Home Loan Interest Rates And EMI Of Top 15 Banks In India For April 2021

Juliet D'cruz

Updated on:

Even before you could apply for a home loan, a borrower must be aware of the EMI and the home loan interest rates in all banks.

But how?

Estimating Interest Rate Of The Loan Amount- The Two Methods!

There are two ways that can help estimate the interest of the loan amount;

1) EMI Calculator

The borrower can easily calculate the EMI on home loan interest using the guidance of an EMI calculator. Therefore, to determine the EMI on the home loan interest rates, one will be expected to mention the following details:

  • The home loan amount
  • Loan tenure
  • Interest rate

Note – You can also modify the details to verify the EMI for various tenures or sums.

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2) EMI Calculation Formula

This is a mathematical algorithm that helps to determine the home loan interest rates, as well as the EMI on a house loan.

P x R x (1+R) ^N]/ [(1+R) ^ (N-1)


P = Principal amount

R = Rate of interest

N = Tenure

What are the Varieties of Home Loan Interest Rates?

Listed below are the two varieties of home loan interest rates;

1) Fixed-Rate

If the loan amount is one of a fixed interest rate, then the rate of interest that is imposed on the loan amount prevails constantly, that is, throughout the loan’s tenure. This helps to indicate the home loan EMI that prevails throughout the payment record.

2) Floating-Rate

If it’s a floating rate of interest, then the home loan rate isn’t settled, that is, it keeps on changing over the occupancy of the loan, staying true to its terminology. Here, in these home loans, the rates are associated with the benchmarks like the Repo Rates estimated by the market. Therefore, the borrower’s home loan EMI can fluctuate in interest benchmark rates.

Fixed-Rate or Floating-Rate: What’s Better?

Fixed Interest Rate Floating Interest Rate
The rate of interest is the same during the year The interest varies in retrospect with the benchmark rate variations 
Given by selected HFCs, lenders, or NBFCs Given by all HFCs, lenders, and NBFCs
Best for borrowers who need to prepare their budget The EMI can vary, which makes the planning a little difficult
If one anticipates the growth of interest, then it’s the best pick If one anticipates that the rates might drop, then it’s the best pick

EMI of the Top 15 Banks In India For April 2021

Banks Lowest Interest Rate EMI per 1lakh Processing fee
Kotak Mahindra  6.65 – 7.30% 754 – 793 0.25 to 1% + GST
HDFC Ltd 86.70 – 8.0% 757 – 836 Salaried and self-employed – Up to 0.50% loan amount or Rs. 3,000

Self-employed – Up to 1.50% loan amount or Rs. 4,500 (extra tax)

ICICI Bank 6.70 – 8.50% 757 – 840 0.50% amount of loan + applicable taxes
BOB 6.75 – 8.35% 760 – 858 0.25% to 0.5% loan amount, that is, Rs. 8,500 to 25,000
PNB 6.80 – 7.85% 763 – 799 0.35% loan amount (min Rs. 2,500 and to a maximum of Rs. 15,000)
Union Bank 6.8 – 7.40% 763 – 799 0.50% loan amount with max Rs. 15,000
Central Bank 6.85 – 7.3% 766 – 793 0.50% loan amount with max Rs. 20,000
UCO Bank 6.90 – 7.25% 769 – 790 0.50% loan amount with a min of Rs. 1,500 and max Rs. 15,000
Canara Bank 6.9 – 8.9% 769 – 893 0.50% loan amount with a min of Rs. 1,500 and max Rs. 10,000
Axis Bank  6.9 – 8.55% 769 – 871 Up to 1% loan amount with min Rs. 10,000
State Bank of India 6.95% 722 0.40% loan amount + GST with min Rs. 10,000 and max 30,000
BOI 6.95 – 8.35% 772 – 858 0.25% loan amount, min Rs. 1,500 and max 20,000
Indian Bank 7.0 – 7.40% 775 – 799 0.230% loan amount with max 20,470
Indian Overseas Banks (IOB) 7.05 – 7.3% 778 – 793 0.5% up to 25,000 
South Indian Bank 7.95 – 9.45% 833 – 929 0.50% with min Rs. 5,000 and max Rs. 10,000

To Conclude: How to Get Great Deals Of Home Loan From These Top 15 Banks?

Here are four quick ways that can help any borrower get great deals on home loans in 2021;

1) Request the Bank/Lender For Their RLLR

It is crucial for the lenders to study in and out about the bank’s outer benchmark rate before even visiting its premises. A few banks name it an RLLR or the “Repo Rate Linked Lending Rate.”

Mostly, the RLLR is identical as they are all connected to the repo rate of RBI and have conferred at rates connected to the external benchmark and the best banks associated with its repo rate. In simpler words, the lesser the RLLR, the lesser the interest rate.

2) Comparing Efficient Home Loan Interest Rates

Almost all banks offer and impose a ‘premium’ or ‘spread’ that may depend on various factors. As per the most suitable home loan interest rate, it would depend on a few specific factors. Therefore, make sure to talk to a few home loan lenders and choose home loan interest rates post-analyzing them thoroughly.

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3) More Down Payment

Irrespective of the bank you choose from the list, it is beneficial to provide as much down payment as feasible. In other words, the more the down payment expense, the lesser the home loan interest rates when the tenure finishes.

4) Prepay Plan

As soon as you begin a home loan, it’s best to strategize the payment of the home loan, to be paid as quickly as possible. Why? When a borrower chooses a home loan for 10 to 15 years, its interest amount begins to grow massively, affecting the loan sum. Therefore, the faster you pay the loan in the primary years, the more beneficial it is.

FAQs: Home Loan Interest Rates And EMI Of Top 15 Banks In India For April 2021

1) What is the home loan interest rate?

Home loan interest rates are the percentage of the principal amount that is charged by the lender/bank to the borrower when using the principal amount. The loan interest rates are charged by banks and non-financial institutions which also determines the cost of your home loan.

2) Which Bank has the lowest home loan interest rate?

Although the home loan interest rates that are offered by the banks are capable of increasing or decreasing as per the banks’ discretion, with the current calculation, the Union Bank of India is noted to offer the lowest. They are offering a home loan interest of 6.70% p.a.

3) Which bank home loan is best in India?

To name a few:

  • State Bank of India (SBI)
  • HDFC
  • ICICI Bank
  • Bank of Baroda
  • BOB
  • Indian Bank
  • Kotak Mahindra Bank
  • Overseas

For more, refer to the article above!