The right bank for your home loan can make all the difference in your overall health of finances. Interest rates for home loans vary from banks to banks, and an interest rate variation of a hundred basis points can save you a huge amount during the loan period. Here is a comprehensive list of the best banks for home loans in 2024 and their prevailing interest rate:
1. STATE BANK OF INDIA (SBI)
Interest Rate: 8.50% p.a. onwards
SBI is the largest bank in the country and offers a home loan starting at a base rate of 8.50% per annum. Reliability is promised to be served, with global reach being found in branches. Many loan products are offered based on the needs of different customers by SBI.
2. HDFC BANK
Interest Rate: 8.75% p.a. onwards
HDFC Bank is very strong in the home loan segment, with rates starting at 8.75% per annum. Its diversified loan products and truly excellent customer service make it a favorite among many loan seekers.
3. UNION BANK
Interest Rate: 8.35% p.a. onwards
Another good choice is Union Bank, which offers loans with an interest rate as low as 8.35% per annum. They also accommodate flexible loan repayment options and have minimal processing fees, making the decision very appealing for potential first-time homeowners.
4. BANK OF MAHARASHTRA
Interest Rate: 8.35% p.a. onwards
Bank of Maharashtra offers appreciable rates of interest and minimum formalities for sanctions of loans. What makes it a good facilitator for home loans is customer satisfaction and good service delivery with an emphasis on that.
5. BANK OF BARODA
Interest Rate: 8.40% p.a. onwards
Bank of Baroda provides home loans with interest rates starting at 8.40% per annum. They are known for their transparency and customer-friendly policies, ensuring a hassle-free loan experience.
6. BANK OF INDIA
Interest Rate: 8.40% p.a. onwards
With an interest rate starting at 8.40%, Bank of India is a strong contender for those looking for affordable home loans. Their extensive network and robust customer support enhance their appeal.
7. PUNJAB NATIONAL BANK (PNB)
Interest Rate: 8.50% p.a. onwards
Next adding to this list of banks is PNB. It provides interest rates for home loans starting from 8.50% per year and flexible repayment options, besides a whole array of benefits for female borrowers, which make it highly sought after by prospective homebuyers.
8. KOTAK MAHINDRA BANK
Interest Rate: 8.70% p.a. onwards
Kotak Mahindra Bank offers home loans with an interest rate of 8.70% per annum. The loan processing, again, is processed fairly soon and customized, making the acquisition process of a loan smooth and efficient.
9. AXIS BANK
Interest Rate: 8.75% p.a. onwards
Axis Bank’s home loan starts at a decent rate of 8.75% p.a. They have easy documentation and flexible repayment options and ease the loan procedure for a customer.
10. ICICI BANK
Interest Rate: 9.00% p.a. onwards
ICICI Bank offers home loans with interest rates starting at 9.00% per annum. They are known for their efficient loan processing and robust customer support, ensuring a smooth borrowing experience.
11. CITIBANK
Interest Rate: 6.50% p.a. onwards
Citibank follows the lowest interest rates in the market. This bank offers competitive home loan rates, which will reduce your EMI burden to a significant extent. The loan application procedure is also very easy, and customer service at Citibank is excellent; more people appear to prefer this bank, especially for the purchase of houses.
(* Interest Rates as of July 30, 2024
Please note that the figures in the table may change. Verify these details with the relevant bank before applying for a loan.)
How to Get the Lowest Interest Rate on Home Loan?
Home loan interest rates depend on various factors. Here are some suggestions that may help you grab the lowest home loan interest rates in India:
- Maintain a High Credit Score: Ensure that your credit score stands above 750 to get lower interest rates.
- Home Loan Balance Transfer: Current home loan account holders can benefit by reducing their interest rate by transferring the outstanding amount to another new lending institution that offers them better interest rates.
- Joint Home Loan: You could even apply for joint home loan with a family member since some institutions would offer an interest rate concession if there is a female applicant for the loan.
- Lower Loan-to-Value (LTV) Ratio: Attempt to lower the LTV ratio by investing more in the down payment so that the loan amount would be less and, therefore, interest rates on home loans might be low.
Though a plethora of banks exist for applying for home loans, perhaps gaining a minimal home loan interest rate in India may not be easy. However, with the above mentioned tips and careful consideration, you can secure your home loan at the very best possible rate with regards to your financial status. For the latest interest rates, contact the nearest branch of your preferred bank.