Compare up to 3 loans side by side — home loans, personal loans, or car loans. See exactly which offer saves you the most money over the full loan tenure.
The cheapest advertised rate isn't always the cheapest loan. Here's what really matters when comparing loan offers.
Why EMI Isn't the Only Thing That Matters
Many borrowers focus only on the monthly EMI when choosing a loan, but this can be misleading. A lower EMI might come with a longer tenure that costs significantly more in total interest. Our comparison tool shows you the total cost of the loan — including processing fees — so you can make a truly informed decision.
Key Factors to Compare Beyond Interest Rate
Processing Fee: Can range from 0 to 1% of the loan amount. On a ₹50 lakh loan, a 1% fee adds ₹50,000 to your cost. Some lenders waive this during festive seasons.
Prepayment Charges: RBI mandates no prepayment penalty on floating-rate home loans from banks. However, fixed-rate loans and NBFCs may charge 2–4% of the prepaid amount.
MCLR vs Repo-Linked Rate: Home loans linked to the repo rate (RLLR) are more transparent and reset faster when RBI cuts rates — generally better for borrowers in a falling rate environment.
Loan-to-Value (LTV) Ratio: Some lenders offer higher LTV (up to 90% for loans under ₹30 lakh), meaning you need a smaller down payment. Others cap at 75–80%, requiring more upfront capital.
Insurance Bundling: Some lenders bundle home loan protection insurance into the EMI, increasing the effective cost. Ensure you understand all included charges before signing.
SBI vs HDFC vs ICICI vs Axis — Who Has the Best Rate?
Home loan interest rates in India vary by lender, loan amount, credit score, and type of property. As of 2026, rates broadly range from 8.5% to 10.5% p.a. for salaried borrowers with good credit scores (750+). Public sector banks (SBI, Bank of Baroda, PNB) typically offer slightly lower rates than private banks, though with potentially more paperwork. NBFCs like LIC Housing Finance or HDFC Ltd may offer competitive rates for certain borrower profiles. Always get rate quotes from at least 3 lenders and use this tool to compare the true total cost.
The Impact of Even 0.25% Difference in Rate
On a ₹50 lakh, 20-year home loan, the difference between 8.5% and 8.75% might look small — but it results in approximately ₹88,000 more in total interest paid over the loan's life. Our comparison tool makes this invisible difference immediately visible and quantifiable.
Frequently Asked Questions
Common questions about comparing loans and choosing the best offer.
Which bank has the lowest home loan interest rate in India? ▾
Interest rates change frequently with RBI policy decisions and individual bank policies. As of 2026, SBI, Bank of Baroda, and Union Bank tend to offer competitive rates for salaried borrowers starting around 8.5% for CIBIL scores above 750. Private banks like HDFC, ICICI, and Axis typically range from 8.75% to 9.5%. Use this comparison tool to enter the current rates offered to you — your personal rate depends on income, CIBIL score, loan amount, property type, and lender-specific criteria.
Is a shorter or longer loan tenure better? ▾
Shorter tenure = higher EMI but significantly lower total interest. Longer tenure = lower EMI but you pay much more in total interest. Example on ₹50L at 8.75%: 15-year tenure costs ₹49.7L in total interest; 25-year tenure costs ₹88.3L — a difference of ₹38.6L. The right choice depends on your cash flow. If you can comfortably afford a higher EMI (within 40% of take-home), choose a shorter tenure. If you need flexibility, choose a longer tenure but make prepayments aggressively whenever possible.
What credit score do I need for the best home loan rates? ▾
To qualify for the lowest advertised rates, most banks require a CIBIL score of 750 or above. Scores between 700–749 may still qualify for loans but at slightly higher rates (0.25–0.5% more). Scores below 700 significantly limit options and rates. A score of 800+ can sometimes unlock additional rate discounts or faster approval. Check your CIBIL score for free on the official CIBIL website once a year, and use platforms like BankBazaar or Paisabazaar to get pre-qualified rate offers.
What is the effective interest rate (EIR) and why does it matter? ▾
The Effective Interest Rate (EIR), also called Annual Percentage Rate (APR), accounts for all costs of the loan — interest, processing fees, insurance premiums, and other charges. A loan with 8.5% nominal rate and 1% processing fee may have a higher EIR than a loan at 8.75% with no fees, especially for shorter tenures where the fee is amortised over fewer months. Our comparison tool factors in processing fees to give you a more complete cost picture.
Can I switch my home loan from one bank to another for a lower rate? ▾
Yes — this is called a Home Loan Balance Transfer. If your current lender's rate is significantly higher than what a new lender offers, you can transfer the outstanding balance. RBI mandates no prepayment penalty on floating-rate home loans from banks. However, balance transfers have their own costs: processing fee at the new lender (0.5–1%), legal and technical valuation charges, and stamp duty in some states. A balance transfer makes financial sense when the rate difference is at least 0.5% and you have more than 5 years of loan remaining.
Should I choose a fixed or floating interest rate? ▾
Fixed rates offer predictability — your EMI never changes. Floating rates move with market benchmarks and can increase or decrease. In India, fixed rates are typically 1–2% higher than floating rates to compensate for the certainty offered. Most financial advisors recommend floating rates for long-tenure loans (15–25 years) because over such long periods, rates are likely to both rise and fall, and you benefit when they fall. Fixed rates are better for borrowers with tight budgets who need cost certainty, or when rates are historically low and expected to rise.