In a falling interest rate regime, home loan borrowers tend to benefit and can make the best use of it by choosing the right bank and loan option.
Individuals should not go only by interest rates as you need to evaluate processing fees, ease in getting loans from a particular institution, down payments etc.
We have provided EMI rates here below, which is per Rs 1 lakh for an amount of Rs 30 lakh. Individuals can calculate depending on the loan amount and tenure.
Axis Bank for 15 years is offering home loans at Rs 1,184 and Rs 1,053 for fixed and floating respectively. For 20 years Rs 1,084 and Rs 942 for fixed and floating respectively.
Bank of Baroda does not provide fixed for such tenor and floating rate is Rs 1,053 and Rs 942 for 15 and 20 years respectively.
Bank of Maharashtra is not offering fixed rates of 15 and 20 years tenure. For floating rates it is at Rs 1,056 and Rs 945 for 15 and 20 years respectively.
State Bank of India is not offering fixed for 15 and 20 years tenure. Floating rates for 15 years is at Rs 1,047 and Rs 935 for 20 years.
PNB is offering fixed rate at Rs 1,081 and Rs 972 for 15 and 20 years respectively. For floating rates it is offering at Rs 1,050 and Rs 935 for 15 and 20 years respectively.
HDFC offers floating rate at Rs 1,047 and Rs 935 for 15 and 20 years respectively. In some cases HDFC offers fixed rates for initial few years and thereafter prevailing rates are applicable. Hence we may not be able to provide accurate rates.
ICICI Bank offers fixed home loans at Rs 1,059 and Rs 949 for 15 and 20 years respectively. For floating rates it is at Rs 1,047 and Rs 935 for 15 and 20 years respectively.
However, the rates may change in subsequent years depending on the bank and change in interest rates.
|Best home loan rates on 15 years and 20 years tenure|
|Bank||EMI for 15 years on Rs 30 lakhs (floating rates)||EMI for 20 years on Rs 20 lakhs (floating rates)|
|Axis Bank||Rs 1,053||Rs 942|
|Bank of Baroda||Rs 1,053||Rs 942|
|Bank of Maharashtra||Rs 1056||Rs 945|
|State Bank of India||Rs 1,047||Rs 935|
|PNB||Rs 1,050||Rs 935|
|HDFC||Rs 1,047||Rs 935|
|ICICI Bank||Rs 1,047||Rs 935|
Interest rates in the economy have fallen significantly over the last one year. In 2015, the Reserve Bank of India dropped interest rates by a huge 125 basis points. However, the entire amount was not passed on by the banks to customers. Not many investors are hopeful that home loan interest rates would fall any further. Hence, if you are waiting for interest rates to fall, it may not be advisable.
As mentioned earlier you may not want to necessarily go for the best cheap home loan rates, as you need to look into various other factors. So, choose based on the service of the bank or the institution, processing fee, pre-payment charges.
Remember, that home loans are large sized loans, you need to be careful before availing these loans. It is a must that you do a comparison of these loans before you avail of them. Government owned banks can be a good cheap option, but, you may have to make do with the service aspect of it. For example, you may need to do a lot of running around in the case of PSU Banks.