A home loan at the lowest rate is everyone’s dream and with the present scenario when the rates are available at 8.30% per annum onwards, you can also fulfill your wish of living in your dream home.
Top banks have lowered their home loan rates which has resulted in the increasing demand for home loans. With the additional benefit of PMAY, buying a home through loans has become even easier. For reference purposes, you may look at all the home loan rates at all banks.
What are the present home loan rates at all banks?
Banks such as SBI are offering home loans with the starting rate of 8.30% per annum. The special rates are for women applicants only. The details of other rates at SBI and other banks are mentioned below:
Home loan rates at SBI
At SBI, the interest rates on housing loans are available at the starting rate 8.30% per annum for women applicants and 8.35% per annum for other applicants. The maximum interest rate on the loan if 8.60% per annum which is also within the budget of the mass.
Home loan rates at HDFC Ltd
The home loan is disbursed at the present rate of interest starting from 8.35% per annum and goes up to 8.95% per annum.
Home loan rates at LIC Housing Finance
The interest rate on a housing loan for variable loan amounts is mentioned below:
- Up to ₹1 lakh to 35 lakhs- 8.35% p.a. (for women) and 8.40% p.a. (for others)
- From ₹30 lakhs and ₹2 crores – 8.50% p.a. (for all)
- From ₹2 crore to ₹5 crores- 8.70% p.a. (for all)
Home loan rates at Axis Bank
The home loan rate at Axis Bank is presently at 8.35% per annum onwards. The processing fee applicable to home loans is up to 1% of the loan amount plus applicable taxes that is GST.
Home loan rates at Bank of Baroda
The interest rate on home loans starts from 8.30% per annum and goes up to 9.30% per annum.
How can you calculate your home loan EMI?
Whenever you take a loan, the first thing that pops-up your mind is the EMI you will be liable to pay. In the case of home loans also, it is very important to choose the lender that is offering the lowest rate so that you get to pay an EMI which is suitable for you throughout the tenure.
A home loan EMI calculator is the most convenient tool for such purposes. It helps in calculating the EMI in a few minutes by taking into account the basic details of your loan which are:
- Loan amount
- Interest rate
When you provide the above details, the calculator shows EMI, the total interest outgo, and total repayment amount (principal+interest). Here is an example with the loan amount ₹20 lakhs with the tenure of 15 years and interest rate of 8.35% p.a.
Total interest outgo: ₹15,13,480
Total amount: ₹35,13,480
Here is the formula to calculate the EMI or equated monthly installment:
E= P.r. (1+r)n/((1+r)n -1)
P=Principal loan amount
r= Rate of interest on monthly basis (r= Annual rate of interest/12/100)
You should also know that the rate is offered by banks by keeping into account certain factors such as the age, property value, property location, credit history, income, savings or investments, etc. The lenders such as banks and NBFCs decide which rate are your eligible for. The better is your overall profile, the higher is the possibility to get the lowest rate.
There is, however, no guarantee as different lenders have a different set of rules and regulations. Some of the finance companies such as Capital First, Bajaj Finserv, and Fullerton India have flexible eligibility criteria. Other big brands such as PNB HFL, HDFC Ltd., and LIC HFL have a vast customer reachability and the reliability. The choice, however, is subject to change with the offerings.