Current Home Loan Interest Rates 2023

Home loan interest rates are the rates of interest that banks and other financial institutions charge for home loans. These rates vary depending on the lender, the loan product and the creditworthiness of the borrower. The interest rate on a home loan is also influenced by factors such as loan-to-value ratio, credit score of the borrower and the length of the loan tenure.

Current Home Loan Interest Rates

Home loan interest rates can be fixed or adjustable, with fixed rates remaining the same throughout the tenure of the loan, while adjustable rates can change over time. Borrowers should consider the advantages and disadvantages of each home loan type before making a decision.

Home Loan Interest Rates of Public Sector Banks

bank name Rate of interest
state Bank of India 8.75% – 9.40%
Bank of Baroda 8.60% – 10.60%
Punjab National Bank 8.55% – 9.35%
Union Bank of India 8.60% – 10.70%
Indian Bank 8.50% – 10.20%
Bank of India 8.60% – 10.50%
Indian Overseas Bank 8.60% – 10.70%
Bank Of Maharashtra 8.50% – 10.55%
UCO Bank 8.75% – 9.75%
Canara Bank 8.90% – 13.50%

Home Loan Interest Rates of Private Sector Banks

bank name Rate of interest
axis Bank 8.60% – 12.80%
Kotak Mahindra Bank 8.65% – 11-60%
ICICI Bank 8.80% – 9.85%
bandhan bank 8.65% – 14.00%
Federal Bank 8.60% – 9.95%
Dhanlaxmi Bank 9.10% – 10.40%
South Indian Bank 9.60% – 12.35%
RBL Bank 8.90% – 11.40%
Karnataka Bank 8.95% – 10.20%
Tamil Nadu Mercantile Bank 8.70% – 9.25%

Home loan interest rates of housing finance companies

bank name Rate of interest
LIC Housing Finance 8.65% – 10.50%
Bajaj Housing Finance 8.75% – 10.90%
HDFC Limited 8.65% – 10.75%
PNB Housing Finance 8.75% – 13.00%
ICICI Home Finance 9.20% – 12.85%
Tata Capital Housing Finance 8.95% – 12.75%
Godrej Housing Finance 8.39% – 10.99%
Indiabulls Housing Finance 9.30% – 12-05%
Aditya Birla Capital 8.75% – 14.50%
L&T Housing Finance 8.65% – 8.85%
Repco Home Finance 9.25% – 14.05%
GIC Housing Finance 8.45% – 13.85%

The home loan interest rates mentioned above keep changing depending on the market requirement and home loan demand, so before taking a home loan from a bank or financial institution, check the current home loan interest rates by visiting their official website or branch. The interest rates given above are given for a basic knowledge purpose which may be higher or may be lower.

Types of Home Loan Interest Rates

There are three types of home loans in India on the basis of interest rate, fixed rate, floating rate and hybrid rate.

  1. fixed rate loan – The fixed interest rate remains the same throughout the loan tenure and the home loan EMI also remains constant.
  2. floating rate loan – Floating interest rates, also known as variable rates of interest, keep on changing during the loan tenure and the home loan EMI also increases or decreases due to interest rate fluctuations.
  3. hybrid loan Hybrid rate home loans are a mix of fixed-rate and floating-rate home loans. This home loan is best for those who need a low fixed rate loan and plan to prepay or foreclose before floating rates are introduced.

As home loan interest rates are at a 15-year low, practically all banks are offering home loans at lower interest rates than in the previous financial year. Nevertheless, compare the rates offered by the bank and the financial institution to find out the lowest home loan interest rates.

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