Buying a property in 2025 has become more accessible with competitive home loan interest rate options, transparent charges, and a hassle-free online application process. Let’s explore how you can find the best home loan rates with SMFG Grihashakti, whether you’re salaried or self-employed.
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Current Home Loan Interest Rate in India
India’s current home loan interest rate varies depending on several factors, including lender policies, applicant profile, and market conditions at the time of application.
Let’s take a closer look at the house loan interest rate you can expect at SMFG Grihashakti:
| SMFG GRIHASHAKTI CURRENT HOME LOAN INTEREST RATES - Oct 2025 |
| Home Loan Rate for Salaried Applicants |
Starting at 10%* per annum |
| Home Loan Rate for Self-Employed Applicants |
Starting at 11%* per annum |
*Please note that the interest rate on a housing loan is subject to change based on the applicant’s profile, credit history, and prevailing RBI guidelines.
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Home Loan Interest Rate By Borrower Profile
The home loan interest rate in India can vary depending on whether you are a salaried individual or a self-employed professional. Lenders assess each category differently, considering factors such as income stability, repayment capacity, and the type of documents required.
Salaried Individuals: Home Loan Rate
When determining the house loan interest rate for salaried individuals, lenders generally review the stability of monthly income, employment continuity, existing financial obligations, and overall creditworthiness.
Documents required for a home loan for salaried applicants typically include recent salary slips, Form 16, and bank statements to verify income and repayment capacity.
Self-Employed Professionals: Housing Loan Interest Rate in India
When evaluating the housing loan interest rate in India for self-employed applicants, lenders generally take into account fluctuating income patterns, business performance, and repayment capacity.
To determine a suitable interest rate on a home loan and other terms, lenders usually require income tax returns (ITRs), CA-audited financial statements, balance sheets, and profit & loss statements, among other documents.
Even though the documentation process can be slightly more detailed, maintaining strong financials and eligibility can help self-employed individuals qualify for competitive interest rates.
Factors That Affect the Interest Rate on a Home Loan
The interest rate on home loans is influenced by multiple financial and personal factors. Since lenders carefully evaluate your overall profile before deciding the house loan interest rate you qualify for, understanding the following elements can help you secure a favourable rate more effectively:
- CIBIL Score: A higher credit score (ideally 700 and above) indicates a strong repayment history, allowing lenders to offer a lower home loan interest rate in India. Conversely, a weaker score often leads to a higher interest rate on housing loans due to the increased perceived risk.
- Income Stability and Employment Type: Salaried borrowers with fixed monthly incomes generally receive better house loan interest rate offers, while those with irregular income or unstable employment may face a higher interest rate on a home loan.
- Loan Amount and Tenure: A larger loan amount or longer repayment tenure can increase the interest rate on a housing loan, as the lender’s exposure to risk rises over time. On the other hand, smaller loan amounts and shorter tenures often attract lower interest rates.
- Property Type and Location: Premium or ready-to-move properties in high-demand urban areas may qualify for a more competitive home loan interest rate, while under-construction or less marketable properties could attract a higher house loan interest rate.
- External Market Conditions: Since most housing loans are now linked to external benchmarks such as the RPLR (Retail Prime Lending Rate), any fluctuation in these can directly affect the current home loan interest rate in India.
Fixed vs Floating House Loan Interest Rate
When applying for funds, borrowers can choose between a fixed or a floating interest rate on a home loan. A fixed rate keeps EMIs constant throughout the loan tenure, while a floating rate changes with market conditions. Let’s take a closer look at the key features of these two rate types below:
| Feature |
Fixed Home Loan Rate |
Floating Home Loan Rate |
| EMI Amount |
Stable |
Varies with market changes |
| Linkage |
Not linked to external benchmarks |
Linked to repo rate/lender’s external benchmark |
| Initial Interest Rate |
Usually higher than floating rates |
Often starts lower than fixed interest rates |
| Flexibility |
Less flexible |
More flexible and allows borrowers to benefit from falling rates |
Who Should Choose Fixed vs Floating Interest Rates on a Housing Loan?
- Fixed Rate: Ideal for those who prefer stability, want to lock in today’s interest rate on a housing loan, and value consistent EMIs.
