Your Dream HomeStarts at 7.35%

The lowest home loan interest rates in India start from 7.35% p.a. offered by select public sector banks like Bank of India, Bank of Maharashtra, and IOB. Private banks like ICICI offer rates from 7.70% and HDFC from 8.15%. Your actual rate depends on your credit score, income, loan amount, and the lender's risk assessment. MoneyKarma helps you compare and secure the best rates across 90+ banks.

Your home loan eligibility is typically 60-80 times your monthly income, with EMI not exceeding 50% of your net income. For example: ₹50,000 salary = ₹30-40 lakh loan eligibility. Key factors include credit score (750+ recommended), existing EMIs, age, employment stability, and property value. Use our advanced eligibility calculator to get precise loan amount based on current rates from 90+ banks.

PMAY 2.0 (2024-2029) offers enhanced benefits: Interest subsidy up to ₹1.80 lakh, extended to MIG-II category (₹12-18 lakh income). EWS/LIG get 6.5% subsidy on ₹6 lakh loans, MIG-I gets 4% on ₹9 lakh loans, MIG-II gets 3% on ₹12 lakh loans. Credit-Linked Subsidy Scheme (CLSS) is reintroduced. MoneyKarma helps maximize your PMAY benefits.

Essential documents include: (1) Identity: Aadhaar, PAN Card (2) Income: Last 3 months salary slips, 6 months bank statements, Form 16/ITR for 2 years (3) Employment: Appointment letter, experience certificate (4) Property: Sale agreement, approved plans, NOC from builder (5) Credit: Existing loan statements. Our AI-powered system enables instant document verification and 60-second pre-approval.

Maximum tax savings of ₹3.5 lakh annually: (1) Section 80C: ₹1.5 lakh deduction on principal repayment (2) Section 24(b): ₹2 lakh deduction on interest payment (3) Section 80EE: Additional ₹50,000 for first-time buyers (properties up to ₹50 lakh) (4) Section 80EEA: Additional ₹1.5 lakh for affordable housing (properties up to ₹45 lakh). Home loan insurance premiums also qualify for deduction.

While 750+ credit score gets best rates, loans are available for scores 650+. For low scores: (1) Apply with higher down payment (25-30%) (2) Add co-applicant with good credit (3) Provide additional collateral (4) Consider government schemes like PMAY. For no credit history: Start with secured credit cards, become co-borrower on family loans. MoneyKarma's AI matches you with lenders who accept your profile.

Current recommendation: Floating rates (7.35-9.65%) are significantly lower than fixed rates (9.50-11.50%). With RBI's recent rate cuts, floating rates offer better value. Consider fixed rates if: (1) You prefer EMI certainty (2) Expect rates to rise significantly (3) Take loans during high-rate cycles. Hybrid loans start fixed for 2-3 years then switch to floating. Compare both options through our platform.

Smart strategies to save up to ₹15 lakhs: (1) Make annual partial prepayments using bonuses (2) Choose shorter tenure to reduce total interest (3) Opt for step-up EMI (increases 5-10% annually) (4) Switch to lower-rate lenders (balance transfer if rate difference >0.75%) (5) Bi-weekly EMI payments (6) Use our optimization tool to track best prepayment strategy and maximize tax benefits.

MoneyKarma's digital-first process ensures India's fastest approval: (1) Instant eligibility check: 60 seconds across 90+ banks (2) AI-powered pre-approval: 2 hours with basic documents (3) Final sanction: 24-48 hours after complete documentation (4) Disbursal: 2-3 working days post-legal verification. Our platform eliminates traditional delays with direct bank integration and dedicated relationship managers.

Women borrowers get: (1) Rate discounts (SBI offers 0.05% concession) (2) Processing fee waivers (3) Joint ownership enhances eligibility (4) Priority PMAY allocation. NRI borrowers get: (1) Competitive rates from 7.50% (2) Financing up to 75-90% of property value (3) Foreign income considered (4) Special NRI schemes. Both segments get dedicated advisory support through MoneyKarma.