For many middle-class and lower-income family, buying a home solely through savings is often unfeasible. This makes home loans a vital financial tool, offered by both private and public sector banks. Each bank has its own set of criteria for providing home loans, and the interest rates charged can vary based on a number of factors.
Today, we are providing a comparison of the latest home loan interest rates from several public and private sector banks. This comparison will be helpful if you are looking to understand and compare home loan interest rates across different banks in 2024. The interest rates listed are charged annually on the principal amount of the loan.
Home Loan Bank Rate 2024 Overview
| Need for Home Loans | Many individuals depend on loans due to high home prices. |
| Interest Rates Overview | Rates vary widely between private and public banks, influenced by loan amounts and customer profiles. |
| Private Banks | Offer competitive rates; rates depend on loan amount and customer credit. |
| Public Banks | More stable rates, generally preferred for reliability by long-term customers. |
| Factors Affecting Rates | Loan amount, income stability, credit score, and customer-bank relationship. |
| Credit Score Impact | Higher credit scores lead to lower rates; lower scores may result in higher rates or rejection. |
| Special Offers | Discounts available for women, senior citizens, and reserved categories. |
| Loan Amount Influence | Higher loan amounts typically have higher interest rates. |
| Government vs. Private Banks | Government banks are seen as more trustworthy; private banks offer more competitive rates. |
Home Loan Interest Rates Comparison Among Popular Indian Banks
Several private banks, including HDFC Bank, ICICI, Axis Bank, and Kotak Mahindra Bank, currently offer competitive interest rates to attract customers for their home loan products. The loan amount plays a significant role in determining the interest rates. Generally, lower loan amounts may attract lower interest rates, while higher loan amounts could come with higher rates. Here is a list comparing interest rates from some well-known banks based on different loan amounts:
| Bank Name | Up to Rs. 30 Lakh | Above Rs. 30 Lakh & Up to Rs. 75 Lakh | Above Rs. 75 Lakh |
|---|---|---|---|
| HDFC Bank | 8.45% onwards | 8.50% onwards | 8.55% onwards |
| Kotak Mahindra Bank | 8.55% onwards | 8.65% onwards | 8.70% onwards |
| ICICI Bank | 8.60% onwards | 8.65% onwards | 8.70% onwards |
| Axis Bank | 8.70% – 13.00% | 8.70% – 13.00% | 8.75% – 13.00% |
| Karur Vysya Bank | 8.90% – 11.00% | 8.95% – 11.00% | 9.00% – 11.00% |
| South Indian Bank | 9.20% – 11.20% | 9.25% – 11.25% | 9.30% – 11.30% |
| Karnataka Bank | 8.55% – 10.50% | 8.60% – 10.55% | 8.65% – 10.60% |
| Federal Bank | 8.65% onwards | 8.70% onwards | 8.75% onwards |
| Dhanlaxmi Bank | 9.25% – 10.45% | 9.30% – 10.50% | 9.35% – 10.55% |
| Tamilnad Mercantile Bank | 9.55% – 9.90% | 9.60% – 9.95% | 9.65% – 10.00% |
| Bandhan Bank | 9.10% – 14.95% | 9.15% – 13.30% | 9.20% – 13.35% |
| RBL Bank | 8.85% onwards | 8.90% onwards | 8.95% onwards |
Home Loan Interest Rates in Government Banks
When comparing interest rates of private and public sector banks, there are noticeable differences. Private banks often provide slightly lower interest rates compared to government banks. However, government banks are typically viewed as more reliable and are often the preferred choice for senior citizens and long-standing customers.
With privatization and increased competition in the banking sector, private banks have become more aggressive in offering competitive rates to attract customers. For instance, the Bank of Baroda currently offers home loan interest rates ranging from 8.40% to 10.85%, while the Bank of India starts from 8.35% for their loyal customers. Most government banks are currently offering interest rates between 8.40% to 11.25% for home loans, depending on the principal amounts, such as 30 lakh, 50 lakh, or 70 lakh rupees.
Factors Influencing Home Loan Interest Rates
- Long-Term Commitments: Home loans typically have repayment terms of 10 to 30 years.
- Income Stability: A stable income (e.g., from a well-known company or government job) can help secure a lower interest rate due to reduced risk.
- Credit Score: Higher credit scores generally lead to lower interest rates, while lower scores may result in higher rates or loan rejection.
- Loan Amount: Larger loan amounts usually come with higher interest rates.
- Special Offers: Certain categories of borrowers, such as those from reserved categories, female applicants, and senior citizens, might qualify for special offers depending on the bank’s policies.
Lists of Government and Private Bank in India 2024
| Government Banks | Private Banks |
|---|---|
| State Bank of India (SBI) | HDFC Bank |
| Bank of Baroda (BoB) | ICICI Bank |
| Punjab National Bank (PNB) | Axis Bank |
| Canara Bank | Kotak Mahindra Bank |
| Union Bank of India | Yes Bank |
| Indian Bank | IndusInd Bank |
| Bank of India (BoI) | Bandhan Bank |
| Central Bank of India | IDFC FIRST Bank |
FAQs on Home Loans from Indian Banks
Required documents include identity proof, address proof, income proof, property documents, and bank statements.
Indian Bank Interest Rates vary by bank and loan type but generally range from 8% to 11% per annum. Rates can be fixed or fluctuate.
Specializing in content creation, editing, and visual design, Ravi holds a master’s degree in journalism from Delhi University. Known for his concise writing style, he makes learning accessible to all readers. he also brings expertise in trending recruitment notifications, ensuring our content is always relevant and engaging.