Abstract: This study investigates how well informed consumers are about home loan interest rates and how that knowledge affects their borrowing decisions. Understanding consumer awareness and decision-making is essential since the home loan industry plays a significant role in both the financial wellbeing of people and the overall economy. Customers' sensitivity to rate changes, their understanding of fixed versus floating interest rates, and the influence of financial literacy on loan selection are all examined in this study. The study uses survey data and behavioral analysis to show that borrowers have a substantial awareness gap that frequently results in less-than-ideal financial decisions. The results highlight the necessity of more transparent lending policies and improved financial education in order to enable consumers to make well informed borrowing decisions.

Keywords: Home Loans , Interest Rates , Borrowing Behavior, Financial Literacy, Consumer Awareness

| DOI: 10.17148/IARJSET.2025.124119