The competition for the lowest interest home loan rate is intense, as several banks and housing finance companies claim attractive offers. I recently researched it and found LIC’s home loan interest rate starts at 7.50% p.a., which is the lowest compared to others. Even ICICI Bank gives housing loans starting at 7.70% p.a.
Who Gives the Lowest Housing Loan Interest Rate?
Lenders may offer lower rates depending on your profile. For instance, public sector banks, such as the Central Bank of India, the Indian Overseas Bank, and the Union Bank of India, advertise home loan rates from 7.35% p.a. onwards.
LIC’s home loan (LIC HFL) interest rate varies by product. Their “top-up” loans reportedly begin from 9.70% and extension or repair loans may begin at 8.50% p.a.
Many factors influence which lender ends up having the “lowest” rate for you. Key determinants include:
Your credit score (higher scores attract better spreads)
The loan-to-value (LTV) ratio (if you contribute more equity, the lender's risk is lower).
Your income stability and repayment history.
The loan tenure and whether the rate is fixed or floating.
If you want to get the lowest possible interest rate on your home loan, boost your credit score by making timely repayments and choosing a shorter loan tenure so you qualify for the top bracket. I hope you get an idea of who has the lowest home loan rates.
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While applying for a home loan, it is important to look at the interest rates provided by each bank to analyze and determine which one is the best to go to. These days, banks and financial institutions offer various schemes and discounts to apply for a home loan with them. So how do you know which are home loan lowest interest rate banks? You can do that by reading my answer. I get around 5 calls everyday from different banks offering home loans and all sorts of loans. Since I am interested in buying a house 2 years down the line, I was looking for this information. So here you go!
Lowest home loan rates in India 2021-2022| Banks | Starting Interest Rate (p.a.) | Processing Fees |
Kotak Mahindra Bank |
6.55% |
0.50% |
Bank of Baroda |
6.50% |
Rs. 8,500 - Rs. 25,000 |
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 National Bank |
6.50% |
0.35% (Max Rs. 15,000) |
IDBI Bank |
6.75% |
0.50% (Rs. 2,500 - Rs.5,000) |
HSBC Bank |
6.64% |
1% (Rs. 10,000) |
Karur Vysya Bank |
7.20% |
Rs. 5,000 |
Tata Capital |
6.90% |
0.50% |
Yes Bank |
8.95% |
1% (Rs. 10,000) |
I think this should give you an idea about
who has the lowest home loan rates.
Before applying for a home loan with any bank, you must consider that banks looks at a few criteria before deciding whether to give you a home loan or not. The factors considered include:
Age
Credit worthiness
Previous loans
Property worth
Residency status
I hope this gives you enough information on
home loan lowest interest rate banks.
Apply for home loan with best deals via NoBroker Home Loan Services Read more: How to apply for home loan in HDFC How to apply for home loan in SBI How to apply LIC Home loan
Who has the lowest home loan rates?
Sanat
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2021-12-30T14:10:23+00:00 2021-12-30T14:11:45+00:00Comment
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