If you are planning to buy a new home and are unsure which bank is better for a home loan, Bank of India or SBI (State Bank of India), this information is important. Both public sector banks offer good interest rates, easy processing, and reliable service. The main difference is in processing fees, interest rates, and loan approval rules. Let’s see which bank gives the cheapest home loan, the processing charges, and whether you are eligible.
Bank of Baroda Home Loan
Bank of Baroda, a public sector bank, is offering home loans starting at 7.45% interest. This is the lowest interest rate the bank offers. Bank of Baroda provides different types of home loans based on your needs and eligibility. According to Bankbazaar, the bank charges up to 0.50% as a processing fee, which can range from ₹8,500 to ₹25,000. The bank does not charge any prepayment or foreclosure fees. The maximum loan tenure is 30 years, and loans are offered at a floating interest rate, which can go up to 10.20%.
SBI Home Loan
State Bank of India (SBI) offers home loans starting at 7.50% interest, which is the bank’s lowest rate. Processing charges start at 0.35%. SBI also does not charge any prepayment or foreclosure fees. According to the bank, any change in the benchmark rate (repo rate) will affect the interest rate on home loans. If the repo rate increases, the loan interest rate will also increase. SBI offers floating rate home loans with EMIs of up to 30 years.
Which One Is Cheaper?
Looking at the starting interest rates, Bank of Baroda’s home loan is slightly cheaper than SBI’s. It also has an advantage in processing fees. You can get a home loan from Bank of Baroda at a lower rate than SBI. Whether you get this loan depends on your age, eligibility, and CIBIL score. If your CIBIL score is 800 or above, you can get a loan at the lowest starting rate.