Which Indian bank has the best home loan plans/offers for customers?

1 Answer(s) | Home Loan

While there is nothing as the very best home loan interest rates in the market, do remember that based upon the circular issued by the RBI, banks have to reset the rate of interest on home loans tied to the external benchmark, once in every three months. Do note that the repo rate which is the preferred external benchmark for almost all SCBs (scheduled commercial banks), is subject to being revised by the RBI once every two months. The spread that a bank charges will be the same for all customers although the risk premium will change depending upon the nature of employment, credit history and so on.

For salaried professionals, these are the banks offering the most competitive rates of interest on home loans.

  • Union Bank of India- 6.7-7.15%
  • Bank of India- 6.85-7.15%
  • Central Bank of India- 6.85-7.30%
  • Canara Bank- 6.90-8.90%
  • Punjab & Sind Bank- 6.90-7.25%
  • ICICI Bank- 6.95-7.95%
  • SBI- 6.95-7.95%
  • Bank of Baroda- 7-8.35%
  • IDFC First Bank- 7-8%
  • Bank of Maharashtra- 7.05-8.35%

Also keep in mind the processing fees which are usually between 0.25-0.50% of the home loan amount or a maximum of anywhere between Rs. 10-25,000 on an average.

The most competitive rates of interest for self-employed professionals are the following:

  • Union Bank of India- 6.85-7.15%
  • Bank of India- 6.85-7.75%
  • Central Bank of India- 6.85-7.30%
  • Canara Bank- 6.90-8.90%
  • Punjab & Sind Bank- 6.90-7.25%
  • Bank of Baroda- 7-8.35%
  • IDFC First Bank- 7-8%
  • Indian Overseas Bank- 7.05-7.30%
  • SBI- 7.10-7.60%
  • Punjab National Bank- 7.15-7.75%

This data has been compiled as of 9th October, 2020.

Answered on October 13, 2020.
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