When you take a home loan for your dream home, you end up paying an interest and the loan amount. The interest is calculated by an interest rate charged on the loan amount. You repay the loan amount and interest in equal monthly installments. Home loan interest rates can be floating and fixed depending on the banks. They are charged according to the loan amount.

EMI depends on the following factors:-

• Higher the loan amount, higher is the EMI.
• Lower the home loan interest rates, lower the EMI
• The maximum tenure of a home loan is 30 years. Longer the tenure of repayment of the loan and interest amount, lower the EMI.

You can calculate your home loan EMI using the following mathematical formula:

[P * r * {(1+r)^n}] / [{(1+r)^n} – 1]. Here P = loan amount, r = interest rate, n= loan tenure.

Banks and NBFCs charge an interest rate which keeps fluctuating over time. The Reserve Bank of India sets the interest rate charged by different banks. With COVID19, interest rates have been slashed to promote house purchases. Here is an approximation of the interest rates to help you with your loan application.

Let us now look at the home loan interest rates in the top 15 public and private banks in August 2020:

State Bank of India – 6.5%-7.5%

Punjab National Bank– 7%-8%

Bank of Baroda– 7%-8.5%

Canara Bank– 6.5%-8.5%

Union Bank of India– 6.5%-7%

Bank of India– 6.5%-8%

Indian Bank- 7%-7.5%

Central Bank of India- 6.5%-7.5%

Indian Overseas Bank– 7%-7.5%

UCO Bank– 7%-7.5%

HDFC Bank– 6.5%-8%

ICICI Bank– 6.5%-8%

Axis Bank– 7.5%-8.5%

IDBI Bank– 7.5%-8.5%

Kotak Mahindra Bank– 7%-9.5%

If you want to know about NBFCs and their interest rates, kindly visit PROPERTYYY for expert help on home loans. If you are curious about more loans, you may read Personal Loan Interest Rates for more information. Share this post if you found it useful!