Rs. 40 lakh home loan EMI for tenures ranging from 10 to 30 years
| Loan Term | Loan Amount | EMI |
|---|---|---|
| 10 years | Rs. 40,00,000 | Rs. 49,594 |
| 15 years | Rs. 40,00,000 | Rs. 39,390 |
| 20 years | Rs. 40,00,000 | Rs. 34,713 |
| 25 years | Rs. 40,00,000 | Rs. 32,209 |
Compare the Lowest Home Loan Interest Rates in India 2025
Explore lowest home loan interest rates starting from 8.50% p.a. Find the best options and apply now to secure your dream home.
Latest Updates on Housing Loan Rates
SBI cuts home loan rates after RBI repo rate reduction
(SBI) has lowered its home loan interest rate by 25 basis points (bps) to 8.25%. The country’s largest lender has also cut its External Benchmark-Based Lending Rate (EBLR) by 25 bps to 8.90%. As per SBI’s website, the updated rates will be in effect starting February 15, 2025. This action comes after the Reserve Bank of India (RBI) decided to lower the policy repo rate by 25 bps to 6.25% on February 7, 2025. The central bank’s reduction in rates indicates a lowering of borrowing expenses throughout the financial system.
Key Highlights of Home Loan Rates
| Particulars | Details |
|---|---|
| Interest Rate | 8.50% p.a onwards |
| Loan Tenure | Up to 30 years |
| Processing Fee | Up to 0.25% of loan amount |
| Loan Amount | Up to 15 crore |
Table of Contents
Compare Top Banks/HFCs/NBFCs Offering Lowest Home Loan Interest Rates in 2025
Below mentioned is the list of best Banks/HFCs/NBFCs Offering Lowest Home Loan Interest Rates in 2025.
| Banks/NBFCs | Interest Rate (%) | Processing Fee |
|---|---|---|
| Aadhar Housing Pvt Ltd | 10.50% onwards | Up to 0.25% of loan amount |
| Axis Bank | 8.55% onwards 8.40% (salaried) | Up to 0.25% of loan amount 10,000 + GST (salaried) |
| Bajaj Housing Finance | 8.50% onwards | Up to 0.25% of loan amount |
| HSBC | 8.45% onwards | 10,000 + GST |
| Godrej Housing Finance | 8.75% onwards | Up to 0.25% of loan amount |
| Capri Global Housing Finance Ltd | 10% onwards | Up to 0.25% of loan amount |
| Bank of Baroda | 8.40% onwards | Up to 0.25% of loan amount |
| DBS Bank | 8.60% onwards | 10,000 + GST |
| Edelweiss Housing Finance Ltd | 8.70% onwards | Up to 0.25% of loan amount |
| Indiabulls (sammaan capital) | 8.80% onwards | Up to 0.25% of loan amount |
| Federal Bank | 8.40% onwards | 15,000 + GST |
| HDFC Ltd. | 8.55% onwards | Up to 0.25% of loan amount |
| ICICI Bank | 8.60% onwards | Up to 0.25% of loan amount |
| ICICI Home Finance | 8.90% onwards | Up to 0.25% of loan amount |
| Kotak Mahindra Bank | 8.55% onwards | Up to 0.25% of loan amount |
| State Bank of India | 8.45% onwards | 6,500 included GST |
| IIFL | 8.90% onwards | Up to 0.25% of loan amount |
| Aditya Birla Housing Limited | 8.75% onwards | Up to 0.25% of loan amount |
| Tata Capital Housing Finance | 8.70% onwards | Up to 0.25% of loan amount |
| Piramal Housing Finance Ltd | 10.50% onwards | Up to 0.25% of loan amount |
How to Calculate Interest on Home Loan
Home loan interest rates consist of two components: the base rate and the markup rate. The merging of the two is what you will owe on the loan. Let’s examine these elements to enhance your understanding.
- Base Rate – This is the typical interest rate set by the bank, relevant for all consumer loans. This rate is liable to regular alterations due to various factors.
- Markup – A minor percentage is added to the base rate to determine the EIR (Effective interest rate) for a certain kind of home loan, differing between types.
- Effective Interest Rate (EIR) = Base Rate + Premium
Starting in April 2016, the Reserve Bank of India (RBI) has introduced a new approach for calculating lending rates to take the place of the base rate system. The Marginal Cost of Funds based Lending Rates (MCLR) seeks to enhance accountability and adaptability in the manner that banks and financial institutions in India publish their rates.
The RBI requires banks to determine the interest rate by assessing the risk involved in lending to borrowers. It considers multiple factors involved like repo rate, deposits, etc. This MCLR-based calculation turns out to be marginally lower than the previous base rate.
