Home loans: These public sector banks offer the lowest interest rates
Union Bank of India, Bank of Baroda and State Bank of India offer interest rates between 8.35 and 8.5 percent on a home loan of Rs 75 lakh for a tenure of 20 years.
The Reserve Bank of India (RBI) maintained status quo on interest rates for the ninth consecutive time in its August 8 policy review, leaving borrowers searching for competitive home loan rates. In this scenario, several public sector banks are offering attractive home loan options. Based on data compiled by Paisabazaar.com, here are the public sector banks providing home loans starting at 8.35 percent onwards for a Rs 75-lakh loan with a 20-year tenure.
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Starting at 8.35 percent, Union Bank of India and Bank of Maharashtra offer the most competitive home loan interest rates. For a Rs 75-lakh home loan with a 20-year tenure, the monthly EMI would be Rs 64,376, making them the best option for borrowers seeking affordable repayment terms.
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Six public sector banks - Bank of Baroda, Punjab National Bank, Indian Bank, Bank of India, Canara Bank, and Indian Overseas Bank - offer home loans at an interest rate starting from 8.40 percent. For a Rs 75-lakh home loan with a 20-year tenure, the monthly EMI would be approximately Rs 64,613, making them a competitive option for borrowers.
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UCO Bank and Central Bank of India offer home loans at an interest rate starting from 8.45 percent. For a Rs 75-lakh home loan with a 20-year tenure, the monthly EMI would be approximately Rs 64,850.
India's largest bank, State Bank of India (SBI), offers home loans at an interest rate starting from 8.50 percent. For a Rs 75-lakh home loan with a 20-year tenure, the monthly EMI would be approximately Rs 65,087.
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Data was compiled from the respective banks' websites as of August 27. The list is organised in ascending order by interest rate, with the lowest rate at the top and the highest at the bottom. For this comparison, we considered the lowest interest rate offered by each bank for a Rs 75-lakh home loan. EMI calculations are based on a 20-year tenure, assuming zero processing and other charges. The interest rates and corresponding EMIs are subject to change and may not reflect the current market situation.
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.
