Now is the perfect time to buy your dream home, given historically low interest rates, host of government incentives such as the PMAY Affordable Housing Grant, which offers bonus interest rate between 3 and 6.5%. Here to mention that although the subsidy granted to the MIG category has expired, EWS and LIG can still benefit from it until March 2022. all the world’s major central banks are taking a hawkish stance to fight inflation, this will not be no big surprise if the RBI undertakes an interest rate hike at the next meeting of the RBI’s monetary policy committee.
So, if you want to take advantage of the current low interest rate regime and want to buy your dream home, here is a list of the banks offering the lowest rates on home loans:
10 Banks with the Cheapest Home Loan or Lowest Interest Rate Home Loan
|Bank||RLLR||For employees||For the independents||WEF|
|Bank of Maharashtra||6.80%||6.4-7.8%||6.65-8.3%||8.12.2021|
|Union Bank of India||6.80%||6.4-7.25%||6.5-7.35%||27.10.2021|
|Bank of Baroda||6.50%||6.5-7.85%||6.5-7.85%||07.10.2021|
|Bank of India||6.85%||6.5-8.2%||6.5-8.35%||18.10.2021|
|Kotak Mahindra Bank||6.50%||6.55-7.10%||6.65-7.25%|
|Punjab and Sindh||6.60%||6.6-7.35%||6.65-7.6%|
Source -Banking websites
Note that for some of these effective home loan rates, additional concessions for female borrowers have also been taken into account. Suppose, for example, that SBI allows a 5 basis point concession to female borrowers. Additionally, loans secured through the bank’s digital platform are also eligible for an additional 5 basis point discount.
Points to Note for Getting a Lucrative Home Loan Interest Rate in India
Remember that home loans are long-term loans lasting 15-30 years, so focusing on the best deal makes a lot of sense. So here are some checkpoints that can help you get a lucrative home loan.
An interest rate differential of even 0.5% means a lot in the case of long term loans such as home loans which are usually high priced loans of over Rs. 20 lakhs to several crores.
For better deals, you can add a co-applicant who is a female borrower to get the concession offered to them.
Make a higher down payment by more than 20-25% so that the loan to value ratio is kept low, which then increases your chances of getting the lowest possible interest rate, provided you also hold a good credit record/score.
Home ownership savings loans can still be chosen by those without a fixed income. These, however, incur a higher cost of 0.15 to 1% compared to regular loans.
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