- Date : 06/11/2023
- Read: 3 mins
A snapshot of the leading banks in India that are offering some of the most attractive home loan interest rates.
When it comes to home loan interest rates, even a fraction of a percentage matters a lot. Being a long-tenure loan, often of high value, make sure you compare the interest rate while applying for a home loan. Some of the banks offering home loans at attractive interest rates include government banks like Bank of India and Bank of Baroda, as well as private majors like HDFC Bank and Axis Bank.
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With the repo rate static at 6.5%, competitive interest rates are offered by most banks
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Attention borrowers! Many leading banks are offering a special interest rate for the festive season
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At 8.5% interest, your total interest cost over 20 years is approximately 1.1 times your principal loan amount
- Bank of India – The interest rate of its Star Home Loan product starts from 8.3%. It is offering a 100% waiver on new home loan processing fees till 31 December 2023. Up to 90% of market value is financed and can be repaid within a maximum of 360 months.
Also Read: Home Loan Dilemma: Should You Opt For A Home Loan With A Longer Or Shorter Tenure?
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Bank of Baroda – Baroda Home Loan under the BOB Festivanza offer has an interest rate of 8.4%, with special rate offers for takeover cases, and fully completed/government projects. Special rates are also offered to women borrowers, against salary, business and family accounts.
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Union Bank of India – Union Bank of India’s home loan interest rate of 8.4% applies to government and PSU employees, while it starts at 8.55% for others. A moratorium of up to 36 months is offered by the bank.
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HDFC Bank – Its special home loan rates start at 8.5%. Up to 90% of finance is available on loans of Rs 30 lakhs or more. Salaried and self-employed applicants of up to 70 years can apply for the loan.
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Axis Bank – Salaried home loan borrowers with a credit score of 751+ are eligible for an 8.7% interest rate from Axis Bank. For self-employed borrowers with the same credit score, the interest rate is 9.1%. Loan amounts start from as low as Rs 3 lakhs and can be up to Rs 5 crores.
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Indian Overseas Bank – As against its lending rate of 9.35%, Indian Overseas Bank is offering an 8.4% interest rate on fresh home loans. The interest rate will be based on the bank’s internal rating. Its flagship Subhgruha loan offers up to 30 years of repayment and 75-90% finance.
Conclusion
Interest rate is one of the most important, but not the only factor when selecting a home loan. Don’t forget to read the fine print of the loan product, to assess the other costs involved in the borrowing, and consider factors like customer experience and repayment terms.
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