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Home loan Interest rates from leading Primary Lending Institutions in India

Interest Rates for Home Loans are undoubtedly the most important parameter to factor into your calculations. And in most cases interest rate is the decisive factor for an investor to narrow down on a certain Primary Lending Institutions home loan offer. The interest on housing loans in India is usually calculated on monthly reducing balance basis.

Comparative Chart on Home Loan Interest Rates on offer from few leading Primary Lending Institutions is given below for the benefit of general public:
Home loan interest rate (20 year loan) as on 25thApril, 2012*
Home Loan Interest Rate(Below 20 lakhs)
Primary Lending InstitutionsFloatingFixed(for the entire tenure)Fixed(with reset clause)Reset clause after how many monthsCurrent Benchmark Rate (for floating)Markup/Markdown to Benchmark Rates
Allahabad Bank12.75% 12.25%NANA10.75%BR: 10.2%
Andhra BankBR + 1.25%NANANA14.25%NA
Axis Bank11%11.75%NANANABR-10%
Bank of India11%NANANA14.25%NA
DHFL Vyasa Housing Finance13.50%NA10.751218.25%NA
GIC Housing Finance12.50%NANANANANA
Gruh Finance Limited10.75-16%11.75-17.00%10.75- 15.75%Linked to the GPLR16.25varied
HDFC Ltd.10.75% 16.75%10.75%3618.50%BR 10%
HSBC Bank11-13%11-14%13.25-15%36NANA
HUDCO10.50-14.00%Floating + 1.00%13.25-15%36--
ICICI Home Finance Co. Ltd.10.50%14.50%Base+0.5%2417.75%-
IDBI Home Finance Ltd.11.00%NA12.25-13.25%36-6015.25%BR 10.75%
India Infoline Housing Finance Ltd.12.5%NANANA16.25%Dependent on individual rating of each customer, amount of loan, tenure, CIBIL scores etc.
Indiabullls Housing Finance Ltd.NANANA NA17%Markup NA Markdown 5.5% ( 14 -8.5 =5.5)
Karnataka Bank11.75-14.75%NANANA15.75%BR:15.50%
LIC Housing Finance10.8%NA12.15%6014.65%2.50%
Manipal Housing Finance Syndicate Limited linked to PLRNANANA15.25%NA
Micro Housing Finance Corporation12-15%NANANA14%1-4%
National Trust Housing Finance LtdRural -11% - 13% General 14.5% -17.75%NANANA15.75%-
Orange City Housing Finance Ltd.NA10 50%* (ROI 10-14% for home loans)NANANANA
PNB Housing Finance Ltd.11.75%NA14.00%3614.25%BR:10.75%
Reliance Home Finance Private Limited12.75%NANANA17.75%5.50%
Repco Home Finance Ltd.12.50%NANANA16.00%3.25%
Rose Valley Housing Development Finance Corporation Ltd.11.50%NANA%-----NA
State Bank of India (SBI)10.50%NA9.75-12%12NABR:10%
Sundaram BNP Paribas Home Finance Ltd.12-14.25%---15.50%3%
Union Bank of India11.75%NANANA15.75%NA
*Source: IL&FS
Note: This is a sample list with no indication of a complete list of all the players in the field of Banking & Finance.

Most of the banks and HFCs follow the daily or monthly reducing-balance method, by which the principal on which you pay interest reduces every month as you pay your EMI, resulting in a lower interest burden. Thereby, the EMI for the monthly reducing system is effectively lesser than the yearly reducing system of calculating interest.

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