Bank comparison — honest rates
| Bank | Advertised | Processing Fee | Honest Rate | Extra Cost (₹50L) |
|---|---|---|---|---|
| SBI | 8.50% | 0.35% (max ₹10K) | ~9.20% | ₹3.8L |
| HDFC Bank | 8.75% | 0.50% (up to ₹25K) | ~9.45% | ₹5.2L |
| ICICI Bank | 8.65% | 0.50% (negotiable) | ~9.35% | ₹4.7L |
| Axis Bank | 8.70% | 0.50% | ~9.40% | ₹4.9L |
| Kotak | 8.75% | 0.50% | ~9.50% | ₹5.4L |
Rates as of March 2026. Includes processing fee, insurance, and lock-in.
The math: ₹50L home loan breakdown
Advertised interest rate8.50%
+ Processing fee (₹15,000)+0.15%
+ Mandatory insurance (₹42,000)+0.42%
+ Prepayment lock-in (12 months)+0.18%
+ Documentation & legal charges+0.10%
Your honest rate
9.35%
Extra cost over 20 years: ₹4,72,000
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Loan Truth Calculator
Input your loan amount, rate, and fees — get your honest effective APR + exact extra cost over tenure.
Try Loan Calculator →Loan guides
01
Guide · 6 min
Read →Home loan true cost: what banks hide from you
Processing fees, mandatory insurance, prepayment penalties — calculated into your real effective APR.
02
Guide · 5 min
Read →Personal loan: advertised 10.5%, actual 13.1%
Origination fees, late charges, and foreclosure penalties turn a cheap loan expensive.
03
Analysis · 7 min
Read →Fixed vs floating rate: which actually saves more?
10 years of RBI data. Floating saved ₹4.4L — but with volatility.
04
Compare · 8 min
Read →SBI vs HDFC vs ICICI home loan — honest comparison 2026
Fees, insurance, prepayment terms, and effective APR side by side.
05
Warning · 5 min
Read →Prepayment penalty trap: why no lock-in does not mean free
Banks say zero penalty but charge 2-4% if you switch. NBFCs are worse.
06
Guide · 6 min
Read →Education loan: real cost after moratorium interest
₹20L becomes ₹25.7L. Interest piling adds 15-25% to total repayment.
Frequently asked questions
Is the advertised rate the true cost?
No. Processing fees, insurance, and lock-in add 0.5-1.0% to your effective rate. On ₹50L, that is ₹3-5L extra over 20 years.
Can I prepay without penalty?
Floating rate from banks: yes (RBI mandated). Fixed rate and NBFC loans: 2-4% penalty applies.
Which bank is cheapest?
SBI at ~9.20% honest rate. ₹1.2L cheaper than HDFC over 20 years on ₹50L.
Fixed or floating?
Floating wins over 10+ years. Saved ₹4.4L vs fixed in the last decade.
The honest number on every financial product
Advertised vs actual across all categories.