Home Loan Interest Rate FAQs
Home loan interest rate and your eligibility for a home loan is based on a calculation of your salary, age, credit score, the location, your work experience as well as your other monthly financial obligations. Some banks may use a different variable while calculating your loan amount, it depends on the bank and the financing scheme. Make sure you check with the banks on their requirements.
To understand better how much of a loan you are eligible for, use any online Eligibility calculator, even before you begin your property search. You also need good credit score from CIBIL, women borrowers get a lower interest rate, and there are other factors to bring down your interest amount for repayment of loan.
To understand more about home loans, click here: https://www.august.in/blogs/what-to-know-about-home-loans/
Working this out for yourself will give you the ballpark of your loan amount, so you can also work on the budget you can currently afford. And, locate your dream home in your property search according to what you can afford at the moment.
Here is a reference list of the interest rates that banks charge for a property in Bangalore.
What are the best home loan interest rates today?
Home loan interest rate today is 6.65% onwards. The final rate of interest at which your lender will give you a home loan will depend on multiple factors including your credit score, repayment capacity, loan amount and age. Check here to understand how all these are calculated : https://www.august.in/blogs/what-to-know-about-home-loans/
Which one offers home loan at a lower rate of interest – Banks or HFCs?
Banks usually offer home loans at a lower rate of interest than Housing Finance Companies (HFCs). However, the eligibility criteria for home loans from banks are often more stringent than that of HFCs.
Before you approach a bank, or visit a property, make a list of all your requirements, the kind of houses to look at, the size and property price, as well as documents for preapproval of home loans. This way, you will be collecting information for several purposes at the same time.
What are the best home loan interest rates today
Kotak Mahindra Bank offers home loan at the lowest rate of interest starting at 6.65% per annum. Following ICICI Bank and SBI, which are currently offering housing loans at 6.70% p.a. Bank of Baroda, Union Bank of India, PNB, Punjab & Sind Bank, Axis Bank, Tata Capital Housing Finance, LIC Housing Finance, and HDFC Bank are some of the other notable banks that offer housing loans at low interest rates.
The home loan interest rate is currently at a very low level after a series of repo rate cuts by RBI. You can get a home loan at the lowest home loan rate, provided you are salaried, looking at a property value of up to Rs. 30 lakh and you have a credit score as close to 750 as possible. The home loan interest rates are even lower for women borrowers, as women primary or co-owners can get an additional 0.5% lower rate.
Which is the best bank for home loan against Bangalore properties?
Top banks / NBFCs / HFCs are:
- State Bank of India (SBI)
- HDFC Ltd.
- Bajaj Housing Finance Ltd.
- ICICI Bank
- LIC Housing Finance Ltd.
- Axis Bank
- Bank of Baroda
- Kotak Mahindra Bank
- Aditya Birla Housing Finance Ltd.
- IDFC First Bank
Check and compare home loan interest rates of various banks for Bangalore properties
Interest rate offered is the primary factor of comparison. It affects your monthly EMI and total amount payable. For a long duration loan it is advised to go for a home loan with low interest rate.
| Kotak Mahindra Bank | 6.65% |
| SBI | 6.70 – 6.75% |
| HDFC Ltd | 6.75 – 7.10% |
| Citibank | 6.75% |
| Union Bank of India | 6.80% |
| Punjab National Bank | 6.80% |
| Central Bank of India | 6.85% |
| Bank of Baroda | 6.85 – 7.85% |
| Tata Capital Housing Finance | 6.85% |
| IDBI Bank | 6.90% |
| Canara Bank | 6.90 – 7.90% |
| LIC Housing Finance | 6.90 – 7.30% |
| ICICI Bank | 6.95 – 7.60% |
| State Bank of India | 6.95% |
| IDFC First Bank | 7.00% |
| PNB Housing | 7.35 – 9.05% |
| Axis Bank | 7.75 – 8.40% |
| Federal Bank | 7.65% |
| Karnataka Bank | 8.80% |
| Standard Chartered Bank | 8.86% |
| Aditya Birla Housing Finance Ltd. | 9.00% |
Note: interest rates are subject to change as per directives of RBI and lenders discretion. Home loan rates in the table are subject to the credit/ risk profile as assessed by the lender on the basis of parameters such as credit scores, age and repayment capacity of the applicant.
What happens if I am not able to replay my loan
If you are not able to repay your home loan, your bank will have to seize your assets and you may be evicted from your home. However, your bank will send reminders on your missed payments. If you know you aren’t able to make your monthly repayments, go to your bank and discuss on what other alternatives they can provide you.
What are the documents for preapproval of home loan? Click here for the list : https://www.august.in/blogs/homebuyers-guide-to-paperwork-before-buying-house/
