Ten banks that offer the lowest home loan rates Home loan interest rates are in focus right now due to the upcoming RBI monetary policy announcement, which some industry-watchers believe, could pave the way for rate hikes in the near future, if not immediately
April 05, 2022 / 11:17 AM IST
Thanks to the proposed merger of India's largest mortgage lender HDFC with HDFC Bank, there is a buzz around loan books, and particularly mortgage portfolios. Home loan interest rates are also in focus due to the upcoming RBI monetary policy announcement, which some industry-watchers believe, could pave the way for rate hikes in the near future, if not immediately.
Government-owned lender Bank of Maharashtra offers the cheapest home loans, as per data from Bankbazaar.com. Its interest rate for a 20-year home loan of Rs 75 lakh is 6.4 percent per annum, with the equated monthly installment working out to Rs 55,477.
A clutch of public sector banks, including Punjab & Sind, Punjab National Bank, UCO Bank, Indian Bank, Bank of Baroda and Bank of India offer an interest rate of 6.5 percent to their home loan borrowers. The EMI for these banks' home loan borrowers will amount to Rs 55,918. This is for a Rs 75-lakh loan with a tenure of 20 years.
Kotak Mahindra Bank is the sole private sector lender on a list of 10 cheapest home loan providers. Its lowest home loan rate on offer is 6.55 percent and the EMI works out to Rs 56,139.
Next on the list is another PSU major - Union Bank of India. The bank's home loan borrowers are charged an interest rate of 6.60 percent. For a Rs 75-lakh loan with a tenure of 20 years, this translates into an EMI of Rs 56,360.
At 6.65 percent, state-owned Canara Bank's housing loan interest rate is marginally higher than that of Union Bank of India. You will have to pay a monthly loan installment of Rs 56,582
Interest rates on home loans for all listed (BSE) public and private sector banks as well as housing finance companies as listed on National Housing Bank's website which offer home loans of up to Rs 75 lakh have been considered for data compilation by Bankbazaar.com. Banks/HFCs for which data is not available on their websites have not been considered. Data collected from respective bank/HFC's website as on April 4, 2022. Banks and HFCs in their respective sections are listed in ascending order on the basis of interest rate i.e. bank/HFC offering lowest interest rate on home loan (Loan amount= Rs 75 lakh) is placed at top and highest at the bottom. Lowest rates offered by the bank/HFC for loan of Rs 75 lakh has been considered in the table. EMI is calculated on the basis of interest rate 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).