Business Standard has published a table that lists home loan rates of various lenders for early November. It puts many banks and housing finance companies side by side, so you can compare them quickly.
For you, this means one thing. Before you pick a lender, check the rates in one place. A small gap in the rate can change what you pay over many years.
Key takeaways
- A single table makes it easy to compare home loan rates across lenders.
- The rate you actually get can differ from the rate in the table.
- A 1% gap on a ₹50 lakh, 20-year loan costs lakhs more in interest.
- Check fees, not just the rate, before you choose.
- Your credit score can help you get a lower rate.
How home loan rates work
A home loan rate is the yearly cost of borrowing, shown as a percentage. Most home loans today have floating rates. That means the rate can go up or down over time.
According to RBI rules, floating rate loans are linked to an outside benchmark, such as the repo rate. The repo rate is the rate at which the RBI lends money to banks. When it changes, your loan rate can change too.
Lenders then add their own margin on top. That's why two lenders can show different rates on the same day. A table like the one reported by Business Standard shows these gaps clearly.
What it means for your EMI
Your EMI is the fixed amount you pay each month. It covers both interest and a part of the loan itself. A higher rate means a higher EMI and a much higher total interest bill.
Here's a simple example. Say you borrow ₹50 lakh for 20 years. The figures below are rounded and use standing maths, not any lender's actual offer.
| Interest rate | Monthly EMI | Total interest paid |
|---|---|---|
| 8.0% | ₹41,800 | ₹50.4 lakh |
| 8.5% | ₹43,400 | ₹54.1 lakh |
| 9.0% | ₹45,000 | ₹58.0 lakh |
| 9.5% | ₹46,600 | ₹61.9 lakh |
See the pattern? Going from 8% to 9.5% adds about ₹4,800 to your monthly EMI. Over 20 years, that's roughly ₹11.5 lakh more in interest. You can test your own numbers with our EMI calculators.
Who is affected
New borrowers gain the most from comparing. They can choose a lender before signing anything. Even a small rate gap is worth a few phone calls.
People with an existing floating rate loan should look too. If your rate is well above what new customers get, you can ask your lender to cut it. You can also think about moving the loan to another lender.
First-time buyers should also look at our home loan guides. They explain the steps in plain words.
What to do now
Use the table as a starting point. Then follow these steps:
- Check your credit score before you apply.
- Note the three or four lowest rates in the table.
- Ask each lender for a written quote for your own profile.
- Compare the processing fee, prepayment rules and other charges.
- Use the eligibility check to see how much you can borrow.
For wider comparisons, our interest rate tables can help. Don't rush, since a home loan stays with you for years.
Frequently asked questions
Is the lowest rate in the table the rate I'll get?
Not always. Lenders often keep their lowest rate for borrowers with a high credit score and steady income. Ask for a quote based on your own profile.
Should I pick a lender only because the rate is lower?
No. Look at fees, service and prepayment rules too. A slightly lower rate can be wiped out by high charges.
Can I switch my home loan if I find a lower rate?
Yes, many borrowers do this. You may pay some fees to move the loan. Work out the savings first to see if it's worth it.
BankCreds analysis
What a rate table can't tell you
A rate table is a good start, but it's not the final price. The rate you get depends on your credit score, income and loan size. Two people can walk into the same bank and get different offers.
Take a ₹50 lakh loan for 20 years. The gap between 8.5% and 9.5% adds about ₹7.8 lakh in total interest. That's real money, so a quarter point matters too.
Don't over-read the table, though. The headline rate is often the lowest one on offer, kept for the best profiles. Ask for your own quote in writing. Then compare the processing fee and other charges. This week, check your credit score before you apply. A better score is the cheapest way to a lower rate.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Sources & references
- Business Standard — originating report https://www.business-standard.com/finance/personal-finance/home-loan-rates-of-various-lenders-in-early-nov-explained-in-one-table-126110501000_1.html
- Reserve Bank of India — Floating rate loans are linked to an external benchmark such as the repo rate https://www.rbi.org.in/
Source links are shown as plain text, not clickable links. Copy a URL into your browser to read the original report.
Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
Rates and figures. Interest rates, per-gram values and premium bands quoted here are indicative, move daily, and differ by borrower profile, city and lender policy. Confirm the final number with the institution before you act on it — the sanction letter or policy schedule governs, not a news report.
Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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