- Home loan interest rates in India are lower than they’ve been in at least a decade.
State Bank of India (SBI),HDFC Bank ,Axis Bank were among the first to slash theirhome loan rates , withUnion Bank of India andBank of Baroda being two newest entrants.- Select banks are also waiving processing fees and offering to take on the legal and valuation fees if borrowers want to switch over from another bank.
Union Bank of India and Bank of Baroda are two newest lenders to slash their home loan interest rates. India’s largest banks, including the State Bank of India (SBI), HDFC Bank, Axis, and
Union Bank of India currently offers the lowest home loan rate at 6.7% for women who are salaried and have a decent CIBIL score.
State Bank of India
Borrowers will be eligible for an interest rate concession of 25 basis points (bps) — 100 basis points form 1% — for home loans of more than ₹75 lakh depending on their CIBIL score at SBI.
Those applying for a home loan using SBI’s mobile app, YONO, can avail of an additional concession of 5 bps. SBI will also waive all processing fees for those applying through the app. Women borrowers will be provided another 5 bps off their interest rate.
Kotak Mahindra Bank
Kotak Mahindra Bank hasn’t laid out the slabs, but like SBI, its home loan interest rates start at 6.9%.
In order to try and swipe some customers from other banks, Kotak Mahindra claims borrowers with loan accounts elsewhere can save upto ₹20 lakh if they switch over.
Women will also be eligible for special rates across loan products.
Axis Bank
Axis Bank is also offering loans starting at 6.9% interest rate per year for home loans under their ‘Dil Se Open Celebrations’ scheme ahead of the festive season.
HDFC Bank
As a part of HDFC Bank’s ‘Monsoon Bonanza’ scheme, home loan interest rates have been lowered to 6.9%. Under the offer, borrowers can avail of a home loan up to 90% of the property value, lower processing fees will apply, and there is no pre-payment of charges on foreclosure.
The bank charges a 0.5% processing fee on banks, but the absolute amount has been capped at ₹3,000.
ICICI Bank is offering a 6.9% home loan interest rate, but not waiving off the processing fees, which start at around ₹3,000. Depending on the quantum of the loan and the credit score of the borrower, home loan interest rates can go as high as 7.95%.
Union Bank
Union Bank has slashed its home loan interest rates by 10 bps for home loans above ₹30 lakh, settling in at 7%. Women borrowers can avail of an additional concession of 5 bps. There will be no processing fee on home loans till December 31.
Bank of Baroda
Bank of Baroda has cut its home loan interest rates down by 15 bps. Now the interest rate on home loans is at part with education loans at 6.85% interest.
The bank has waived processing fees for new loans and will bear the legal and valuation charges should a borrower wish to switch over from another bank.
In an additional bonus, those who have a credit score of 700 or higher may be eligible for lower home loan interest rates that will be evaluated on a case-by-case basis.
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