Home Loan Interest Rates

Whether you're a salaried professional, an independent worker, or manage a self-employed business with either formal or informal income, IIFL Home Loan provides the perfect solution for your home financing needs. We offer attractive interest rates starting at just 8.75% per annum, ensuring that the journey is smoother than ever.

Our commitment to transparency extends to fees, complemented by easy and affordable Equated Monthly Installment (EMI) payments, straightforward documentation, paperless processing, and outstanding customer service. With home loan approvals in just 30 minutes*, IIFL Home Loan stands as the comprehensive solution for achieving the house of your dreams. Meeting our simple eligibility criteria is all it takes to make the home loan yours.

For those with existing home loans, our easy balance transfer facility provides an attractive option. IIFL Home Loans’ balance transfer offers a range of features and benefits, with the most noteworthy being the substantial top-up value provided. Trust IIFL Home Loan to guide you seamlessly through the journey of homeownership, making your dream home a reality with our hassle-free processes and customer-centric approach.

Why opt for IIFL Home Loan for best Home Loan Interest Rates?

Choosing an IIFL Home Loan for the best housing loan interest rates offers several advantages:

Competitive Interest Rates: IIFL Home Loan provides competitive interest rates starting from just 8.75% per annum. These rates are designed to be attractive and competitive within the market, offering cost-effective financing options for homebuyers.
Transparent fees: We are committed to transparency in fee and charge structure. Knowing and understanding the costs associated with the home loan process from the beginning helps borrowers make informed decisions, preventing any surprises later on.
Flexible Loan Options: IIFL Home Loan offers flexibility in terms of loan options, catering to various needs such as ready-to-move-in properties, under-construction homes, or properties undergoing renovation. This flexibility ensures that borrowers can find a suitable solution for their specific requirements.
Quick Approval Process: With IIFL Home Loan, the approval process is streamlined, and can be obtained in as little as 30 minutes*. This quick turnaround time is advantageous for individuals looking to expedite the home-buying process.
Easy and Affordable EMI Payments: IIFL Home Loan provides easy and affordable Equated Monthly Installment (EMI) payment options. This ensures that borrowers can comfortably manage their repayment obligations, promoting financial stability throughout the loan tenure.
Simple Documentation and Paperless Processing: IIFL Home Loan simplifies the documentation process and promotes paperless processing, making the application process smoother and more efficient.
Excellent Customer Service: We are known for our customer-centric approach. Providing excellent customer service ensures that borrowers receive support and guidance throughout the loan process, making the experience more user-friendly and satisfactory.
Balance Transfer Facility: For those with existing home loans, IIFL Home Loan offers a balance transfer facility with attractive features and benefits. This option allows borrowers to transfer their existing home loan, potentially benefiting from better terms and rates.

Types of Interest Rates in Home Loan

Typically the home loan can be availed with two types of interest rates, namely fixed rate of interest and floating rate of interest. Here’s a detailed explanation of both of them for you to understand and choose as per your financial requirements:

Fixed Rate of Interest

A fixed rate of interest is the interest on your loan that remains the same throughout the tenure of the loan. At the beginning of your loan tenure, you have a clear idea of the repayment liability along with the interest payment for the periods. Generally, such an interest rate makes it easier and more efficient to plan the repayments for each period and manage the financial position accordingly.

There are certain scenarios where a fixed interest rate might work in your favor or might not. For example, in a market scenario where you expect the market interest rate to rise in the future, it is beneficial to have a fixed rate of interest on your loan. However, if the market interest rate is expected to fall it might not be the best idea for your loan.

Floating Rate of Interest

Contrary to the fixed rate of interest, floating interest rates change as the tenure of the loan progresses. How much the floating rate of interest increases or decreases depends on the benchmark rate, which is linked to housing finance.

When you see a trend of the market falling, then it is a good idea to opt for a floating rate of interest on your loan. However, if there is high volatility in the market it is not the best option as it may lead to an overall increased rate of the total interest to be paid.

Usually, the fixed rate of interest varies and has an addition of 1% to 1.25% to the floating rate of interest. It is available for the applicant to change from fixed to floating or floating to a fixed rate of interest during the term of their loan as well.

