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Securing a home loan can be a convenient and comfortable way to finance your dream home. However, navigating the various rates and charges involved can often be overwhelming. Whether you're a first-time homebuyer or a seasoned real estate investor, understanding the various costs associated with obtaining a home loan can help you make informed decisions and secure the best possible terms.

Housing Loan Interest Rates for Salaried & Self-Employed

*Final ROI may vary based on credit checks, property & other parameters

 *Home loan interest rates are subject to change. For current rates, please visit the official website of the lender.

Home Loan
 

Customer Profile Loan Amount Delayed EMI Payments Cheque dishonour charges/rejection of NACH/ECS mandate Interest Rate Processing Fees
Salaried 5 lakhs to 7.5 Crores 2.36% PM (Inclusive of GST) on the defaulted amount. Rs 700/- for every Cheque dishonour/ rejection of ECS/ Auto debit/NACH Mandate Starting @8.75% per annum Rs. 5,000+GST
Self Employed 5 lakhs to 7.5 Crores 2.36% PM (Inclusive of GST) on the defaulted amount. Rs 700/- for every Cheque dishonour/ rejection of ECS/ Auto debit/NACH Mandate Starting rate @ 8.85% per annum Rs. 10,000+GST

Home Equity
 

Customer Profile Loan Slab ROI* (%)
Salaried/Self Employed Any Amount 10.55% onwards

*Home loan interest rates are subject to change. For current rates, please visit the official website of the lender.

Current Home Finance Rate of Interest - Prime Lending Rates (PLR)

New Customer

New customer
Customers onboarded from September 1st, 2024.
 

Effective From (Applicable for Retail Customers) NRPLR
September 1st 2024 10.80%
April 12th 2024 10.60%
Effective From (Applicable for Corporate Customers) NCPLR
September 1st 2024 10.10%
April 12th 2024 9.90%

*Home loan interest rates are subject to change. For current rates, please visit the official website of the lender.

Interest rates for Mortgage Loans

Range of Interest Summary for the period of Quarter 3 FY 24-25
 

Product Minimum ROI Maximum ROI Mean
Home Equity 8.00% 20.0% 11.7%
Home Loan 8.4% 15.9% 10.0%

Notes

  • The range of interest rates provided above is with respect to loans to individuals disbursed during Quarter 3- FY  2024-2025.
  • Fresh Loans have been taken into consideration for the calculation of Min, Max & Mean ROI.
  • Mean Rate = Sum of (Disbursement Amount * Interest rate*Tenor) / Disbursement Amount*Tenor
  • Rates include various categories like fixed rate, and floating rate and are based on factors such as loan amount.
  • Home loan interest rates are subject to change. For current rates, please visit the official website of the lender.

Housing Loan Interest Rates and Charges

  • Processing Fee

    The processing fee of a home loan is a one-time charge levied by lenders for processing home loan applications. At Tata Capital, we take very nominal processing charges for home loans to minimize your home ownership costs. Our processing fees for home loans are only upto 3% of loan amount+ GST.

  • Foreclosure Charges

    At times, you may have surplus funds, and you may want to make a pre-payment or part pre-payments of your home loan. The foreclosure charges, also known as the home loan pre closure charges, are levied by lenders when borrowers wish to pre-pay their home loan. At Tata Capital, we don’t levy any home loan prepayment charges when you pre-pay your home loan with your funds.

  • Delayed EMI Payments

     Missing or defaulting your home loan EMIs may lead to delayed EMI payments. This generally happens due to insufficient funds in your bank account. Delaying EMI payments can attract heavy penalties and additional home loan charges from your lender. It may also dampen your credit score. At Tata Capital, we levy a charge at the rate of 2.36% PM (Inclusive of GST) on the defaulted amount & Rs 700/- for every Cheque dishonour/ rejection of ECS/ Auto debit/NACH Mandate

  • Collection Agency

    If a borrower defaults on his/her home loan, the lender may have to hire the services of a collection agency to pursue payments. These collection agencies charge a fee for their services, which the lender levies on the borrower. 

  • Legal Charges

    Once a borrower submits his/her property documents for home loan sanction, the lender sends them for legal verification. The lender may incur a fee for this verification, and hence, it may levy legal home loan charges on the borrower.

  • Other Charges

    Apart from the housing loan processing fee, foreclosure charges, and legal charges, lenders may levy certain miscellaneous home loan fees and charges. These may include home loan registration charges, MOD charges for home loan, PDC charges, loan cancellation charges, cheque bounce charges, account maintenance charges, and NOI charges for home loans. You should be aware of all home loan charges before applying for a home loan with a lender.

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What is the Interest rate on a Home Loan?

When you avail of a home loan to purchase or construct your house, a housing loan interest rate is levied on the loan amount. The interest rate on a house loan is usually expressed as a percentage and is charged on the principal home loan amount for the entire home loan tenure. 

Tata Capital offers one of the most competitive home loan interest rates in India. Our housing loan interest rate starts from just 8.75% per annum*.

Furthermore, depending on your home loan eligibility, income, credit score, and a few other parameters, we can determine the best home loan interest rates as per your requirements.

Additionally, when you apply for a home loan with Tata Capital, you do not have to worry about home loan hidden charges. From home loan prepayment charges to the processing charges for home loan to MODT charges, we transparently convey every expense.

How to Calculate the Home Loan Rate of Interest?

