1,00010,000,000
115
140
56% / 44%
Principal / Interest
Future Value Required
₹1,79,085
Today's Value
₹1,00,000
Inflation Impact
₹79,085

*Inflation rates are indicative averages. Actual inflation may vary.

Home Loan Interest Rates 2025
Lender CategoryInterest Rate (p.a.)Processing Fee
Public Sector Banks8.35% — 9.50%Low (Max ₹10k)
Private Sector Banks8.75% — 10.50%Medium (0.5% - 1%)
HFCs (Housing Finance)9.00% — 11.50%Medium (0.5% - 2%)
Note: Rates mentioned above are indicative market ranges for borrowers with a Credit Score > 750. Actual rates may vary based on your profile.

Beat Inflation

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What Is Inflation?

Inflation is the silent killer of wealth. It is the rate at which the prices of goods and services rise over time, effectively reducing the purchasing power of your money.

For example, if inflation is 6%, a product that costs ₹100 today will cost ₹106 next year. This means your savings must grow faster than inflation just to maintain their value.

Are You Beating Inflation? (Real Returns)

Asset ClassAvg ReturnInflation (6%)Real Return
Savings A/C3.0%-6.0%-3.0% (Loss)
Fixed Deposit7.0%-6.0%+1.0%
Equity Mutual Fund12.0%-6.0%+6.0% (Wealth Creation)
Gold8.0%-6.0%+2.0%
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The Rule of 72

The Rule of 72 is a quick mental shortcut to estimate how long it will take for prices to double at a given inflation rate.

Formula: 72 / Inflation Rate = Years to Double.
Example: At 6% inflation, prices will double in 12 years (72 / 6).

Types of Inflation in India

  • CPI Inflation: The general inflation rate (approx 6%) affecting daily items like food and fuel.
  • Lifestyle Inflation: The increase in spending as your income grows (upgrading cars, phones).
  • Sectoral Inflation: Education and Medical costs in India rise much faster (10%-12%) than general inflation.

Inflation Calculation Formula

To calculate the future cost of an item based on inflation:

FV=PV×(1+r)nFV = PV \times (1 + r)^n
  • FV: Future Value
  • PV: Present Value
  • r: Annual Inflation Rate
  • n: Number of Years

How to Beat Inflation

  • Invest in Equity: Only asset class that consistently beats inflation.
  • Step-Up SIP: Increase investments as income grows.
  • Avoid Idle Cash: Savings accounts guarantee loss of value.

Frequently Asked Questions

Prices rise due to increased demand (Demand-Pull), higher production costs (Cost-Push), or an increase in money supply by central banks.

Fincado Research Team

Fact Checked

Our analysis is built on deep-dive research into RBI Benchmarks and lender-specific disclosures. We verify every interest rate and fee structure against real-world borrower approvals to ensure the highest level of accuracy for Indian home buyers.

Verified: Jan 2026
Methodology: Data-Driven
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