Before applying for a home loan, it is indispensable to determine the EMI as well as the interest on a home loan. One can estimate the interest of home loans using two methods:
EMI Calculator
One can see the amount of EMI with the guidance of an EMI calculator. To determine the EMI, one has to give the below-mentioned details:
- Amount of Home loan
- Interest rate
- Loan tenure
One can likewise modify the details to verify the EMI for various sums or tenure.
EMI Calculation Formula
Different way to determine the interest, as well as the EMI on a house loan, is applying a mathematical algorithm depending on the below-mentioned formula:
P x R x (1+R) ^N]/ [(1+R) ^ (N-1)
- P is the principal amount
- R is the rate of interest
- N is tenure.
Varieties of Interest Rates on Home Loans
Fixed-Rate of Interests
If one’s loan is on a fixed interest rate, the rate of interest imposed on the loan amount prevails constantly throughout the tenure of the loan. It indicates one’s home loan EMI prevails constantly throughout the payment record.
Floating Rate of Interest
If one’s loan is on a floating rate of interest, the home loan rate is not settled and it keeps on changing over the occupancy of the loan. In these home loans, the rates are associated with outer benchmarks like Repo Rates that are market-estimated. One’s home loan EMI may vary subject to fluctuations in interest benchmark rates.
Floating Rate Loans or Fixed Rate Loans
| Fixed Interest Rate | Floating Interest Rate |
| The interest rate is the same during the year. | The interest rate varies as benchmark rate variations. |
| Given by selected lenders, HFCs, or NBFCs. | Given by all lenders, HFCs as well as NBFCs. |
| It is a favorite selection amongst people who need to prepare their budget. | EMIs may vary which makes the planning of the budget difficult. |
| If one can anticipate that interest rates are persisting to grow, then one should go for this. | If one suspects that the rates will drop in the future or need to finish the loan quickly, then one needs to choose a floating rate home loan |
Processing Charge and Interest Rate on Home Loan Including EMI
| List of Banks | EMI per ₹1 lakhs | Floating interest rate (% per annum) | Processing fee |
| Axis Bank | 821 to 871 | 7.75 to 8.55 | Up to 1% of loan amount subject to a minimum of ₹10,000 Processing fee of ₹2,500 + G.S.T upfront |
| Bank of Maharashtra | 7.05 to 8.45 | As applicable | |
| Corporation Bank | 6.70 to 7.15 | 0.50% loan amount. Maximum ₹50,000 + GST | |
| ICICI Bank | 772 to 840 | 6.95 to- 8.05 | Up to 1.00% loan amount + the GST |
| Citibank | 7.20 Onwards | Up to 0.40% loan amount + GST | |
| Allahabad Bank | 7.15 to 7.50 | Up to 0.40% of the loan amount to a maximum of ₹50,000 | |
| Bandhan Bank | 8.50 to 11.75 | 1% of Loan Amount, Minimum ₹5,000 + GST | |
| Andhra Bank | 6.70 to 7.15 | 0.50 % of loan amount subject to a maximum of ₹10,000 + GST | |
| Bank of Baroda | 775 to 858 | 7.00 to 8.40 | Up to 0.50% of the loan amount or a maximum of ₹7,500 + GST |
| Federal Bank | 7.90 to 8.05 | 0.50% loan amount to a maximum of ₹7,500 + GST | |
| Central Bank of India | 766 to 793 | 6.85 to 7.30 | 0.50% loan amount subject to maximum ₹20,000 + GST |
| Dena Bank | 7.00 to 8.40 | As applicable | |
| Bank of India | 766 to 821 | 6.85 to 7.75 | 0.25% of loan amount + GST |
| HSBC | 7.45 to 7.55 | 1% loan amount + GST | |
