If you’re planning to take a home loan, here is a list of 20 banks - including SBI, HDFC Bank, ICICI Bank, PNB and Axis Bank - that are currently offering the lowest interest rates in the country.
he bank is required to close such SCSS on the death of the senior citizen and the deposit attracts a rate of savings bank account from the date of death till the transfer of proceeds to your savings bank account.
With the Reserve Bank of India (RBI) keeping the repo rate unchanged at a low of 4%, many banks have further lowered their home loan interest rates to attract customers. In fact, currently there are at least 15 banks that are offering floating interest rate home loans starting at under 7% p.a.
The current phase of low rates makes it an opportune time for aspiring homebuyers to realise their dream of purchasing a piece of property. However, homebuyers must ensure they have the required margin funds and an adequate income to ensure their loan burden remains under control so that they can clear the loan in full in time.
The other thing they must consider is that the lowest home loan interest rates are usually offered to applicants with stellar credit scores (i.e. above 750-800). So, if your credit score is poor, you should ideally take steps to improve it before applying for a long-term loan like a home loan. Not just that, you must also ensure your credit score remains high throughout the loan tenure because any substantial dip would increase the risk margin (and hence, the EMI amount) until your credit score improves, according to BankBazaar.
Furthermore, aspiring homebuyers should also bear in mind that these bank loans are benchmarked to the repo rate; as such, any increase in the key policy rate would lead to a swift and proportional increase in their applicable interest rate.
So, if you’re planning to take a home loan, here is a list of 20 banks – including SBI, HDFC Bank, ICICI Bank, PNB and Axis Bank – that are currently offering the lowest interest rates in the country. Do note, we have only considered the lowest advertised interest rates for floating-rate home loans by banks in the table below.
Also, the interest rate applicable to you could be higher depending on your age, gender, income, credit score, loan amount, property value, LTV ratio or any other terms and conditions laid down by your lender, as per BankBazaar.
20 Banks Currently Offering The Lowest Floating-Rate Home Loan Interest Rates
Disclaimer: Data taken from respective bank’s websites on March 5, 2021. *The home loan interest rates/EMI is applicable for loans under the Adjustable Rate Home Loan Scheme of HDFC Ltd. and is subject to change at the time of disbursement. Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.