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List Of Banks Providing The Cheapest Interest Rates On Home Loans

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Searching for a low-interest loan while going to purchase a house, we all know that the lowest rates are offered by a certain segment. The list of lenders providing the cheapest home loans is driven by state-owned banks but when it comes to private sector banks Kotak Mahindra Bank holds the first position in our list with an interest rate of 6.75% followed by 6.8 percent of Punjab National Bank. For home loans of Rs 75 lakh with a term of 20 years, the interest rates of the top 15 lenders providing the lowest home loan rates vary from 6.75-6.95 percent. Whereas the commercial giant is currently providing an interest rate of 7.2 percent on home loan for the same loan amount.

 

Banks Vs HFCs: The Lowest Interest Rates On Home Loans Compared

Home Loans With The Lowest Interest Rates
 

Home Loans With The Lowest Interest Rates

Sr No. Banks ROI per annum in %
1 Kotak Mahindra Bank 6.75
2 Punjab National Bank 6.80
3 Bank of India 6.85
4 Central Bank of India 6.85
5 Bank of Baroda 6.85
6 Canara Bank 6.90
7 Punjab & Sind Bank 6.90
8 Union Bank of India 6.90
9 Axis Bank 6.90
10 UCO Bank 6.90
11 IDBI Bank 6.90
12 LIC Housing Finance 6.90
13 Bajaj Finserv 6.90
14 Tata Capital 6.90
15 Can Fin Homes Ltd 6.95

Home loan interest rates for all public and private sector banks classified (BSE) and housing finance firms as stated on the website of the National Housing Bank (NHB) providing home loans of up to Rs 75 lakh are listed here. There is no consideration for banks and HFCs for which data is not accessible on their portals. On the above table, banks and HFCs are classified in increasing order on the basis of interest rate, i.e. banks/HFCs with the lowest home loan interest rate are classified at the top and the strongest at the end. The table reflects the lowest rate offered by the bank/HFC on a loan of Rs 75 lakh. EMI is determined on the basis of the interest rate pointed in the table for the 20-year tenure of the Rs 75-lakh loan amount.

Home loan eligibility criteria

Home loan eligibility criteria

One must meet with the following criteria to apply for a home loan:

  • The individual must have a minimum age of 18 years up to a limit of 70 years while applying for a home loan.
  • The applicant must be a Resident Indian, Non-Resident India (NRI) or Person of Indian Origin (PIO)
  • The applicant must be salaried or self-employed
  • Must have a minimum net annual worth of 5 to 6 lakhs
  • The applicant must have a minimum credit score of 750 or more
Documents required to apply for a home loan

Documents required to apply for a home loan

One must have the following documents ready while applying for a home loan:

Identity proof: Driving License, PAN, Aadhaar Card, Voter ID or Passport

Residence proof: Proof of utility bill payments and copy of Passport, Aadhaar Card or Driving License

Income proof: IT returns for the last 3 years, Certificate of Qualification (for Doctors/CA and other individuals), Business License Details and address proof, TDS Certificate, salary proof for the last 3 months, Form 16 or Income Tax Returns for the last two years and Balance sheet and Profit and Loss account for the previous 3 years inspected by a qualified CA.

Other: Identity Card of the employer, passport size photographs, duly filled home loan application form, Loan account statement for the last 12 months, if any, and bank account statements for the last 6 months.

Papers of the property: Registered or Stamped Agreement of Sale, Allotment Letter, If the house is a ready-to-move-in property, the occupancy certificate is required, Proof of the builder's Approved Project and Registered Development agreement, Conveyance Deed in the instance of a new estate, and Bank account details reflecting all payments to the dealer or builder rendered.

Read more about: home loan
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