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Interest Rates and Charges

While a feasible loan offer can help you buy or construct your dream house, knowing the current house loan interest rates and associated charges is essential. With this information, you can plan your budget effectively and decide on an affordable repayment plan.

 

On Bajaj Markets, you can get some of the best house loan interest rates starting from just 8.50% p.a.

Latest Housing Loan Interest Rates, Fees and Charges

Here is a list of the current housing loan interest rates and charges in 2024 of various banks and NBFCs on Bajaj Markets. 

Lender

Minimum Interest Rate

Processing Fee

Bajaj Housing Finance Limited

8.50% p.a.

Up to 7% of the loan amount

Home First Finance Company (HFFC) Limited

9.50% p.a.

1.50% + GST onwards

ICICI Bank

9.00% p.a.

Up to 2% of the loan amount or Rs.1,500 whichever is higher

India Shelter

10.50% p.a.

Up to 3% of the loan amount + GST

Kotak Mahindra Bank

9.00% p.a.

Up to 1% of loan amount plus applicable taxes

L&T Finance

8.60% p.a.

Up to 3% of the loan amount + GST

LIC Housing Finance

8.65% p.a.

Up to 0.50% of the loan amount + GST

PNB Housing Finance

8.50% p.a.

Up to 0.50% + GST

Shriram Housing Finance

11.50% p.a

Up to 2.5% of the loan amount plus applicable taxes

Shubham Housing Finance

10.90% p.a.

Rs.1,500/- + 3% of the loan amount

Union Bank of India Limited

8.50% p.a.

0.50% of the loan amount or Rs. 15000/- (whichever is higher) + applicable GST

Vridhi Home Finance

12% p.a.

2% + GST

Disclaimer: The information in the table above is subject to change at the lender’s discretion. Check the latest charges with the lender before you apply. 

FAQs and Support

What is a Home Loan Interest Rate?

The home loan interest rate is cost of borrowing the loan. It is a percentage applied to the principal amount that a lender charges. In simple terms, the interest rates dictate your cost of borrowing. 

 

The home loan interest rates of various banks and NBFCs vary depending on their policy, the benchmark rate they follow and other factors.

What are the different types of interest rates charged on a home loan?

When applying for a home loan, you can opt for either a fixed or a floating interest rate. The first, as the name suggests, is fixed beforehand and remains the same throughout the loan tenure. On the other hand, if you choose a floating interest, then the rate will be revised on a quarterly basis. This will be on the basis of the repo rate and other economic factors.

How to calculate the interest rate?

A home loan interest rate has two components: base and markup rates. While paying your home loan interest dues, you will be paying a combination of these variables, i.e., Effective Interest Rate (EIR) = Base Rate + Markup.

 

The base rate is the standard rate levied against all retail loans and varies as per the lender's policy. The markup rate is the profit markup of the lending institution and varies for each type of loan and the lender.

How to reduce home loan interest rates?

You can reduce your home loan interest rates in several ways. Enhancing your credit rating and score can help you showcase healthy credit behaviour. This allows lenders to offer you competitive rates. 


You can also apply for government-run housing schemes such as Pradhan Mantri Awas Yojana (PMAY) to get interest subsidies. Availing of a Home Loan Balance Transfer Facility can also help you access lower rates if you have an existing home loan.

How is the home loan interest rate decided?

The standard NBFC or bank home loan interest rates are fixed by the institution based on their policy, market trends, and the RBI’s rates. It is also dependent on your credit profile and loan terms.

What is the floating interest rate on home loans?

Floating home loan interest rates are those that change during your repayment tenure. The change in your floating rate occurs when there is a change in the lender’s interest rate.

How is the risk of lending a home loan linked to the loan-to-value (LTV) Ratio?

A higher loan-to-value (LTV) ratio typically indicates that the loan amount funds most of the house purchase. This increases the risk the lender is undertaking because if the borrower defaults, the lender will lose significantly.

How can I check the total interest payable for my housing loan?

To calculate the home loan interest rate amount before applying, you can use the home loan EMI calculator. Use it before you apply for the loan, and check the amortisation schedule for the complete and detailed breakup. 

 

Remember that the result you get using the calculator will be an estimate and may change when you start repaying. However, you can use the tool to compare the rates and choose the best option.

Can I switch between fixed and floating interest rates during my home loan tenure?

Yes, most lenders allow you to switch from a fixed home loan interest rate to a floating rate and vice versa. Note that you may need to pay a minimal fee for the same.

Are there any tax benefits associated with home loan interest rates?

Yes, under Section 24 of the Income Tax Act, you can claim a deduction from your income of up to ₹2 Lakhs for the interest paid on the home loan in a financial year.

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