South Indian Bank Home Loan Interest Rates @8.70% p.a | Updated 2025

South Indian Bank offers home loans in 2025 with rates starting at 8.70% p.a. for salaried and self-employed individuals. With flexible terms, quick approvals, and minimal documentation, South Indian Bank caters to diverse needs like purchasing, constructing, or renovating homes. Rates are tailored according to credit score, loan amount, and tenure to ensure affordability.

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South Indian Bank Home Loan Interest Rates by Employment

South Indian Bank Home Loan Interest rates for 2025 will start from 8.70% per annum for salaried employees and for self-employed borrowers. It is due to income consistency, credit score and repayment ability.

South Indian Bank Home Loan Interest Rates for Salaried Employees

CIBIL Score	Interest Rate
>850	8.70% p.a onwards
801-850	9.00% p.a onwards
750-800	9.25% p.a onwards
720-749	9.90% p.a onwards
700-719	10.55% p.a onwards
680-699	11.20% p.a onwards

South Indian Bank Home Loan Interest Rates for Self Employed 

CIBIL Score	Interest Rate
>850	8.75% p.a onwards
801-850	9.20% p.a onwards
750-800	9.45% p.a onwards
720-749	10.20% p.a onwards
700-719	10.95% p.a onwards
680-699	11.70% p.a onwards

Check Out: Home Loan Eligibility – Salaried vs Self-Employed

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South Indian Bank All Schemes Home Loan Interest Rates

South Indian Bank presents a range of home loan schemes in 2025, with interest rates beginning at 8.70% p.a., designed for salaried, self-employed, and NRI customers. The loans feature flexible tenures, easy documentation, and fast approvals.

Home Loan Type	Home Loan Interest Rates
SIB Construction of Residential House in Own Land	8.70% p.a to 11.70% p.a
SIB Purchase of Land with Residential House	8.70% p.a to 11.70% p.a
SIB Purchase of Land and Construction of House Later	8.70% p.a to 11.70% p.a
SIB Purchase of Ready to Occupy Flat	8.70% p.a to 11.70% p.a
SIB Purchase of Flat under Construction	8.70% p.a to 11.70% p.a
SIB Repairs/Renovation/Extension	8.70% p.a to 11.70% p.a
SIB Takeover Loan	8.70% p.a to 11.70% p.a
Reimbursement in Case of Construction of New House	8.70% p.a to 11.70% p.a
Reimbursement in case of Renovation	8.70% p.a to 11.70% p.a
Reimbursement in case of Purchase of House/Flat	8.70% p.a to 11.70% p.a

Note: For exact interest rates, please contact the Bank

Check Out: South Indian Bank Home Loan Eligibility Calculator

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All Schemes Offered by South Indian Bank: A Detailed Overview

Explore all the loan schemes offered by South Indian Bank home loans, business loans, personal financing and many more planned to suit numerous financial needs through flexible terms.

SIB Construction of Residential House in Own Land

SIB’s Construction Loan helps individuals build a residential house on their own land with flexible financing and competitive interest rates.

Features	Details
Interest rate	8.70% p.a to 11.70% p.a
Maximum loan amount	up to 15 crores
Loan tenure	Up to 30 years
Processing fees	0.50% +GST of the loan amount
Eligibility	New and Existing Bank Customers

SIB Purchase of Land with Residential House

SIB’s Purchase of Land with Residential House Loan provides financing for buying a residential property along with the land it is built on.

Features	Details
Interest rate	8.70% p.a to 11.70% p.a
Maximum loan amount	up to 15 crores
Loan tenure	Up to 30 years
Processing fees	0.50% +GST of the loan amount
Eligibility	New and Existing Bank Customers

SIB Purchase of Land and Construction of House Later

SIB’s Purchase of Land and Construction Loan offers financing to buy land first and build a house later with flexible repayment options.

Features	Details
Interest rate	8.70% p.a to 11.70% p.a
Maximum loan amount	Up to 15 crores
Loan tenure	Up to 30 years
Processing fees	0.50% +GST of the loan amount
Eligibility	New and Existing Bank Customers

Also Read: Home Loan Tax Benefits Calculator

SIB Purchase of Ready to Occupy Flat

SIB’s Purchase of Ready-to-Occupy Flat Loan provides financing for buying a fully constructed and immediately livable flat with flexible terms.

