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Home Loan Interest Rates

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 of an 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 home 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.

Home Loan Interest Rates from Grihashakti

At Grihashakti, our interest rates for home loans are reasonably priced, depending on the eligibility and other applicable criteria of the borrower. The table below is an example for your understanding

Loan Amount INR 1,00,000
Home loan interest Rate 7.99% per annum
Maximum Tenure 30 years
Your Monthly EMI per lakh ₹ 733.07

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.

FAQs

What is meant by home loan interest rate?

Home loan interest rate is the percentage of the principal amount outstanding that is charged by lenders for a given loan amount. It is the key component in determining the cost of your home loan. The housing loan interest rate offered to a borrower depends on several factors including his/her eligibility and the lender’s policy.

How is home loan interest rate calculated?

The Home loan interest rate is calculated based on several factors - such as your overall eligibility, the lender’s risk policy and prevailing market conditions, your credit score and history, your income, existing debt, etc.

What are the types of interest rates on home loan available?

The main types of interest rates on home loan are floating and fixed. Grihashakti offers eligible borrowers both fixed and floating rates of interest on home loans.

What are the advantages of choosing a Grihashakti home loan?

Grihashakti offers complete transparency to our home loan borrowers. You can expect an attractive loan interest rate for home, speedy approval, useful tools such as EMI calculators, online payment options, and a seamless online application process.

How can I check the total loan interest rate for home?

If you are an existing Grihashakti customer, you can check your loan interest rate for home by referring to the loan agreement copy or your loan statement.

If you are not a Grihashakti customer, we are pleased to inform you that Grihashakti offers attractive interest rates to help you buy your dream home starting from 7.99% per annum. You can use our Home Loan Eligibility calculator to check the maximum loan you can get, and our home loan EMI calculator to get an estimate of your monthly EMI amount. To know the final loan interest rate on home that can be offered to you, please contact us or visit your nearest Grihashakti branch.

How to get the cheapest home loan in India?

There are a few steps that can help you in availing the best loan interest rate for home possible.

  • Maintain a high credit score that reflects how you have handled credit in the past. Applicants with a higher credit score could enjoy lower interest rates for loans.
  • Apply for a joint home loan with a close family member who has an excellent credit score and a stable income This will also increase your home loan eligibility and home loan tax benefits.
  • Ensure that you meet the lender’s required eligibility criteria perfectly
  • Try to pay as much of the value of the home as down payment, thereby reducing your required loan amount, which could lead to a lower interest rate.
  • Maintain an impeccable credit history of timely repayments of any past loans, including credit card bills
  • Ensure that all the required documentation is in perfect order
  • Maintain updated ITR statements
  • Pay off all existing debts to have maximum repayment capacity

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