Kotak Mahindra Bank, State Bank of India and HDFC offer the cheapest home loans
As many as 17 banks and housing finance companies charge interest rates as low as between 6.75-6.9 percent a year
February 26, 2021 / 02:40 PM IST
Home loan space is one category where private sectors match – and in some cases better – interest rates charged by public sector banks. Kotak Mahindra Bank continues to lead the pack of cheapest home loan offers with 6.75 percent for a Rs 75-lakh loan with a tenure of 20 years. State-owned behemoth State Bank of India offers its lowest interest rate of 6.8 percent to certain eligible borrowers, as per data from Bankbazaar.com. Another public sector bank, Punjab National Bank (PNB) and the country’s largest mortgage lender HDFC, too, charge a similar rate for home loans of Rs 75 lakh.
With 19 financial institutions offering interest rates of sub-7 percent for even high-value home loans, it does seem to be a good time to close your home purchase deal instead of postponing it further.
Note about the table
Interest rates on home loans for all listed (BSE) public and private banks and housing finance companies as listed in National Housing Bank’s website, which offer home loans of Rs 75 lakh are considered for data compilation. Banks/HFCs for which data is not available on their websites are not considered. Banks and HFCs in their respective sections are listed in the ascending order on the basis of interest rate, that is, bank/HFC offering lowest interest rate on home loan is placed at top and highest at the bottom. Lowest rate offered by the bank/HFC on loan of Rs 75 lakh is considered in the table. EMI is calculated on the basis of interest rates mentioned in the table for Rs 75-lakh loan with tenure of 20 years (processing and other charges are assumed to be zero for EMI calculation).