A home loan serves as a financial tool for individuals aiming to purchase a home. However, beyond just securing the loan, it’s vital to assess its overall cost. When considering eligibility, also check the total cost, including interest, fees, and penalties.
If the loan has a variable rate, ideally there should be no penalties for early payment. You should also be able to reduce the interest rate for a small fee.
It’s important to make sure that you watch out for hidden fees when considering a home loan.
Regulations mandate lenders to openly disclose all fees and charges on their website, states an ET report.
Here are the home loan interest rates offered by various banks for April 2024, based on data from Paisabazaar:
| Loan amount (Rs) | Upto Rs 30 Lakh | Above Rs 30 Lakh & Up to Rs 75 Lakh | Above Rs 75 Lakh |
| Name of Lender | Interest rate (%) | Interest rate (%) | Interest rate (%) |
| PUBLIC SECTOR BANKS | |||
| State Bank of India | 8.40 – 10.15 | 8.40 – 10.15 | 8.40 – 10.15 |
| Bank of Baroda | 8.40-10.65 | 8.40-10.65 | 8.40-10.90 |
| Union Bank of India | 8.35-10.75 | 8.35-10.90 | 8.35-10.90 |
| Punjab National Bank | 8.45-10.25 | 8.40-10.15 | 8.40-10.15 |
| Bank of India | 8.30 – 10.75 | 8.30 – 10.75 | 8.30 – 10.75 |
| Canara Bank | 8.50-11.25 | 8.45-11.25 | 8.40-11.15 |
| UCO Bank | 8.45-10.30 | 8.45-10.30 | 8.45-10.30 |
| Bank of Maharashtra | 8.35-11.15 | 8.35-11.15 | 8.35-11.15 |
| Punjab and Sind Bank | 8.50-10.00 | 8.50-10.00 | 8.50-10.00 |
| Indian Overseas Bank | 8.40-10.60 | 8.40-10.60 | 8.40-10.60 |
| PRIVATE SECTOR BANKS | |||
| Kotak Mahindra Bank | 8.70 onwards | 8.70 onwards | 8.70 onwards |
| ICICI Bank | 8.75 onwards | 8.75 onwards | 8.75 onwards |
| Axis Bank | 8.75-13.30 | 8.75-13.30 | 8.75-9.65 |
| South Indian Bank | 9.84-11.24 | 9.84-11.04 | 9.84-11.69 |
| Karur Vysya Bank | 9.00-11.05 | 9.00-11.05 | 9.00-11.05 |
| Karnataka Bank | 8.60 – 10.60 | 8.60 – 10.60 | 8.60 – 10.60 |
| Federal Bank | 8.80 onwards | 8.80 onwards | 8.80 onwards |
| Dhanlaxmi Bank | 9.35-10.50 | 9.35-10.50 | 9.35-10.50 |
| Tamilnad Mercantile Bank | 8.60-9.95 | 8.60-9.95 | 8.60-9.95 |
| Bandhan Bank | 9.16-15.00 | 9.16-13.33 | 9.16-13.33 |
| RBL Bank | 8.90 onwards | 8.90 onwards | 8.90 onwards |
| HDFC Bank Ltd. | 8.50 onwards | 8.50 onwards | 8.50 onwards |
| HOUSING FINANCE COMPANIES (HFCs) | |||
| LIC Housing Finance | 8.35-10.35 | 8.35-10.55 | 8.35-10.75 |
| Bajaj Housing Finance | 8.50 onwards | 8.50 onwards | 8.50 onwards |
| Tata Capital | 8.70 onwards | 8.70 onwards | 8.70 onwards |
| PNB Housing Finance | 8.50-14.50 | 8.50-14.50 | 8.50-11.45 |
| GIC Housing Finance | 8.80 onwards | 8.80 onwards | 8.80 onwards |
| Indiabulls Housing | 8.75 onwards | 8.75 onwards | 8.75 onwards |
| Aditya Birla Capital | 8.80-14.75 | 8.80-14.75 | 8.80-14.75 |
| ICICI Home Finance | 9.20 onwards | 9.20 onwards | 9.20 onwards |
| Godrej Housing Finance | 8.55 onwards | 8.55 onwards | 8.55 onwards |
| Rates as of 9th April 2024 | |||
| Source: Paisabazaar.com | |||
ALSO READ | Save lakhs in interest cost? What RBI’s new rules for interest overcharging on loans mean for borrowers
Best CIBIL Score for a home loan
CIBIL score for a home loan falls between 300 and 900.
A higher score increases the likelihood of securing a home loan.
What happens if you don’t pay your home loan?
If you default on a home loan, the lender can take action without involving the courts. Missing more than three installments empowers lenders to act under the SARFAESI Act. If you’re facing financial difficulties, it’s crucial to inform your lender and explore options for extending the repayment period.
Tax benefits on my home loan
You can enjoy tax benefits on your housing loan under sections 80C, 24(b), and 80EEA of the Income Tax Act of 1961. These benefits apply to both the principal and interest components of your loan. For the latest information, it’s advisable to consult with your chartered accountant or tax professional, as the benefits may vary each year.