| Canara Bank | 769 to 893 | 6.90 to 8.90 | 0.5% loan amount + GST |
June 2021: Home loan EMI and interest rates in top 15 banks
| List of Banks | Lowest Interest Rate | EMI per ₹ one Lakhs | Processing Fees (exclusive of G.S.T) |
| Kotak Mahindra Bank | 6.65% | ₹641 | Up to 0.50% + statutory dues |
| SBI | 6.70% | ₹646 | Up to 0.4% loan amount (Minimum of ₹10,000 & Maximum of ₹30,000) |
| ICICI Bank | 6.75% | ₹649 | 0.50% – 2.00% loan amount or ₹1,500 (₹2,000 for Mumbai, Delhi & Bangalore), the one that is higher |
| Punjab National Bank (PNB) | 6.75% | ₹649 | Up to 0.35% of loan amount (Minimum ₹2,500 & Maximum ₹15,000) |
| BOB | 6.75% | ₹649 | 0.25% – 0.50% loan amount (Minimum ₹8,500 & Maximum ₹25,000) |
| HDFC Bank | 6.75% | ₹649 | ₹3,000 for loans between May 17, 2021, and June 30, 2021 |
| Union Bank of India | 6.80% | ₹652 | 0.50% loan amount (Maximum ₹15,000) |
| IDBI Bank | 6.85% | ₹655 | For Inward Balance Transfer as well as PMAY Cases: Nil For Other Home Loan Cases: Up to ₹35 lakh: ₹3,500 to ₹7,500 Above ₹35 lakh & up to ₹75 lakh: ₹6,000 to ₹10,000 Above ₹75 lakh & up to ₹125 lakh: ₹10,000 to ₹16,000 Above ₹125 lakh: ₹10,000 to ₹20,000 |
| BOI | 6.85% | ₹655 | 0.25 % loan amount (Minimum ₹ 1500 & Maximum ₹20,000) |
| Central Bank of India | 6.85% | ₹655 | 0.50% loan amount (Maximum ₹20,000) |
| UCO Bank | 6.90% | ₹659 | 0.5% loan amount (Minimum ₹1,500; Maximum ₹15,000) |
| Axis Bank | 6.90% | ₹659 | Up to 1% loan amount (Minimum ₹10,000) |
| Canara Bank | 6.90% | ₹659 | 0.50% loan amount (Minimum ₹1,500; Maximum ₹10,000) |
| IOB | 7.05% | ₹669 | Up to 0.50% loan amount (Maximum ₹25,000) |
| Karnataka Bank | 7.50% | ₹699 | Up to 0.25% loan amount |
June 2021: Home loan EMI and interest rates in top 15 banks
| List of Banks | Lowest Interest Rate | EMI per ₹ one Lakhs | Processing Fees (exclusive of G.S.T) |
| Kotak Mahindra Bank | 6.65% | ₹641 | Up to 0.50% + statutory dues |
| SBI | 6.70% | ₹646 | Up to 0.4% loan amount (Minimum of ₹10,000 & Maximum of ₹30,000) |
| ICICI Bank | 6.75% | ₹649 | 0.50% – 2.00% loan amount or ₹1,500 (₹2,000 for Mumbai, Delhi & Bangalore), the one that is higher |
| Punjab National Bank (PNB) | 6.75% | ₹649 | Up to 0.35% of loan amount (Minimum ₹2,500 & Maximum ₹15,000) |
| BOB | 6.75% | ₹649 | 0.25% – 0.50% loan amount (Minimum ₹8,500 & Maximum ₹25,000) |
| HDFC Bank | 6.75% | ₹649 | ₹3,000 for loans between May 17, 2021, and June 30, 2021 |
| Union Bank of India | 6.80% | ₹652 | 0.50% loan amount (Maximum ₹15,000) |
| IDBI Bank | 6.85% | ₹655 | For Inward Balance Transfer as well as PMAY Cases: Nil For Other Home Loan Cases: Up to ₹35 lakh: ₹3,500 to ₹7,500 Above ₹35 lakh & up to ₹75 lakh: ₹6,000 to ₹10,000 Above ₹75 lakh & up to ₹125 lakh: ₹10,000 to ₹16,000 Above ₹125 lakh: ₹10,000 to ₹20,000 |
| BOI | 6.85% | ₹655 | 0.25 % loan amount (Minimum ₹ 1500 & Maximum ₹20,000) |
| Central Bank of India | 6.85% | ₹655 | 0.50% loan amount (Maximum ₹20,000) |
| UCO Bank | 6.90% | ₹659 | 0.5% loan amount (Minimum ₹1,500; Maximum ₹15,000) |
| Axis Bank | 6.90% | ₹659 | Up to 1% loan amount (Minimum ₹10,000) |
| Canara Bank | 6.90% | ₹659 | 0.50% loan amount (Minimum ₹1,500; Maximum ₹10,000) |
| IOB | 7.05% | ₹669 | Up to 0.50% loan amount (Maximum ₹25,000) |
| Karnataka Bank | 7.50% | ₹699 | Up to 0.25% loan amount |
May 2021: Home loan EMI and interest rates in top 15 banks
