Who Leads the Lowest Home Loan Rate Race in India? Borrowers are very sensitive to the home loan rate changes as a mere difference of 0.25%-0.50% can bring a difference in the overall outgo. The sensitivity has gone to another level with the home loan rates getting slashed by lenders these days. The Reserve Bank of India (RBI) has slashed the Repo Rate, the rate at which the central bank extends loans to commercial banks, by over 100 basis points since the beginning of this year. However, the transmission was around 30%-40% to the end borrowers until banks adopted the external benchmark of Repo Rate to price home loans. Ever since banks adopted this model, the effect of the policy rate cut is visible on the lowest home loan rate. But, who leads the lowest rate race? Well, you can read this post to know the same. Home Loan Interest Rate SBI State Bank of India (SBI) is a strong player in the home loan segment by customizing the rates according to the loan amount, the gender and profession of an individual. The rates start from as low as 8.15% and remain as high as 8.80%. Loans upto ₹30 lakh are available at 8.15%-8.45% per annum. Once the loan goes past ₹30 lakh and remains upto ₹75 lakh, the interest rate of 8.40%-8.70%. Loans above ₹75 lakh come at 8.50%-8.80% per annum. Home Loan Interest Rates HDFC Like SBI, HDFC Limited is also a dominant player in the home loan circuit. Although it doesn’t use repo rate as the benchmark, it remains in the competition by offering the loan at as low as 8.35%. Loans up to ₹30 lakh, above ₹30 lakh-75 lakh and above ₹75 lakh come with an interest rate of 8.35%-9.05%, 8.65%-9.35% and 8.70%-9.45%, respectively. Does ICICI Bank Pose a Challenge to the Other Two Heavyweights? To answer it in one line, I would say, not really as the rates are much higher than SBI and HDFC. However, the rates can still be called good if you factor in the market as a whole. Loans upto ₹35 lakh can be granted to salaried and self-employed at 8.65%-8.95% and 8.80%-9.10%, respectively. The bank charges an interest rate of 9.05%-9.20% for salaried and 9.20%-9.35% for self-employed when they take loans above ₹30 lakh-75 lakh. Loans above ₹75 lakh are available to salaried and self-employed at 9.10%-9.25% and 9.25%-9.40%, respectively. Bank of Baroda Home Loan Interest Rates The public lender disburses home loans at interest rates starting from 8.10% and goes upto 9.10% across the loan amounts. The rate is based mainly on the credit history of an individual. Those having credit scores of 760 and above can get the loan at the lowest home loan interest rate of 8.10% per annum.
Home Loan EMI Calculator Merely knowing the interest rates won’t let you know the exact cost of the loan. So, you must use the Home Loan EMI Calculator and get an idea of the repayment in advance. The calculator computes the Equated Monthly Installment (EMI) and the overall interest outgo as soon as you enter the loan amount, tenure and interest rate. If you look deeper, you will also get to know the principal and interest amount payable every year. Besides, you will see the outstanding loan balance at the end of every year.