Home Loan Interest: Taking a home loan from a bank has become a common trend; people prefer this method to purchase property. Since property prices are constantly rising, a home loan helps turn the dream of homeownership into reality. If you are planning to buy a home, it is important to be aware of the key details.
We are providing detailed information about affordable home loans and where you can apply for them. Good news for prospective borrowers is that the RBI has kept the repo rate steady at 5.25% in its latest monetary policy review. Consequently, there is currently no likelihood of an additional burden on home loan EMIs. So, which banks offer affordable home loans?
What is the Repo Rate?
Do you know what the repo rate is? Essentially, it is the interest rate at which the RBI lends money to other banks. When the repo rate rises, the cost of raising funds for banks increases, which impacts loan interest rates and EMIs. This time, the RBI has not changed the rates and has maintained a neutral policy stance.
Check Out Home Loan Rates Offered by Banks
State Bank of India (SBI) offers home loan rates ranging from 7.25% to 9.05%.
Bank of Baroda provides home loans with rates between 7.20% and 9.25%.
Both the Central Bank of India and the Bank of India offer starting interest rates of 7.10%.
Union Bank of India offers home loans starting at 7.15%, while Canara Bank’s rates begin at 7.25%.
Indian Overseas Bank offers home loans to salaried customers at a starting rate of 7.10%.
ICICI Bank offers home loans with a starting interest rate of 7.50%.
Kotak Mahindra Bank offers home loans starting at 7.60%. HDFC Bank’s starting rate is 7.75 per cent.
At Axis Bank, interest rates start at 8 per cent and can go up to 11.9 per cent, depending on the customer’s profile and eligibility.
Factors to consider
Experts advise that the interest rate should not be the sole criterion when choosing a home loan. Factors such as processing fees, prepayment and foreclosure charges, loan tenure, credit score, and other terms also influence the total cost. Sometimes, a loan with a slightly higher interest rate may prove more beneficial due to better features and lower additional charges.
