Finance

Best Home Loan Interest Rate 2021

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The dream of owning a home might prove expensive if the interest rates are not economical. A home loan is a huge loan, and even the slightest variation in interest will have a significant impact on the overall amount you will be repaying for the fixed term as well as the EMI.

It will be prudent to do market research to understand the home loan interest rates prevailing in the market to decide on the deal that suits your pocket and be adequate to fund your dream house.

Here below is a list of current interest rates for your reference.

Collation of Best Home Loan Interest Rates

Name of the Bank Home Loan Interest Rate
InduSind Bank 6.70% p.a.to 8.80% p.a.
Bank of Baroda Home Loan Interest Rates 6.75% p.a.8.35% p.a.
HDFC Bank 6.75% p.a.to 7.65% p.a.
Axis Bank 6.90% to 8.40% p.a. for salaried individuals

7.00% to 8.55% p.a.for the self-employed

IDFC First Bank 6.90% p.a.
Citi Bank 7.50% p.a.to 7.70% p.a.
RBL Bank 9.50% p.a.

#1. IndusInd Bank Home Loan


A leading private sector bank, IndusInd, provides home loan through HDFC Bank at attractive interest rates.

  • Rate of Interest: 
    • 6.70% p.a.to 8.80% p.a.
  • Eligibility:
      • The age of the applicant must be over 21 years. 
      • Salaried/Self-employed individuals and professionals can avail of the loan,
      • A minimum monthly income of Rs. 25000/- is mandatory
      • Work experience in the same institution/business of 2 years is compulsory.
  • Processing charges:

0.50% of the loan amount with a minimum of Rs. 3000/- for salaried and self-employed professionals and 1.50% of the loan amount with a minimum of Rs. 4500/- for non-professionals.

#2. Bank of Baroda Home Loan

One of the leading banks in the public sector that offers international banking standards, the Bank of Baroda brings home loans at attractive rates. Bank of Baroda Home Loan is categorised to meet the various requirement of the borrowers. As a result, the Bank of Baroda interest rate is the 2nd lowest among the prevailing rates in the market.

  • Rate of Interest
    • 6.75% p.a.to 8.35% p.a.depending on credit risk rating.of the applicant.
  • Eligibility
    • Resident and non-resident Indians aged between 21 years to 70 years 
  • Processing charges
    • 0.50% of the loan amount with a minimum of Rs. 8500/- and a maximum of Rs. 15000/- for loan amount up to Rs. 50.00 lakhs
    • 0.25% of the loan amount with a minimum of Rs. 8500/- and a maximum of Rs. 25000/- for a loan amount above Rs. 50.00 lakhs

#3. HDFC Bank Home Loan

Headquartered in Mumbai, the HDFC Bank is an Indian banking and financial services company. It offers various retail loans, and HDFC Bank Home Loan is one among them. The rate of interest stipulated for HDFC Bank Home Loan is very economical.

  • Rate of Interest
    • 6.75% p.a.to 7.65% p.a.depending on the loan amount.
    • Eligibility
      • Both salaried and self-employed should be aged between 21 years to 65 years 
      • Minimum income of Rs. 10000/- p.m. for salaried individuals and Rs. 1.50 lakhs per annum for self-employed individuals.
  • Processing charges
  • 0.50% of the loan amount or Rs. 3000/- whichever is higher.

#4. Axis Bank Home Loan

Axis bank is the third-largest private sector banks offering various financial products and services to different segments. In addition, the bank provides home loans at very competitive rates with flexible eligibility norms.

    • Rate of Interest
    • 6.90% p.a. To 8.40% p.a.for salaried individuals and 7.00% to 8.55% p.a.for the self-employed.
  • Eligibility:
      • Should be above 21 years of age
      • Salaried and self-employed individuals and professionals with stable income
  • Processing charges:
  • 1% of the loan amount with a minimum of Rs. 10000/-

#5. IDFC First Bank Home Loan

IDFC First Bank offers services to both private and corporate customers, including the industrial sector. IDFC First Bank home loans are one of the popular retail loans provided by the bank at interest rates that is not too heavy on your pocket.

  • Rate of Interest
    • 6.90% p.a.
  • Eligibility
      • Both resident and non-resident Indians are eligible.
      • The age of salaried individuals must be between 21 to 60 years, and self-employed individuals should be aged between 23 years to 70 years.
      • Salaried individuals should have a work experience of 3 years, and the self-employed should have a minimum of 4 years experience in the same business.
      • Salaried individuals should have a minimum income of Rs. 1/-lakh per annum and self-employed individuals should have a minimum income of Rs. 1.50 lakhs per annum.
  • Processing charges
  • Rs. 10000/- to be paid at the time of executing the loan documents.

#6. Citibank Home Loan

Citi bank is one of the leading foreign banks in India, leading the banking industry through innovation. Citibank provides various types of home loan per purpose, and the interest rates are highly comparable.

  • Rate of Interest
    • 7.50% p.a.to 7.70% p.a.
  • Eligibility
      • Age should be 21 years and above at the time of applying for the loan
      • The applicant should have a minimum work experience of 2 years in the same organisation/business.
  • Processing charges
  • 0.40% of the loan amount

#7. RBL Bank Home Loan

RBL Bank is a private sector bank that is expanding widely throughout the country. The popularity is due to retail loans’ availability, including home loans at very reasonable interest rates.

  • Rate of Interest
    • 9.50% p.a.to 10.70% p.a.depending on the loan amount
  • Eligibility
      • Should be aged between 24 years to 60 years for salaried individuals and 24 years to 65 years for self-employed individuals.
      • The minimum income for salaried individuals should be Rs. 1.20 lakhs p.a. and 1.50 lakhs p.a. For self-employed.
  • Processing charges
  • 1.50% of the loan amount

Conclusion

Showing your prudence by looking for the best interest rates in the market for availing of a home loan is not good enough. There will be other charges like CERSAI charges, processing charges and pre-payment that also have to be compared as these charges add to the cost of the loan.

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