Home Loans: Top 5 banks including HDFC, SBI with lowest rates of interest – check full list

livemint.com:

If you are planning to buy a house and looking for a home loan for the same, you would ideally be looking not only for a bank that can give you money as early as possible but also the one that charges a low rate of interest.

After all, the marginal difference in the interest rate can end up making a significant difference in the total interest outgo for the borrower over the loan tenure.

Let us suppose, someone raises ₹50 lakh loan at 9.8 percent interest rate, the EMI (equated monthly installment) for 10 years would be ₹65,523. The EMI rises to ₹66,075 when the interest rate inches upward to 10 percent per annum.

Over a period of 10 years, the borrower will end up paying ₹66,240 higher if the rate of interest is only 20 basis points higher.

HDFC Bank: The largest private lender offers interest rate on its home loan in the range of 9.4 to 9.95 percent per annum.

SBI: State Bank of India charges rate of interest that hovers in the range of 9.15 percent to 9.75 percent based on the borrower’s CIBIL score. These rates came into effect on May 1, 2023.

ICICI Bank: The private lender offers home loan at rates of interest in the range of 9.40 percent to 10.05 percent.

On loans below ₹35 lakh, the rate of interest is between 9.40 and 9.80 percent for self-employed, and between 9.25 percent and 9.65 percent for salaried persons. Between ₹35 lakh and 75 lakh, salaried persons are made to pay interest in the range of 9.5 to 9.8 percent, and for self-employed the rate of interest is 9.65 to 9.95 percent. 

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When the loan amount is above ₹75 lakh, the rate of interest is between 9.6 percent and 9.9 percent for salaried persons while it is between 9.75