Features	Details
Interest rate	8.70% p.a to 11.70% p.a
Maximum loan amount	Up to 15 crores
Loan tenure	Up to 20 years
Processing fees	0.50% +GST of the loan amount
Eligibility	New and Existing Bank Customers

SIB Purchase of Flat under Construction

SIB’s Purchase of Flat under Construction Loan offers financing for buying a flat that is currently under construction with flexible repayment options.

Features	Details
Interest rate	8.70% p.a to 11.70% p.a
Maximum loan amount	Up to 15 crores
Loan tenure	Up to 30 years
Processing fees	0.50% +GST of the loan amount
Eligibility	New and Existing Bank Customers

SIB Repairs/Renovation/Extension 

SIB’s Repairs/Renovation/Extension Loan provides financing for upgrading, renovating, or extending an existing residential property with flexible repayment options.

Features	Details
Interest rate	8.70% p.a to 11.70% p.a
Maximum loan amount	Up to 50 lakhs
Loan tenure	Up to 15 years
Processing fees	0.50% +GST of the loan amount
Eligibility	New and Existing Bank Customers

SIB Takeover Loan

SIB’s Takeover Loan allows borrowers to transfer their existing home loan from another bank to SIB for better interest rates and flexible terms.

Features	Details
Interest rate	8.70% p.a to 11.70% p.a
Maximum loan amount	Up to 15 crores
Loan tenure	Up to 30 years
Processing fees	0.50% +GST of the loan amount
Eligibility	New and Existing Bank Customers

Reimbursement in Case of Construction of New House 

SIB’s Reimbursement Loan for New House Construction provides funding for expenses already incurred in building a new house.

Features	Details
Interest rate	8.70% p.a to 11.70% p.a
Maximum loan amount	Up to 15 crores
Loan tenure	Up to 30 years
Processing fees	0.50% +GST of the loan amount
Eligibility	New and Existing Bank Customers

Check Out: Home Loans With Overdraft Facility Calculator

Reimbursement in case of Renovation

SIB’s Reimbursement Loan for Renovation provides funding for expenses already incurred in renovating or upgrading a residential property.

Features	Details
Interest rate	8.70% p.a to 11.70% p.a
Maximum loan amount	Up to 50 Lakhs
Loan tenure	Up to 15 years
Processing fees	0.50% +GST of the loan amount
Eligibility	New and Existing Bank Customers

Reimbursement in case of Purchase of House/Flat

SIB’s Reimbursement Loan for House/Flat Purchase provides funding for expenses already incurred in buying a residential house or flat.

Features	Details
Interest rate	8.70% p.a to 11.70% p.a
Maximum loan amount	Up to 15 crores
Loan tenure	Up to 30 years
Processing fees	0.50% +GST of the loan amount
Eligibility	New and Existing Bank Customers

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How to Get Lowest and Best Home Loan Interest Rates at South Indian Bank

• Check your credit report: the tradeoff is that the higher your score is, the greater chance to qualify for a lower rate of interest.
  
• Comparison: Rate should be South Indian Bank interest rate Compare it with others too.
  
• Earn steady income to hand it over: it is more vital to be drawing a salary over time.
  
• Decide to Choose the Best-Wanted Loan: Fixed interest is good because it means relaxation, yet floating rates typically start lower.
  
• Opt for the higher tenure: The duration of the loan becomes longer so that the EMI decreases while the total amount of interest increases.
  
• Make Profitable Investment: Cut down the loan amount by major payment options and receive improved rates.
  
• Express Interest in Special Offers: Especially for the female and South Indian Bank account holders, there are no special offers for female customers and South Indian Bank account holders presently.
  
• Get a discount on higher loan amounts: For loans drawn in higher amounts, the predominant factors are what reduction has been given on it.
  
• Check Loan Attachment: Look to swap or refinance in case of better loan terms available anymore.
  
• Negotiate on Processing Charges: With reference to some of those charges in terms of variations, you need to bargain out the ‘take-it-or-leave-it’ stance adopted by them.

