The Reserve Bank of India has cut the benchmark interest rate to 6.25 per cent from 6.50 per cent earlier with expectations of inflation staying within the target range. According to industry experts, this rate cut might get passed on to the customers by banks, which will translate into lower monthly installments for a car loan, personal loan or home loan. A fall in repo rate impacts both the existing and future borrowers. Public sector banks, including with the State Bank of India (SBI), are generally the first ones to reduce their rates and pass on the benefit to consumers. As these changes usually have a direct impact on the interest paid by customers, hence, with the reduction in repo rates, your concerned bank might reduce the Marginal Cost-based Lending Rates (MCLR), which will cause the EMI on your loan to go down. Interest rates of home loans are currently dependent on the MCLR rate, base rate, bank spread in India, and hence, the effective rate of interest on the loan varies according to banking benchmark rates. The home loan rates also vary and depend on the borrower's eligibility. For instance, their repayment capacity, savings history, assets, liabilities, income, spouse's income, age, number of dependents, qualifications, stability, and continuity of occupation also decide the eligibility factor and the rates. Additional charges that are included while opting for a home loan are processing fees, late payment charges, pre-payment charges, conversion charges, legal fee, administrative fee, and account fee. If you are planning to take a home loan, find out your best options among public and private sector banks. PUBLIC SECTOR BANKS SBI (State Bank of India) With more than 24000+ branches, SBI is the largest mortgage lender in India. They are popular among borrowers because of their lower interest rates, low processing fees, easy and fast approval. The bank offers various home loan products for a diversified segment of borrowers. For instance, there are loans for a pre-owned home or a ready-to-build property, or even if you want to construct or renovate your existing house or purchase an under construction property, you can choose according to your need. For the general public, the current interest rate is fixed at 1 year MCLR + 40 bps, and for women borrowers, it is set at 1-year MCLR + 35 bps for a loan over Rs 30 lakh and up to Rs 75 lakh. (see table) PNB (Punjab National Bank) The state-owned multinational banking and financial services corporation offer various types of loans. For instance, from construction to purchase of property to the extension of dwelling units. To ensure easy and fast approval and disbursal of home loans, the bank also offers doorstep services. You can avail for an enhancement in loan amount in case your cost escalates. The bank offers various repayment options. For general borrowers, with a loan limit up to Rs. 75 lakh, the current interest rate is fixed at 1 year MCLR + 25 bps, and for women borrowers, it is set at 1 year MCLR + 20 bps. (see table) BOB (Bank Of Baroda) BOB offers 10 types of home loans which can be used for a variety of purposes. For instance, you can buy a plot, purchase a flat, build your own home or even extend your existing residence with a home loan. BOB also charges a processing fee from its borrowers but there no pre-closure charges. The universal interest charged for a home loan up to Rs 75 lakhs is 1-year MCLR + 1.00 per cent, which also depends on the risk rating of the applicants. BOI (Bank Of India) BOI offers four types of home loans, which include Star Home Loan, Star Smart Home Loan, Star Pravasi Home Loan, and Star Diamond Home Loan. Depending on their needs, borrowers can opt for these loans. The Star Home Loan, Smart Home Loan, and Pravasi Home Loan come with a processing fee for individuals, for all loans amounts 0.25 % of loan amount or minimum Rs. 1,000 and a maximum of Rs. 20,000. The interest rate is fixed at 1-year MCLR + 0.15 per cent for women borrowers, and for others 1-year MCLR + 0.20 per cent. PRIVATE SECTOR BANKS AXIS Bank Axis bank is the third largest housing loan provider bank in India. You can avail a home loan from them with no pre-payment charges, low-interest rates, and flexible payment. The minimum loan amount offered by Axis bank is Rs 3 lakh and the maximum amount depends on the combined income of the borrower. Though there are no prepayment charges, the bank charges 2 per cent of the outstanding principal amount pre-paid on fixed interest rate housing finance. Axis Bank also gives you the option to transfer your existing home loan from another bank to their bank through the home loan balance transfer facility. For loans above Rs 30 lakh to 75 lakh, the floating interest charged is 1-year MCLR + 0.25 per cent for all customers. A processing fee up to 1 per cent of the loan amount with a minimum of Rs 10,000 is charged.' HDFC Bank HDFC Ltd home loan is the second largest home loan provider in India. The key features of HDFC home loan include easy documentation, doorstep assistance, and flexible repayment options. HDFC also offers separate rates for women applicants, with reduced interest rates, 9.05 per cent for loan above Rs 30 lakh to Rs 75 lakh. The bank also facilitates home loan balance transfer option for switching your existing loan at zero processing fees from one bank to another. ICICI Bank Getting a home loan from ICICI Bank is both easy, and quick. You can also apply for a through their banking app with equal faster processing and approval. They come with repayment tenure of up to 30 years. You can also find out if you are pre-approved for their home loan, which is extended to selected existing customers of ICICI Bank. Existing customers also get the benefit of reduced documentation. They also have a pre-payment charge of 2 per cent plus applicable taxes on principal outstanding amount on full repayment for home loans with a fixed rate of interest. For loan above Rs 35 lakh to Rs 75 lakh, the floating interest charges by ICICI bank is 1-year MCLR + 0.40 per cent for all customers. A processing fee of 0.5 per cent of loan amount plus taxes is applicable. Kotak Bank Kotak home loans fund between 75 per cent to 80 per cent of the property cost which helps home loan borrower while opting for a loan. The process of getting a loan from Kotak Bank is a simple, seamless, and hassle-free process along with an insurance cover for the home loan. They also charge zero processing fees for online applications and up to 1.25 per cent of the loan amount for offline application. For loan above Rs 30 lakh to 75 lakh, the overall interest charges by Kotak Bank is 9.1 per cent for all customers. Table: Interest Rates on Home loans by Banks Banks MCLR\u00a0(%) Interest\u00a0Rate*\u00a0(%) SBI 8.55 8.95 PNB 8.55 8.8 BOI 8.7 8.9 BOB 8.75 9.75 ICICI 8.8 9.2 Kotak 9.1 9.1 HDFC 9.1 9.1 AXIS 8.8 9.05 Source:\u00a0Banks *The interest\u00a0rates are for\u00a0loans\u00a0above\u00a0Rs.\u00a030\u00a0lakhs\u00a0to\u00a075\u00a0lakhs,\u00a0for a salaried\u00a0individual.