Home Loan Interest Rates in India play a crucial role for people who dream of owning their own house. Many families in India live in rented homes and understand the financial and emotional pressure that comes with it. To turn this dream into reality, banks offer home loans, making it easier for individuals to buy or build their own homes.
Among all factors related to a home loan, the interest rate is the most important. It directly impacts your monthly EMI and the total cost of the loan over the years. Keeping this in mind, several public sector banks in India are currently offering home loans at some of the lowest interest rates in the market.
Banks Offering the Lowest Home Loan Interest Rates
Currently, some of India’s leading banks offer home loans at very competitive interest rates. Union Bank of India, Central Bank of India, Bank of Maharashtra and Bank of India are among the major banks offering home loans starting at 7.35% per annum. Compared to many other banks, these rates are considered affordable and attractive to homebuyers
These low-interest home loans are especially beneficial for salaried individuals and first-time home buyers who want to reduce their long-term financial burden.
Central Bank of India Home Loan Details
Central Bank of India allows customers to take a home loan for up to 30 years. The processing fee is capped at ₹20,000, making it relatively reasonable. Salaried individuals can get up to 90% of the property value as a loan, while self-employed or business owners can avail up to 80% of the property value.
The home loan interest rate starts at 7.35% per annum. This loan can be used to purchase a new or existing house or flat, construct a home, or fund repairs, renovations, and interior upgrades.
Union Bank of India and Bank of India Home Loans
Union Bank of India and Bank of India also offer home loans with a repayment period of up to 30 years. Borrowers can avail of loans of up to ₹ five crore, subject to eligibility. Union Bank of India provides financing of up to 90% of the property value in many cases.
Both banks currently offer home loans at interest rates starting at 7.35% per annum, making them a strong option for people seeking long-term housing finance at lower costs.
Bank of Maharashtra Home Loan Benefits
Bank of Maharashtra stands out by offering home loans at a starting interest rate of 7.10% per annum. This rate is usually available to customers with a strong CIBIL score. The loan tenure can go up to 30 years.
One of the most significant advantages of Bank of Maharashtra home loans is that, in many cases, there is no processing fee. Additionally, women borrowers and defence personnel receive an extra interest rate concession of up to 0.05%, further reducing the overall cost of borrowing.
Choose the Right Home Loan Wisely
Before finalising a home loan, borrowers should compare interest rates, processing fees, loan tenure and eligibility criteria across banks. A slight difference in interest rate can lead to significant savings over the long term. Choosing the right bank with lower interest rates and better terms can make homeownership more affordable and stress-free.