Multiple reports indicate a promising trend in the residential real estate market, with a significant surge in sales, particularly in the premium and luxury housing segments. The increasing share of home loans underscores this growth for properties valued at Rs 75 lakh and above, which has risen from 19% in March 2020 to an impressive 31.4% in March 2024, as per the outstanding portfolios of home loan providers, as reported by Times of India.
According to a recent report by Knight Frank, the market’s stability is evident in the increasing number of home loan applications, which now make up a significant portion of India’s housing sales, exceeding Rs 1 crore and accounting for 41%. This data suggests that the surge in sales is not just a temporary occurrence but rather an ongoing trend.
The percentage of homes valued at over Rs 75 lakh has consistently increased, rising to 20.6% in FY21, 24% in FY22, and 27.3% in FY23.
Public sector banks dominate the housing loan market for amounts below Rs 75 lakh, while private banks lead in the Rs 75 lakh category. However, housing finance companies have a strong presence in the below Rs 35 lakh segment, per a credit bureau CRIF report. Unlike the RBI’s data, CRIF’s report encompasses credit from all types of lenders, including finance companies and HFCs.
“As of March 2024, portfolios outstanding of home loans – which are dominated by public and private banks – stood at Rs 36.2 lakh crore (across lenders),” stated the Times of India news report.
Home loan interest rates
According to the IDFC FIRST Bank, “A home loan product is offered in three types of interest rates, and they are floating, fixed and mixed. A floating rate of interest changes depending on the RBI’s policy rate changes. For instance, if the repo rate is reduced, banks reduce the home loan interest rate and vice versa. The fixed rate will have the same rate of interest fixed at the time of the approval of the loan, and will continue until the end of the tenure. The mixed rate will have the fixed rate of interest first and later the floating one.”Lenders consider several factors when determining the interest rate for your home loan, including your credit score, loan amount, LTV ratio, employment status, and the type of interest rate.When getting a home loan, select a lender that provides a competitive interest rate. It is a significant long-term financial commitment, and even a slight decrease in the interest rate can reduce the total cost of the loan, allowing you to save money.
Latest home loan interest rates September 2024
Name of Lender | Loan Amount (Rs) | ||
Upto 30 Lakh | Above 30 Lakh & Upto 75 Lakh | Above 75 Lakh | |
PUBLIC SECTOR BANKS | |||
State Bank of India | 8.50-9.85 | 8.50-9.85 | 8.50-9.85 |
Bank of Baroda | 8.40-10.65 | 8.40-10.65 | 8.40-10.90 |
Union Bank of India | 8.35-10.75 | 8.35-10.90 | 8.35-10.90 |
Punjab National Bank | 8.45-10.25 | 8.40-10.15 | 8.40-10.15 |
Bank of India | 8.40-10.85 | 8.40-10.85 | 8.40-10.85 |
Canara Bank | 8.50-11.25 | 8.45-11.25 | 8.40-11.15 |
UCO Bank | 8.45-10.30 | 8.45-10.30 | 8.45-10.30 |
Bank of Maharashtra | 8.35-11.15 | 8.35-11.15 | 8.35-11.15 |
Punjab and Sind Bank | 8.50-10.00 | 8.50-10.00 | 8.50-10.00 |
Indian Overseas Bank | 8.40-10.60 | 8.40-10.60 | 8.40-10.60 |
Central Bank of India | 8.45-9.80 | 8.45-9.80 | 8.45-9.80 |
PRIVATE SECTOR BANKS | |||
Kotak Mahindra Bank | 8.75 onwards | 8.75 onwards | 8.75 onwards |
ICICI Bank | 8.75 onwards | 8.75 onwards | 8.75 onwards |
Axis Bank | 8.75-13.30 | 8.75-13.30 | 8.75-9.65 |
HSBC Bank | 8.50 onwards | 8.50 onwards | 8.50 onwards |
South Indian Bank | 8.70-11.70 | 8.70-11.70 | 8.70-11.70 |
Karur Vysya Bank | 9.00-11.05 | 9.00-11.05 | 9.00-11.05 |
Karnataka Bank | 8.50-10.62 | 8.50-10.62 | 8.50-10.62 |
Federal Bank | 8.80 onwards | 8.80 onwards | 8.80 onwards |
Dhanlaxmi Bank | 9.35-10.50 | 9.35-10.50 | 9.35-10.50 |
Tamilnad Mercantile Bank | 8.60-9.95 | 8.60-9.95 | 8.60-9.95 |
Bandhan Bank | 9.16-15.00 | 9.16-13.33 | 9.16-13.33 |
RBL Bank | 8.90 onwards | 8.90 onwards | 8.90 onwards |
CSB Bank | 10.49-12.34 | 10.49-12.34 | 10.49-12.34 |
HDFC Bank Ltd. | 8.75 onwards | 8.75 onwards | 8.75 onwards |
City Union Bank | 8.45-9.70 | 8.70-10.20 | 8.95-10.70 |
HOUSING FINANCE COMPANIES (HFCs) | |||
LIC Housing Finance | 8.50-10.35 | 8.50-10.55 | 8.50-10.75 |
Bajaj Housing Finance | 8.50 onwards | 8.50 onwards | 8.50 onwards |
Tata Capital | 8.75 onwards | 8.75 onwards | 8.75 onwards |
PNB Housing Finance | 8.50-14.50 | 8.50-14.50 | 8.50-11.45 |
GIC Housing Finance | 8.80 onwards | 8.80 onwards | 8.80 onwards |
SMFG India Home Finance | 10.00 onwards | 10.00 onwards | 10.00 onwards |
Sammaan Capital (Formely Indiabulls Housing Finance) | 8.75 onwards | 8.75 onwards | 8.75 onwards |
Aditya Birla Capital | 8.60 onwards | 8.60 onwards | 8.60 onwards |
ICICI Home Finance | 9.10 onwards | 9.10 onwards | 9.10 onwards |
Godrej Housing Finance | 8.55 onwards | 8.55 onwards | 8.55 onwards |
Rates as of 4 September 2024 | |||
Source: Paisabazaar.com |