Get the Tata Capital App to apply for Loans & manage your account. Download Now


Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer

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.


Avail TATA Capital loans directly from WhatsApp

What are the Current Home Loan Interest Rates?

The current home loan interest rates are determined as per the Reserve Bank of India’s (RBI’s) Current Base Rate (CBR) or Benchmark Prime Lending Rate (BPLR). These rates are further ascertained based on the repo rate decided by the RBI.

With Tata Capital, you can get the best home loan interest rate starting from just 8.75% per annum*.

Why are Home Loan Rates so Important?

The housing loan interest rate is a vital factor that you need to consider while applying for a home loan. Your home loan interest rate helps you calculate the interest on your house loan, i.e., the additional amount that you will need to pay over and above your principal home loan amount. 

Since home loans are high-value loans that extend over a long tenure of 15 to 30 years, the total interest on a house loan can become a considerable sum over time. Even a slight change in the housing loan interest rate can make a significant difference in the long term. That is why it’s crucial to check and compare home loan interest rates while applying for a home loan with a lender.

How to Calculate the Interest on a House Loan?

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 Home Loan Interest Rate?

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

What is the LTV Ratio?

The LTV Ratio or loan to value ratio refers to the percentage of the home loan amount offered against the market value of the property. The LTV ratio reflects the maximum home loan amount a lender offers to the applicant. It measures the risk taken by the lender against the property’s value.

So, if the LTV ratio is high, it means that the amount sanctioned by the lender is higher. And hence, the lender’s home loan interest rate increases due to the increased risk involved in lending.

What are the 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.

What is MCLR?

In 2016, the RBI announced a new set of guidelines for lending called the Marginal Cost of Funds-Based Lending Rate (MCLR). The MCLR was introduced for all loans granted after the 1st of April 2016 and has replaced the older base rate regime.

So, if you have taken your home loan after the 1st of April 2016, your present home loan interest rate would be determined as per the MCLR. Even if you’ve taken your home loan before this date, you can switch to MCLR depending on the cost of your loan, as some conversion charges would be applicable.

What is Repo Rate Linked Lending Rate?

The Repo Rate Linked Lending Rate or RLLR is the rate of interest set according to the RBI’s repo rate and is directly impacted by any change in the repo rate. For example, if the RBI reduces its repo rate, the home loan interest rates charged by lenders automatically go down.

The repo rate refers to the rate at which RBI lends money to other commercial banks. Under the RLLR, the borrower is not dependent on the lending institution to decide the property loan interest rate. It is automatically updated (on the first day of the month after the change) to be in line with the repo rate.

What are the Fixed and Floating Home Loan Interest Rates?

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

In the case of fixed home loan interest rates, the rate of interest on a home loan never changes irrespective of the market volatility. If you have opted for the fixed home loan interest rate, you will have to pay equally divided EMIs for the entire loan tenure with no unexpected changes in the middle.

On the other hand, 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. Floating home loan interest rates are dependent on the alterable base rates offered by lenders, and hence, they get revised automatically with any change in the base rate.

Salaried & Self-Employed Interest Rate Table

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

Home Loan

Salaried Any Amount 8.75%* onwards
Self Employed Any Amount 8.75%* onwards

Home Equity

Salaried/Self Employed Any Amount 10.10% onwards

Tata Capital Housing Finance Limited - Prime Lending Rates (PLR)

New Customer

Customers onboarded from April 12th, 2024.

April 12th 2024 10.60%
April 12th 2024 9.90%
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%

Range of Interest rates for Mortgage Loans

Range of Interest Summary for the period of Quarter 4 FY 23-24

Home Loan 8.40% 21.54% 9.32%
Home Equity 7.15% 22.54% 10.92%


  • - The range of interest rates provided above is with respect to loans to individuals disbursed during Quarter 4- FY  2023-2024.
  • - Fresh Loans has 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 includes various categories like fixed rate, floating rate and is based on factors such as loan amount.

Home Loan 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 2% 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.