| List of Banks | EMI per ₹ 1 lakh | Lowest Interest Rate | Processing Fees |
| Kotak Mahindra Bank | 754 to 793 | 6.65 to 7.30% | 0.25% to 1%, + G.S.T. |
| State Bank of India (SBI) | 757 to 799 | 6.70 to 7.40% | 0.40% loan amount + applicable GST, subject to a min. of ₹10,000 and max. of ₹30,000 + GST |
| BOB | 760 to 858 | 6.75 to 8.35% | 0.25% to 0.5% loan amount (₹8,500 to ₹25,000) |
| ICICI Bank | 760 to 821 | 6.75 to 7.75% | 0.50% loan amount + applicable taxes |
| PNB | 763 to 827 | 6.80 to 7.85% | 0.35% loan amount (min. of ₹2,500 and max. of ₹15,000) |
| Union Bank | 763 to 799 | 6.8 to 7.40% | 0.50% loan amount, subject to a max. of ₹15,000 (+ applicable tax) |
| Central Bank | 766 to 793 | 6.85 to 7.3% | 0.50% loan amount, subject to a max. of ₹20,000 |
| UCO Bank | 769 to 790 | 6.90 to 7.25% | 0.50% loan amount (min. of ₹1,500 and max. of ₹15,000) |
| Canara Bank | 769 to 893 | 6.9 to 8.9% | 0.50% (min. of ₹1,500 and max. of ₹10,000) |
| Axis Bank | 769 to 871 | 6.9 to 8.55% | Up to 1% loan amount, subject to a min. of ₹10,000 |
| Bank of India | 772 to 858 | 6.95 to 8.35% | 0.25% loan amount (min. of ₹1,500 and max. of ₹20,000) |
| Indian Bank | 775 to 799 | 7.0 to 7.40% | 0.230% loan amount, with a max. of ₹20,470 |
| IOB | 778 to 793 | 7.05 to 7.3% | 0.5% up to ₹25,000 |
| South Indian Bank | 833 to 929 | 7.95 to 9.45% | 0.50% loan amount (min. of ₹5,000 and max. of ₹10,000) |
April 2021: Home Loan EMI and Interest Rates in Top 15 banks
| List of Banks | Lowest Interest Rate | EMI per ₹ one lakhs | Processing Fees |
| Kotak Mahindra Bank | 6.65 to 7.30% | 754-793 | 0.25% to 1% + GST |
| HDFC Ltd | 6.70 to 8.0% | 757-836 | For salaried individual and self-employed specialists: Up to 0.50% loan amount or ₹3,000, the one that is higher. Self-employed specialists: Up to 1.50% loan amount or ₹4,500, the one that is higher. (Taxes extra) |
| ICICI Bank | 6.70 to 8.05% | 757-840 | 0.50% loan amount+ applicable taxes |
| BOB | 6.75 to 8.35% | 760-858 | 0.25% to 0.5% loan amount (₹8,500 to ₹25,000) |
| PNB | 6.80 to 7.85% | 763-827 | 0.35% loan amount (min. of ₹2,500 and max. of ₹15,000) |
| Union Bank | 6.8 to 7.40% | 763-799 | 0.50% loan amount, subject to a max. of ₹15,000 (+ applicable tax) |
| Central Bank | 6.85 to 7.3% | 766-793 | 0.50% loan amount, subject to a max. of ₹20,000 |
| UCO Bank | 6.90 to 7.25% | 769-790 | 0.50% loan amount (min. of ₹1,500 and max. of ₹15,000) |
| Canara Bank | 6.9 to 8.9% | 769-893 | 0.50% (min. of ₹1,500 and max. of ₹10,000) |
| Axis Bank | 6.9 to 8.55% | 769-871 | Up to 1% loan amount, subject to a min. of ₹10,000 |
| State Bank of India (SBI) | =6.95% | =772 | 0.40% loan amount + applicable GST, subject to a min. of ₹10,000 and max. of ₹30,000 + GST |
| BOI | 6.95 to 8.35% | 772-858 | 0.25% loan amount (min. of ₹1,500 and max. of ₹20,000) |
| Indian Bank | 7.0 to 7.40% | 775-799 | 0.230% loan amount, with a max. of ₹20,470 |
| Indian Overseas Bank (IOB) | 7.05 to 7.3% | 778-793 | 0.5%, up to ₹25,000 |
| South Indian Bank | 7.95 to 9.45% | 833-929 | 0.50% loan amount (min. of ₹5,000 and max. of ₹10,000) |
Suggestions to get great deals for Home loans in the top 15 banks
Request for the bank’s/lender’s RLLR
