Homebuyers Advised to Research Current Interest Rates Before Securing Mortgage
Home Loan Rates: A Long-Term Financial Decision
Taking a home loan is a long-term financial decision and even a small difference in interest rates can significantly affect overall repayment. Since lenders determine rates based on factors such as credit score, income profile, and loan amount, comparing multiple options becomes essential to ensure you secure the most cost-effective deal.
The Reserve Bank of India's monetary policy plays a key role in determining home loan rates. In its April review, the central bank left the repo rate unchanged at 5.25 percent.
Home Loan Rates Comparison
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Here's a comparison of home loan rates being offered by various financial institutions:
| Institution Type | Institution | Interest Rate Range |
|---|---|---|
| Public Sector Banks | State Bank of India | 7.25% - 8.95% |
| Bank of Baroda | 7.20% - 9% | |
| Union Bank of India | 7.15% - 9.50% | |
| Punjab National Bank | 7.30% - 9.30% | |
| Bank of India | 7.10% - 10% | |
| Canara Bank | 7.25% - 10% | |
| Private Sector Banks | South Indian Bank | 7.20% |
| Kotak Mahindra Bank | 7.70% | |
| ICICI Bank | 7.45% | |
| Axis Bank | 8% - 11.90% | |
| HSBC Bank | 7.45% | |
| Karur Vysya Bank | 8.50% - 10.65% | |
| Housing Finance Companies (HFCs) | LIC Housing Finance | 7.15% |
| Bajaj Housing Finance | 7.15% | |
| Tata Capital | 7.50% | |
| PNB Housing Finance | 7.50% | |
| GIC Housing Finance | 8.20% | |
| SMFG India Home Finance | 10% |
Borrowers with high credit scores, usually 800 and above, are more likely to qualify for the lowest home loan interest rates. The applicable rate can also vary based on whether the applicant is salaried or self-employed.
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