Almost 3 months ago, I needed a home loan for my new house and wanted to make sure I was getting the best deal. As I wasn’t sure where to start, I asked my best friend, whose father works in a SBI Bank, for help. He helped me look at some of the lowest home loan rates in India from a few popular banks, and here’s what he informed me.
What is the Home Loan Less Interest Rate in India?
As my friend’s dad works in SBI, he first said the State Bank of India had a rate of 8.50% p.a. onwards with a processing fee of 0.35% of the loan amount. He further informed me of the latest rates of other banks, which I have added here.
Kotak Mahindra Bank had an interest rate starting from 8.75% p.a. onwards, with a processing fee of 0.5% plus taxes for salaried people.
Union Bank of India was offering 8.35% p.a. onwards, and the processing fee was 0.50% of the loan amount.
Bank of Baroda had a rate of 8.40% p.a. onwards, and what stood out was that they don’t charge any processing fee.
Bank of India had the same rate of 8.35% p.a. onwards, but with no processing fee, which was nice.
HDFC Home Loans also caught my attention with 8.75% p.a. onwards, but their processing fee was higher, up to 0.50% or Rs. 3000 plus taxes.
After learning these options, I finally took the housing loan suited my budget from SBI. I hope this helps you understand what is the lowest home loan interest rate in India.
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The pandemic has led to a decrease in all sectors, including real estate. To encourage people of India to buy a property and invest in real estate, the lowest home loan interest rate has been introduced by banks and RBI. If you want to know more information about the same. Keep reading.
Since loan tenure lasts for more than ten years, having a low interest rate becomes highly advantageous. There are many Government housing schemes and incentives being given as well. eg. Under the PMAY schemes, an interest rate subsidy between 3-6.5% is given. Making it the lowest home loan interest rate.
What is the lowest home loan interest rate in India?Each month, lenders incur interest on the amount borrowed by people for a home loan. The interest rate is decided on the basis of the principal amount. There are some banks that give lower interest rates in comparison. Take a look at the table given below to know more.
Banks |
Starting Interest Rate (p.a.) |
Processing Fees |
Kotak Mahindra Bank |
6.55% |
0.50% |
Citibank |
6.75% |
Rs. 10,000 |
Union Bank of India |
6.60% |
- |
Bank of Baroda |
6.50% |
Rs. 8,500 - Rs. 25,000 |
Central Bank of India |
6.85% |
Rs. 20,000 |
Bank of India |
6.85% |
Rs. 1,500 - Rs. 20,000 |
State Bank of India |
6.75% |
0% - 0.35% |
HDFC LTD |
6.70%* |
Rs. 3,000 - Rs. 5,000(plus taxes)* |
LIC Housing Finance |
6.90% |
Rs. 10,000 -Rs. 15,000 |
Axis Bank |
6.90% |
Rs. 10,000 |
Canara Bank |
6.90% |
Rs. 1,500 - Rs. 10,000 |
Punjab and Sind Bank |
6.85% |
Full Waiver |
IDFC First Bank |
6.50% |
Rs. 5,000 - Rs. 5,000 |
Bank of Maharashtra |
6.40% |
Rs. 10,000 |
Indian Overseas Bank |
7.05% |
0.50% (Max Rs. 20,000) |
Punjab National Bank |
6.50% |
0.35% (Max Rs. 15,000) |
United Bank of India |
8.00% |
0.59% (Rs. 1,180 - Rs. 11,800) |
UCO Bank |
6.90% |
0.15% (Rs. 1,500 - Rs. 15,000) |
DBS Bank |
7.30% |
0.25% (Rs. 10,000) |
IDBI Bank |
6.75% |
0.50% (Rs. 2,500 - Rs.5,000) |
HSBC Bank |
6.45% |
1% (Rs. 10,000) |
Karur Vysya Bank |
7.20% |
Rs. 5,000 |
Saraswat Bank Home Loan |
6.70% |
Nil |
Jammu and Kashmir Bank |
7.20% |
Rs. 500 - Rs. 10,000 |
South Indian Bank |
7.85% |
0.50% (Rs. 5,000 - Rs. 10,000) |
PNB Housing Finance |
6.75% |
0.25% - 0.50% (Rs. 10,000) |
Federal Bank |
7.65% |
Rs. 3,000 - Rs. 7,500 |
Standard Chartered Bank |
7.99% |
1% |
Aavas Financiers |
8.00% |
1.00% |
Karnataka Bank |
7.50% |
Rs. 250 |
Sundaram Home Finance |
6.95% |
Rs.3,000 (for salaried) |
Dhanlaxmi Bank |
7.85% |
Rs. 10,000 |
Tata Capital |
6.90% |
0.50% |
Tamilnad Mercantile Bank |
8.25% |
Rs. 15,000 |
IIFL |
10.50% |
1.25% |
DHFL Housing Finance |
8.75% |
Rs. 2500 |
Bandhan Bank |
6.40% -13.50% |
1% (Rs.5,000) |
Yes Bank |
8.95% |
1% (Rs. 10,000) |
Hudco Home Loan |
9.45% |
NA |
Indiabulls |
7.60% |
0.50% onwards |
Aditya Birla |
9.00% |
1% |
GIC Housing Finance |
7.45% |
Rs. 2,500 |
Reliance Home Finance |
9.75% |
Rs. 3,000 - Rs. 6,500 |
Shriram Housing |
8.90% |
NA |
India Shelter Finance |
12.00% |
2.00% |
You can combine other parameters along with the lowest home loan interest rate to get lucrative offers. This is all from my end. Hope my answer is helpful for you.
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Authors Of The Question
What is the lowest home loan interest rate in India ?
Dhairav
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3 Answers
2 Year
2022-03-16T19:28:17+00:00 2022-03-16T19:28:18+00:00Comment
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