Home Loan Rates: From SBI to HDFC—where can you get a cheaper home loan? Check rates across public and private sector banks..
Home Loan: Buying one's own home remains the biggest dream for most people, but amidst rising property prices, fulfilling this dream without a home loan is not easy. Consequently, those planning to buy a home focus primarily on home loan interest rates. There is good news for prospective home loan borrowers: the Reserve Bank of India (RBI) has maintained the repo rate at 5.25 percent in its latest monetary policy review. This means there is currently no risk of an additional burden on home loan EMIs.
The repo rate is the interest rate at which the RBI lends money to commercial banks. When the repo rate rises, the cost of raising funds for banks increases, which impacts loan interest rates and EMIs. This time, the RBI has made no changes to the rates and has maintained a neutral policy stance. This brings relief to both existing home loan customers and new borrowers, as the likelihood of EMI hikes in the near future appears low.
What are the home loan rates offered by public sector banks?
Regarding public sector banks, many are offering home loans at competitive interest rates.
State Bank of India (SBI) home loan rates range from 7.25 percent to 9.05 percent.
Bank of Baroda is offering home loans with rates between 7.20 percent and 9.25 percent.
Both the Central Bank of India and the Bank of India offer starting interest rates of 7.10 percent.
Union Bank of India is offering home loans starting at 7.15 percent.
At Canara Bank, the rate starts at 7.25 percent.
Indian Overseas Bank is offering home loans to salaried customers at a starting rate of 7.10 percent.
What are the starting home loan interest rates in private sector banks?
Competition regarding home loans remains strong among private sector banks as well. The starting interest rate for home loans at ICICI Bank is 7.50 percent.
Kotak Mahindra Bank is offering home loans starting at 7.60 percent.
The starting rate for home loans at HDFC Bank is 7.75 percent.
At Axis Bank, home loan interest rates start at 8 percent and can go up to 11.90 percent, depending on the customer's profile and eligibility.
Experts advise that the interest rate should not be the sole criterion when choosing a home loan. Factors such as processing fees, prepayment and foreclosure charges, loan tenure, credit score, and other terms also influence the total cost. Sometimes, a loan with a slightly higher interest rate may prove more beneficial due to better features and lower additional charges.
If you plan to buy a home in the near future, be sure to compare the interest rates and terms offered by various banks. Additionally, maintain a strong credit score, as customers with a better CIBIL score are often more likely to secure loans at lower interest rates. The home loan market is currently stable following the RBI's decision to keep the repo rate unchanged, providing relief to prospective homebuyers.
Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
