What is the current home loan interest rate in India?

Hi All,

Interest rates for home loans can significantly differ based on the applicant’s credit profile and the credit policies of lenders. It’s essential to compare interest rates from multiple lenders before applying for a housing loan. Explore the following home loan interest rates provided by banks and HFCs:

Lenders such as banks and HFCs employ the monthly reducing balance method to compute interest on home loans. With this calculation method, interest is determined based on the remaining principal amount after each EMI payment. Initially, the interest component in a home loan EMI is highest, gradually decreasing over the loan tenure as the outstanding principal diminishes with each EMI paid. This approach ensures a fair distribution of interest payments and contributes to a reduction in the overall interest burden as the loan progresses.

*These interest rate can vary according to RBI guidelines.

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