If you’re considering buying your dream home and need a home loan, it’s important to compare interest rates offered by various banks. Interest rate is one of the key factors for every loan borrower.
After multiple repo rate hikes by the Reserve Bank in 2022, lenders followed suit and passed on those hikes to consumers, resulting in significantly higher costs for home loans. After repo rate hike in February 2023, the RBI has not changed the key interest rate, which resulted in banks holding on to their lending rates, though at higher levels. If you look the current home loan interest rates offered by the top five banks – Bank of Baroda, Punjab National Bank, SBI, HDFC Bank and ICICI Bank – you will find that their rates range from 8.4% to 10.90%.
Loan amounts may vary depending on the case, while the Loan-to-Value (LTV) ratio allows for financing up to 90% of the property value. These banks offer loans for tenures of up to 30 years, with select lenders offering extensions up to 40 years. Processing fees typically range from 0.5% to 2% of the loan amount, though they may differ among lenders.
Also Read: Paying higher EMIs? Key strategies to reduce the home loan interest rate burden
Here are the interest rates on home loans offered by these top five banks:
Bank of Baroda Home Loan Interest Rates
Bank of Baroda (BOB) is offering home loans at interest rates starting from 8.4% per annum and going up to 10.90% for tenures of up to 30 years. Also, the bank offers a balance transfer facility to existing home loan borrowers of other banks and housing finance companies at lower interest rates.
BoB also offers pre-approved home loans with in-principle approval before the identification of the home property, valid for four months.
Punjab National Bank Home Loan Interest Rates
Punjab National Bank’s home loan interest rates start from 8.4% per annum and go up to 10.25% per annum (on floating basis) for tenures of up to 30 years. The bank also provides a home loan overdraft facility and various specialized home loan products tailored for defence personnel and government employees up to the age of 40.
SBI Home Loan Interest Rates
State Bank of India (SBI) is currently offering home loan interest rates starting from 8.50% per annum and gloing up to 9.85% for tenures of up to 30 years. Loan amounts can be of up to 90% of the property’s cost. The lender charges Rs 5,000 as loan processing fee.
Also, the PSU lender provides specialized home loan products tailored for various groups, such as defence personnel, government employees, etc. Moreover, SBI home loans come with additional benefits, including interest rate concessions of 0.05% for women borrowers, home loan overdraft facility, balance transfer facility, top-up facility, and more.
HDFC Bank Home Loan Interest Rates
HDFC Bank’s home loans start from 8.7% per annum for tenures of up to 30 years and loan amounts of up to Rs 10 crore. One can avail loan of up to 90% of the property’s cost. The bank also provides home loan balance transfer facility for existing borrowers from other banks and housing finance companies.
Salaried/self-employed professionals are required to pay a processing fee of up to 0.50% of loan amount or Rs 3,000, whichever is higher. For self-employed non-professionals, the processing fee is up to 1.5% of loan amount or Rs 4,500, whichever is higher.
ICICI Bank Home Loan Interest Rates
ICICI Bank currently offers home loan interest rates starting from 8.75% per annum for tenures of up to 30 years. The bank charges 0.5% processing fee. Additionally, the private sector lender provides pre-approved instant home loan sanction to its salary account holders and offers a home loan balance transfer facility to existing borrowers from other lenders at lower interest rates.
Note: Data is sourced from Paisabazaar.com.
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