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As of 4 May 2024, the home loan interest rates are in the range of 8.40% p.a. to 10.15% p.a. for top leading banks in India. The interest rates are subject to frequent changes and vary based on several factors, including tenure, loan amount, and the borrower’s creditworthiness or your credit score.
Here is a list of lowest home loan interest rates for 4 May 2024 with the official websites reference of the banks and financial institutions that provides housing loans in India.
Lowest Home Loan Interest Rates for Top Banks May 2024
| Lowest Interest Rate | Bank Name | Processing Fees |
| 8.4% p.a. | HDFC | 0.5% or Rs.3,000 Which is Higher |
| 8.4% p.a. | LIC | Up to 0.50% |
| 8.5% p.a. | AXIS | 1% |
| 8.5% p.a. | IDBI | 0.50% |
| 8.75% p.a. | UNION | 0.50% |
| 8.85% p.a. | BARODA | 0.50% |
| 9.15% p.a. | SBI | 0.35% – 1% |
| 9.15% p.a. | ICICI | 0.50% – 2.00% |
| 9% p.a. | PNB | 0.35% |
| 9% p.a. | CANARA | 0.50% |
How Many Types of Home Loan Interest Rates are there?
In the context of home loans, there are two primary types of interest rates:
- Fixed Interest Rate: A fixed interest rate for a home loan remains constant throughout the entire loan tenure. Borrowers know the exact interest rate they will be paying from the beginning of the loan, and it remains unchanged regardless of any fluctuations in market interest rates. This option provides borrowers with financial certainty and predictable monthly payments.
- Floating or Variable Interest Rate: A floating or variable interest rate is subject to change based on market conditions and the fluctuations in benchmark interest rates. Typically, the interest rate is linked to a reference rate, such as the bank’s benchmark rate or the repo rate set by the central bank. As the reference rate changes, the home loan interest rate also changes, leading to varying monthly installments for the borrower.
Frequently Asked Questions
The current home loan interest rates offered by various banks in India starts from 8.40% onwards. For SBI the current home loan interest rates range in between 9.15% to 10.15% p.a.
Home loan interest rates increase due to economic conditions, monetary policy decisions by the RBI, and market forces. Here are the reasons why home loan interest rates get impacted.
1. Rising Inflation
2. RBI Monetary Policy (Current Repo Rate).
3. Rising Cost of Funds
4. Credit Risk
5. Government Policies
As of today 4 May 2024 the lowest home loan interest rate is 8.40% p.a. provided by both LIC and HDFC. Whereas Axis and IDBI banks have the second lowest interest rate on home loans at 8.50% p.a.
The average interest rate on home loans in India is 9.20% and the interest rate ranged between 8.40% p.a. to 10.15%p.a.
The best home loan depends on factors such as your financial stability, future income expectations and risk appetite. It’s wise to compare loan options and consider your long-term financial goals.
A good rule of thumb for a home loan down payment is typically 20% of the new home’s purchase price. This means that if you are buying a house for Rs. 50,00,000, a 20% down payment would be Rs. 1,00,000. While a larger down payment can offer advantages, it’s crucial to strike a balance that allows you to comfortably afford the monthly emi payments while meeting other financial priorities and maintaining an emergency fund. Consult with your wealth manager to determine the best down payment strategy based on your unique circumstances. Use the home loan calculator and plan according to your financial goals.
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