Home Loan Interest Rate in 2023 - Check Latest Interest Rate

Best Home Loan Interest Rates - Kotak Bank

Current Home Loan Interest Rate

Kotak Mahindra Bank offers attractive home loan interest rates in India starting at 8.85% p.a. This lending rate allows you to repay your home loan comfortably at EMI of ₹890/lakh. To get more information on housing loan rates for salaried and self-employed borrowers, kindly refer to the below table:

PRODUCT	APPLICANT	RATE OF INTEREST
Home Loan	Salaried	8.85% - 9.35%
Home Loan	Self-employed	8.90% - 9.40%
Home Loan Balance Transfer	Salaried	8.85% onwards
Home Loan Balance Transfer	Self-employed	8.90% onwards

Connect with us to know more about current home loan interest rates and check out low-interest home loans available to you.

How to Calculate Interest on Home Loan?

An error-free and easy way to calculate home loan interest rates and EMIs on a home loan is by the Kotak Home Loan EMI Calculator. Just enter the amount you want to borrow, the tenure you want, and the rate of interest you prefer.
For manually calculating housing loan interest, you can use a mathematical formula:

Formula: EMI = [P x r x (1+r)^n]/[(1+r)^n-1], where P, R, and N are the variables. The EMI value will change each time you change any of the three variables. This way, you can calculate the home loan interest you’ll need to pay.

P = Principal Amount, R = Rate of Interest and N = Number of times interest is compounded per year.

Types of Home Loan Interest Rates

Home loan interest rates in India can be fixed or floating. Find out what this means and how these two types of house loan interest rates differ from one another.

Floating Interest Rate

This is another popular type of home loan interest rate today in India. Floating house loan nterest rates follow the prevalent market rates. When the interest rate drops, your home loan EMI also drops.

Benefits Floating Home Loan Rates

Lower Interest Rates : Floating home loan rates are typically 1% to 2.5% lower than fixed rates (from the same lender). This can help you save money each month on EMIs.
The Possibility for Greater Gains : Borrowers can stand to gain unexpected gains: Borrowers who choose the floating interest rate can benefit from market fluctuations. If the market rates go below the base rate, there will be an even lower home loan rate for the corresponding period.

Setbacks of Floating Home Loan Rates

If the market rates go above the base rate, the borrowers will lose their current home loan interest rates and have to pay a higher interest amount.
The increase in housing loan interest rate may make monthly payments quite steep—even perhaps to the point of becoming unmanageable.
Budgeting cash flow and calculating the long-term costs of borrowing with floating house loan rates is not possible.

Fixed Interest Rate

This type of housing loan interest rate remains constant for the complete tenure of the loan. Fixed home loan rates are set and not subject to change owing to market fluctuations. Also, for certain cases, after paying a fixed housing loan interest rate for a certain time period, it may be possible to convert it into a floating housing loan interest rate depending on loan terms.

Benefits of Fixed Home Loan Interest Rates

The biggest benefit of fixed house loan interest rates is that borrowers know exactly how much they have to pay. Even if the market fluctuates and makes house loan interest rates higher, your set interest remains unaffected.
With fixed home loan interest rates, borrowers know exactly how much they need to budget for, and can align their finances well in advance to pay off their loan.

Setbacks

The flipside of fixed house loan interest rates is that even when the home loan interest rates in India drop, the agreed rate remains the same. Borrowers cannot benefit from lower interest rates on their home loans.
When compared to floating interest rates, fixed home loan rates tend to be higher by about 1-2.5%.

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Frequently Asked Questions

What is the Home Loan Interest rate?

A Home Loan interest rate is the amount of money (calculated as a percentage) borrowers pay back on top of the principal amount they take through a loan. These rates, also called housing loan interest rates, are charged by financial institutions and determine the actual cost of a home loan. Interest rates on home loans are usually linked to repo rate and can vary from one institution to another.

What are the factors that affect home loan interest rates?

The home loan interest rates are affected by the following factors:

● Your credit score

● The amount of loan that you are availing of

● The type of home loan that you are availing of - fixed or floating rate

● Your occupation, i.e. whether you are salaried or self-employed

What is the current Home Loan interest rate in India?

Kotak Mahindra Bank provides some of the lowest Home Loan interest rates in India on home loans at just 8.85%* to borrowers. Current home loan interest rates for Salaried and Self-employed borrowers can be viewed on the website.

How can i get the lowest housing loan interest rate?

If you have a good credit score and no history of missing previous repayments, you can try and reach out directly to your lender and ask if they can offer you a low interest home loan. You can put up collateral and reduce the rate as well. If you are an existing customer, some lenders may have special low rates available as well. However, very few institutions will be willing to negotiate different housing loan rates.

How to calculate home loan interest rates?

You can calculate home loan interest rates using our Home Loan eligibility calculator

Enter your basic personal and employment details and on submission, you will be able to see the interest rate, applicable to you, basis your profile.

What is Pre-EMI interest?

Pre-EMI is a type of instalment that you pay towards the interest component of your home loan.

This can relieve some of the financial burdens, but you have to understand that you will still have to repay the principal amount. Kotak Mahindra Bank offers good deals on home loan interest rates.

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Disclaimer (Things you should know):

For loans: Credit at the sole discretion of the Bank and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.

Related Products

Home Loan Balance Transfer

You can pay off any existing balance of Home Loan using Kotak’s Home Loan Balance Transfer at a lower rate of interest.

NRI Home Loan

If you are an NRI and are looking for a Home Loan, Kotak provides you just that. Check out our NRI Home Loans section.

Home Improvement Loans

If you are looking for renovating your home, you can do so by taking Kotak’s Home Improvement Loans

Home Loan Interest Rates In 2023

Current Home Loan Interest Rate

How to Calculate Interest on Home Loan?

Types of Home Loan Interest Rates

Floating Interest Rate