ace it. Home loan rates are on the rise.

The good news is, some players have lowered their interest rates.

One reason could be that they are trying their best to meet their home loan targets by the end of March.

Subsequently, the current schemes that are getting a lot of publicity are short-termed.

So strike while the iron is hot. After March, interest rates are bound to creep upwards.

If you take a floating rate loan, the lowest you can get one is for 7.25% per annum. Fixed rate loans start at around 7.75%.

Here are some of the best loans in the market today, in terms of interest rates. 

 

FIXED RATES (% pa)	FLOATING RATES (% pa)
#ABN AMRO Bank
7.75	7.50
Bank of India
8.50 onwards	7.50 onwards
Canara Bank
8 - 9.25	7.50 onwards
* Citibank
-	7.5 - 7.75
Corporation Bank
8.25 onwards	7.50 onwards
GE Home Loans
-	7.5 - 8.5
HDFC
7.75 � 8.50	7.25
HSBC
8 - 9	7.25 - 7.75
ICICI Bank
8.5	7.25 - 7.50
IDBI Bank
8 � 8.50	7.75
Kotak Mahindra Bank
7.50 onwards	7.25 onwards
Syndicate Bank
8 � 9	7.25 onwards

• Buying a home? What loan you should take

# ABN AMRO also offers the Super Saver Scheme. In the two-year Super Saver, the interest rate is 7.25% for the first year; 7.5% for the second year; and then the prevailing floating rate applies.

For the three-year Super Saver, the interest rate is 7.5% for the first three years; and then the prevailing floating rate applies.

For the five-year Super Saver, it is 7.5% for the first three years; 7.75% for the following two years and then the prevailing floating rate applies.

* Citibank offers 7.5% per annum for the salaried customers and 7.75% per annum for self employed individuals.

What you need to know

1. If you are tempted to pick up the phone and asking for the interest rate, home loan players may not be too obliging. In fact, many are extremely wary of disclosing the interest rates.

Chances are they will ask you a number of questions (where do you want to buy your home, are you a salaried employee and other such details), and take your name and number before venturing any information.

Worse, they may inform you that someone from their sales team will get in touch with you.

2. Another point to note is that the home loan players are reluctant to give a stated rate of interest because they are flexible when it comes to certain criteria. Depending on your risk profile (read more money, good job and better the chances of repayment), the amount of the loan (higher the amount lower the rate), and the tenure of the loan (shorter time frames have a lower interest rate), the interest rate will be arrived at accordingly.

3. Moreoever, ask the home loan companies how 'fixed' their fixed rates are. Some fix it only for a few years and take a fresh look at it again. HSBC and ABN AMRO, for instance, re-price their fixed rate loans every three years.

HDFC [Get Quote] has a fixed rate home loan (for which the rate never changes), and the floating rate home loan.

But they also have a fixed-rate home loan with the money market option, which states that if there are adverse changes in the interest rates of the economy, the rate can be revised. But by and large, it stays fixed.

The interest rate information has been obtained from the home finance companies / web sites. You can click on the name of the bank or the home finance company to reach their web site. Please verify these rates when making a decision on a loan. This is not a comprehensive list.  

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