Home loan is an important means to fulfill your dream of owning your own home. It is useful not only for purchasing a house or land, but also for repairing, renovating, or expanding an existing house. Interest rates on home loans depend on the loan amount, tenure, and your credit profile.
For home loans of Rs 75 lakh or more, public and private sector banks offer different interest rates. Here we will give you information about home loan rates of major banks so that you can take a better decision.
Home loan interest rates of public sector banks
Public sector banks are generally considered more reliable and their interest rates are also comparatively lower.
| bank name | Interest Rate (Annual) |
|---|---|
| State Bank of India (SBI) | 8.50% – 9.85% |
| Bank of Baroda | 8.40% – 10.90% |
| Union Bank of India | 8.35% – 10.90% |
| Punjab National Bank (PNB) | 8.40% – 10.15% |
| Bank of India | 8.40% – 10.85% |
| Canara Bank | 8.40% – 11.15% |
| UCO Bank | 8.45% – 10.30% |
| Bank of Maharashtra | 8.35% – 11.15% |
| Punjab and Sindh Bank | 8.50% – 10.00% |
| Indian Overseas Bank | 8.40% – 10.60% |
| Central Bank of India | 8.45% – 9.80% |
Home loan interest rates of private sector banks
The interest rates of private banks may be slightly higher, but loan processing in these is fast and convenient.
| bank name | Interest Rate (Annual) |
|---|---|
| Kotak Mahindra Bank | Starting from 8.70% |
| ICICI Bank | Starting from 8.75% |
| Axis Bank | 8.75% – 9.65% |
| hsbc bank | Starting from 8.50% |
| South Indian Bank | 8.70% – 11.70% |
| Karur Vysya Bank | 9.00% – 11.05% |
| Karnataka Bank | 8.50% – 10.62% |
| Federal Bank | Starting from 8.80% |
| Dhanlaxmi Bank | 9.35% – 10.50% |
| Tamilnad Mercantile Bank | 8.60% – 9.95% |
| Bandhan Bank | 9.16% – 13.33% |
| RBL Bank | Starting from 8.90% |
| csb bank | 10.49% – 12.34% |
| HDFC Bank Limited | Starting from 8.75% |
| City Union Bank | 8.75% – 10.50% |
Things to keep in mind before choosing a home loan
- Compare interest rates: Compare interest rates and associated fees across banks.
- Processing Fee: Sometimes processing fee can also affect the total cost of the loan.
- Loan Tenure: Interest rates may be lower for shorter tenures, but monthly EMIs will be higher.
- Credit Score: A good credit score helps in getting better interest rates.
- Contact the bank: The terms and conditions of each bank are different, so contact the bank directly for correct information.
