After the RBI cut the repo rate by 50 basis points (bps) on June 6, new home loan interest rates have fallen below 7.5%. The June cut, combined with the reductions in February and April, has reduced the repo rate by 100 bps this year. All floating loans sanctioned after October 1, 2019, are linked to an external benchmark, which is the repo for most banks.
What Are The Interest Rates For Home Loans?
Interest rates for a Rs 50 lakh, as of July 25,20-year home loan range from 7.3 to 8 per cent, according to Bankbazaar.com. The rates are indicative and may vary based on individual factors such as credit score and income. For this list, top banks by aggregate advances, based on RBI data, have been considered.
Which Bank's Offer The Lowest Home Loan Interest Rates?
Canara Bank and Union Bank of India offer the lowest home loan interest rate among all public sector bank, starting at 7.3 percent. The EMI for a Rs 50-lakh, 20-year loan works out to Rs 39,670.
Bank of Baroda’s home loan starts at 7.45 per cent. The EMI on a Rs 50-lakh, 20-year loan works out to Rs 40,127. State Bank of India and Punjab National Bank offer a starting 7.5 per cent rate to their home loan customers. Their EMI on a Rs 50-lakh, 20-year loan works out to Rs 40,280.
Private Banks?
Among private banks, HDFC Bank offers home loans starting at a 7.9 per cent rate. The EMI for a Rs 50-lakh, 20-year loan works out to Rs 41,511. Kotak Mahindra Bank’s home loan starts at 7.99 per cent. The EMI on a Rs 50-lakh, 20-year home loan works out to Rs 41,791.ICICI Bank's home loan rate starts at 8 per cent. The EMI for a Rs 50-lakh, 20-year loan works out to Rs 41,822.
Axis Bank offers home loans starting at 8.35 per cent. The EMI for a Rs 50-lakh, 20-year loan works out to Rs 42,918. Yes Bank offers home loans starting at 9 per cent. The EMI for a Rs 50-lakh, 20-year loan works out to Rs 44,986.
