Home Loan Interest Rates in India

Most banks offer both floating interest rate home loans and fixed interest rate home loans. However over 95% of home loans in India are floating interest rate loans because the fixed interest rates are about 3% higher than the floating interest rates. In a floating rate home loan, the customer's home loan interest rate may vary over time as it is defined as the bank's index rate plus or minus a fixed amount (which is known as spread). This means that if the bank's index interest rate goes up or down by a certain amount, then the customer's home loan interest rate will also go up or down by the same amount.The home loan interest rates charged by each bank are different, and the rate charged depends upon factors like the amount of the loan and age of property.

The below table is prepared by our market experts and lists the banks which constitute 90% of home loan market in India to help users save time in their search for home loan.