Home loans after RBI holds repo rate steady: Banks with lowest rates

How homebuyers can find the most competitive offers across banks and finance companies

Interest rates on home loans are linked to the repo rate, which the central bank kept unchanged in its policy announcement on Wednesday. Loan rates will largely remain unchanged as a result, but borrowers should compare offers of various lenders to get the best terms.

 

Here’s a snapshot of home loan interest rates in August as compiled by Paisabazaar.com.

 

Public-sector banks

• State Bank of India, Punjab National Bank, Canara Bank: Starting at 7.50 per cent 
• Union Bank of India and Bank of India: As low as 7.35 per cent and going up to 10.10 per cent or more, depending on credit profile. 
• Indian Overseas Bank, Indian Bank, and Central Bank of India: Interest rates range from 7.35 per cent to 7.40 per cent.

 

Some banks offer concessional rates of 0.05 per cent to 0.10 per cent to women or those opting for insurance.

 

 

This table compiles public-sector banks’ offerings

 

 

Private-sector banks

• ICICI Bank and HDFC Bank: Interest rates start at 7.70 per cent and 7.90 per cent, respectively 
• Kotak Mahindra Bank and South Indian Bank: Rates range from 7.75 per cent to 7.99 per cent and more 
• Axis Bank, Bandhan Bank, CSB Bank: They offer rates of up to 15 per cent, depending on risk assessment

This table compiles private banks’ offerings

 

 

Housing finance companies (HFCs)

• LIC Housing Finance, Bajaj Housing Finance, ICICI Home Finance: Rates ranging 7.35-7.50 per cent 
• PNB Housing Finance, Aditya Birla Capital, Godrej Housing Finance: Rates ranging 8.25–8.55 per cent 
• SMFG India Home Finance, Sammaan Capital: Higher rates, from 8.75 per cent to over 10 per cent

 

Below is a table of HFCs’ offerings