This Article was fact checked and last updated for accuracy on December 3, 2024 by Mani Karthik
Building or buying homes has been simplified with the easy availability of loans. But before choosing a home loan one must be cautious and choose the appropriate one. Some of the major factors involved includes rate of interest, fixed and floating interest rates, special concession for women and senior citizens. It’s important to get updated with the new loan schemes introduced by the banks and choose an appropriate one as per your budget.
State Bank of India’s Home Loan Rates
The State Bank of India offers its customers an attractive home loan package with reasonable interest rates. There are no hidden cost and their brand name is well renowned all over India. Individuals between the age group of 18-70 are eligible for this loan provided they have a regular source of income. This loan requires an equitable mortgage of property and can be repaid within a maximum time of 30 years or up to the age of 70 whichever comes early. Women applicants can get special concessions but here they have to sole owner or first co-applicant of Home Loan.
| Borrowers’ category | Home Loan (Term Loan) | Home Loan (Term Loan) | Home Loan (Max Gain)Floating Rate | CRE Max gain irrespective of loan amount | ||
|---|---|---|---|---|---|---|
| 2 years Fixed Interest Loans upto Rs. 30 lacs | Floating Rate Loans Upto Rs.75 lacs | Floating Rate Loans above Rs.75 lacs | Maxgain above Rs. 20 lacs & upto Rs. 75 Lacs | Loans above Rs.75 lacs | ||
| Women* | 8.50% for first two years thereafter linked to floating rate. | 0.60% above 1 year MCLR, effective rate 8.60% p.a. | 0.65% above 1 year MCLR, effective rate 8.65% p.a. | 0.75% above 1 year MCLR, effective rate 8.75% p.a. | 0.95% above 1 year MCLR, effective rate 8.95% p.a | 1.05% above 1 year MCLR, effective rate 9.05% p.a |
| Others | 8.55% for first two years thereafter linked to floating rate. | 0.65% above 1 year MCLR, effective rate 8.65% p.a. | 0.70% above 1 year MCLR, effective rate 8.70% p.a. | 0.80% above 1 year MCLR, effective rate 8.80% p.a. | 1% above 1 year MCLR, effective rate 9% p.a. | 1.10% above 1 year MCLR, effective rate 9.10% p.a. |
Canara Bank’s Home Loan Rates
Canara Bank offers loans for the purchase, repair, and construction of houses. It is available to salaried people, businessman, self-employed and even NRI’s. It requires a mortgage of flat and can be repaid within a maximum time of 30 years or up to the age of 70 whichever comes early. The processing fee is 0.50% which is Rs 1500 minimum and maximum of Rs 10000.
| Up to 75 lakh | 8.65% |
| Above 75 lakh | 8.75% |
Indian Bank’s Home Loan Rates
Indian Bank offers housing loans to salaried, business men and self-employed professionals. Pensioners are also given loans but they must have repayment capacity too. The minimum entry age is 18 and the maximum is 60 years. The loan amount is calculated as 36 times of Gross Monthly Income or 60 times of Net Monthly Income of the applicant whichever is higher. There is no prepayment charges but the processing fee includes 0.225% of loan amount with a maximum of Rs.20,000.
| Up to 75 lakh | 8.25% |
| Above 75 lakh | 8.50% |
Bank of Baroda’s Home Loan Rates
Bank of Baroda offers good schemes for purchase or repair of flat or house. These loans are offered to salaried, self-employed and business persons. For salaried with 20000 monthly income loan amount of 36 times the monthly income is sanctioned. In case of self-employed and business men 5- times of average annual income is calculated. There is no prepayment charges and the loan can be repaid in 30 years or up to the age of 70 whichever comes early.
