stability: The type and duration of employment and the stability of a person's income can affect the interest rate and home loan eligibility. 
  • Relationship with the lender: If you have a long-standing, positive relationship with a lender, it can result in a more favorable interest rate. 
  • Location: The area where your property is located can affect the home loan interest rate. Lenders may offer lower interest rates for properties in well-connected neighborhoods with high resale value. 
  • Economic factors: Some economic factors like inflation, changes in monetary policies, and demand-supply dynamics in the existing credit market can also affect current home loan interest rate. 
  • Loan-to-value ratio: The loan-to-value ratio can impact the interest rate on your home loan. 
  • Type of interest rate: Home loans can involve either a fixed or floating interest rate. 
  • Debt-to-income ratio: It is ideal to keep your debt-to-income-ratio low to get low home loan interest rate.

How to Get a Home Loan at a Low-Interest Rate in 2024

Here is a list of some factors looked upon by home loan lenders to set your interest rate:

  • Credit score: Lenders consider the applicant's score to be one of the important factors when evaluating his home loan application. Those having a score of 750 and above are generally looked upon as creditworthy and have increased chances of home loan approval at lower rates. 
  • Income: Those having lower disposable income are considered by the lenders to have higher default chances. Thus, many lenders charge such applicants with higher home loan rates.
  • Employer’s profile: Generally, lenders charge lower home loan rates from the salaried than self-employed people. Doctors and chartered accountants under the self-employed section generally have higher chances of getting their home loans approved at lower rates. Among the salaried class, government employees and PSU are favoured the most owing to their job security and income certainty. 
  • Existing consumer relation with lenders: There are many lenders who offer preferential rates on home loans to their existing customers. Such relations can be in the form of current, savings or FD accounts or in the form of credit cards or various other loan options. 
  • Loan amount: The loan amount that you are looking to borrow can even impact the interest rate of a home loan. Usually, home loans of up to 30 lakh come at lower rates than loans available at higher amounts. 
  • Interest rate comparison: Always compare home loan interest rates of different lenders to get the best offer available in the market.

How to Apply for a Home Loan?

Follow the steps mentioned below to apply for a home loan:

  • Click on the ‘Home Loan’ tab on our web portal.
  • Fill in the online application form for a home loan by entering all the required details.
  • Enter the ‘OTP’ received on your registered mobile phone to get the best home loan offer quote.
  • Click on the ‘Submit’ button.
  • Many home loan offers will be displayed on your screen as per the information entered by you.
  • Choose the preferred option and apply.
  • Our home loan team will get in touch with you regarding the home loan process completion.

You can also call the Home Loan Customer Care Number of the lender to know the process in detail.

Best Home Loan Interest Rates FAQs

Lenders offering the lowest interest rate on a home loan is PNB Housing. They are offering the best home loan interest rates of 8.50% p.a

Presently HDFC home loan rate ranges between 8.75% p.a.

Loan EMI for a home loan of Rs 50 lakh loan amount, 20 years tenure and interest rate of 8.50% p.a. would be Rs. 43,391. If the repayment tenure is increased to 30 years with other components, that is, loan amount and interest rate remaining the same, the loan EMI would be Rs 38,446. In case the repayment tenure is decreased to 10 years, with other components, i.e. loan amount and interest rate staying the same, loan EMI would equal Rs 61,993.

Home loan applicants can use online EMI calculators for knowing their optimum EMI basis for their repayment capacity. They must factor in their contribution towards financial goals when calculating their monthly disposal income. Applying for a home loan after figuring out your EMI repayment capacity allows you to lower the chances of any EMI default in the near future or to compromise on monthly investment to attain financial goals.

To get the best interest rates, it's crucial to have a good credit score, stable income, and low debt-to-income ratio. Moreover, shopping around and comparing rates from various lenders can help you find the best rates. Sometimes, you may also get a lower rate by opting for a shorter loan term.

Yes, it's possible to negotiate home loan interest rates with your lender. However, your ability to negotiate will depend on your creditworthiness, the competition among lenders, and current market conditions.

This will depend on your financial situation and how you expect it to change over time. Fixed-rate home loans are best if you prefer predictable payments and plan to stay in the house for a long time. Adjustable-rate home loans can be advantageous if you expect your income to increase in the future or plan to sell the house before the rate increases.

Your credit score plays a crucial role in determining your home loan interest rate. The higher your credit score, the lower the risk you pose to lenders, which can result in a lower interest rate. If your credit score is low, you might face higher interest rates or even struggle to get approved for a loan.

Home loan interest rates can change daily as they're influenced by a variety of economic factors such as inflation, economic growth indicators, and the policies of the Federal Reserve.

If you have a fixed-rate mortgage, your interest rate will not change after loan approval. However, if you have an adjustable-rate mortgage, your rate can change according to the terms of the loan.

Home loan interest rates are typically lower than rates for other types of consumer debt, like credit card debt or personal loans. This is primarily because home loans use your home as collateral, which reduces the risk for the lender.

Yes, generally, a larger down payment can lead to a lower interest rate because it decreases the lender's risk. If you can afford to put down a larger down payment, it might be a good strategy to secure a lower interest rate.

At present, PNB Housing Bank charges the lowest interest rate on house loan varying between 8.50%.

Usually, floating interest rates are slightly lower than fixed interest rates. However, if you are comfortable with the current interest rate on your loan and are reasonably sure that rates will rise in future, opting for a fixed rate home loan is a better decision. If you are not sure about where interest rates are heading, take out a floating rate home loan.

Home loan interest rates in 2024 may vary for different lenders depending on the type of scheme offered, borrower’s income, credit history, prevailing repo rate and other factors.

Currently HDFC home loan interest rate starts from just 8.75% p.a., which is one of the lowest. 

Availing of a 100% home loan is not possible at any bank. According to the RBI’s guidelines, a borrower is required to pay 10% to 25% of the total property cost as own contribution depending on the loan amount. The bank will offer only 75% to 90% of the property cost as a housing loan.

One must consider the following factors for choosing the best bank for availing of a home loan:

  • Interest rate & processing fee
  • Loan amount limit
  • Prepayment charges
  • Customer service of the bank