Lowest Home Loan Interest Rate – Complete Guide to Best Rates

Key Insights 

1. Begin by checking home loan interest rates from different banks. Choosing a lower rate, like Bank of Maharashtra's 7.10%, can help lower your EMI payments.

2. Use the EMI formula to figure out your payments ahead of time. This helps you plan your budget, compare loans, and see the total cost before you decide.

3. Pick a fixed interest rate if you want steady payments, or go for a floating rate if you prefer lower starting costs. Choose what fits your financial plans best.

Looking for the lowest home loan interest rate in India can be stressful. The first step to saving money on your dream home is to compare the home loan interest rates all banks.

The lowest home loan interest rate is like a golden ticket for your financing journey. It is the smallest percentage charged on your principal and directly affects your monthly EMI. 

By checking current interest rates in India for home loan, you can find the most affordable option.

Example:

I looked at home loan interest rates in India for a ₹50,00,000 loan. By choosing the lowest home loan interest rate of 8.4% for 20 years instead of 9.2%, I saved ₹1,100 on my monthly EMI. That adds up to a big difference over time.

Latest Lowest Home Loan Interest Rates 

Save more on your Lowest Home Loan Interest Rate. Check out the latest low-interest rates to reduce your EMI and make your dream home more affordable.

Here is the list of the Lowest Home Loan Interest Rate in 2025:
 

Check out the latest low home loan interest rates from Bank of Maharashtra at 7.10% and see how much you can save on your EMI.

Bonus Tip: Do you know? If you make a higher down payment, you can lower your EMI interest costs by a good amount. This is because a bigger down payment reduces your loan amount, which means you pay less interest overall.

How to Calculate Interest on a Home Loan?

Take control of your Lowest Home Loan Interest Rate costs. Find out how to calculate interest and see how your total repayment is made up, using easy-to-follow steps.

The formula for EMI Calculation is:

P x R x (1+R)N / [(1+R)N-1]

P = Principal loan amount

N = Loan tenure in months

R = Monthly interest rate

Example:

Dev wants to take a home loan of ₹50,00,000 at an annual interest rate of 8.4% for 20 years, which is 240 months. To find the monthly interest rate, he divides 8.4 by 12 and then by 100, getting 0.007.

Now, let’s put these numbers into the formula:

EMI = 50,00,000 x 0.007 x (1+0.007)240 / [(1+0.007)240 - 1] = ₹43,130

By working out his EMI ahead of time, Dev can:
 

• Confidently budget: He knows he will pay ₹43,130 each month, so he can plan his other expenses easily.
• Compare loans: He can change the rate or loan period to see that a 7.9% rate would lower his EMI to ₹41,403, saving him ₹1,727 each month.
• See total cost: He can quickly see that he will repay ₹1.03 Crore in total (₹43,130 x 240), so the ₹53,00,000 interest is clear.
• Make informed decisions: With this information, Dev can pick the right loan and avoid financial stress later, making a tough choice much simpler.

Take control of your home loan costs. Find out how to calculate interest and see how your total repayment is made up, using easy-to-follow steps.

Types of Interest Rates in Home Loan

Do you prefer regular payments, or are you open to changes in the market? Find out about different home loan interest rates to choose what works best for your budget.

Fixed Interest Rate

A Fixed Interest Rate means the lender or bank sets an interest rate that stays the same for the whole loan period. This lets you know exactly how much you will repay before you sign the loan agreement. Your Home Loan EMI will also stay the same the entire time.

Here are the advantages of the Fixed Interest Rate:
 

Get the lowest home loan interest rate from the start. Choosing a fixed interest rate means your EMI stays the same every month, which is helpful for salaried borrowers and anyone planning for the long term.

Floating Interest Rate

A Floating Interest Rate changes based on market trends. The rate can go up or down depending on the market. With a floating rate, the total interest you pay may rise or fall, so your EMIs can also increase or decrease.

Here are the advantages of a floating interest rate:
 

Look for the lowest home loan interest rate as it changes. A floating interest rate usually starts out lower and may decrease even more if market rates go down, helping you save money.

Bonus Tip: Do you know what you should do to get a better interest rate? A home loan balance transfer is moving your remaining home loan balance to a new lender that offers better interest rates and terms.

Conclusion

Don’t pay more than you need to for your dream home. Compare home loan interest rates from different banks, learn how to calculate your EMI, and decide if a fixed or floating rate works best for you to save more.

FAQs

1 Cr Home Loan: Best Bank & Lowest Actual ROI?  

If you are looking for a ₹1 Crore home loan, Bank of Maharashtra currently has the lowest starting interest rate at 7.10% per year. However, the best bank and the actual interest rate you get will depend on your credit profile and the total cost, including all fees.

Which Bank to go for the best home loan rates and a good experience?  

Private banks such as HDFC Bank are known for offering faster and more professional service, but their rates can be higher. If you want the best home loan rates, public sector banks such as Bank of Maharashtra, PNB, and LIC home loans usually have the lowest starting interest rates.

What is the current home loan interest rate in India? 

Home loan interest rates in India depend on the lender, but the best offers usually start from about 7.10% to 8.15% per year, especially for salaried applicants with strong credit. Most rates fall between 7.40% and over 10%, depending on the bank, whether the applicant is salaried or self-employed, the loan amount, and the credit score. Many banks also link their rates to external benchmarks such as the Repo Rate.

How do I get a home loan at a minimum interest rate? 

If you want a home loan with the lowest interest, aim for a high credit score (750 or above), steady income, and low existing debt. You can also add a co-applicant, compare offers from different lenders, negotiate the rates, and choose a shorter loan term or make early partial payments to reduce the principal. 

Can I switch from a fixed rate of interest to a floating rate, and are there any associated charges?

Yes, you can switch from a fixed to a floating interest rate while your loan is active. Most lenders charge a conversion fee of 0.5% of the remaining loan amount for this change.
 

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About the Author

LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.