As a potential homebuyer, one of the most critical pieces of information you need in your search for that dream home is current Home Loan interest rates. With so many lenders offering different interest rates, the whole process of Home Loan applications can become complex. This post will discuss current Home Loan interest rates, and the various types of interest rates, empowering you with the tools to make an informed decision.
Types of Interest Rates in Home Loan
Under Home Loans, there are two types of interest rates- floating, and fixed interest rates. The floating interest rates are based on the latest published rate of the bank which changes with a variety of factors including RBI monetary policy and changes in lending rate. The fixed interest rates are fixed for the entire tenure of the loan.
Current Home Loan Interest Rates in October 2024
Find below the current Home Loan interest rates as provided by major banks in India:
Standard Home Loan Interest Rates
Standard interest rates are the rates usually offered by lenders. Such rates are normally floating in nature; thus, the rates are linked to the repo rate, which is the rate at which banks borrow money from the Reserve Bank of India. Home Loan interest rates for standard Home Loans vary depending on the amount borrowed and the profile of the borrower.
The standard Home Loan interest rates are as follows:
| Loan Slab | Salaried | Self-Employed |
| Up to Rs. 35 lakhs | 9.25% – 9.65% | 9.40% – 9.80% |
| Rs. 35 lakhs to Rs. 75 lakhs | 9.50% – 9.80% | 9.65% – 9.95% |
| Above Rs. 75 lakhs | 9.60% – 9.90% | 9.75% – 10.05% |
Note: *The data presented in this table is valid till Oct 31, 2024.
Note: **These values are subject to change and may vary in the future.
Fixed Home Loan Interest Rates
The fixed Home Loan interest rates are consistent and predictable as the interest rate does not change during the tenure of the loan. It is well-recommended for those who are very sure of how much they can pay per month.
The fixed Home Loan interest rates are as follows:
| Fixed Tenure | Rate of Interest |
| 24 Months Fixed | 9.10% – 9.15% |
| 37 Months Fixed | 8.90% – 9.15% |
| 60 Months Fixed | |
| 120 Months Fixed | 11.00% – 12.05% |
| Full Term Fixed | 11.15% – 11.45% |
Note: *The data presented in this table is valid till Oct 31, 2024.
Note: **These values are subject to change and may vary in the future.
Loan against Property (LAP)/NRP/LRD Interest Rates
The Loan against property interest rates are applicable for borrowers who want to take a loan against their existing property. The interest rates for LAP are variable based on the loan amount and borrower’s profile.
The LAP interest rates are as follows:
| Loan Slab | Salaried/Self-Employed (PSL) | Self-Employed (Non-PSL) |
| Up to Rs. 50 lakhs | 11.35% – 12.00% | 11.85% – 12.50% |
| Rs. 50 lakhs to Rs. 100 lakhs | 11.10% – 11.75% | 11.60% – 12.25% |
| Above Rs. 100 lakhs | 10.85% – 11.50% | 11.35% – 12.00% |
Note: *The data presented in this table is valid till Oct 31, 2024.
Note: **These values are subject to change and may vary in the 11.35% – 12.00%future.
Determining Factors for Your Home Loan Interest Rate
Some factors might determine the interest rate on your Home Loan, which include:
- The sum you need to borrow: Those who are borrowing amounts in the scale of Rs. 30 lakh usually receive a better rate of interest as opposed to larger loan offers.
- Your credit score: A good credit score will ensure that you receive the lowest possible rate of interest on your Home Loan.
- Your income and debt: Other than this, people also use income and amount of debt when offering a Home Loan interest rate to a person.
Calculating Home Loan EMIs by Using an EMI Calculator
To understand your Home Loan payments, you need to use a Home Loan EMI calculator. It is a tool that enables you to calculate the monthly EMI from the loan amount, interest rate, and loan tenure. A Home Loan EMI calculator makes it possible for you to decide about your finances when deciding for a Home Loan.
If you have been eyeing a Home Loan with attractive interest rates, then you might want to consider taking one online with ICICI Bank, offering up to Rs. 5 crores*, with minimal documentation, fast approval, and an attractive interest rate of 8.75%* p.a.
*Standard T&C Apply
Conclusion
To make the right decision about your dream home, you should first know what the current Home Loan interest rates are. Knowing the various kinds of interest rates-standard, fixed, and LAP interest rates allows you to make the right decision as per your financial requirements. Further, you can use a Home Loan EMI calculator to plan your finances and get the most out of your Home Loan.
