Home Loan Interest Rate

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Home loans are high-value and long-term loans. Even a small interest rate rise could, in particular, increase the overall cost of the loan. One of the ways to save a lot on your home loan is to search for the lowest possible home loan interest rate offer. It helps save a substantial amount of interest over the loan term. Low-interest rate is perhaps the first thing that potential buyers are searching for in a home loan. But, given the mountain of various lenders and the available rates, it can be challenging to select the right alternative.

 

To help you do the same, we have listed some of India’s leading banks providing low-interest rate home loans.

 

Bank Interest Rates Benchmark Type Lowest EMI Per Lakh for Maximum Tenure
SBI Home Loan  6.95% RLLR     ₹ 661.95
HDFC Home Loan  6.90%  PLR     ₹ 658.6
ICICI Bank     6.90%   RLLR     ₹ 658.6
Axis Bank  6.90% RLLR     ₹ 658.6
LIC Housing Finance 6.90% PLR   ₹ 658.6
UCO Bank   6.90%  RLLR   ₹ 658.6
Central Bank of India   6.85% RLLR   ₹ 655.26
Bank of India  6.85%  RLLR   ₹ 655.26
Citibank Home Loan 7.05% TBLR   ₹ 709.97
Bank of Baroda  7.00% RLLR     ₹ 665.3

 

SBI

  • Processing fees of Up To 0.20%, Minimum ₹ 4,000 and Maximum ₹ 17,400.
  • Loan term ranges from 5 years to 30 years.
  • No prepayment penalty on floating rate loans.
  • Average customer rating of 4.1/5.0 from home loan customers.

 

HDFC

  • Processing fees of Up To 0.25%, Minimum ₹ 3,000 and Maximum ₹ 10,000.
  • Loan term ranges from 5 years to 30 years.
  • No prepayment penalty on floating rate loans.
  • Average customer rating of 4.4/5.0 from home loan customers.

ICICI

  • Processing fees of Up To 0.50%, Minimum ₹ 5,000 and Maximum ₹ 5,000.
  • Loan term ranges from 5 years to 30 years.
  • No prepayment of home loans on floating-rate loans.
  • Average customer rating of 4.1/5.0 from customers.

Axis bank

  • Processing fee Up to 0.50%, Maximum ₹ 2,500.
  • Loan term ranges from 5 years to 30 years.
  • No prepayment charges on floating rate loans.
  • Average customer rating of 4.4/5.0 from home loan customers.

LIC Housing Finance

  • No processing fee.
  • Loan Term ranges from 5 years to 30 years.
  • No prepayment charges on floating rate loans.
  • Average customer rating of 2.1/5.0 from home loan customers.

UCO Bank

  • Processing fees Up To 0.50%, Minimum ₹ 1,500 and Maximum ₹ 15,000.
  • The loan term starts from 5 years to 30 years.
  • Allows prepayment of home loans with no charges on floating rate loans.
  • UCO Bank has an average customer rating of /5.0.

Central Bank of India

  • Processing fees Up to 0.50%, Maximum ₹ 20,000.
  • Loan tenure between 5 years to 30 years.
  • Nil prepayment charges on floating rate loans.
  • Average customer rating of 3.5/5.0.

Bank of India (BoI)

  • Processing fees up to 0.25%, a minimum of ₹ 1,500 and a maximum of ₹ 20,000.
  • Home Loan term ranges from 5 years to 30 years.
  • No prepayment penalty on home loans with floating rates.
  • The bank has an overall consumer rating of 2.5/5.0 from home loan customers.

 

Citibank

  • No processing fee.
  • The loan term starts from 5 years to 25 years.
  • No prepayment charges on floating rate loans.
  • Average customer rating of 4.1/5.0 for home loans

Bank of Baroda

  • Processing fee Minimum ₹ 8,500 and Maximum ₹ 25,000.
  • Loan Tenure of Home Loan ranges from 5 years to 30 years.
  • Nil prepayment charges on floating rate loans.
  • Average customer rating of 4.3/5.0 from home loan customers.

 

Conclusion:

 

All scheduled commercial banks (except regional rural banks), local area banks and small finance companies have been directed by the RBI to link the interest rates of all retail loans, including home loans, issued by them, to an external benchmark with effect from 1 October 2019. After linking the rates with external benchmarks, the interest rates for home loans have considerably gone down. RBI decided to link the interest rate on home loans and other retail loans to an external index for greater transparency and quicker transition of policy rate changes.

Now get your dream home by comparing the lowest interest rates offered by different lenders in the market.