Home loan interest rate is the percentage of the principal amount charge by the lender to the borrower for utilizing the principal amount. The interest rate charged by banks and non-financial institutions determines the cost of your home loan. So, when you are paying your home loan EMI (Equated Monthly Installment), the interest rate determines how much you have to pay for your loan to your lender every month. The interest rates are usually link to the repo rate and may vary from one lender to another.
Though the interest rates offered by the banks may increase or decrease as per the discretion of the banks, at present Union Bank of India is offering the minimum home loan interest rate of 6.40% p.a. to your customers. However, note that this rate is applicable only on home loans for women applicants.
Home Loan Interest Rate 2021 for All Banks – BankBazaar
Compare with the minimum home loan interest rate starting from 6.40% p.a. And apply for the best home loan. Get a complete list of current home loan rates of interest in India from all major banks and financial institutions.
Home loan interest rate 2021 of all banks
As part of the upcoming festive season in the country, leading banks are offering special home loan offers to attract customers to take home loans. State Bank of India is offering attractive interest rates starting from 6.90% p.a. Rupee. For home loans up to 30 lakhs and up to 7.00% p.a. Rupee. For home loans above 30 lakhs. Those applying through the bank’s YONO mobile application get an additional interest rate concession of 5 basis points.
Applicants will get an interest rate waiver of 20 basis points for home loans up to Rs 3 crore across 8 metro cities in India. In the rest of the country, it will be applicable on home loans ranging from Rs 30 lakh to Rs 2 crore. For home loans above Rs 75 lakh, interest rate concession of 25 basis points will be give. All interest rate concessions are also link to the credit score of the applicants.
HDFC Home Loan Interest Rate
HDFC has announced a blockbuster festive offer for home loans. As a part of the campaign, home loans can be avail at interest rates starting from 6.70% p.a. EMI for loans up to 30 years starts at just Rs 646 per lakh. Under this campaign, the processing fee for the loan will be limit to Rs 3,000 (plus tax) for employed individuals and Rs 5,000 (plus tax) for self-employed individuals. All HDFC Home Loans are at the sole discretion of HDFC Limit. Terms and conditions apply.
Union Bank Of India Interest Rates
Union Bank of India, Bank of India and SBI are the banks that are offering attractive interest rates for self-employed professionals and non-professionals with rates starting from 6.40% p.a. From 6.85% p.a. and 6.90% p.a.
Bank Of Baroda Home Loan Interest Rate
Bank of Baroda has cut the repo rate linked to the external benchmark by 15 basis points. Home loan rates have started from 6.50% due to reduction in interest rate. Bank of India and Central Bank are now offering home loans at low interest rates. These home loans start from 6.75% p.a. And LIC Housing Finance offers home loans starting from 6.90% p.a. Now, there are five housing finance companies in India that offer home loans of less than 8% per annum.
Types of Interest Rates in Home Loans
There are mainly two types of home loan interest rates charge by most of the banks.
1. Fixed Home Loan Rates
2. Floating Home Loan Interest Rates
In this system of calculation, the rate remains the same throughout the loan tenure. There will be no change in the interest charges as the rate remains constant. Depending on the offer, you may be allow to switch to. The floating rate system after completing a certain period in the loan tenure.
Fixed Home Loan Rates
The interest charges on your home loan are subject to the bank’s current highest lending rates. The rate is link to the bank’s latest publish rate which in turn depends on several factors such. As RBI’s monetary policy and revision in lending rate, bank’s response to the revision, etc.
2. Floating Home Loan Interest Rates
The floating home loan interest rates are cheaper than the fixed home loan interest rates on the first front.
Salient features of interest rates of all banks
Lots of loans require up to a 20% down payment. These loans only require 5% down so you can buy your home sooner.
With a fixed interest rate, your monthly payment to principal and interest will remain the same for the life of your loan.
Most lenders require the borrower to purchase PMI unless they can make a down payment of 20%.
If you already have a mortgage and want to refinance for a different interest rate or shorter term. This loan may also be a good fit.
The interest rate above shows the option of purchasing discount points to lower a loan’s interest rate and monthly payment. One point amounts to 1% of the loan amount and is paid at closing. Points don’t always have to be round numbers. Purchasing 1.5 points would cost $3,000 on a $200,000 mortgage.
Home loan interest rates are at a 15-year low, so almost all banks are offering lower interest rates on home loans as compared to the previous financial year. However, to get the lowest home loan interest rate, compare the rates offered by lenders. Always use a home loan EMI calculator when comparing rates; This will help you estimate how much you will need to pay each month for your loan.
Reducing your home loan interest will help reduce the EMI burden on your shoulders. There are several methods you can consider that will help reduce your loan interest.
Also, Read This- Types Of Loans, Its Best, How To Apply