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Top Housing Finance Companies Offering Lower Interest Rates On Home Loan


According to the new developments, the gap between banks and HFCs' lowest marketed home loan interest rates has fallen to just 50 basis points, hence it is delightful for you for sure if you intend to avail a home loan from a housing finance company. In fact, the Bank of India and the Central Bank are currently providing the country's lowest interest rates on home loan at 6.8 per cent and on the other hand LIC Housing Finance offers 6.90 per cent respectively. In comparison, there are five housing finance companies that currently provide home loans starting at less than 8 percent p.a. Home loan borrowers favour housing financing companies among banks because, when it comes to a borrower's credit records, the former can deliver a higher loan quantum and fetch more flexible standards. For those borrowers who have a low credit score, they also become the favoured lenders as a reason. HFCs are also NBFCs that concentrate on home loan offerings as compared to banks who bear multiple credit alternatives.


Top Housing Finance Companies Offering Lower Interest Rates On Home Loan

Considering the home loan interest rates which are usually higher than those offered by banks, HFCs are also widely preferred for their hassle-free documentation work. Borrowers also need to consider that HFCs provide home loans indexed to prime lending rates, while banks now provide these loans linked to an external rate such as the repo rate. Bank repo-linked loans generally necessitate a rapid and appropriate transfer to borrowers with rate-cut profits, and the best rates are mostly targeted for borrowers with outstanding credit ratings above 750-800. Even though these repo-linked loans still entail a default risk gap, whenever his or her credit score declines over the term of the loan, the borrower could experience an increase in relevant rates. However, borrowers must bear in mind that the lender calculates the interest rate available to them on the basis of a variety of factors such as the amount of housing loan, the loan-to-value ratio, the borrower's home size, age, gender and credit profile, among all other criteria specified by the issuer. So in case you are willing to avail a home loan from a housing finance company, then you must go through the below covered lower interest rates currently offered by most of the leading HFCs of the country.

Sr No.Housing Finance CompaniesROI per annum
1LIC Housing Finance6.90%
2HDFC Ltd7.00%
3Bajaj Finserv7.00%
4Can Fin Homes Ltd7.75%
5PNB Housing Finance7.90%
6Aavas Financiers8.00%
7Repco Home Finance8.25%
8Tata Capital8.50%
9Dewan Housing8.75%
10Indiabulls Housing Finance8.99%
11Aditya Birla Housing Finance9.00%
12GIC Housing Finance9.10%
13Piramal Capital And Housing Finance9.65%
14Reliance Home Finance9.75%


Only eligible borrowers are treated with the lowest rates. Interest rates vary depending on the size of the loan, loan-to-value ratio, gender, revenue stream, credit background, and other criteria imposed by the issuer.

Read more about: home loan loan investment
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