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Home Loans Get Cheaper, Interest Rate Cut

Change in government policies & RBI rate cuts are prompting banks to slash their home loan interest rates.

Existing customers don’t benefit automatically.

Calculate your savings & switch to lower interest rates.


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January 1, 2017:
SBI Home Loan (Term Loan) @ 8.65%
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January 1, 2017:
SBI Maxgain @ 8.80%
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April 7, 2016:
Axis Bank announces MCLR rates. New Home Loans @ 9.65% (General) Reset tenor at 6 months
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April 6, 2016:
Punjab National Bank declares April MCLR rates, New Home Loans @ 9.45% (floating)
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April 5, 2016:
RBI announces a 25bps rate cut
bank page blog
April 4, 2016:
ICICI announces MCLR rates. New Home Loans @ 9.45% (General)
bank page blog
April 1, 2016:
Bank of Baroda declares MCLR rates. Interest rate remains the same @ 9.65% (General)
bank page blog
March 31, 2016:
SBI announces MCLR rates. New home loans @ 9.45% (General)
bank page blog
March 18, 2016:
FM reduces interest rates on Small Savings Schemes
bank page blog
Dec 7, 2015:
RBI announces that Bank interest rates will be calculated using MCLR from April 1st 2016.

Home loan interest rate (updated on 30th January, 2023) :

Banks ROI (Women) ROI (Men)
SBI (Term loan) 8.60% 8.65%
SBI(Max-gain below Rs 1 crore) 8.75% 8.80%
IDBI ----- 9.75%
HDFC 9.50% - 10.00% 9.55% - 10.05%
(Fixed Rate) for 10 Years 9.70% - 10.20% 9.75%-10.25%
LIC HFL ---- 10.50%
Salaried/SEP - Up to 30 Lacs ---- 9.75%
Salaried/SEP - 30 - 75 Lacs ---- 9.75%
Salaried/SEP - 75 lacs - 1Crore ---- 9.75%
Salaried/SEP - 1Crore - 1.5Crore ---- 9.75%
Salaried/SEP - 1.5Crore - 3Crore ---- 10%
Salaried/SEP - Above 3 Crore ---- 10%
SENP - Up to 30 Lacs ---- 10%
SENP - 30 Lacs - 75 Lacs ---- 9.85%
SENP - 75 Lacs - 1 Crore ---- 9.85%
SENP - 1Crore - 1.5Crore ---- 9.85%
SENP - 1.5Crore - 3Crore ---- 10.25%
SENP - Above 3 Crore ---- 10.50%
IndiaBulls (Fixed Rate) ---- 9.95%
Up to 75 Lacs ---- 9.95%
75 Lacs - 1.5 Crore ---- 10.10%
Above 1.5 Crore ---- 10.40%
IndiaBulls (Floating Rate)
Up to 300 Lacs ---- 9.50%
More than 300 Lacs ---- 10.25%
Upto 5 crore 9.40% 9.45%
Above 5 crore 9.65% 9.70%
For 1year, 2 years, 3 years
Upto 5 crore ---- 9.45%
Above 5 crore ---- 9.70%
For 5 years, 10 years:
Upto 30 lakhs 9.40% 9.45%
30 lakhs - 5 crore 9.50% 9.55% to 9.80%
Above 5 crore 9.75% 9.55% to 9.80%
Full tenure fixed rate
Upto 30 lakhs 9.70% 9.75%
30 lakhs - 5 crore 9.80% 9.85% to 10.10%
Above 5 crore 10.05% 9.85% to 10.10%
Upto 1.5 crore 9.45%
Above 1.5 crore 9.55% to 9.70%
For 1year, 2 years, 3 years
Upto 1.5 crore 9.45%
Above 1.5 crore 9.55% to 9.70%
For 5 years, 10 years:
Upto 30 lakhs 9.45%
Above 30 lakhs 9.55% to 9.80%
Full tenure fixed rate
Upto 30 lakhs 9.70% 9.75%
Above 30 lakhs 9.80% 9.85% to 10.10%
Above 5 Crore 10.05% ----
Bank of Baroda Floating Rate 9.65% 9.65%
Punjab National Bank Floating Rate 9.45% 9.45%
Punjab National Bank Fixed Rate 9.95% 9.95%
Dena Bank
Upto 75 lakhs 9.70%
More than 75 lakhs 9.95%
Axis Bank (Floating Rate)
Upto 28 Lacs 9.60%
Above 28 Lacs 9.65%
Axis Bank (Self-Employed)
Upto 28 Lacs 9.70%
Above 28 Lacs 9.75%
Axis Bank (Fixed Rate) 11.75%

Existing home loan customers don’t get an ‘automatic’ benefit of the interest rate cut

If you think you are on a floating rate loan (which is linked to the market rates) as opposed to a fixed rate loan (one that doesn’t change during the tenure of the loan), you will still have to formally switch to the lower interest rate within the same bank to get the benefit of the rate cut. Some banks charge some fees for such internal transfer. It may be a good idea for you to consider the other options available and switch to another bank which may turn out to be cheaper!

Switch your mortgage & Get maximum savings by reducing tenure

Some people may think that a small percentage cut in the home loan rates does not lead to a substantial savings. They come to such (wrong) conclusions by thinking that it may only lead to a savings of a few thousand rupees in EMI. However the same cut in the home loan rate could lead to savings of a few lakhs of rupees if you reduce your tenure. You should take advantage of the home loan rate cuts by keeping the EMI unchanged and reducing the tenure.


RBI Rate Cut refers to a cut in the RBI policy rates. There are two policy rates - Repo Rate (Repurchase Rate) and Reverse Repo Rate. Repo Rate: Repo Rate is the interest rate at which RBI lends money to commercial banks. To give out loans, Banks need to first generate funds. When these funds are insufficient, banks borrow from the RBI. The Repo Rate is the interest rate that RBI charges when it lends money to these banks. Reverse Repo Rate: As the name suggests, Reverse Repo Rate is the interest rate at which the RBI borrows money from commercial banks.
Like all banks, RBI lends at a higher rate borrows at a lower rate. This difference in interest rates is how they cover their operating costs and make a profit.
An RBI rate cut is generally followed by a rate cut by the banks. As banks are able to borrow money at a lower rate from the RBI, they reduce their interest rates on both loans and deposits. As a borrower, this a rate cut is good news for you because the interest rate on your loan decreases. This means savings for you. As an investor, your bank deposits like FDs grow at a slower rate because this interest rate also decreases.
Banks raise funds by borrowing from the RBI. Similarly, banks raise funds by borrowing from the general public. The latter is in the form of deposits like Fixed Deposits. When RBI starts lending to the banks at a cheaper rate, why should the banks pay a higher rate to investors? Thus RBI rate cut goes hand in hand with a cut in the FD rates.
HDFC gives home loans as a Housing Finance Corporation (HFC) and not a bank. RBI Rate cuts do not directly impact the interest rates of HFCs. HFCs calculate their interest rates based on Retail Prime Lending Rate (RPLR) while banks use Base Rate. RBI Rate cuts do not affect RPLR but affect Base Rate. This is why banks reduce interest rates. HFCs like HDFC only reduce their rate to remain competitive. HFC loan borrowers get the least benefits from a rate cut.
The method of calculating the Base Rate is decided by the RBI. Base Rate is the minimum rate at which that Bank can lend money for any loan and it includes a certain profit margin. Interest Rate is calculated by adding an additional 'Spread' on top of Base Rate. Interest Rate = Base Rate + Spread.