Cheapest Home Loans: These top 5 banks offering best interest rates – Check tenors and other details

financialexpress.com:

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 (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’s home loan