SBI Vs HDFC Vs Kotak Home Loans: Interest rates, features compared for low EMIs

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Updated: September 28, 2021 7:01 PM

SBI, in a first-of-its-kind initiative, is offering credit score linked home loans at just 6.70%, irrespective of the loan amount. 

home loansOther banks have also come out with offerings of low interest rate for home loan borrowers.

Home loan interest rates are looking attractive at the current level as most leading home loan providers are offering interest rates starting between 6.5 per cent and 6.7 per cent. The rate of interest is certainly at a multi-year low and with real estate prices lying low in most cities across the country, the environment looks conducive for both end users and investors. With tax-benefits on home loans, you can create a long-term asset by diversifying your investments into real estate.

Let us look at home loan offers from some of the leading banks in the country. SBI and Kotak Bank had announced home loan offers recently and it’s time for a borrower to explore the best home loan options by approaching banks and housing finance companies.


Kotak Mahindra Bank has reduced its Home Loan interest rates by 15 basis points (bps) from 6.65% to 6.50% per annum. This special rate of 6.50% p.a. is a limited period festive season offer beginning 10th September and ending 8th November 2021. The Kotak Bank Home Loan interest rate starting at 6.5 per cent will be applicable for all fresh home loans as well as on refinanced or balance transfer loans from other banks.

Any Salaried individual between 18 and 60 years old and Self Employed between 18 and 65 years may avail the Kotak Bank Home Loan for a loan period of up to 20 years or outstanding tenure of the proposed loan to be taken over, whichever is lower.

Balance Transfer Rate

Salaried – Any loan amount: 6.50% onwards

Self Employed – Any loan amount: 6.60% onwards

Non Balance Transfer

Salaried – Any loan amount: 6.50% – 7.10%

Self Employed – Any loan amount: 6.65% – 7.25%


SBI, in a first-of-its-kind initiative, is offering credit score linked home loans at just 6.70%, irrespective of the loan amount. This interest rate is also applicable to balance transfer cases. The Bank is also waiving off processing fees and also the Waiver of occupation linked interest premium for the home loan borrowers.

Earlier a borrower availing a loan greater than Rs 75 lakh had to pay an interest rate of 7.15%. With the introduction of the festive offers, a borrower can now avail a home loan for any amount at a rate as low as 6.70%. The offer results in a saving of 45 bps which translates to a huge interest saving of more than Rs 8 lakh, for a Rs 75-lakh loan with a 30-year tenure.

SBI has removed this distinction between a salaried and a non-salaried borrower thus resulting in a savings of 15 basis points in interest rates.


Country’s biggest mortgage lender HDFC is offering home loans starting from 6.70 per cent for all loan slabs and for all customers with credit score of 800 and above. One can avail HDFC Home Loan starting at 6.70 per cent per annum effective September 20, 2021 till October 31. The offer will be applicable to all new loan applications irrespective of the loan amount or employment category.

Before this special offer, the rate for salaried customers for loans above Rs 75 lakh and credit score of 800 and above was 7.15 per cent and for self -employed was 7.30 per cent. Hence, effective cut for these customers could be up to 45 bps for salaried and up to 60 bps for self employed.

In addition, Punjab National Bank and Bank of Baroda have also come out with offerings of low interest rate for home loan borrowers. Time to explore a few options and settle for the best home loan interest rate.

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