Which Indian bank has the lowest interest rate on a home loan?

1 Answer(s) | Home Loan

The Reserve Bank of India (RBI) directed all commercial banks to link home loan interest rates offered by them to the external benchmark (Repo Rate) except regional, rural banks, local area banks and small finance banks with effect from 1st October 2019. Amidst coronavirus pandemic, the central bank has slashed Repo Rates multiple times to cope up with the crisis and bring revival in the real estate sector.

After the subsequent reduction in Repo Rates triggered the housing loan demand followed by disbursals by the banks. The interest rates charged by a bank depend on Base Rate, Credit Score, processing charges, and the bank’s margin. Usually, banks offer different home loan interest rates for salaried and self-employed, based on their risk grade.

Here are 10 banks offering the lowest home loan interest rates for salaried individuals

RE: Which Indian bank has the lowest interest rate on a home loan?

Source: Economic Times as on September 18, 2020

For salaried class home buyers, the Union Bank of India currently offers home loan at the lowest interest rate of 6.70% excluding processing charges.

Here are 10 banks offering the lowest home loan rates for self-employed individuals

RE: Which Indian bank has the lowest interest rate on a home loan?

Source: Economic Times as on September 18, 2020

For self-employed class home buyers, the Bank of India currently offers home loan at the lowest interest rate of 6.85% excluding processing charges.

 

Answered on September 21, 2020.
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