Current Home Loan Interest Rates of Banks & HFCs March 2025
| Bank | Interest Rate Start | Processing Fees |
|---|---|---|
|
HDFC Bank |
8.60% p.a. onwards |
3300/- + GST (salaried) 5900/- SE |
|
ICICI Bank |
8.70% p.a. onwards |
5900/- |
|
IDFC Bank |
8.85% p.a onwards |
Up to 3% of the overall loan amount. |
|
IDBI Bank |
8.40% p.a. onwards |
0.50% (Rs. 2,500 – Rs.5,000) |
|
LICHFL |
8.25% p.a. onwards |
5900/- |
There are two effective methods to determine the interest on your home loan:
Using an EMI Calculator: A convenient way to calculate the interest on your home loan is to utilize an EMI calculator. Simply input the required information into the designated fields. The essential details you’ll need include:
- Home Loan Amount
- Loan Repayment Tenure
- Interest Rate
After entering these details, click the ‘Calculate’ button to receive a comprehensive breakdown of your loan, revealing the total interest amount you will be liable for.
With these tools, you can gain a clearer understanding of your home loan’s financial impact.
Understanding Home Loan Interest Rate Types
When it comes to home loans, banks primarily offer two distinct types of interest rates:
Fixed Interest Rate: With a fixed interest rate, your rate remains constant for the duration of the loan. This means that your interest charges will not fluctuate, providing stability in your repayments. Some lenders may allow you to transition to a floating rate after a specified period into your loan term.
Advantages: The primary benefit of a fixed rate is predictability; you’ll know exactly how much interest you’ll pay from the outset. This stability protects you from market fluctuations and can lead to savings if interest rates rise over time.
Disadvantages: Conversely, if market rates decrease, you won’t benefit from lower rates, as your interest rate remains unchanged.
Floating Interest Rate: A floating interest rate means your loan’s interest charges are linked to the prevailing lending rates set by the bank. These rates can change based on various factors such as the Reserve Bank of India’s monetary policy or adjustments made by the bank in response to economic conditions.
Advantages: The key benefit of choosing a floating rate is the potential to save on interest payments. If the lending rates drop, your payments decrease accordingly.
Disadvantages: However, if the market rates rise, you may find yourself facing higher interest charges on your loan.
Note: Generally, floating interest rates are often lower than fixed rates initially, providing an attractive option for borrowers.