How to Calculate Housing Loan EMI
You can manually calculate your EMIs using the following formula:
EMI Calculation Formula for Home Loan = [ P * r * (1 + r ) ^ n ] / [(1 + r ) ^ n – 1]
Where:
‘P’ stands for Principal amount, ‘r’ for Interest Rate per month and ‘n’ for number of Loan in Months. Using an EMI Calculator is wise, as it allows a prospective borrower to be prepared for repayment.
Calculate Your Monthly EMI Here.
Types of Home Loans
Home loans can be categorized into three types based on their interest structure: fixed-rate, floating rate, and hybrid.
| Metrics | Fixed Interest Rate | Floating Interest Rate | Hybrid Interest Rate |
|---|---|---|---|
| Definition | In this, the rate remains even throughout the loan tenor. | The interest charges on your home loan are subject to the current lending rates of the bank. | It is a combination of fixed and adjustable interest rates. |
| Advantages | Predictable Monthly Payments and Protection from Rate Hikes. | Lower initial rates and Flexibility. | Lower Initial Rates and Cost Savings. |
| Disadvantages | Potentially Higher Initial Rates and Missed Savings in a Falling Rate Environment. | Budgeting Challenges and Risk of Higher Costs. | Uncertainty, Complexity, and Potential for Higher Costs. |
| Which one is better? | If you value consistency. | If you can manage EMI fluctuations. | If you seek the advantages of both. |
- Fixed Interest Rate: The fixed interest rate stays unchanged during the entire loan period, resulting in a steady home loan EMI. It is advisable to request a home loan with a fixed interest rate when the existing home loan rates are relatively low and anticipated to rise in the future.
- Floating Rate Loans: A floating interest rate, or variable interest rate, is influenced by prevailing market lending rates, which means they can fluctuate throughout the duration of the loan. The home loan EMIs will rise or fall depending on the changes in interest rates.
- Hybrid Loans: Hybrid rate home loans combine elements of fixed-rate and variable rate home loans. These will start with a fixed interest rate for a set duration, after which it will shift to a floating interest rate. These home loans are ideal for individuals who have obtained a loan at a lower fixed rate and intend to pay it off early or close it before the floating rate starts.
Also Read: What are Home Loan Tax Benefits?
What are the Factors Affecting your Home Loan Interest Rates
- Credit Score: Your credit score shows your money history and credit record. A good credit score means you pay EMIs and credit card bills on time, and handle credit well. If CIBIL or other agencies give you a credit score of 750 or higher, lenders look at you more for a home loan. Also, banks and HFCs are starting to use credit scores to set home loan interest rates. People with high credit scores, which show they’re good with credit, might get lower interest rates.
- Home Loan Types: Home loan rates vary depending on the type of loan you choose. Regular home loans typically come with standard rates, whereas alternatives like Plot Loans or NRI Home Loans generally feature higher interest rates.
- Income and Employment: When evaluating your home loan eligibility, lenders look at your income, type of employment, and the employer’s profile. Home loan borrowers who work in government jobs or public sector jobs, or are employees of large and/or well-established private companies, are usually preferred by lenders due to their higher job and income stability. Therefore, lenders offer lower interest rates on home loans to such applicants. On the other hand, home loan applicants with unstable or insufficient income can find it difficult to obtain a home loan at a lower interest rate.
- Loan Amount: The amount of money you wish to borrow may also influence the rate at which you secure a home loan. Home loans up to Rs 30 lakh typically offer lower interest rates compared to loans for larger sums. To obtain a reduced interest rate on a home loan, a person should aim to make the largest down-payment feasible. This will not only decrease the total loan burden but can also assist them in obtaining a reduced interest rate on their loan.
- Type of Home Loan Interest Rate: The kind of interest rate you select for your home will influence the rate at which you pay back your lender. For fixed-rate home loans, EMIs stay constant throughout the entire duration of the loan. Conversely, floating rates adjust according to changes in the lending rate, such as the Repo Linked Lending Rate (RLLR). Lenders commonly impose elevated interest rates on fixed-rate home loans because of the greater interest rate risk associated with these loans.
How to Apply for a Home Loan Through OneNDF
When seeking a mortgage loan at OneNDF, you won’t need to navigate a pile of paperwork or endure a tedious process. Here’s the approach to take:
- Visit the official website of OneNDF and register or login.
- Register on the funds using your mobile number and generate a one time password.
- Upload any required financial or identification documents.
- Complete the mortgage application form.
- Through OneNDF, you will get in touch with numerous lenders that are ready to provide you with great rates on their mortgages.
That’s all! Your application has been sent. A member of our team will reach out to you soon to assist you with the upcoming steps.
FAQs
The current home loan interest rates start from 8.50% p.a. depending on the lender and applicant’s credit profile.
Bank of Baroda and State Bank of India offer the best home loan interest rates starting from 8.40% p.a. and 8.45% p.a. onwards respectively.
The current SBI Home Loan Rate starts from 8.45% p.a. Onwards.
The processing fee for a home loan is determined by the lender and is usually a percentage of the loan amount. It can also be a fixed amount.
