A home represents stability, wealth, and a portion of one’s aspirations for many Indians. Most of the people use home loans to fulfill this desire. There are two types of interest rates for home loans: fixed and floating.
Note that many loan interest rates are linked external benchmarks such as the repo rate set by the central bank. As the external rate varies, so does the interest on the loan.
It’s essential to comprehend the factors that affect home loan interest rates. Home loan borrower’s can also save considerable money over the tenure of the loan by making informed decisions.
To ensure that borrowers can return their home loans early without incurring additional fees, the RBI has prohibited prepayment penalties on loans with floating rates. To encourage openness and justice in the lending process, banks offering fixed-rate loans are required to make it plain if there are any prepayment fees at the loan sanction stage.
Fixed rates are fixed for the duration of the loan, while floating rates fluctuate based on monetary policy and market conditions. Each has benefits and drawbacks when it comes to interest payments.
Banks offering best home loan interest rate for loan amounts up to Rs 75 Lakh
| Name of Lender | Loan Amount (Rs) | |
| Upto 30 Lakh | Above 30 Lakh & Upto 75 Lakh | |
| PUBLIC SECTOR BANKS | ||
| State Bank of India | 8.50-9.85 | 8.50-9.85 |
| Bank of Baroda | 8.40-10.65 | 8.40-10.65 |
| Union Bank of India | 8.35-10.75 | 8.35-10.90 |
| Punjab National Bank | 8.45-10.25 | 8.40-10.15 |
| Bank of India | 8.40-10.85 | 8.40-10.85 |
| Canara Bank | 8.50-11.25 | 8.45-11.25 |
| UCO Bank | 8.45-10.30 | 8.45-10.30 |
| Bank of Maharashtra | 8.35-11.15 | 8.35-11.15 |
| Punjab and Sind Bank | 8.50-10.00 | 8.50-10.00 |
| Indian Overseas Bank | 8.40-10.60 | 8.40-10.60 |
| Central Bank of India | 8.45-9.80 | 8.45-9.80 |
| PRIVATE SECTOR BANKS | ||
| Kotak Mahindra Bank | 8.75 onwards | 8.75 onwards |
| ICICI Bank | 8.75 onwards | 8.75 onwards |
| Axis Bank | 8.75-13.30 | 8.75-13.30 |
| HSBC Bank | 8.50 onwards | 8.50 onwards |
| South Indian Bank | 8.70-11.70 | 8.70-11.70 |
| Karur Vysya Bank | 9.00-11.05 | 9.00-11.05 |
| Karnataka Bank | 8.50-10.62 | 8.50-10.62 |
| Federal Bank | 8.80 onwards | 8.80 onwards |
| Dhanlaxmi Bank | 9.35-10.50 | 9.35-10.50 |
| Tamilnad Mercantile Bank | 8.60-9.95 | 8.60-9.95 |
| Bandhan Bank | 9.16-15.00 | 9.16-13.33 |
| RBL Bank | 8.90 onwards | 8.90 onwards |
| CSB Bank | 10.49-12.34 | 10.49-12.34 |
| HDFC Bank Ltd. | 8.75 onwards | 8.75 onwards |
| City Union Bank | 8.45-9.70 | 8.70-10.20 |
Source: Paisabazaar data as on August 27, 2024.
