Home loan interest rate is a crucial factor in the structure of your home loan. It is a primary contributor to your monthly EMI and the cost of your loan. Getting a low home loan interest rate is a progressive step towards healthy financial planning. So when it comes to home loan interest rates you should invest your time, do adequate research, and select the best fit for you.
Home loan comparison with different products
As compared to loans against property, commercial property loans and other similar products, interest rates on home loans are lower. If an applicant fulfills necessary requirements, then the applicant can avail affordable home loan at the best possible interest rate.
Types of interest rates for home loan
Home loan interest rates can be of 2 types – fixed and floating. The type of home loan interest rate depends on your selection. You need to assess your suitability and choose.
a) Fixed interest rates for loans
A fixed loan interest rate for home is a type of housing loan interest rate wherein your interest rate gets locked in for the entire tenure of your loan. During the total tenure, your home loan interest rate remains fixed. This means that your EMI will not change even if there are market changes.
b) Floating interest rates for loans
A floating loan interest rate for home is the one in which the housing loan interest rate is subject to revision every quarter. The home loan interest will be pegged to the base rate. When the base rate changes due to the RBI’s policy as per market changes, the housing loan interest rate charged may also vary. However, this will also depend on the lender’s policy and their adjustments, thus it would be prudent to have a conversation with your lender to understand how market changes may (or may not) affect your home loan interest rates.
Calculate Housing Loan Interest Rate
You can input the housing loan interest rate that may be applicable to your loan on our EMI calculator and know your EMI for a given loan amount and tenure. This has multiple benefits like having the flexibility of choosing your tenure and more efficient financial planning. Interest rate for home loan is calculated by a lender based on several factors such as:
- Market conditions
- Risk policy of the lender
- Your Income
- Your age
- Credit score and history
- Existing debts
- Nature and value of the property
- Your location
- Nature of employment
Grihashakti offers floating rates of interest on home loans that are linked to the Retail Prime Lending Rate. We offer attractive loan interest rates on home loan depending on the applicant’s eligibility and our policy at the time of loan application. To know more, get in touch with us today.
How to reduce home loan interest rates
You can try to reduce your home loan interest rate by following a few simple steps:
1. Lengthen your repayment tenure
When you opt for a longer repayment tenure, the housing loan interest rate payable on the loan is lower. You can use our EMI calculator to select a tenure so that your monthly EMI can easily fit in your budget. However, it is important to know that a longer tenure means that you will be paying a higher home loan interest amount over the tenure of the loan.
2. Opt for a down payment
It is highly advisable to maximise your down payment at the time of availing the loan so that your required loan amount is lower. If your repayment capacity (monthly income minus existing EMIs) is good, then the lender may consider lowering your home loan interest rate.
3. Consolidate your loans
If you have more than one loan, it would make sense to consolidate all in one. This will help you in managing your debt and most importantly it will lower your EMI. Similarly, before applying for a home loan, it is highly advised to keep your existing EMIs as low as possible, so that your repayment capacity is excellent.
A few other factors include maintaining an excellent credit score and history, showing extra income (if any) to the lender before applying, and adding a co-applicant with an excellent credit score and a stable income.
Current Home Loan Interest Rates from Grihashakti (Jan 2023)
At Grihashakti, our interest rates for home loans are reasonably priced, depending on the eligibility and other applicable criteria of the borrower.
| Loan Slab |
Home Loan Interest Rates (p.a.) |
| Salaried |
9.50% Onwards* |
| Self-Employed |
10.50% Onwards* |
* Final offered rate will depend on the income level and property being offered as security
The table below is an example for your understanding
|
Loan Amount
|
INR 1,00,000
|
|
Home loan interest Rate
|
9.5% per annum
|
|
Maximum Tenure
|
30 years
|
|
Your Monthly EMI per lakh
|
₹ 841
|
Please note that the above table is only for your understanding, and that the EMI amount does not take into account other components such as insurance. Home Loans provided by Grihashakti are subject to the borrower’s eligibility and Grihashakti’s policy at the time of loan application. Please click here to know more about the applicable fees and charges on home loans.