| Up to 30 lakh | 8.25% |
| Above 30 lakhs | 8.25% |
| Up to 75 lakhs | 8.25% |
IDBI’s Home Loan Rates
IDBI offers loans for purchase, construction of homes to salaried, business men as well as self-employed professionals. In case of salaried the minimum age is 22 and the maximum is 70 while that of self-employed professionals like doctors, architects the age limit is 25-70 while that of business men is 25-65.The loan can be repaid in period of 30 years for salaried while business and self-employed can get a maximum time of 20 years.
| Home loan floating | 8.25% (BR+0.00%) |
| Home Loan Interest Saver (Floating) | 8.40% (BR+0.15%) |
| Home Loan (Fixed ) for 3 to 10 years(less than 30 lakhs) | 8.75% (BR+0.50%) |
| Home Loan (Fixed ) for 3 to 10 years(more than 30 lakhs) | 8.00% (BR+0.75%) |
Punjab National Bank’s Home Loans
Punjab National Bank offers home loans for purchase, construction and even renovation of homes. All individuals with a regular source of income is eligible for this loan and even income of spouse, parents or children can also be added to it. Age criteria is 18-65 and it can be repaid in the longest time of 25 years. For construction of homes loan will be sanctioned on the basis of progress of construction.For renovation or alteration you can avail a maximum of 25 lakhs while for furnishing you can get up to 5 lakh. For purchase of land you can get up to 50 lakh. Base rate is 10.25% and the interest varies depending on floating or fixed rate.
| Scheme | Less than 75 lakhs | More than 75 lakhs |
| Floating Rate | 8.25% | BR+0.25% |
| Fixed Rate | BR+0.50% | BR+0.75% |
| OD on the existing housing loan | BR | BR+0.25% |
Axis Bank’s Home Loan Rates
Axis bank offers easy and simple ways to get access to home loans. It is available to salaried, professionals and self-employed professionals. Salaried should be between 24-60 while professionals between 24-65.Documents needed include address proof, identity proof, address proof.Interest rates are reasonable but you could choose between floating or fixed interest rates.
| Up to 75 lakhs | 8.25% p.a. |
| Above 75 lakhs | 8.50% p.a. |
| Top up | 12.25% p.a |
| Fixed rate | 9.75%p.a |
Vijaya Bank’s Home Loan Rates
Vijaya Bank offers loans for purchase or renovation of homes. Every individual earning an income is eligible and the income of spouse or children can be added. They should be between the age of 21 and 65 of which the maximum age of completion of paying loans is 75. Applicants are entitled to 75 months’ average gross income and there is no prepayment charges. Interest rate is 10.30% and the loan requires a mortgage of house. Processing charge is 0.25% of loan amount for which the maximum amount is 1000.
Bank of India’s Home Loans
Bank of India offers loans to salaried, self-employed and business professionals for construction or renovations of home. It’s also available for NRIs, PIOs, HUF, and Prop. Firm, Partnership firms and corporate. In metropolitan cities construction or purchase of new homes you get loans up to Rs.300 Lakhs. For repair or renovation you get 50 lakhs while purchase of plot you get 100 lakhs. Interest is calculated on reducing balance ratio and there is no pre-payment charges involved.
| Up to 75 lakhs | 8.20% |
| Above 75 lakhs | 8.45% |
Allahabad Bank’s Home Loans
Allahabad bank offers loans for construction or renovation of homes. For salaried officer’s loans up to 60 times of monthly gross salary and for others it is 4 times the gross annual Income. The repayment for salaried officials is a maximum of 25 years while for others it is a maximum of 70 years with a maximum of 20 years. Up to 30 lakhs processing fees is 0.60% of the loan amount while 30 lakhs up to 75 lakh its 0.45% of the loan amount.
| Up to 3 crores | 8.25% |
| 3 crores and above | 8.50% |
Hi Anand,
Banks like SBI or PNB are the major banks in the financial marketplace that are providing low interest rate on home loans. Apart from that, few NBFCs like Bajaj Finserv which are also providing a good interest rate on home loan. So it is a good idea to go with these banks and NBFCs for housing finance.
Which bank offers the best home loan rates in India?