If you are planning to buy a house and wondering where to raise a home loan from, then it is recommended that you compare the interest rates charged by different banks before taking a call.
It is noteworthy that the rate of interest is a key factor, but not the only one which is supposed to sway the borrower’s decision to choose one lender over another. For instance, a lower interest rate should ideally be coupled with a lower processing fee and a good customer service.
Besides, it is recommended (but not mandatory) to opt for a lender with which you share an existing banking relationship.
Meanwhile, it is vital to note that some banks have recently raised their interest rates with SBI raising interest rates thrice in as many months.
Here we compare the interest rates charged by different banks on home loans.
These are the interest rates charged by banks:
HDFC Bank: The largest private lender charges an interest rate between 8.75 percent to 9.65 percent as special housing loan rates, and 9.40 to 9.95 percent as standard housing loan rates.
State Bank of India (SBI): The largest state lender charges interest in the range of 8.5 per cent to 9.65 percent on its home loans. These rates are based on the respective CIBIL score.
ICICI Bank: ICICI Bank charges an interest in the range of 9.25 to 10.05 percent based on two factors: whether borrower is salaried or self-employed, and the amount of loan.
For instance, when the loan amount is up to ₹35 lakh, the interest rate ranges between 9.25 to 9.65 percent for salaried employees, and 9.4 to 9.8 percent for self-employed persons.
Likewise, when the amount of loan is above ₹75 lakh, the interest rate is in the range of 9.6 to 9.90 percent for salaried employees, and between 9.75 percent to 10.05 percent for self-employed persons. These rates will remain effective till Aug 31, 2024.
Punjab National Bank (PNB): Punjab National Bank charges an interest in the range of 9.40 percent to 11.10 percent based on a number of factors which include credit score, loan amount, LTV (loan to value) ratio and the loan tenure.
For instance, when the loan amount is above ₹30 lakh and LTV ratio is less than or equal to 80 percent , the rate of interest is 9.40 percent when the tenure is up to 10 years while it hikes to 9.90 percent when the tenure is above 10 years. You can visit PNB website for further details.
Bank of Baroda: Bank of Baroda charges a floating interest in the range of 8.4 to 10.60 percent from both salaried and non-salaried persons.
The fixed rate is in the range of 10.15 percent to 11.50 percent for salaried employees and in the range of 10.25 percent to 11.60 percent for non-salaried persons.
