Finance

Find the Lowest Home Loan Interest Rates in 2021

Home loans involve borrowing a substantially large amount. Even the slightest difference in the rate of interest will impact largely on the monthly EMI payable as well as the overall amount that will be repaid by the end of the loan tenure. It is therefore essential to compare the home loan rates available and go for the best deal.

Here is a comparative list of the latest home loan interest rates for you to check. Take a look:

Comparative list of Home Loan Interest Rates for 2021

Name  Existing Home Loan Interest Rate
Kotak Mahindra Bank 6.65%
ICICI Bank 6.75%
SBI Home Loan  6.80%
Union Bank of India 6.85%
Central Bank of India 6.85%
Punjab and Sind Bank 6.90%
Canara Bank 6.90%
Punjab National Bank 6.95%

#1. Kotak Mahindra Bank Home Loan

Kotak Mahindra Bank Limited one of the leading private banks is offering home loans at the lowest interest rate.

  • Rate of interest

Ranges from 6.65% to 7.30% depending on the profession and the margin stipulated.

  • Eligibility
    • Age between 18 years to 65 years
    • Minimum Income Rs, 15000/- p.m. to Rs.20000/- p.m. depending on the city of residence
    • Graduation if employed in a Private Company or Partnership Firm. Otherwise no 
    • minimum qualification restriction.
  • Processing charges

0.25% to 1% of the loan amount depending on the loan amount, profession and the type of loan.

#2. ICICI Bank Home Loan

ICICI Bank, a reputed private bank offers home loans at interest rates that are light on your pocket.

  • Rate of interest:

Ranges between 6.75% and 7.55% p.a depending on the profession and loan amount.

    • Eligibility:
      • Age between 21 years to 65 years 
      • Should have a regular source of income.
      • The co-applicants’ minimum age should be 18 years
  • Processing charges:

0.50% to 2% of the loan amount with a minimum of Rs. 1500 to Rs. 2000 depending on the city of residence.

#3. SBI Home Loan

SBI is one of the largest nationalised banks providing retail loans at competitive interest rates. The interest rate on SBI Home Loan ranks 3rd in the order of lowest interest rates in the market.

  • Rate of Interest

Ranges from 6.80% to 7.50% depending on the loan amount and the type of loan. Additional 0.10% to 0.15% will be charged depending on the profession, risk rating, and margin. A concession of 0.05% will be given for women 

  • SBI Home Loan Eligibility:
    • Age between 18 years and 70 years
    • Should be a resident Indian
    • Special loan scheme available for NRIs
  • Processing charges:

0.40% of the loan amount with a minimum of Rs. 10000/- plus GST and a maximum of Rs. 30000/- plus GST.

#4. Union Bank of India Home Loan

Union Bank of India is a public sector bank offering various categories of home loans at attractive interest rates.

  • Rate of Interest

6.85% to 7.35% p.a.depending on the loan amount and profession.

  • Eligibility
    • Residents, as well as Non-Resident Indians, are eligible.
    • Age between 18 years to 75 years
  • Processing charges

0.50% of the loan amount subject to a maximum of Rs. 15000/- plus GST

#5. Central Bank of India Home Loan

The Central Bank of India is one of the nationalized banks offering home loans for various home-related purposes at affordable interest rates.

  • Rate of Interest

6.85% to 7.30% depending on the internal risk rating and credit score.

  • Eligibility:
    • The minimum age limit is 18 years
    • Residents, as well as NRIs, can apply.
  • Processing charges

0.50% of the loan amount with a maximum of Rs. 20000/-

#6. Punjab and Sind Bank

Punjab and Sind Bank is a government-owned bank offering various retail loans. PSB home loan is one of the retail loans available at a competitive interest rate.

  • Rate of Interest:

6.90% to 7.60% p.a.depending on the credit score

  • Eligibility:
    • Individuals and groups of individuals over 18 years of age are eligible.
    • Home loan is available for both resident Indians and NRIs
  • Processing charges:

0.15% to 0.25% of the loan amount with a maximum of Rs. 3750/- to Rs. 15000/- depending on the loan amount,

#7. Canara Bank

Canara Bank provides a range of financial products and services. Canara Bank retail loans are popular for their flexibility in features. Canara Bank Home Loan is priced to suit the pockets of one and all.

  • Rate of Interest:

6.90% to 8.90% p.a.depending on the credit score

  • Eligibility:
    • Salaried individuals with experience of 2 years and self-employed in the business for 3 years.
    • The age of the borrower to be less than 60 at the time of applying for the loan.

#8.Punjab National Bank Home Loan

Punjab National Bank, a public sector bank of repute, offers an extensive range of home loans at affordable rates.

  • Rate of interest:

6.95% to 8.00% p.a.depending on the credit score. The higher the score the lower will be the rate of interest.

  • Eligibility:
    • Salaried and self-employed individuals with a regular source of income
    • Age above 18 years
  • Processing charges:

0.35% of the loan amount with a minimum of Rs. 2500/- and a maximum of Rs. 15000/-

Conclusion 

Whether you opt for SBI Home Loan or any other, you should also be aware that besides the rate of interest there are other charges like processing charges, CERSAI charges as well as pre-payment charges that add up to the cost of the home loan. 

Pre-payment charges are payable only when you are paying lump-sum amounts to your loan account besides the regular EMI or when you close the home loan before the actual maturity period. 

So along with the interest rates, you should do a comparative study of all the other associated charges before applying for the loan to arrive at the overall cost of the loan. Few banks may have the same interest rates but the other charges may vary. Compare the other charges along with the rate of interest to choose the most economical deal.