Home Loan Update: These banks are offering the cheapest home loans, check the list here...
For many people, buying a house is the biggest dream of life. There are many benefits to buying a house. A house not only gives a roof over the head but it is also an asset. Most home buyers buy a house by taking a home loan. Apart from the loan, there are other expenses in buying a house. Banks do not pay the full price of the house.
For this, the Reserve Bank (RBI) has fixed the loan-to-value ratio (LTV) i.e. what percentage of the property price you will get as a loan. If the property price is Rs 30 lakh or less, then 90 percent of the property price will be considered, if the property price is between Rs 30 to 75 lakh, then 80 percent will be considered.
On what basis do banks give home loans?
However, if the property price is more than Rs 75 lakh, then up to 75 percent home loan can be obtained. In the case of loans, apart from the LTV ratio, many other factors like income of the person, repayment capacity, age, job stability credit score, etc. are also taken into consideration. Let's take a look at the home loan interest rates of the State Bank of India (SBI), Punjab National Bank, and Bank of Baroda.
State Bank of India
State Bank of India offers home loans at an interest rate of 9.15 percent to 9.75 percent depending on the CIBIL score of the applicant.
Bank of Baroda
Bank of Baroda (Bank of Baroda Home Loan Interest Rate) offers home loans in the interest rate range of 8.40 percent to 10.90 percent.
Punjab National Bank
Punjab National Bank offers home loans at interest rates ranging from 9.4 percent to 11.6 percent depending on factors such as the borrower's CIBIL score, loan amount, and tenure.
For example, borrowers with a CIBIL score of 800 and above for a loan amount of more than Rs 30 lakh with a tenure of up to 10 years are offered home loans at the lowest rate of 9.4 percent.
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