Home loan interest rates vary with each individual and it also depends on their credit score, income, tenure type of interest, Loan-to-Value (LTV) ratio, MCLR, RLLR etc,. When choosing a home loan, keeping these things in mind can help you acquire the best loan possible for your needs and budget.
Here is a comparison of private banks and public bank interest rates on home loans for amounts above Rs 75 lakh.
Also read: Want a house that fits in your budget? 5 most affordable cities in India to buy home now
Private banks home loan interest rate for amounts above Rs 75 lakh.
Private banks offer interest rates between 8.35% to 14.85% for amounts above Rs 75 lakhs.
| Private Banks | |
| Bank | Interest rate above amounts Rs 75 lakh |
| Kotak Mahindra Bank | 8.70 onwards |
| ICICI Bank | 8.75 onwards |
| Axis Bank | 8.70-9.10 |
| HSBC Bank | 8.45 onwards |
| South Indian Bank | 9.84-11.69 |
| Karur Vysya Bank | 8.95-11.00 |
| Karnataka Bank | 8.58-10.58 |
| Federal Bank | 8.80 onwards |
| Dhanlaxmi Bank | 9.35-10.50 |
| Tamilnad Mercantile Bank | 9.45-9.95 |
| Bandhan Bank | 9.16-13.33 |
| RBL Bank | 8.90 onwards |
| CSB Bank | 10.69-12.54 |
| HDFC Bank Ltd. | 8.35 onwards |
| City Union Bank | 13.35 – 14.85 |
Public sector banks home loan interest rate for amounts above Rs 75 lakh.
| PUBLIC SECTOR BANKS | |
| Bank | Interest rate above amounts Rs 75 lakh |
| State Bank of India | 8.40-10.05 |
| Bank of Baroda | 8.40-10.90 |
| Union Bank of India | 8.35-10.90 |
| Punjab National Bank | 8.40-10.15 |
| Bank of India | 8.30-10.75 |
| Canara Bank | 8.40-11.15 |
| UCO Bank | 8.45-10.30 |
| Bank of Maharashtra | 8.35-11.15 |
| Punjab and Sind Bank | 8.50-10.00 |
| Indian Overseas Bank | 8.40 onwards |
| Central Bank of India | 8.45-9.80 |
Source: Paisabazaar.com, Rates as of 24th January 2024
Credit score
Credit score plays a vital role and it hugely impact on interest rate. Your payment history, financial responsibility, and trustworthiness are all reflected in your credit score. In order to offset their risks, lenders would raise interest rates on borrowers with lower credit scores because they indicate a larger credit risk. Conversely, an individual with a better credit score is perceived by lenders as less risky, which makes them more likely to grant lower interest rates.Also read: Home loan interest rates may fall by 50 bps or more in 2024; how to save more on your loan
Home loan rates may start falling
Most experts anticipate the RBI to start reducing the repo rate from the second quarter of 2024, or even possibly in June or July. Home loan borrowers will have to wait in the first half of the year because any reduction in home loan EMIs is likely to happen near mid of the year 2024.
Home loan borrowers fall in different categories as per the timing of the loan and nature of the lender. If you are an old home loan borrower who has taken it from a bank then you may be under either of these interest rate regimes: BPLR, Base Rate, MCLR or EBLR. If you have taken it from an NBFC or HFC you will have a different regime. So, the speed and quantum of the rate cut will vary for different interest rate regimes.
As the interest rate cycle moves from rising rate to falling rate, it would be better for a home loan borrower to have the loan in EBLR to gain quickly from the fall.
If you have taken a loan from a bank that is under an older interest rate regime like BPLR, Base Rate or MCLR, the bank would allow you to easily switch to EBLR. However, despite switching to EBLR if your interest rate is higher than other banks then you may consider refinancing your home loan. However, you need to be sure that the next bank is willing to offer competitive rates in your specific case.
