Housing Loan Interest Rate

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Home Loan Interest Rates (July 2025)

Knowing the Home Loan interest rates is paramount when you are planning to buy a home. The interest rate directly affects the total cost of your Home Loan and even a slight difference can add up to a significant amount of money over time. Want to stay ahead of the game and plan your dream home purchase wisely? Check out the current home interest rates here.

Interest Rates on Home Loans

Home Loans Interest Rates (per annum)
Cibil Score	REPO + Spread	Effective Rate of Interest
Cibil Score - 751 and above	REPO + 2.85% to REPO + 3.60%	8.35% to 9.10%
Between 750 and below / No credit history	REPO + 3.10% to REPO + 3.85%	8.60% to 9.35%

*The rates will vary as per the profile of the customer, loan variant and other risk factors
* The range covers all types of home loans including the variants of Super Saver, QuikPay, Shubh Aarambh, Fast Forward, Plot Loans, Banking Surrogate, Plot Equity Loan or any variant other than Vanilla

For Home Loan Rate of Interest Disbursed Click Here

Fixed Home Loan interest rates

Axis Bank Fixed Home Loans come with a competitive fixed interest rate of 14.00% per annum. This fixed rate applies to all other Home Loan product variants which means you will get a predictable and stable repayment plan with no surprises along the way.

Interest rates on Asha Home Loans

ASHA Home Loans Interest Rates (per annum)
Programs	REPO + Spread	Effective Rate of Interest
Salaried	REPO + 4.65% to REPO + 6.40%	10.15% to 11.90%
Self Employed	REPO + 5.65% to REPO + 6.40%	11.15% to 11.90%

*The rates will vary as per the profile of the customer, loan variant and other risk factors

For further details click here

Home Loan interest rates fees & charges

Here are the fees and charges associated with Home Loans:

Type of Charge	Charges Applicable
Processing Charge	Up to 1% of the loan amount or ₹10,000 (whichever is higher) + GST (as applicable) An upfront processing fee of ₹5,000 plus GST shall be collected at the time of application submission. The balance processing fee, as applicable, shall be collected at the time of loan disbursement. The processing fee is a non-refundable fee collected by the Bank for the purpose of reviewing the loan application and same is independent of the outcome of such assessment.
Admin Charges	₹0/-
Type of Charge	Charges Applicable	Type of Charge	Charges Applicable
Repayment Instruction/Instrument Return	₹339/- per instance	Issuance Charges of Credit Report	₹50/- per instance
Duplicate Statement issuance charges	₹250/- per instance	Cheque/Instrument swap charges	₹500/- per instance
Issuance charges for Photocopy of title documents	₹500/- per document set	Duplicate Amortization Schedule issuance Charges	₹250/- per instance
Charges of Customer initiated requests for copies of documents	₹500/- per document set	Duplicate Interest Certificate	₹50/- per instance
		(Provisional/Actual) issuance charges
Prepayment charges for floating rate loan (including part payment)	NIL	Prepayment charges for fixed rate loan (including part payment)	2% of outstanding principal/amount prepaid
Equitable mortgage creation charges	As applicable in the state	Duplicate No Dues Certificate/NOC	₹50/- per instance
Stamp Duty & other statutory charges	As per applicable laws of the state
Equitable mortgage cancellation charges	As applicable in the state
Penal Charges	Financial Default: 8% p.a. above the applicable interest rate on the overdue amount (subject to the aggregate not exceeding 24% per instance) There shall be no capitalisation of Penal Charges Financial Default includes all types of payment or financial defaults/irregularities with respect to your Loan Account

Know more about Home Loans fees and charges before applying.

Benefits of Home Loan interest rate

Axis Bank’s Home Loan products are tailored to fit your unique financial goals. Here's what you can expect:

Tax benefits on the Home Loan interest paid under Section 24.

Loan amount ranging from ₹3 lakh to ₹10 crore, so you can fund your dream property.

Choice of fixed or floating Housing Loan interest rates to match your risk appetite.

Manage your loan from the comfort of your own home.

No prepayment charges on floating-rate Home Loans, so you can pay off your loan at your own pace.

Types of interest rates for Home Loans

When applying for a Home Loan, understanding the types of Home Loan rates is key.

Fixed interest rates

Your interest rate stays the same for the entire loan tenure, so you know exactly how much your EMI payments will be every month.

Floating interest rates

These rates fluctuate with market trends, so your EMI payments might change over time.

Both options have their own pros and cons and can influence your loan repayment in different ways. Fixed rates are like having a safety net as they protect you from market swings. On the other hand, floating rates are like taking a calculated risk and if Home Loan interest rates for today drop, you can save money on interest.

