Comparing different loan rates is very important. The reason is that when you compare different interest rates, you are comparing the effective EMIs. By doing so, you choose one lender which is offering you the lowest rate of interest so that you can pay the lowest rate of interest. Why is it necessary to choose the lowest rate of interest is home loans generally continue for 20 years. For such as long period, maintaining a particular EMI payment is quite a challenge to many.
So, a comparison of best home loan rates will help you finalize the best one according to you. In this article, we have brought in some of the lowest home loan rates in India and later shown how EMI is calculated so that you can compare different deals.
What are the best home loan rates in India?
The moment you think of applying for a home loan, you must do a proper research regarding the rate and other offers. This will help you in choosing the right lender. For your reference, here are the lowest home loan interest rates at top banks in India:
SBI- The starting rate of interest you can get for home loans is 8.35% per annum for women applicants and 8.40% per annum for other applicants.
HDFC Ltd- The home loan is disbursed at the present rate of interest starting from 8.40% per annum and goes up to 9.35% per annum.
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)
Axis Bank- The home loan rate at Axis Bank is presently at 8.40% per annum onwards. The processing fee applicable to home loans is up to 1% of the loan amount plus applicable taxes that is GST.
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 home loan EMI?
A home loan EMI calculator is the easiest tool that can help you calculate home loan EMI in a few minutes. This tool would take into account the basic details of your home loan which are:
- Loan amount
- Interest rate
Now, when you mention the above details in the calculator, it would give you the data of the EMI, the total interest outgo, and the total 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)