Home Loan Interest Rates

Home loan interest rates are a key factor in determining the affordability of a mortgage. They directly impact your monthly EMIs and the total repayment amount over the loan tenure. Interest rates on home loans can vary significantly based on factors such as the borrower’s credit score, income, loan amount, and the chosen lender. Banks and financial institutions typically offer two types of interest rates: fixed and floating.

• Fixed Interest Rate: Remains constant throughout the loan tenure, offering stability in EMIs but potentially higher initial rates.

• Floating Interest Rate: Fluctuates with market conditions, potentially leading to savings if rates decrease but could result in higher EMIs if rates increase.

Banks/NBFCs List	Maximum Loan Amount	Maximum Tenure	Interest Rate	Processing Fees
Private Sector Banks
HDFC Bank	10 Cr	30 Years	8.70%	0.50%	Get Loan Offer
Yes Bank	5 Cr	35 Years	9.15%	2%	Get Loan Offer
Karnataka Bank	10 Cr	30 Years	9.26%	Nil	Get Loan Offer
IDFC First Bank	5 Cr	30 Years	8.75%	3%	Get Loan Offer
South Indian Bank	15 Cr	75 Years	9.85%	0.50%	Get Loan Offer
Axis Bank	10 Cr	30 Years	8.95%	1%	Get Loan Offer
ICICI Bank	20 Cr	25 Years	9.00%	0.75%	Get Loan Offer
Federal Bank	7 Cr	20 Years	8.80%	0.5%	Get Loan Offer
IndusInd Bank	6 Cr	28 Years	9.50%	1.5%	Get Loan Offer
City Union Bank	8 Cr	22 Years	9.25%	1.2%	Get Loan Offer

Home Loan Interest Calculator

Loan Amount

Loan Tenure (years)

Interest Rate % (p.a.)

You are Eligible for EMI Amount

₹ 56,409

Principal Amount

₹ 65,00,000

Interest Amount

₹ 70,38,043

Why for Home Loan?

Offers from 34+ Banks

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SBI Bank

RECOMMENDED

Loan Amount

₹65,00,000

ROI

8.5%

Tenure

30 yr

EMI

₹61,536

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SBI Bank

RECOMMENDED

Loan Amount

₹71,50,000

ROI

8.5%

Tenure

30 yr

EMI

₹67,690

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SBI Bank

RECOMMENDED

Loan Amount

₹80,00,000

ROI

8.5%

Tenure

30 yr

EMI

₹17,603

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SBI Bank

RECOMMENDED

Loan Amount

₹80,00,000

ROI

8.45%

Tenure

30 yr

EMI

₹17,603

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Key Factors that Impact Home Loan Interest Rates

When applying for a home loan, understanding the factors that influence interest rates can help you secure a competitive rate and potentially save on interest payments. Here are the key factors that impact home loan interest rates:

Credit Score

Lenders use your credit score to assess your financial reliability. A high credit score (typically 750 or above) can qualify you for lower interest rates, while a lower score may result in higher rates due to perceived risk.

Loan Amount

The requested loan amount can impact the interest rate. Larger loans may carry higher rates as they represent a higher risk for lenders, while smaller loans may sometimes offer lower rates.

Loan Tenure

Loan duration affects both interest rates and total interest payments. Longer tenures lower monthly EMIs but can come with higher interest rates due to the extended exposure to risk for lenders. Shorter tenures may result in more favorable rates.

Type of Interest Rate

Home loans offer fixed and floating interest rates. Fixed rates remain the same throughout the loan term, while floating rates vary based on market conditions. Floating rates often start lower but can fluctuate, impacting monthly EMIs.

Employment and Income Stability

Stable employment and a consistent income stream indicate financial security, making you a lower-risk borrower in the eyes of lenders. Self-employed or irregular income earners may face higher rates due to perceived unpredictability in income.

