The lure of owning a house pushes us to take loans. And once you start scouting for a low-interest loan, you realise that a certain segment offers the cheapest rates.
State-owned banks dominate the list of lenders offering cheapest home loans today, but private sector lender Kotak Mahindra Bank remains firm at the top spot. It offers an interest rate of 6.75 percent, followed by Punjab National Bank with 6.8 percent.
Best time to take a home loan
Due to multiple factors at play today, now is the best time to buy a house, reckon experts. Interest rates of top 15 lenders offering the lowest home loan rates range from 6.75-6.95 percent for home loans of Rs 75 lakh with a tenure of 20 years, as per data from Bankbazaar.com. In fact, even those beyond this list are not far behind. ICICI Bank and housing finance major HDFC offer interest rates of 7 percent, while public sector giant State Bank of India’s (SBI) interest rate for Rs 75-lakh home loan is 7.2 percent.Interest rates on home loans for all listed (BSE) public and private sector banks, and housing finance companies as listed on National Housing Bank’s (NHB) website, which offer home loans of up to Rs 75 lakh are considered for data compilation. Banks and HFCs for which data is not available on their websites are not considered. Data collected from respective bank/HFCs’ websites as on January 7, 2021. Banks and HFCs in their respective sections are listed in ascending order on the basis of interest rate, that is, bank/HFC offering lowest interest rate on home loan (Rs 75 lakh) is placed at top and highest at the bottom. Lowest rate offered by the bank/HFC on loan of Rs 75 lakh is considered in the table. EMI is calculated on the basis of interest rate mentioned in the table for Rs 75-lakh loan with tenure of 20 years (processing and other charges are assumed to be zero for EMI calculation).