Factors that affect Home Loan Interest Rates

Several factors influence the interest rate you'll be offered when applying for a home loan. Understanding these factors can help you navigate the mortgage market more effectively:

Credit Score: Your credit score is a critical determinant of the interest rate. A higher credit score generally qualifies you for lower interest rates, as it signals to lenders that you are a lower-risk borrower.
Loan Amount and Down Payment: The loan amount and the size of your down payment impact the interest rate. A larger down payment often results in a lower interest rate, as it reduces the lender's risk.
Loan Tenure: The length of the loan term, whether it's a 15-year or 30-year mortgage, can affect the interest rate. Shorter-term loans typically have lower interest rates, though monthly payments may be higher.
Type of Interest Rate: Choose between fixed-rate and floating-rate home loans. Fixed-rate home loans offer stable interest rates, while floating-rate home loans may start with lower rates that can fluctuate over time.
Economic Factors: Economic conditions, including inflation rates, employment trends, and overall economic health, can influence interest rates. In a strong economy, rates may rise, while a weaker economy may see lower rates.
Location of the Property: The property's location can impact the interest rate, especially in areas prone to economic volatility or housing market fluctuations.
Market Conditions: Home loan interest rates are influenced by broader market conditions and trends. Keep an eye on national and global economic factors that may impact interest rates.
Lender Policies and Competition: Different lenders may have varying policies and may compete with each other to attract borrowers. Shopping around and comparing offers can help you secure a more favorable interest rate.

Understanding these factors and working to strengthen your financial profile can improve your chances of securing a lower housing loan interest rate, ultimately saving you money over the life of the loan.

Tips to get best Home Loan Interest Rate

Securing the best home loan interest rate is crucial for minimizing the overall cost of getting your dream home. Here are some tips to help you secure the most favorable interest rate:

Check and Improve Your Credit Score: Lenders often use credit scores to assess the risk of lending. A higher credit score can lead to lower interest rates. Review your credit report, correct any errors, and work on improving your score before applying for a home loan.
Compare Lenders: Shop around and compare interest rates from different lenders. Don't settle for the first offer you receive. Different lenders may have varying rates and terms, so thorough research is essential.
Consider a Shorter Loan Term: Shorter loan terms often come with lower interest rates. While monthly payments may be higher, the overall interest paid over the life of the loan can be significantly less.
Save for a Larger Down Payment: A larger down payment can signal financial stability to lenders, potentially resulting in a lower interest rate. Aim for a down payment of at least 20% if possible.
Stable Employment and Income: Lenders prefer borrowers with a stable employment history and consistent income. Demonstrating job stability and a reliable income stream can positively impact the interest rate offered.
Negotiate Fees and Closing Costs: In addition to the interest rate, pay attention to fees and closing costs. Some fees may be negotiable, so don't hesitate to discuss these with your lender.
Consider Floating vs. Fixed Rates: While fixed-rate home loans offer stability, floating-rate home loans might have lower initial rates. Consider your financial goals and the housing market trends before choosing between the two.

By being proactive, maintaining a strong financial profile, and researching your options, you can increase your chances of securing the lowest home loan interest rate tailored to your financial situation and goals.

How to Calculate Interest on a Home Loan?

To calculate the interest on a home loan, you can use the simple interest formula or an EMI calculator. Here's a basic explanation:

Simple Interest Formula:

Interest = Principal x Rate x Time / 100
Principal: The loan amount you borrow.
Rate: The annual interest rate (as a percentage).
Time: The loan tenure in years.

Home Loan EMI Calculator:

Online Home Loan EMI calculators are widely available and simplify the process. You input the loan amount, interest rate, loan term, and sometimes other details like property taxes and insurance.
The calculator provides a breakdown of your monthly payments, including both principal and interest.

Amortization Schedule:

This detailed table shows how each payment is allocated between principal and interest over the loan term.
In the early years, a larger portion of your payment goes towards interest, with more applied to the principal as the loan progresses.

Keep in mind that home loans often involve compounding interest, and the above methods provide simplified calculations. Lenders may use slightly different methods, and specific terms of your loan agreement can affect calculations. Online tools and working closely with your lender can help you get an accurate estimate of your home loan interest.