Home Loan Rates in Kerala — Rules & Rates 2026

Home loan interest rates in Kerala range from 8.35% to 10.5% p.a. in 2026, based on the bank's RLLR/MCLR. The maximum LTV is 75% for loans above ₹75 lakh. Buyers in Kerala can also avail PMAY interest subsidy up to ₹2.67 lakh for first-time homebuyers (EWS/LIG). Tax benefit: up to ₹2L interest (Section 24b) + ₹1.5L principal (Section 80C) per year.

Last updated: 2026-04-07

Home Loan Rates Rates & Rules — Kerala

Typical Interest Rate (2026)

8.35%–10.5% p.a.

LTV Ratio

Up to 75% for loans above ₹75L; 80% for ₹30–75L; 90% below ₹30L

PMAY Subsidy

Up to ₹2.67L under PMAY (EWS/LIG); ₹2.35L for MIG

Processing Fee

0.25%–1% of loan amount

Tax Benefit

Principal: Section 80C up to ₹1.5L; Interest: Section 24(b) up to ₹2L

Notes

Home loan rates are set by banks/NBFCs nationally; state-specific variation is minimal. Circle rate affects loan eligibility.

Home Loan Rates Calculator

Monthly EMI

₹8,678

Total Interest

₹10,82,776

Total Payment

₹20,82,776

Principal48%
Interest52%

Amortization Schedule (Yearly)

YearPrincipalInterestBalance
1₹19,902₹84,236₹9,80,098
2₹21,661₹82,477₹9,58,436
3₹23,576₹80,563₹9,34,860
4₹25,660₹78,479₹9,09,200
5₹27,928₹76,211₹8,81,272
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Frequently Asked Questions

What are the Home Loan Rates rules in Kerala in 2026?+
Kerala follows state-specific regulations for Home Loan Rates. The rules are governed by the Kerala state government and applicable central legislation. Use the calculator above to compute exact values based on Kerala's current rates and slabs. Rates may be revised in the annual state budget.
Is Home Loan Rates different in Kerala compared to other states?+
Yes. Home Loan Rates varies significantly across Indian states because it is governed by state legislation (except EPF/Gratuity which are central). Kerala's rates, slabs, and exemptions are unique and set independently of other states. Always verify with the official Kerala government portal for the latest rates.
Where can I find official Home Loan Rates information for Kerala?+
The official source for Home Loan Rates in Kerala is the state government's revenue/finance department website or the relevant statutory authority. For property-related taxes, check the Kerala Registration & Stamps Department. For employment taxes, check the Kerala Labour Department or Commercial Tax portal.

More Calculators for Kerala

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Home Loan Rates in Other States

Andhra PradeshArunachal PradeshAssamBiharChhattisgarhGoaGujaratHaryanaHimachal PradeshJharkhand
Disclaimer: The rates, rules, and data shown for Kerala are approximate and for informational purposes only. Tax laws, stamp duty rates, and government regulations change frequently. Always verify current rates with the official Kerala government portal or a qualified professional before making financial or legal decisions. CalcCrack is not responsible for any decisions made based on this information. Last updated: April 2026.