Which type of Home Loan interest rate should you choose?

The choice between fixed and floating interest rates depends on your financial strategy and how comfortable you are with taking risks.

A fixed interest rate is ideal for you if

You value consistency, predictability and risk aversion in your financial planning.
You are concerned that home interest rates might rise in the near future.
You prioritise stability over potential savings and are comfortable with potentially higher costs if market interest rates decrease.

A floating interest rate is ideal for you if

You are resilient to market ups and downs and have a flexible financial plan that can adapt to market fluctuations.
You predict a drop in home interest rates today which could lead to lower overall interest costs.
You prioritise potential savings over stability and are willing to accept potentially higher costs over time.

Factors that affect Home Loan interest rate and EMI

Interest rate type: Fixed rates stay the same, providing stability and predictability while floating rates change with the market.
Loan-to-Value ratio: The loan-to-value ratio refers to how much of the home's purchase price you are borrowing. If you make a big down payment, you will borrow less and your monthly payments will be lower.
Borrower’s job profile: If you have a stable income, you might qualify for a lower interest rate.
Repayment period: The longer you take to pay off the loan, the more interest you will pay overall.

By carefully considering these factors, you can take a well-informed approach that results in substantial savings and a more manageable repayment schedule.

How to reduce Home Loan interest burden?

The bigger your down payment, the less you will owe on your loan and the less interest you will pay.
Secure a good credit score, ideally 750 or higher, to enjoy better interest rates.
Consider applying for a joint Home Loan. This can help you qualify for a bigger loan and lower interest rates.
Increase your monthly payments, if possible. This will help you pay off your loan faster and reduce the amount of interest you pay.
Opt for a shorter loan term to decrease interest accumulation over the loan's lifespan.
If you are already locked into a loan with high interest rates, transfer your loan to a different lender with competitive rates, such as Axis Bank.

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Home Loan Interest Rates FAQs

What is the interest rate for a Home Loan?

The interest rate on a Home Loan depends on several factors, including the principal amount, loan repayment term, credit score, income, etc. The home interest rates today from Axis start from as low as 8.75%.

Does Axis Bank offer different types of Housing Loan interest rates?

Yes, Axis Bank offers a variety of Home Loan interest rate options to fit different customers' needs. You can choose between fixed and floating-rate loans to align with your financial goals and your perception of the market.

How and when does the floating rate of interest on a Home Loan change?

The home interest rate remains tied to the RBI's repo rate and other economic factors. This means that when the repo rate changes, the interest rate on your floating-rate Home Loan will also change. The bank reviews and adjusts these rates regularly so your interest rate might fluctuate over time.

Will the interest rate change during my Home Loan tenure?

With a floating-rate loan, your home interest rate can fluctuate over time which means your monthly payments might increase or decrease. On the other hand, if you opt for a fixed-rate loan, you will have the same interest rate for the entire loan period.

Do I need to pay a fee to apply for an Axis Bank Home Loan?

When you apply for a Home Loan with Axis Bank, there are some extra costs to keep in mind:

Up to 1% of the loan amount or ₹10,000 (whichever is higher) + GST (as applicable)
An upfront processing fee of ₹5,000 plus GST shall be collected at the time of application submission. The balance processing fee, as applicable, shall be collected at the time of loan disbursement.
The processing fee is a non-refundable fee collected by the Bank for the purpose of reviewing the loan application and same is independent of the outcome of such assessment.

Does a credit score impact the interest rate on a Home Loan?

Yes. If you have a good credit score, you will be more likely to enjoy a lower home interest rate. But, if your credit score is poor, you might end up with a higher interest rate.

How frequently do Home Loan interest rates fluctuate?

Current home loan rates can change periodically, depending on different factors, such as market conditions, economic indicators, loan rates and lender policies. Additionally, the frequency of these changes also depends on the benchmark interest rates your bank uses and its interest rate reset schedule.

What are the main factors that influence my Home Loan interest rate?

The main factors that influence your Home Loan interest rate include market condition, credit score, loan amount and tenure, the type of home interest rate you choose, the lender's policies, loan-to-value ratio and income stability.

How is the processing fee for a Home Loan calculated?

The processing fee for a Home Loan is calculated as follows:

Up to 1% of the loan amount or ₹10,000 (whichever is higher) + GST is levied
An upfront processing fee of ₹5,000 plus GST shall be collected at the time of application submission. The balance processing fee, as applicable, shall be collected at the time of loan disbursement.

The processing fee is a non-refundable fee collected by the Bank for the purpose of reviewing the loan application and same is independent of the outcome of such assessment.