After the Reserve Bank of India’s decision to substantially reduce the repo rate last year, public sector banks have significantly lowered their home loan interest rates.
For most Indians, buying a home in cities such as Delhi and Mumbai is still a dream. Buying a home is challenging for several reasons, including rising property prices, which force people to rely on home loans. Therefore, people keep wondering where to find the cheapest home loan and which bank offers the lowest EMI. Notably, after the Reserve Bank of India’s decision to substantially reduce the repo rate last year, public sector banks have significantly lowered their home loan interest rates.
PSU banks offering home loans at 7.10%
Several public-sector banks are offering low-interest home loans. Government banks, including Bank of India, Indian Overseas Bank, Central Bank of India, UCO Bank, and Bank of Maharashtra, are offering home loans to their customers at initial interest rates ranging from 7.10 to 7.15 per cent.
Bank of India
As per Paisabazaar, Bank of India is offering home loans at an initial interest rate of 7.10 per cent. If a customer takes a loan of Rs 30 lakh to Rs 75 lakh, the interest rate ranges from 7.10 to 10.00 per cent. If anyone opts for a home loan above Rs 75 lakh, the bank is charging an interest rate of 7.10 to 10.25 per cent.ย
Indian Overseas Bank and Central Bank
One can get loans from the Indian Overseas Bank at an initial interest rate of 7.10 per cent. This can be considered by customers who are planning to buy a house with low EMIs for a long time. Home loans of between Rs 30 lakh and over Rs 75 lakh will incur an interest rate of 7.10 to 9.15 per cent. This means that the initial rate is quite low, regardless of the loan amount.
UCO Bank and Bank of Maharashtra
UCO Bank, which is also a government bank, offers home loans from Rs 30 lakh to over Rs 75 lakh at an interest rate of 7.15 to 9.25 per cent. While there is a slight difference, these rates are still lower than those of private banks. When it comes to the Bank of Maharashtra, home loans are being made available at an initial interest rate of 7.10 per cent. In this bank, the interest rate for all categories of loans ranges between 7.10 and 9.90 per cent.
What about the private banks?ย
- HDFC Bank offers home loans at an initial interest rate of 7.90 per cent.
- ICICI Bank is extending home loans, with interest rates starting from 7.65 per cent.ย
- At Axis Bank, the initial interest rate for home loans is around 8.35 per cent.