With fresh anticipations coming from market experts and analysts that the Reserve Bank of India will start cutting rates only around the end of this year, various home loan seekers have given up their idea of buying a home. The interest rate charged by a bank is an important criterion that borrowers keep in mind whenever they think of applying for a loan. A home loan is money borrowed by an individual from a bank to buy a home of their choice.
This article is for readers who are thinking of buying their dream home but are unable to find lenders offering affordable rates. We at OneNDF, understand that in today’s busy lifestyle, we might find it difficult to find time to compare the interest rates of different lenders in order to take a final call on which bank should we apply for a loan.
Our team has made this task easier for you. We have brought you the top three banks that are offering the lowest rates on home loans.
HDFC Bank: HDFC Bank offers special interest rates in the range of 8.75% to 9.65%. The bank’s standard interest rate falls between 9.40% to 9.95%. So, the lowest rate charged by the bank on a home loan is 8.75% and it goes up to 9.95%.
ICICI Bank: ICICI Bank charges two different types of interest rates on its home loans: special and standard interest rates.
Special rates: The interest rates charged by the bank fall in the range of 9 to 9.10% per annum based on the CIBIL score. For example, when the credit score is 800, the bank charges 9%. When the credit score is between 750 to 800, the interest rate for salary borrowers is 9%, while it is 9.10% for self-employed ones. These rates will remain valid till May 31, 2024.
Standard rates: These rates vary from 9.25% to 10.05% depending on the loan amount. When the loan amount is less than Rs 35 lakh, the interest rate ranges between 9.25% to 9.65%. While the interest rate charged by the banks the interest rate is between 9.5 to 9.95% when the loan amount is between Rs 35 to Rs 75 lakh.
Also Read: Best Bank For Home Loan
Kotak Mahindra Bank: The interest rate charged by the private sector lender starts at 8.70% for salaried individuals and 8.75% for self-employed. The actual interest rate may be greater than these; these are the minimum rates.
Bank of Baroda: The state bank lender charges floating interest in the range of 8.40% to 10.60% from salaried and non-salaried persons. Those who have opted for fixed rates are charged interest rates in the range of 10.15% to 11.5% if they are salaried borrowers, and they will have to pay between 10.25% to 11.60% if they are non-salaried.
SBI: The public sector lender offers home loans in the range of 9.15% to 9.65% based on the CIBIL score. The better the score, the lower the interest rate. When the CIBIL score exceeds 750, the bank charges 9.15%; and when the score ranges between 550 to 649, the bank charges an interest rate of 9.65%.
Suggested Read: Things you should Consider Before Applying For Home Loan
