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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.
*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 Slab | ROI* (%) |
|---|---|---|
| Salaried | Any Amount | 8.75%* onwards |
| Self Employed | Any Amount | 8.75%* onwards |
Home Equity
| Customer Profile | Loan Slab | ROI* (%) |
|---|---|---|
| Salaried/Self Employed | Any Amount | 10.10% onwards |
*Home loan interest rates are subject to change. For current rates, please visit the official website of the lender.
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% |
| Effective From | PLR |
|---|---|
| September 1st 2024 | 20.20% |
| March 13th 2024 | 20.00% |
| March 6th 2023 | 19.75% |
| January 1st 2023 | 19.50% |
| October 1st, 2022 | 19.25% |
| August 22nd, 2022 | 18.75% |
| June 15th, 2022 | 18.25% |
| May 16th, 2022 | 17.75% |
| January 1st, 2019 | 17.45% |
| October 1st, 2018 | 17.15% |
| July 1st, 2018 | 16.85% |
| May 1st, 2018 | 16.65% |
| November 1st, 2015 | 16.50% |
| May 1st, 2015 | 16.65% |
| December 10th, 2013 | 16.75% |
| September 1st, 2013 | 16.65% |
| March 1st, 2013 | 16.40% |
| October 1st, 2011 | 16.50% |
| July 1st, 2011 | 16.00% |
| April 1st, 2011 | 15.50% |
| December 20th, 2010 | 14.75% |
| November 15th, 2010 | 14.25% |
| January 1st, 2009 | 13.75% |
*Home loan interest rates are subject to change. For current rates, please visit the official website of the lender.
Range of Interest Summary for the period of Quarter 2 FY 24-25
| Product | Minimum ROI | Maximum ROI | Mean |
|---|---|---|---|
| Home Equity | 8.00% | 22.3% | 11.72% |
| Home Loan | 8.5% | 15.9% | 10.12% |
Notes
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 2% of loan amount+ GST.
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.
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.
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.
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.
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.
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.
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.
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.
Lenders consider several factors while determining home loan interest rates. Below are the factors that affect home loan
interest rates in India:
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. |
At Tata Capital, you can apply for a personal loan either online or offline.
To apply online, follow these steps:
To apply offline, follow these steps:
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.
At Tata Capital, we provide customized home financing solutions at competitive home loan interest rates. Our home loan offerings empower you to buy a new property, extend or renovate your existing house, purchase a piece of land for construction, transfer your home loan balance to lower housing loan rates, and much more.
Additionally, we levy a very nominal processing fee for a home loan and don’t bother you with too many formalities or excessive paperwork. With Tata Capital, you can avail of a home loan at affordable home loan rates, starting from just 8.75% per annum*.
But that’s not all! With Tata Capital Home Loans, you have the flexibility to choose your loan amount, tenure, and EMI plan as per your convenience and repayment capability. Apart from the competitive interest rates and home loan charges, we ensure easy eligibility criteria, quick loan processing, and swift disbursal of funds.
Know more about Home Loans
Lenders consider several factors to determine your home loan interest rate. These include:
Tata Capital offers home loans at the most competitive interest rates in India. Our home loan rates start from just 8.75%* per annum.
Yes. You can opt for a home loan balance transfer facility to switch your home loan to another lender offering a lower interest rate. However, this facility is not offered by all home loan lenders in India. With Tata Capital, you can enjoy highly competitive home loan rates, starting from just 8.75%* per annum. You can transfer your outstanding home loan balance from another lender to us at very nominal charges.
A Goods and Services Tax (GST) of 18% is applicable on all home loan rates and charges as per government norms. For example, if you have taken a home loan of Rs. 1 crore at a 1% processing fee, your home loan processing fee would be Rs. 1 lakh, and you will have to pay a GST of Rs. 18,000 on it. So, your total processing fee would become Rs. 1,18,000. GST has made home loans a little more expensive for home buyers.
Below are the documents you need to apply for a home loan with Tata Capital:
The associated charges on a home loan include processing charges, foreclosure charges, legal charges, EMI bounce charges, and collection charges, among others.
At Tata Capital, we provide home loans at highly competitive interest rates and very nominal charges. Our home loan interest rate starts from just 8.75%* per annum. Furthermore, you can secure the best deal on home loan interest rates based on your age, monthly income, credit score, and other factors. You can get in touch with our customer care executive by dialing our toll-free number or visiting your nearest Tata Capital branch to negotiate on home loan rates.
Yes. You can claim the interest paid on your home loan as a tax deduction under Section 24 of the Income Tax Act of 1961. The maximum tax benefit allowed under this section is Rs. 2 lakh. Additionally, you can also claim stamp duty and registration charges paid for your property as tax deductions under Section 80C. This section allows a maximum tax benefit of Rs. 1.5 lakh in a financial year.
Your credit score is one of the most crucial factors that determine your home loan interest rate. A good credit score reflects that you are a responsible borrower, making you eligible for lower home loan rates. If you have a credit score of 750 or more, you can get a home loan at the best interest rate.
Pre-approved home loans usually come with lower interest rates and charges. It’s because these loans are given to eligible homebuyers for buying Tata Capital-approved properties. To check your eligibility for a pre-approved home loan, you can visit our website or walk into your nearest Tata Capital branch.
The lowest home loan rate today can vary based on the lender, your credit profile, loan amount, and tenure. Generally, it ranges from 6.5% to 8% per annum.
There are primarily two types of interest rates in a home loan:
You can reduce the home loan interest rates using these tips:
The Loan-to-Value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased.
To calculate your EMI, you can use Tata Capital’s EMI calculator. Simply enter details such as the loan amount, loan duration, and interest rate, and the calculator will instantly provide your estimated EMIs.
Two methods of calculating home loan interest payments are-
- Simple interest method: It includes the principal amount and the rate of interest
- Compound interest method: This includes the principal amount, the rate of interest, and interest accumulated over previous periods.
Some ways to reduce interest rates include:
- Improving your credit score
- Choosing a shorter loan tenure
- Making larger initial payments to reduce the principal
A longer loan tenure results in lower EMIs, but it also means a higher interest rate. Conversely, a shorter tenure leads to higher EMIs, but with a lower interest rate.
Home loans are often disbursed in installments. Until the final amount is disbursed, borrowers may have to pay the cost of interest charged on the disbursed amount. This is known as pre-EMI interest.
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