Home loan interest rates have gone up from 7% to 9.5% since the RBI raised the repo rate, the key lending rate, by 250 basis points between May 2022 and February 2023.
Housing loan interest rates directly impact one’s EMIs and the total cost of borrowing the loan.
Home loans are long-term loans where the maximum loan tenure can stretch to 30 years with most lenders.
All major banks like State Bank of India, HDFC Limited, Punjab National Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank have revised their home loan interest rates.
HDFC Ltd has hiked its home loan rates by 25 basis points (bps) effective March 1
The HDFC standard interest rates for home loans up to Rs 30 lakh stand between 9% and 9.5%. For women borrowers, HDFC gives a 5 bps discount.
State Bank of India is offering interest rates on home loans starting at 8.85%. The loan tenure can be extended up to 30 years. Women borrowers are also offered an interest concession of 0.05% on SBI home loans.
Axis Bank is offering home loans at interest rates between 10.95% and 12.7%. The rates would depend on the credit score of the borrower.
LIC Housing Finance is offering home loans at 8.45%. Home loan interest rates start at 8.45% for salaried and professional borrowers.
Standard home loan rates differ with the borrower and the loan amount. It depends on the borrower’s credit scores, demographics, repayment of other loans, and other factors.