Top 5 Housing Finance Companies Offering Cheapest Rates On Home Loans In 2021

A majority of Indian banks have started cutting their floating rate home loan interest rates due to the decision made by the Reserve Bank of India (RBI) to keep the repo rate unchanged to 4.00% in its third bi-monthly monetary policy for the financial year 2021-22. The deposit rates and lending rates of banks are generally influenced by repo rates and as a result of the latest decision of RBI, banks are now free to offer loans to their customers at lower interest rates. When it comes to bank interest rates, the cheapest rates on home loans now start at 6.60 percent with Kotak Mahindra Bank and 6.70 percent with State Bank of India (SBI). On the other side, there are some housing finance companies (HFCs) that have also reduced their home loan rates which are linked with the Prime Lending Rate (PLR).

As a result of this, on home loans of HFCs, you may not get an interest rate cut which results in lowering your borrowing amount when the repo rate falls, which you need to keep in mind. As of now, there are some HFCs that are offering interest rates on home loans starting from 6.66%, quite comparable to that of banks. But apart from the low eligibility criteria, quicker loan approval, 24/7 customer support, you need to keep the processing fees, penalty rates, and applicable terms and conditions on home loans of HFCs in mind. For the readers planning to purchase their dream home, here we have compiled the top 5 HFCs that are promising lower interest rates on home loans in 2021.

LIC Housing Finance Ltd.

Here are the most recent interest rates on home loans of LIC HFL based on CIBIL score and loan slab.

Loan slab	CIBIL score	Salaried & Professional	Non-Salaried & Non-Professional
Upto Rs. 50 Lakhs	CIBIL >= 700	6.66%	7.00%
	CIBIL 650 - 699	7.10%	7.20%
	CIBIL 600 - 649	7.30%	7.40%
	CIBIL less than 600	7.50%	7.60%
More than 50 Lakhs & Up to Rs. 1 Cr	CIBIL >= 700	6.90%	7.00%
	CIBIL 650 - 699	7.30%	7.40%
	CIBIL 600 - 649	7.60%	7.70%
	CIBIL less than 600	7.70%	7.80%
More than 1 Cr & Up to Rs. 3 Crs	CIBIL >= 700	6.90%	7.00%
	CIBIL 650 - 699	7.40%	7.50%
	CIBIL 600 - 649	7.70%	7.80%
	CIBIL less than 600	7.70%	7.80%
More than Rs. 3 Crs & upto Rs 15 Cr	CIBIL >= 700	6.90%	7.00%
	CIBIL 650 - 699	7.50%	7.60%
	CIBIL 600 - 649	7.70%	7.80%
	CIBIL less than 600	7.80%	7.90%
Loan slab		Salaried & Professional	Non-Salaried & Non-Professional
Up to Rs. 50 Lakhs (Cibil <=0 )		7.40%	7.50%
Source: LIC HFL, Rate of Interests (Floating - Linked to LHPLR) Current LHPLR - 14.70%

HDFC Ltd.

HDFC Ltd. offers the following interest rates on home loans based on the retail prime lending rate of 16.05%.

Special Home Loan Rates
Loan slab	Home Loan Interest Rates (% p.a.)
For Women (upto 30 Lakhs)	6.75 to 7.25
For Others (upto 30 Lakhs)	6.80 to 7.30
For Women (30.01 Lakhs to 75 Lakhs)	7.00 to 7.50
For Others (30.01 Lakhs to 75 Lakhs)	7.05 to 7.55
For Women (75.01 Lakhs & Above)	7.10 to 7.60
For Others (75.01 Lakhs & Above)	7.15 to 7.65
Standard Home Loan Rates
Loan slab	Home Loan Interest Rates (% p.a.)
For Women (upto 30 Lakhs)	6.95 to 7.45
For Others (upto 30 Lakhs)	7.00 to 7.50
For Women (30.01 Lakhs to 75 Lakhs)	7.20 to 7.70
For Others (30.01 Lakhs to 75 Lakhs)	7.25 to 7.75
For Women (75.01 Lakhs & Above)	7.30 to 7.80
For Others (75.01 Lakhs & Above)	7.35 to 7.85
Source: HDFC Ltd.

Bajaj Finserv Ltd.

Bajaj Finserv offers home loans for up to a tenure of 30 years. Here are the current home loan rates based on different home loan products of the company.

Employment Type	Product	Home Loan Rate
Salaried	Home Loan	6.75%
	Home Loan Balance Transfer	6.75%
	Home Loan Top Up	6.75%
Self Employed	Home Loan	8.25%
	Home Loan Balance Transfer	8.25%
	Home Loan Top Up	8.25%
Source: Bajaj Finserv Ltd.

TATA Capital Ltd.

Tata Capital currently offers the following rates on home loans starting at just 6.90% respectively.

Salaried & Self Employed Interest Rate Table
Customer Profile	Loan Slab	ROI (%)
Salaried	Any Amount	6.90% onwards
Self Employed	Any Amount	6.90% onwards
Home Equity
Customer Profile	Loan Slab	ROI (%)
Salaried/Self Employed	Any Amount	10.10% onwards
Source: tatacapital.com

PNB Housing Finance Ltd.

Below-listed are the floating interest rates on home loans of PNB Housing Finance Ltd. which are in force from 25th February 2021.

For loan amount up to INR 35 lakhs
Credit Score	Salaried / Self - employed professional	Self - employed non - professional
>= 800	7.35% - 7.85%	7.55% - 8.05%
> 750 to < 800	7.55% - 8.05%	7.65% - 8.15%
> 700 to < 750	7.95% - 8.45%	8.35% - 8.85%
> 650 to < 700	8.35% - 8.85%	8.60% - 9.10%
upto 650	8.55% - 9.05%	8.85% - 9.35%
less than zero	8.55% - 9.05%	8.85% - 9.35%
For loan amount greater than INR 35 lakhs
Credit Score	Salaried / Self - employed professional	Self - employed non - professional
>= 800	7.70% - 8.20%	7.90% - 8.40%
> 750 to < 800	7.85% - 8.35%	7.95% - 8.45%
> 700 to < 750	8.05% - 8.55%	8.55% - 9.05%
> 650 to < 700	8.55% - 9.05%	8.80% - 9.30%
upto 650	8.75% - 9.25%	9.05% - 9.55%
less than zero	8.75% - 9.25%	9.05% - 9.55%
Source: PNB Housing Finance Limited