- Floating Rate: Better suited for borrowers comfortable with market variations and who believe the current home loan interest rate in India may fall in the near future. It is also a practical choice for those planning shorter tenures or early repayment.
Before finalising your choice of rate type, make sure to use tools such as the home loan eligibility calculator and the home loan EMI calculator to assess your repayment capacity. This helps you compare offers accurately, since the lowest advertised home loan interest rate may not always align with your individual profile.
Fees and Charges Beyond the Home Loan Interest Rate
Beyond the interest rate on a housing loan, applicants should also consider the associated fees and charges that influence the total cost of borrowing.
Here’s an overview of what you can expect at SMFG Grihashakti:
| Fee Type |
Charges |
| Processing Fee |
Up to 3% of the loan amount |
| Application Fees/IMD Fees |
Up to INR 10,000 |
| Documentation Fees (only for disbursed cases) |
Up to INR 5,000 |
| Rate of Interest Conversion Fee/Switch Fee Charges (for change in loan interest type) |
Up to 1% of the outstanding principal |
| Swap Charges (for any modification to repayment) |
INR 600 per swap instance |
| Cheque/ECS/NACH Dishonour Charges (Note: The Cheque/ECS/NACH dishonour Charges as referred to above are not compensatory and/or to be construed as any form of consideration towards the act of dishonour, and in no way should the same be construed as fees recovered under this facility. It is abundantly clarified that SMFG Grihashakti does not tolerate dishonour of instruments and/or deposit of an invalid, fake or unworthy instrument issued towards meeting payment obligations under this facility and any charges collected thereof are not intended to compound such acts of dishonour. Notwithstanding any charges collected hereof, SMFG Grihashakti reserves its right to invoke appropriate civil and criminal laws.) |
INR 500 per instance |
Minimum Home Loan Interest Rate: Is It Always the Best?
Many borrowers look for the minimum home loan interest rate when planning to apply for a housing loan. While the lowest advertised rate may appear appealing, it is not always the most suitable option.
Rates that seem too good to be true may come with hidden costs, such as exorbitant processing or documentation fees, which can increase the total cost of borrowing. Always read the terms and conditions carefully before signing the loan agreement and clarify any doubts directly with your lender.
Sample EMI Scenarios - Home Loan Interest Rates
To understand how the interest rate on a housing loan impacts your monthly repayment, here’s a sample calculation of estimated EMIs using a 10% p.a. interest rate across different loan amounts and tenures:
| Loan Amount (INR) |
15 Years Tenure (INR) |
20 Years Tenure (INR) |
30 Years Tenure (INR) |
| 30 Lakhs |
32,238 |
28,951 |
26,327 |
| 50 Lakhs |
53,730 |
48,251 |
43,879 |
| 90 Lakhs |
96,714 |
86,852 |
78,981 |
Try our home loan EMI calculator to get personalised repayment details based on your loan amount, tenure, and rate. If you’re considering part-prepayment or early closure, it’s equally important to use the home loan prepayment calculator to estimate how much interest you can save over the loan tenure.
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How to Get the Best Home Loan Interest Rate in India
Beyond the standard steps, there are several lesser-known strategies that can help you secure the best interest rate on a home loan, such as:
- Maintain a Low Debt-to-Income (DTI) Ratio: Lending firms prefer borrowers who are not over-leveraged. If your existing EMIs are high, consider clearing some debts before you apply for a home loan. Ideally, your DTI ratio should be below 30% for favourable terms.
- Opt for a Balance Transfer: If your current lender is charging high interest rates and negotiations for a lower rate are unsuccessful, consider switching to another financial institution that offers a lower house loan interest rate.
- Provide Complete Documentation: Submitting all the documents required for a home loan upfront – such as ID proof, income proof, and property papers – ensures smoother processing and reduces the lender’s risk perception. This can positively influence the interest rate you are offered.
Plan Smart to Get the Right Home Loan Rate
Securing the right interest rate on a housing loan requires balancing thorough research with a healthy financial profile. With transparent terms, digital tools like the home loan EMI calculator, and dedicated customer support, SMFG Grihashakti provides everything you need to make informed financial decisions.
Start your application today and take the next step towards owning your dream home with complete peace of mind.
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