Check Out: How to Increase CIBIL Score

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Factors that Affect South Indian Bank Home-Loan Interest Rate

• If you have a good credit score, then you can benefit from the lower interest rates.
  
• Qualifying for larger loan amounts allows you to enjoy lower interest rates.
  
• A loan-lasting time of fewer years always yields lower interest for any long-dated deals.
  
• Employees who receive salaries generally are given the lowest interest rate, in comparison to self-employed people.
  
• The new loans have added a high rate of property and a lower loan-to-value ratio along with lower rates.
  
• Locations and survey nature (residential/commercial) of property influences that rate for home loans.
  
• Home Loans directly affected by the repo rates of The Reserve Bank of India.
  
• For long-time clients, South Indian Bank offers special rates, better than the lowest published rate.
  
• LOW LTV ratios get more favorable at imposing lower interest rates.
  
• Loan Rates are comfortably affected by Economic factors like Inflation and Housing Markets.

Check Out: CIBIL Score Check Free Online by PAN Number

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Types of Home Loan Interest Rates

Interest Rate Type	Definition	Pros	Cons
Fixed	Rate remains constant throughout a predetermined period or entire tenure.	– Predictable EMIs for budgeting – Protection against rising interest rates	– Typically higher rates compared to floating – No benefit if market rates go down
Floating (Variable)	Linked to market benchmarks (e.g., Repo Rate, MCLR) and changes over time	– Often cheaper when rates fall – Can partly or fully prepay with lower penalties	– EMIs fluctuate with market conditions – Costs may rise if rates increase

Also Read: Choosing Home Loans: Fixed vs Floating Interest Rates

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How is South Indian Bank Interest Rates Calculated

South Indian Bank calculates its home loan interest rates after analyzing certain key elements:

• Benchmark Rate: Based on the RBI guidelines and market conditions, South Indian Bank uses either MCLR or EBLR.
  
• Spread or Markup: An individual and the type of loan granted it determines the spread added by South Indian Bank.
  
• Credit Score: A higher credit rating often translates into lower interest rates. 
  
• Type and Term of Loan: Other factors such as the loan type also play a key role in determining interest.
  
• Loan-to-Value (LTV) Ratio: A higher LTV ratio is likely to result in higher interest rates.
  
• Economical Factors: How interest rates swing given the current circumstances; inflation will help you understand how these factors will influence such borrowing rates as the Repo Rate set by the RBI.
  
• Loan Amount: Higher loan amounts can help avail better interest rates, but this insight is subjective to how lenders perceive your risk grade.

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How to Switch my South Indian Bank home loan from Fixed to Floating Interest Rates?

Migrate from a fixed interest rate to a floating home loan interest rate from South Indian Bank:

1. Check Eligibility: Your loan account should be eligible to be converted. Subject to some terms and conditions in your existing loan agreement.
   
2. Please get in touch with South Indian Bank: Contact the customer care or your relationship manager from South Indian Bank requesting the switch from fixed to floating rate.
   
3. Just Fill up the Form: Sometimes it is required to fill a formal request for beginning the conversion process physically or via an online submitted form.
   
4. T&Cs will follow: The terms will follow about the prevailing floating rates, charges, and the re-definition of loan tenure or Emi Post-after discussion.
   
5. What you are to know: You have to be cautious about the charges that may apply during the conversion like the processing fees or administrative charge or both even.
   
6. Sign the Agreement: Sign a formal document if the conversion is approved to switch in reality to floating rates.
   
7. Wait for Confirmation: South Indian Bank will acknowledge the request after completion and put your home loan under the floating interest rate.

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How to Obtain South Indian Bank Home Loan Interest Certificate

The interest certificate will include details of the interest paid on your home loan during the financial year, which is useful for tax purposes.

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Secure the Lowest South Indian Bank Home Loan Interest Rates with Credit Dharma

Owning a house is a very big decision. Most people have a hard time getting a home loan. But we are here to make it easy for you-choosing to take Credit Dharma’s home loans is the best way to simplify all the processes. Our advice and personalized assistance can help alleviate your concerns.

Loan application progress status reports will be sent to you promptly to keep you informed.

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Frequently Asked Questions