Home Loan

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Home Loan Interest Rates 2021

Home Loan

A Home Loan is a secured retail product provided against the value of property or house that you want to buy. A Home Loan can be availed for buying a house, constructing a new place or renovating an old house.

A home is a place where we live the best moments of our lives. But buying your own house is not an easy task. It needs good funding. If you want to buy a new house and need finance to fulfil your dreams, you can apply for a home loan. A home loan is designed to cater to all these needs. All major Banks and non-banking finance companies provide home loans throughout the country.

Compare all offers online across the leading banks and NBFCs of India with DialaBank. Get the Lowest Interest Rates for your home loan by applying online

Home Loan: Features

The main features of a home loan are as follows:

  • Low-Interest rates: Home loans are cheaper than the other loans because of its long term tenure period. 
  • Tax Benefits: Availing of a home loan can provide you with tax benefits on both principal amount as well as interest rates. Section 24 and 80 C allows a person to claim a tax deduction of up to 2 lakh on availing a home loan.
  • Home Loan balance transfer: allows a person to transfer the entire outstanding amount to a new lender, who offers a lower rate of interest.
  • Flexible Loan Tenures: The home loan tenures usually go up to 30 years. An individual can also choose to prepay the entire amount if he is eligible to do so. 

Compare and Apply for Home Loan Online

Lenders Lowest Interest Rate EMI/Lakh** Processing Fees (exclusive of GST)
Kotak Mahindra Bank 6.65% Rs. 641 Up to 0.50% plus statutory dues
ICICI Bank 6.70% Rs. 646 0.50% – 2.00% of the loan amount or Rs. 1,500 (Rs. 2,000 for Mumbai, Delhi & Bangalore), whichever is higher
Bank of Baroda 6.75% Rs. 648 0.25% – 0.50% of loan amount (Min. Rs. 8,500 & Max. Rs. 25,000)
State Bank of India 6.75% Rs. 648 Up to 0.4% of the loan amount (Min. of Rs 10,000 & Max. of Rs. 30,000)
Union Bank of India 6.80% Rs. 652 0.50% of the loan amount (Max. Rs. 15,000)
Punjab National Bank 6.80% Rs. 652 Up to 0.35% of the loan amount (Min. Rs. 2,500 & Max. Rs. 15,000)
Punjab & Sind Bank 6.85% Rs. 655 0.15% – 0.25% of the loan amount (Processing fee concession of 50% till 30.06.2021)
Central Bank of India 6.85% Rs. 655 0.50% of the loan amount (Max. Rs. 20,000)
Tata Capital Housing Finance 6.90% Rs. 659 Up to 0.5% of the loan amount
Axis Bank 6.90% Rs. 659 Up to 1% of the loan amount (Min. Rs. 10,000)
Canara Bank 6.90% Rs. 659 0.50% of the loan amount (Min. Rs. 1,500; Max. Rs. 10,000)

Types of Home Loans

Banks and NBFCs in India provide different types of home loan options according to various needs. Here’s a list of the main types of housing loans availing in India:

  • New Home Loans: are offered to customers looking to purchase a new house or property for the first time.
  • Home Renovation Loans: Home loans for renovation are offered to borrowers who wish to renovate/extend their existing house.
  • Balance Transfer Home Loan: can be used to transfer an individual’s home loan from one bank to another, looking for lower interest rates. 
  • Home Purchase Loans: are specifically provided to borrowers seeking to purchase a residential house or flat.
  • Home Loan for Construction: is offered to customers who are looking to construct a new house on an existing piece of land.
  • Plot Loans: are loans offered to customers looking to purchase a piece of land or plot for house construction.
  • Home Loan Top Up: is an add-on facility offered by most banks and NBFCs that allows existing customers to borrow a certain amount above and over the already existing home loan.
  • Step-up Loans: is when the borrower is given the liberty to pay a lower EMI amount during the earlier days of repayment which gradually increase as the tenure progresses.
  • Bridge Loan: is a short-term housing financing that helps the borrowers to “bridge” the gap between their existing and new mortgages by allowing them to keep the equity of the current residence as a down payment for buying a new house, waiting for the sale of the old house.
  • Interest Saver Loan: This allows the borrower to deposit his excess savings in a current account linked to his home loan account. While calculating the interest component, the bank deducts the balance in the current account from the borrower’s outstanding principal.
  • Home Extension Loan: is a loan that can be availed to extend an already existing residential property by adding space or new rooms to it.

Home Loan @ 6.90%*