Home loan eligibility and interest rate are determined by your age, qualification, income, number of dependents, spouse income, occupational stability and liabilities, and savings history, as well as the value of the home being purchased.
The home loan interest rate is the amount charged by the lender on the borrower’s principal sum. You repay a loan in Equated Monthly Installments (EMIs) comprising principal and interest. Repayment by way of EMI commences from the month following the month in which you take the full disbursement.
One of the most crucial things a lender considers when disbursing a home loan is the CIBIL score. Your CIBIL score indicates your ability to repay any debt. TransUnion CIBIL (Credit Information Bureau India Limited) monitors credit scores for individuals based on their credit history.
If you are planning to avail of a home loan, then you should make sure to compare the interest rate as a lower interest rate can result in lower monthly payments. However, one should also not ignore other important factors such as prepayment charges, top-up rules, and other related charges.
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List of home loan interest rates 2024
| Name of Lender | |
| Above 75 Lakh | |
| PUBLIC SECTOR BANKS | |
| State Bank of India | 8.50-9.85 |
| Bank of Baroda | 8.40-10.90 |
| Union Bank of India | 8.30-10.90 |
| Punjab National Bank | 8.40-10.15 |
| Bank of India | 8.35-11.10 |
| Canara Bank | 8.40-11.15 |
| UCO Bank | 8.45-10.30 |
| Bank of Maharashtra | 8.35-11.15 |
| Punjab and Sind Bank | 8.50-10.00 |
| Indian Overseas Bank | 8.40-10.60 |
| Indian Bank | 8.40-10.30 |
| PRIVATE SECTOR BANKS | |
| Kotak Mahindra Bank | 8.75 onwards |
| ICICI Bank | 8.75 onwards |
| Axis Bank | 8.75-9.65 |
| HSBC Bank | 8.50 onwards |
| South Indian Bank | 8.70-11.70 |
| Karur Vysya Bank | 9.00-11.05 |
| Karnataka Bank | 8.75-10.87 |
| Federal Bank | 8.80 onwards |
| Dhanlaxmi Bank | 9.35-10.50 |
| Tamilnad Mercantile Bank | 8.60-9.95 |
| Bandhan Bank | 9.16-13.33 |
| RBL Bank | 9.00 onwards |
| CSB Bank | 10.49-12.34 |
| HDFC Bank Ltd. | 8.75 onwards |
| City Union Bank | 8.75-10.50 |
Rates as of 11th December 2024
Source: Paisabazaar.com
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What happens in case of default
According to the HDFC website, “It is best to be regular in paying your EMIs. If the customer misses more than 3 instalments, lenders have the power to take action against default directly without the intervention of courts according to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). In case you are facing financial difficulties, it’s best to apprise your lender about your situation and check the possibility of an extension in the repayment tenure.”
What is the ideal CIBIL score for home loan?
According to the PNB Housing website, “Your lenders will gauge your CIBIL score before lending you money. For a home loan, finances can go up to lakhs, sometimes even crores, for a long tenor. To keep the defaulters at bay, lenders will go the extra mile to check the borrower’s credit score.
The usual range of CIBIL scores lies between 300 to 900. However, For most lenders, the minimum credit score required for a home loan approval is 650 or above. While a CIBIL score of 800 is considered the ideal CIBIL score for a home loan, anything below 550 is regarded as a bad CIBIL score. If your Credit score ranges from 550 to 700, you can work upon it to match the expectations of your lenders.”
