The interest rate on your home loan is one of the most important factors and also has the ability to affect the total cost of your house. Higher value and longer tenure – these are the usual demanded features of a home loan. Therefore, even a minute difference in the interest rates can prove to have considerable financial implications. Lower interest rates for home loans will not only reduce the outgoing EMIs, but will also affect the overall interest payout. It is very imperative to look at all possible options available and choose the one which offers the lowest rate on interest.
People looking for home loans should be well-versed with the fact that along with interest rates, several other charges also impact the total cost of your loan. These other charges include pre-paymentand CERSAI costs as well. It is essential to pay attention to these additional charges, in order to boil down to the best housing loan option.
At times, some lenders have the same housing loan interests but the additional charges varies. In such instances, the associated fees may create a huge difference in the total cost of the home loan.
Currently, home loans are being offered with interest rateswhich can be changed with time. These are known as floating rates and are linked to external benchmarks. Loan rates change if there is a change in the benchmark. Mostly banks have made RBI’s repo rate, their external benchmark.
Here is a list of the interest rates on housing loans offered by banks –
1) Kotak Mahindra Bank
Kotak Mahindra Bank reduced the home loan interest rate by 10 basis points (bps) to 6.65 per cent per annum. It is currently the lowest interest rate offered on housing loans in the market. The processing fee, including GST, is up to 0.50% plus statutory dues.
2) Punjab & Sind Bank
Punjab & Sind Bank also offers home loans at an attractive interest rate of 6.65% and onwards, for up to 40 years. Processing charges have been reduced to zerotill June 30, this year.
3) State Bank of India
State Bank of India home loans are available at an interest rate of 6.70% up to 0.4% of the loan amount, which is a minimum of Rs 10,000 and maximum of Rs30,000. Bank offers extra concession to women home loan borrowers. Interest on home loans by State Bank of India is charged on a daily reducing balance.
4) HDFC Bank
The private sector lender offers a housing interest rate of 6.75 to all but the processing fee varies for the salaried or Self Employed Professional and Self Employed Non Professional. In the case of salaried/self-employed professionals, aprocessing fee is up to 0.5% of the loan amount or Rs. 3000, whichever is higher. And for self-employed non-professional,the fee is up to 1.5% of the loan amount or Rs. 4,500.
5) ICICI Bank
ICICI also offers an interest rate of 6.75% on housing loan projects. But the processing fee varies depending on your employment category.
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