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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) |
|---|---|---|
| Kotak Bank | 6.55% | Rs.11800 |
| HDFC Home Loan | 6.7% | Rs.3540 |
| Axis Bank | 6.75% | Rs.2021 |
| Standard Chartered Bank | 6.99% | 0.15% |
| ICICI Bank Home Loan | 6.75% | 0.30% |
| PNB Housing Finance | 7.15% | 0.50% |
| Tata Housing Finance | 6.7% | 0.30% |
| IDFC First Bank | 6.75% | Rs.11800 |
| Yes Bank | 6.7% | Rs.11800 |
| Bajaj Home Finance | 6.75% | Rs.11800 |
| Federal Bank | 6.6% | Rs.11800 |
| DBS Bank | 6.6% | Rs.11800 |
| Fullerton Grahshakti | 8.75% | 1% |
| DCB Bank | 8.25% | 0.50% |
| Priamal Housing Finance | 9.5% | 0.75% |
| Adhar Housing Finance | 10.5% | 1.50% |
| Vastu Housing Finance | 11% | 1.50% |
| Aditya Birla Housing | 9% | 1.00% |
| DMI Housing | 11% | 1.00% |
| Hero Housing | 9.5% | 0 |
| L & T Housing | 6.9% | 0.25% |
| Aavas Financiers | 8% | 1% |
| Shubham Housing | 11.75% | 2.50% |
| HSBC Bank | 6.45% | Nil |
| ICICI HFC | 8.75% | 0.50% |
| RBL Bank | 9.55% | 0.50% |
| Indiabulls | 8.65% | 1% |
| Bank of Baroda Home Loan | 6.5% | 0.30% |
| SBI Home Loan | 6.65% | 0.35% |
| Sundaram Home Finance | 6.95% | Nil |
| IDBI Bank | 6.9% | 1% |
| Karur Vysya Bank | 7.45% | 1% |
| IIFL | 8.7% | 1% |
| South Indian Bank | 7.9% | 0.50% |
Home Loan Processing Fees and Charges
Banks, and NBFCs while processing your home loan application at Pay u Loans 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.
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
P = Principal Amount, or Loan Amount
r = Rate of Interest or ROI
n = Loan Tenure or Period in Months
You may however choose to use Pay U Loans Home Loan EMI Calculator as the simplest option for easy, quick, and accurate results. Follow the instructions below.
Home Loan Interest Rate Types
You will find different types of Home Loan Interest Rates offered by Pay u Loans 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.
