A home loan is a type of borrowing that offers financial capital to purchase your dream home. To qualify for a house loan, one must meet the bank's eligibility requirements and the home loan you require reflects your capacity to pay EMIs and the relevant interest rate based on your chosen tenure. The applicable interest rate given to you by your bank is influenced by your credit score, home loan amount, and borrower type. As a result, having a strong credit score is crucial when taking out a loan since it allows a bank to offer you a home loan with an affordable and low interest rate. When it comes to low-interest rates on home loans, several banks have already started slashing their interest rate on home loans ahead of the festive season. Hence, if you are planning to buy your dream home this year, here are the top 3 banks that are currently promising the cheapest rates on home loans in the country.
State Bank of India
State Bank of India (SBI) would impose 6.7 percent for new home loans of Rs 75 lakh and above, down from 7.15 percent previously. Regardless of the loan amount, the country's largest lender will provide credit score-linked home loans at 6.7 percent. Furthermore, SBI has announced that potential house loan borrowers will not be charged an occupation-related interest rate.
Only with the launch of festive deals, borrowers can now get a home loan for any amount at a rate as low as 6.7 with a concession of 45 basis points. Processing costs have been waived and balance transfer loans are also eligible for the 6.7 percent home loan deal of the bank. Buying a house will be now attainable for Indian citizens this year thanks to free processing costs and low loan rates throughout the festive season of the bank. Check the latest interest rates of home loans of State Bank of India below.
|Loan amount||Term loan||Maxgain|
|Up to Rs 30 Lacs||EBLR+ 15 bps, ER: 6.80% (ER: Effective Rate)||EBLR+ 50 bps, ER: 7.15%|
|Above Rs 30 Lacs to Rs 75 Lacs||EBLR+ 40 bps, ER: 7.05%||EBLR+ 75bps, ER: 7.40%|
|Above Rs 75 Lacs||EBLR+ 50bps, ER: 7.15%||EBLR + 85bps, ER: 7.5%|
|Source: Bank Website, W.e.f. 01.05.2021|
Kotak Mahindra Bank
Kotak Mahindra Bank has cut its home loan interest rates by 15 basis points (bps) from 6.65 percent to 6.50 percent per annum, effective September 10, 2021. This attractive rate of 6.50 percent p.a. is only available for a limited time during the festive season, from September 10 to November 8, 2021, according to the official announcement of the bank. "It's bigger, luxurious, more spacious, and looks amazing! No, it's not a phone, it's your new home. Kotak Home Loans starting at surprisingly low interest rates of 6.5%* p.a! Now get your dream home in reality," the bank has said via its release on Twitter. In another Tweet, the bank has announced that "We are serious! Kotak Home Loans starting at surprisingly low interest rates of 6.5%* p.a! Now get your dream home in reality. Hurry! Offer valid from 10-Sep to 8-Nov-21. To know more, visit: https://bit.ly/2Up1WrM." Check the below-listed home loan interest rates of Kotak Mahindra Bank.
Special Balance Transfer Rate (Salaried and Self Employed)
|Segment||Loan amount||Efffective rate of interest|
|Salaried||Any loan amount||6.50% onwards|
|Self Employed||Any loan amount||6.60% onwards|
Salaried - Non Balance Transfer
|Loan amount||Effective Rate Of Interest|
|Any loan amount||6.50% - 7.10%|
Self Employed - Non Balance Transfer
|Loan amount||Effective Rate Of Interest|
|Any loan amount||6.65% - 7.25%|
|Source: Bank Website, Terms & Conditions Apply|
Bank of Baroda
On Thursday, Bank of Baroda announced an interest rate concession of 0.25% on the existing rate of interest on home loans. Furthermore, the bank has waived processing fees on home loans. Home loan rates at Bank of Baroda will now commence at 6.75 percent, with the deal available till December 31, 2021. "This festive season, Karo Khushiyon Ka Shree Ganesh as Bank of Baroda is offering a concession of 0.25% on the existing Rate of Interest. Get Home Loan at 6.75% & Car Loan at 7.00%. Offer valid till 31 Dec, 2021," the bank has announced via its Twitter handle. The term of home loans at BoB fluctuates depending on the loan amount and the borrower's salary, with a maximum term of 30 years. On housing loans, there is also a moratorium duration of up to 36 months. At Bank of Baroda, home loans are available to all Indians, including residents and non-residents, between the ages of 21 and 70.
This festive season, karo #KhushiyonKaShreeGanesh as #BankofBaroda is offering a concession of 0.25% on the existing Rate of Interest. Get #HomeLoan at 6.75%* & #CarLoan at 7.00%* .— Bank of Baroda (@bankofbaroda) September 16, 2021
Offer valid till 31 Dec, 2021. Avail today! *T&C pic.twitter.com/XYC2jjkIBI
We are serious!— Kotak Mahindra Bank (@KotakBankLtd) September 9, 2021
Kotak Home Loans starting at surprisingly low interest rates of 6.5%* p.a! Now get your dream home in reality.
Hurry! Offer valid from 10-Sep to 8-Nov-21.
To know more, visit: https://t.co/UE1oQ5KydS
Sanction will be done post document verification. pic.twitter.com/1inljVr75Z