  • 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.

Why Choose Tata Capital Home Loan?

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.

More Home Loan products for you

Home Loan for government employees

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

Home Loan for self-employed

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.

Home Loan for women

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. 

What our customers say about us

I had applied for a home loan at Tata Capital & got the it approved quickly. The process was smooth and sanctioned with sufficient amount with tenure period of 20 yrs.

Sumeet Verma

Home Loan | 14 March, 2022

The submission of my home loan application was very simple and easy. Even the documentation process was very simple and ended in very less time.

Yukta Jaiswal

Home Loan | 11 March, 2022

The customer support service is good as they responded to my queries without any wait time. With their help, my home loan was approved in very less time.

Rashmi Singhania

Home Loan | 28 February, 2022

I got my home loan approved from Tata Capital. The reason behind going with Tata Capital home loan is they were offering home loan at best price and zero processing fee.

Aman Malik

Home Loan | 18 February, 2022

Rate of interest for the home loan is nominal. The processing fee is applicable but even that's nominal.

Chintan Saraiya

Home Loan | 20 October, 2021

The agent explained clearly about the home loan process. There was no hassle in getting the loan.

Ayaz Azmi

Home Loan | 20 October, 2021

I was given a clear picture about the loan process. I am impressed how I was properly notified by the bank and how transparency was maintained.

Kalpana Singh

Home Loan | 20 October, 2021

The processing fee was nominal for my home loan. It was processed hassle free. I am satisfied with the service.

Sridhar Pillai

Home Loan | 20 October, 2021

The process for my housing loan was immediate. Interest rates were normal at X%. The documentation process was hassle free. What else can I expect!?

Kundan Meher

Home Loan | 20 October, 2021

Find the right Loan for you

Affordable Housing Loan

  1. At Tata Capital, we believe that every single person, regardless of their financial background, deserves a home to call their own.

With this vision, Tata Capital Housing Finance offers affordable home loans at competitive interest rates. 

Affordable Housing Loan Affordable Housing Loan

Home Extension Loan

  1. As the years go by and your family continues to grow, does your house feel smaller?

Tata Capital’s Home Extension Loan is a perfect solution to help you give your family that additional space they deserve.

Home Extension Loan Home Extension Loan

Home Loan for Self-Construction

Instead of buying a ready-to-move-in house, you can choose to purchase a piece of land and construct your house on it brick by brick. 

A home loan for self-construction or simply a home construction loan is a special type of home loan given to help borrowers construct their own house on a piece of land or plot.

Home Loan for Self-Construction Home Loan for Self-Construction

Home Loan Top-up

A home loan top-up is a facility offered by lenders under which a borrower can take an additional loan over and above their existing home loan.

The home loan top-up facility is available only for existing home loan borrowers without the need for any additional security or guarantee.

Home Loan Top-up Home Loan Top-up

Home Loan Overdraft

At times, you may need additional funds to tackle your personal or business expenses. 

With Tata Capital’s home loan overdraft facility, you can avail of a home overdraft loan limit of up to Rs. 2 crores. You can withdraw funds from this overdraft housing loan limit as per your needs and then pay it back at your convenience.

Home Loan Overdraft Home Loan Overdraft

Quick Cash

Quick Cash loan is a unique Pre-Approved personal finance top-up linked to your existing Tata Capital Housing Finance Limited (TCHFL) loans. This loan is only for existing TCHFL Home Loan and Home Equity customers.

Apart from its unique features, it also offers other advantages such as faster processing, and a paperless journey, notwithstanding that all this could be availed in just a few clicks at your convenience any day 24*7.

Quick Cash Quick Cash

Balance Transfer

  1. A home loan balance transfer, or simply a home loan transfer, takes place when you transfer your outstanding home loan amount to a new lender from your existing lender.

With Tata Capital Home Loan Balance Transfer, you can transfer your outstanding home loan balance to affordable interest rates. Our home loan interest rates start from just 8.75% per annum*.

Balance Transfer Balance Transfer