Home Loan Interest Rates 2024, Comparison, Government and Private Bank For many middle class and low income families, it is not possible to buy a home through savings alone. This makes home loans offered through private and public sector banks an important financial tool. Each bank has its own criteria for offering home loans, and the interest rates charged can be various depending on various factors.
Today, we are providing a comparison of the latest home loan interest rates of various public and private sector banks. If you want to understand and compare home loan interest rates across multiple banks in 2024, then this comparison will be of help to you. The listed interest rates are charged every year on the principal amount of the loan. Read the light post till the end for more details.
Home Loan Bank Rate 2024 Summary
| Need for Home Loan | Many individuals depend on loans due to high home prices. |
| Interest Rates Overview | Rates vary widely between private and public banks, influenced by loan amounts and customer profiles. |
| Private Banks | Offer competitive rates; rates depend on loan amount and customer credit. |
| Public Banks | More stable rates, generally preferred for reliability by long-term customers. |
| Factors Affecting Rates | Loan amount, income stability, credit score, and customer-bank relationship. |
| Credit Score Impact | Higher credit scores lead to lower rates; lower scores may result in higher rates or rejection. |
| Special Offers | Discounts available for women, senior citizens, and reserved categories. |
| Loan Amount Influence | Higher loan amounts typically have higher interest rates. |
| Government vs. Private Banks | Government Banks are seen as more trustworthy: Private Banks offers more competitive |
Home Loan Interest Rates Comparison Among Popular Indian Banks
HDFC Bank, ICICI, Axis Bank and Kotak Mahindra Bank along with various other private banks are currently offering competitive interest rates to attract customers for their home loan products. The loan amount plays a vital role in determining the interest rates. Specifically, lower loan amounts may attract lower interest rates, however higher loan amounts may come with higher rates. The table below compares the interest rates of some of the reputed banks based on various loan amounts. Let’s take a look.
| Bank Name | Up to ₹ 30 Lakh | Above ₹30 Lakh & Up to ₹ 75 Lakh | Above ₹75 Lakh |
| HDFC Bank | 8.45 % onwards | 8.50% onwards | 8.55% onwards |
| Kotak Mahindra Bank | 8.55 % onwards | 8.65% onwards | 8.70% onwards |
| ICICI Bank | 8.60 % onwards | 8.65% onwards | 8.70% onwards |
| Axis Bank | 8.70 % – 13.00% | 8.70% – 13.00% | 8.75% – 13.00% |
| Karur Vysya Bank | 8.90% – 11.00% | 8.95% – 11.00% | 9.00% – 11.00% |
| South Indian Bank | 9.20% – 11.20% | 9.25% – 11.25% | 9.30% – 11.30% |
| Karnataka Bank | 8.55% – 10.50% | 8.60% – 10.55% | 8.65% – 10.60% |
| Federal Bank | 8.65% onwards | 8.70% onwards | 8.75% onwards |
| Dhanlaxmi Bank | 9.25% – 10.45% | 9.30% – 10.50% | 9.35% – 10.55% |
| Tamilnad Mercantile Bank | 9.55% – 9.90% | 9.60% – 9.95% | 9.65% – 10.00% |
| Bandhan Bank | 9.10% – 14.95% | 9.15% – 13.30% | 9.20% – 13.35% |
| RBL Bank | 8.85% onwards | 8.90% onwards | 8.95% onwards |
Home Loan Interest Rates In Governments Banks 2024
When comparing the interest rates of private and public sector banks, there are noticeable differences. Private banks sometimes offer the lowest interest rates compared to public sector banks. However, public sector banks are considered more reliable and are sometimes the preferred option for senior citizens and long-standing customers. With privatisation and increasing competition in the banking sector, private banks have become more aggressive in offering competitive rates to attract customers. For example, Bank of Baroda currently offers home loan interest rates ranging from 8.40% to 10.85%, while Bank of India starts at 8.35% for its loyal customers. Most public sector banks are currently offering interest rates between 8.40% to 11.25% for home loans, depending on the principal amount, such as Rs 30 lakh, Rs 50 lakh or Rs 70 lakh.
Factors Influencing Home Loan Interest Rates 2024
- Long Term Commitments: Home loans typically have repayment terms of 10 to 30 years.
- Income Stability: Stable income (e.g., from a well-known company or a government job) can help get the lowest interest rate due to lower risk.
- Credit Score: A high credit score generally results in the lowest interest rates, although a low score may result in higher interest rates or loan denial.
- Loan Amount: Larger loan amounts usually come with higher interest rates.
- Special Offers: Certain categories of borrowers, such as reserved categories, female applicants and senior citizens may be eligible for special offers depending on the bank’s policies.
Lists of Government and Private Bank in India 2024
| Governments Banks | Private Banks |
| State Bank of India (SBI) | HDFC Bank |
| Bank of Baroda (BoB) | ICICI Bank |
| Punjab National Bank (PNB) | Axis Bank |
| Canara Bank | Kotak Mahindra Bank |
| Union Bank of India | Yes Bank |
| Indian Bank | Induslnd Bank |
| Bank of India (BoI) | Bandhan Bank |
| Central Bank of India | IDFC FIRST Bank |
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