Before making a visit to the bank, firstly study the bank’s outer benchmark rate. Few banks name it an RLLR i.e. repo rate linked lending rate. Everyone is identical as all are connected to the repo rate of RBI’s. RBI had ordered banks to confer at rates connected to an external benchmark plus the greatest number of banks associate it to the repo rate. The lesser the RLLR is, the lesser the interest rate.
Compare efficient home loan rates
Banks impose a ‘premium’ or ‘spread’. This may vary depending on various factors. Accordingly, the most suitable home loan interest rate will be dependent on your specific factor. So, talk to a few home loan lenders and go for the less home loan interest rates after analyzing them.
More amount of Down payment
It does not matter which bank you may choose; it is more beneficial to give as much down payment to the bank since it is feasible. The more the down payment expense, the lesser will be the total interest cost when the tenure finishes.
Prepay plan should be ready
The time you begin a home loan, make a strategy to pay the home loan as quickly as possible. When someone takes a home loan for 10 years or 15 years, the interest amount grows a large share of the loan sum. The earlier you pay the loan in the primary years, the more beneficial it is.
Updates on Home loans Interests
September 12, 2019
The previous few weeks are exciting for brand spanking new home consumers. The Reserve Bank of India made it obligatory to connect their loan for local borrowers to outer interest benchmarks or rates. The brand-new setup is effective from 1st October 2019 but several banks have now begun arising with consumer credit products that are coupled to the RR i.e. Repo Rate.
December 11, 2020
Despite the Covid-19 pandemic, the important property market in many huge centers has revealed signs of improvement, following the gala season 2020. Nevertheless, some consultants think that this turnaround might not last long if the COVID-19 shots linger. There are still considerations because the lenders are still facing the chance of loan reimbursement defaults.
May 12, 2021
Comprehending the massive rise in cases of Coronavirus in the second wave, many states have imposed lockdowns. Building activities have almost stopped in many major real estate businesses. Nevertheless, banks are now pushing their products for home loans, to attract consumers. The Reserve Bank of India (RBI) has also come forward, to offer relief to small enterprises, MSMEs, and individuals.
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Frequently Asked Questions (FAQ’s)
When can I have to pay my home loan processing fees?
Most lenders impose process fees either fully or partly after you submit your consumer credit form or when the loan is accepted.
Can I raise a processing fee relinquishing from my bank?
Yes, you can. If you are qualified for a processing fee relinquishing, the lender can approve it.
Will I acquire a processing fee refund if my consumer credit application is declined?
Lenders might offer a refund on the processing fee given at the time of applying when withholding some of the fee given. Looking at the bank/FI, you might receive a partial fee refund or no refund at all.
What is the GST charged on process fees?
18% GST is imposed on home loan processing fees.
Who is permitted to be joint borrowers when applying for a home loan?
Immediate members of the family like parents, partners, and kids are permitted to be shared borrowers for home loans.
