With the Reserve Bank of India (RBI) having signalled the continuation of its accommodative stance in its monetary policy announcement for 2021-22, interest rates on home loans could continue to remain low. The fierce resurgence of the COVID-19 pandemic, too, could contribute to keeping a tight lid on interest rates in the system.
Amongst banks and housing finance companies, Kotak Mahindra Bank (6.65 percent) continues to be the lender offering the cheapest interest rates on home loans. It is ahead of Bank of Baroda (6.75 percent) and Punjab National Bank (6.8 percent) on the list.
Bigger lenders State Bank of India (SBI) and HDFC are offering home loans of over Rs 75 lakh with a tenure of 20 years at interest rates of 6.95-7 percent, as per data from Bankbazaar.com.
A note on the table
Interest rate on home loans for all listed (BSE) public and private banks and housing finance companies as listed on NHB's website, which offers home loan up to Rs 75 lakh are considered for data compilation. Banks/HFCs for which data is not available on their websites have not been considered. Data collected from respective bank/HFCs websites’ as on May 6, 2021. Banks and HFCs in their respective sections are listed in ascending order on the basis of interest rate, that is, bank/HFC offering lowest interest rate on home loan of Rs 75 lakh is placed at top and highest at the bottom. Lowest rates offered by the bank/HFC on loan of Rs 75 lakh have been considered in the table. EMI is calculated on the basis of interest rates mentioned in the table for Rs 75-lakh-loan with a tenure of 20 years (processing and other charges are assumed to be zero for EMI calculation).
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