SBI, Union Bank, Bank Of India, PNB Home Loan EMIs: 7 PSU Banks Offer Interest Rates As Low As 8.30%

A home loan is one of the best mediums available out there when purchasing your dream house. Buying a property is a very significant financial decision, and is fulfilled with patience and a lot of hard work. A home loan eliminates the need to have lumpsum cash in your pocket to buy a house, instead, it minimises your burden with the option of equated monthly instalment (EMI).

There are two types of home loan rates such as floating and fixed. Floating rates are beneficial as they change as per the revision in the lending benchmark rates. Currently, banks have linked their home loans to RBI's policy repo rate. So every cut or hike in policy repo rate will reflect in your home loan rates accordingly.

While RBI has kept the repo rate unchanged since April 2023, the home loan rates have been steady as well, while demand for buying houses has increased.

It is expected that housing sales may even reach a new peak in the coming Lok Sabha elections. On the other hand, with inflation being well within RBI's upper tolerance limit, it is expected that the rate-hike cycle has bottomed out and rate cuts are likely to take place in 2024.

So far in 2024, there are 7 PSU banks where home loan EMIs are cheaper as interest rates are as low as 8.30%.

Here are the details of these 7 PSU banks:

SBI Home Loan Interest Rates:

Currently, SBI is offering 65 basis points to 75 basis points concessions on home loans under its campaign interest rates which are available till March 31, 2024.

Under the campaign, the interest rates on home loans start at 8.50%. While the highest rate is at 9.50%.

Without the campaign rates, the normal home loan rates start from 9.15% to 9.65%.

Union Bank Of India Home Loan Interest Rates:

This PSU lender is offering one of the most attractive home loan rates. The lowest interest rate is 8.35% on borrowers with a credit score of 800 and above, while the rate is 8.50% on credit scores of 750 to 799. This applies to both salaried males and females.

From 700 to below 600 credit score, the rate varies from 9.15% to 10.75%.

Bank Of India Home Loan Rates:

BOI is offering the lowest rate on home loans compared to its PSU banks. For credit scores above 825, the Bank of India offers an 8.30% rate, while the rate is 8.40% on credit scores between 800 to 824, and 8.60% on CIBIL of 760 and 799.

On CIBIL from 725, the rates are from 8.70% to 10.60%. However, if you have a CIBIL as -1 or Zero, the bank offers an 8.90% rate on home loans.

Bank Of Baroda Home Loan Rates:

To non-staff salaried individuals, the Bank of Baroda is offering interest rates in the range of 8.40% to 10.60% on home loans. Here as well, the rate of Interest is dependent upon the Loan limit and CIBIL Score of the applicants. Also, a risk Premium of 0.05% will be levied for customers not obtaining credit insurance coverage.

Canara Bank Home Loan Rates:

CanaraBank recently revised its repo-linked lending rate to 9.25% ahead of RBI's April policy. The bank's interest rates on housing loans range from 8.40 % to 11.75%.

PNB Home Loan Interest Rates:

The lowest rate here is 8.90% on loans above Rs 30 lakh for borrowers with CIBIL of 800 and above. Also, under PNB pride, the interest rate ranges from 8.95% to 10.50% irrespective of the loan amount on CIBIL from 600 to 750 and above.

On home loans up to Rs 30 lakh under PNB pride, the bank is offering an interest rate of 9.05% to 10.60% on CIBILs from 600 to 750 and above.

Indian Overseas Bank Home Loan Rates:

For salaried individuals, the interest rate ranges from 8.40% to 10.50%. This is under the scheme of Subhagruha Home Loan Including Nri Home Loan.

For non-salaried individuals, the rates range from 8.50% to 10.60%.