Home loans: These banks offer the lowest interest rates
Union Bank of India, State Bank of India, and HDFC Bank offer interest rates between 8.35 and 9.4 percent on a home loan of Rs 75 lakh for a tenure of 20 years
The Reserve Bank of India held Interest rates steady for the seventh time in a row in its April 5 policy review. As a result, the search for lower home rates continue. Here are the top 15 banks, by secured assets, which continue to offer below 9.4 percent interest rates on a Rs 75-lakh home loan with a tenure of 20 years, as per data compiled from Bankbazaar.com.
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Starting at 8.35 percent, the home loan interest rate offered by Union Bank of India is the cheapest. The EMI on a Rs 75-lakh home loan with a 20-year tenure will work out to Rs 63,900.
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Bank of Baroda, Punjab National Bank, Indian Bank, Bank of India, IndusInd Bank and IDBI Bank levy an interest rate starting from 8.4 percent. The EMI on a Rs 75-lakh home loan with a 20-year tenure works out to Rs 64,200.
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Canara Bank and Central Bank of India charges an interest rate starting at 8.5 percent on home loans. The EMI on a home loan of Rs 75 lakh with a 20-year tenure will be Rs 64,650.
Kotak Mahindra Bank charges an interest starting at 8.7 percent. The EMI on a home loan of Rs 75 lakh with a 20-year tenure will be Rs 65,550.
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Starting at 8.75 percent, the private sector lender, Axis Bank, figures in the list of top 15 banks offering cheapest home loan schemes. The EMI on a home loan of Rs 75 lakh with a 20-year tenure will be Rs 65,775.
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ICICI Bank charges an interest starting at 9 percent on home loans. The EMI on a home loan of Rs 75 lakh with a 20-year tenure will be Rs 66,975.
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India's largest bank the State Bank of India charges an interest rate starting from 9.15 percent on home loans. The EMI on a home loan of Rs 75 lakh with a 20-year tenure will be Rs 67,725.
India's largest private sector lender HDFC Bank offers home loan starting at an interest rate of 9.4 percent. The EMI on a Rs 75-lakh loan with a tenure of 20 years will amount to Rs 68,850.
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Yes Bank charges interest starting at 9.4 percent on home loans. The EMI on a home loan of Rs 75 lakh with a 20-year tenure will be Rs 68,850.
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Data was collected from respective banks’ website as on April 8. Banks are listed in ascending order on the basis of interest rate — the lender offering the lowest interest rate on home loan (loan amount of Rs 75 lakh) is at the top and the highest at the bottom. The lowest rate offered by the bank on a home loan of Rs 75 lakh has been considered for this slideshow. EMI is calculated on the basis of the interest rate for a Rs 75-lakh loan with a tenure of 20 years (processing and other charges are assumed to be zero for EMI calculation).
Hiral Thanawala is a personal finance journalist with over 10 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