The interest on a housing loan is usually calculated on the outstanding principal amount at the end of each day. The lending institution takes the outstanding loan amount per day and multiplies it by the latest home loan interest rate.

Housing loan rates may remain fixed or vary during the loan tenure. In the case of variable housing loan interest rates, the current home loan interest rate is derived based on the monetary policy of the RBI, including its Base Lending Rate and Marginal Cost of Funds Based Lending Rate (MCLR). Your home loan rate also depends on your credit rating and may vary across lenders.

You can use the following formula to calculate your home loan EMIs based on the applicable home loan rate:

EMI = [P x r x (1+r) ^n]/[(1+r) ^n-1]

Wherein ‘P’ is the principal home loan amount, ‘r’ is the present home loan interest rate, and ‘n’ is the number of installments you need to pay or loan tenure in months.

How to Calculate the Effective Interest Rate for Housing Loan?

The applicable interest rate on a housing loan consists of two components - the base rate and the markup rate. The combination of these two is what you have to pay as interest on your house loan. The effective home loan interest rate is calculated by adding the base rate and the markup rate.

Base Rate

It is the standard lending rate of the lender, applicable for all types of loans. Note that this rate is subject to frequent changes based on multiple inputs and RBI guidelines.

Markup Rate

It is expressed as a small percentage that is added to the base rate to calculate the EIR (Effective Interest Rate).

 

EIR = Base Rate + Markup Rate

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What are the Key Factors Affecting Home Loan Interest Rates?

Lenders consider several factors while determining home loan interest rates. Below are the factors that affect home loan

interest rates in India:

  • CIBIL Score

    Your CIBIL score represents your creditworthiness and repayment capability, and it significantly impacts the home loan interest rate levied on your home loan. The higher your CIBIL score, ideally over 750, the more competitive your housing loan rates would be.

  • Job Profile

    Your employment status and job profile also affect your property loan interest rate. A steady source of income, secure job, and employment with a reliable employer assure the lender of your repayment capacity and hence, helps you in getting lower home loan rates.

  • Income

    Besides your job profile, lenders also consider your monthly income while evaluating your property loan interest rate. The greater your income is, the better will be your home loan eligibility. So, if you have any additional or part-time income, highlight them while applying for a home loan. You can also apply with a co-applicant, and by pooling your incomes together, you can qualify for competitive home loan rates.

  • Debt-to-income ratio

    Your debt-to-income ratio reflects your ability to pay off additional debts. If your EMIs are significantly draining your monthly income, you will become a high-risk borrower. In that case, the lender may charge you with higher interest on a housing loan.

  • Benchmark Rate of Lending

    The benchmark rate of lending plays a crucial role in determining the current housing loan interest rate. It can either be Marginal Cost of Funds based Lending Rate (MCLR) or Repo Linked Lending Rate (RLLR). RLLR is directly linked to RBI’s repo rate and bears a direct adjustment with every change in RBI’s policy rates.

Fixed vs Floating home loan interest Rate

Lenders primarily offer two kinds of property loan interest rates in India - fixed interest rates and floating interest rates.

Fixed Floating
The rate of interest on a home loan never changes, irrespective of the market volatility. In the case of floating home loan interest rates, the rate of interest on a home loan keeps changing as per the current market scenario.
You will have to pay equally divided EMIs for the entire loan tenure with no unexpected changes in the middle. Floating home loan interest rates depend on the variable base rates offered by lenders, and hence, they are revised automatically with any change in the base rate.

How to Apply for Housing Loan

 

At Tata Capital, you can apply for a personal loan either online or offline. 

To apply online, follow these steps:
 

  • Click on “Apply Now” on this page.
  • Fill out the online application form with your personal and property details.
  • Click on "Next" and upload the required documents.

  • Branch

    You can visit your nearest Tata Capital branch and get in touch with one of our executives there. They will guide you through the entire application process

    Locate a Branch

What is the Home Loan Processing Fees and Charges?

A home loan processing fee is a one-time charge levied by lenders to cover the administrative expenses incurred by them while processing a home loan application. This fee is usually non-refundable and may range between 1% and 3% of the total loan amount, depending upon the lender. Some lenders may charge a flat amount as a home loan processing fee, irrespective of the loan amount.

At Tata Capital, we take very nominal processing fees on home loans to minimize your home ownership cost. Our home loan processing fee is just 0.5% of the loan amount plus GST.

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With Tata Capital, you can apply for a home loan for self employed in a few easy steps and get housing finance at competitive interest rates.

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With Tata Capital, you can apply for a home loan for women in a few easy steps and get housing finance at competitive interest rates. 

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What our customers say about us

Service provided by Manoj Patel in Surat vesu Branch was helpful and because of his support we were able to close loan.

Prakash Patil

Home Loan | 23 Aug, 2024

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Excellent A1 Services. The Lady at the Customer Desk is very Cooperative and helpful so that my work completed without the time frame. The name of the Lady is Amruta Pathak. God bless her and her family. Thanks and Regards for the entire team of Tata Capital.

Nandlal Lal Arora

Home Loan | 13 Aug, 2024

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Very good & prompt service, and we have spoken to Mr. Manish also, and he always helps us to provide our request. Thank you, Ms Apurva Shende & Manish Padwal

Farhang Ahmed Azar

Home Loan | 24 Jul, 2024

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