Down Payment and Loan-to-Value (LTV) Ratio

The Loan-to-Value (LTV) ratio is the proportion of the property value financed by the loan. A lower LTV (meaning a larger down payment) often results in better interest rates, as it reduces the lender’s risk. For instance, an LTV of 80% (20% down payment) may attract a more favorable rate than an LTV of 90%.

Relationship with Lender

Having an existing relationship with a lender, such as an account, investment, or prior loan, can sometimes lead to preferential interest rates. Loyal customers with good standing may be offered competitive rates as an incentive for continued business with the lender.

Market Conditions

Economic factors such as inflation, RBI policies, and overall demand in the financial market affect home loan interest rates. In times of economic growth, rates may rise, while during economic slowdowns, central banks may reduce rates to encourage borrowing.

Property Location and Type

The property’s location, age, and type can impact rates. Desirable properties in stable or high-growth areas may attract lower rates, while older properties or those in less developed locations might come with slightly higher rates.

How SuGanta Can Help You Get the Best Home Loan Interest Rate

SuGanta is a leading home loan aggregator with partnerships across major banks and housing finance companies. Our platform is designed to simplify the home loan process, helping you secure the most competitive interest rates available. Here’s how SuGanta makes it easy to get the best home loan interest rate:

Compare Home Loan Interest Rates Instantly

With an extensive network of partner banks and housing finance companies, SuGanta allows you to compare home loan interest rates quickly and efficiently. Our platform lets you view and evaluate rates from various lenders, making it easy to select the best option for your financial needs.

Personalized Relationship Manager for Tailored Assistance

At SuGanta, we assign you a dedicated Relationship Manager who will guide you through every step of the loan process. Based on your financial profile and goals, your Relationship Manager can recommend the best rates, terms, and offers, ensuring you make an informed decision that fits your budget.

Convenient Doorstep Document Collection Service

To make the home loan process hassle-free, SuGanta offers a convenient doorstep document collection service. We collect all the necessary paperwork from your location and submit it directly to the bank, saving you valuable time and minimizing the need for bank visits.

Expert Market Insights and Financial Advice

SuGanta keeps you informed about the latest housing loan trends, interest rate changes, and market conditions. Our resources, including articles, blogs, and financial advice sections, provide you with valuable insights to help you navigate the home loan market confidently.

Frequently Asked Questions (FAQ)

What is a home loan interest rate?

A home loan interest rate is the percentage charged by lenders on the principal loan amount. It determines the cost of borrowing and influences your monthly EMI.

How does my credit score affect the interest rate on a home loan?

A higher credit score generally qualifies you for lower interest rates, as it indicates good financial management. A lower score may lead to higher rates due to perceived risk.

What is the difference between fixed and floating interest rates?

A fixed rate remains constant throughout the loan tenure, providing stability. A floating rate fluctuates based on market conditions, which can increase or decrease your EMI.

Which is better: fixed or floating interest rate?

It depends on your preference for stability or flexibility. Fixed rates offer predictable EMIs, while floating rates may offer savings if market rates decrease.

Can the interest rate on my home loan change after I take the loan?

If you choose a floating interest rate, it can change according to market fluctuations. Fixed interest rates remain the same throughout the loan term.

How do economic factors impact home loan interest rates?

Interest rates are influenced by economic conditions, inflation, and Reserve Bank of India (RBI) policies. For example, if inflation rises, interest rates may also increase.

What is a teaser interest rate in home loans?

A teaser rate is a low introductory interest rate offered for a short period, after which it rises to a standard rate. It’s used to attract borrowers initially.

How is the home loan interest rate calculated?

Home loan interest rates are calculated based on factors like the borrower’s credit score, income, loan amount, tenure, and the type of rate chosen (fixed or floating).

Does my employment type affect my home loan interest rate?

Yes, salaried individuals with stable incomes may get lower rates than self-employed individuals due to predictable income, which lowers the lender’s risk.

Contact Us

Have any queries? We’d love to hear from you.

📞 Call us: +91 782 769 4613

✉️ Mail us: homeloan@suganta.com

Home Loan Interest Rates