Home Loans: The interest rate is one of the most significant factors to consider when opting for a home loan. It directly affects the total amount you’ll pay over the life of the loan. A lower interest rate means a reduced overall cost, while a higher rate results in a larger repayment burden. As home loans are long-term commitments, securing a loan with the lowest interest rate possible can help you save a substantial amount over time. This comprehensive guide compares interest rates across various lenders and loan amounts, helping you make an informed choice.
Table of Contents
- Top 10 Lenders with Lowest Home Loan Interest Rate (Up to Rs 25 Lakh)
- Top 10 Lenders with Lowest Home Loan Interest Rate (Above Rs 25 Lakh to Rs 50 Lakh)
- Top 10 Lenders with Lowest Home Loan Interest Rate (Above Rs 50 Lakh to Rs 75 Lakh)
- Top 10 Lenders with Lowest Home Loan Interest Rate (Above Rs 75 Lakh to Rs 1 Crore)
- Top 10 Lenders with Lowest Home Loan Interest Rate (Above Rs 1 Crore)
- What is a Home Loan?
- How Does a Home Loan Work?
- What are the Purposes for Which One Can Take a Home Loan?
1. Top 10 Lenders with Lowest Home Loan Interest Rate (Up to Rs 25 Lakh)
For those looking to borrow up to Rs 25 Lakh, here is a list of the top lenders offering the lowest interest rates. Each lender may have specific requirements and conditions, such as a minimum credit score or maximum tenure.
Loan Provider | Borrower Profile | Additional Condition | Interest Rate | Max Tenure |
---|---|---|---|---|
Central Bank of India | Salaried / Self-Employed | Salaried: Up to 90% of loan cost, Self-Employed: Up to 80% of loan cost | 8.45% | Up to 30 years |
UCO Bank | Govt Employees | CIBIL score ≥ 800, LTV 80-90% | 8.45% | Up to 30 years |
LIC Housing Finance | Salaried / Self-Employed | CIBIL ≥ 750, Advantage Plus Scheme | 8.45% | Up to 30 years |
Indian Bank | N/A | Elite customers, Corporate entity | 8.45% | Up to 30 years |
LIC Housing Finance | Self-Employed | CIBIL ≥ 750, Top-up Loan options | 8.5% | 25 years |
Saraswat Co-operative Bank | Salaried | Vastu Siddhi Home Loan, CIBIL ≥ 750 | 8.6% | Max 20 years |
UCO Bank | Salaried | CIBIL ≥ 800, LTV ≤ 90% | 8.65% | Up to 30 years |
Axis Bank | Salaried | N/A | 8.75% | Up to 30 years |
Standard Chartered Bank | Salaried / Self-Employed | N/A | 8.75% | Up to 30 years |
HSBC Bank | Salaried | N/A | 8.75% | Up to 25 years |
2. Top 10 Lenders with Lowest Home Loan Interest Rate (Above Rs 25 Lakh to Rs 50 Lakh)
For loans in the range of Rs 25 Lakh to Rs 50 Lakh, here are the best options for the lowest interest rates.
Loan Provider | Borrower Profile | Additional Condition | Interest Rate | Max Tenure |
---|---|---|---|---|
Central Bank of India | Salaried / Self-Employed | Salaried: Up to 90% of loan cost, Self-Employed: Up to 80% of loan cost | 8.45% | Up to 30 years |
UCO Bank | Govt Employees | CIBIL ≥ 800, LTV 80-90% | 8.45% | Up to 30 years |
LIC Housing Finance | Salaried / Self-Employed | CIBIL ≥ 750, Advantage Plus Scheme | 8.45% | Up to 30 years |
LIC Housing Finance | Self-Employed | CIBIL ≥ 750, Top-up Loan options | 8.5% | 25 years |
UCO Bank | Salaried | CIBIL ≥ 800, LTV ≤ 90% | 8.55% | Up to 30 years |
Saraswat Co-operative Bank | Salaried | Vastu Siddhi Home Loan, CIBIL ≥ 750 | 8.6% | Max 20 years |
Axis Bank | Salaried | N/A | 8.75% | Up to 30 years |
Standard Chartered Bank | Salaried / Self-Employed | N/A | 8.75% | Up to 30 years |
HSBC Bank | Salaried | N/A | 8.75% | Up to 25 years |
PNB Housing Finance Ltd | Salaried / Self-Employed | CIBIL ≥ 825 | 8.75% | Up to 30 years |
3. Top 10 Lenders with Lowest Home Loan Interest Rate (Above Rs 50 Lakh to Rs 75 Lakh)
For home loans between Rs 50 Lakh and Rs 75 Lakh, here are the lenders offering competitive interest rates.
Loan Provider | Borrower Profile | Additional Condition | Interest Rate | Max Tenure |
---|---|---|---|---|
Central Bank of India | Salaried / Self-Employed | Salaried: Up to 90% of loan cost, Self-Employed: Up to 80% of loan cost | 8.45% | Up to 30 years |
UCO Bank | Govt Employees | CIBIL ≥ 800, LTV 80-90% | 8.45% | Up to 30 years |
LIC Housing Finance | Salaried / Self-Employed | CIBIL ≥ 750, Advantage Plus Scheme | 8.45% | Up to 30 years |
UCO Bank | Govt Employees | CIBIL ≥ 750, LTV 80-90% | 8.65% | Up to 30 years |
LIC Housing Finance | Salaried / Self-Employed | CIBIL ≥ 750 | 8.7% | Up to 30 years |
Axis Bank | Salaried | N/A | 8.75% | Up to 30 years |
Standard Chartered Bank | Salaried / Self-Employed | N/A | 8.75% | Up to 30 years |
HSBC Bank | Salaried | N/A | 8.75% | Up to 25 years |
Saraswat Co-operative Bank | Self-Employed | Vastu Siddhi Home Loan, CIBIL ≥ 750 | 8.75% | Max 20 years |
RBL Bank | Salaried | N/A | 9.1% | Up to 25 years |
4. Top 10 Lenders with Lowest Home Loan Interest Rate (Above Rs 75 Lakh to Rs 1 Crore)
When borrowing a significant amount between Rs 75 Lakh and Rs 1 Crore, the interest rates remain crucial in determining your total payout.
Loan Provider | Borrower Profile | Additional Condition | Interest Rate | Max Tenure |
---|---|---|---|---|
UCO Bank | Govt Employees | CIBIL ≥ 800, LTV 80-90% | 8.45% | Up to 30 years |
LIC Housing Finance | Salaried / Self-Employed | CIBIL ≥ 750, Advantage Plus Scheme | 8.45% | Up to 30 years |
LIC Housing Finance | Non-Salaried | CIBIL ≥ 750, Top-up Loan options | 8.5% | 25 years |
PNB Housing Finance Ltd | Self-Employed | CIBIL ≥ 800 | 8.55% | Up to 30 years |
UCO Bank | Salaried | CIBIL ≥ 800, LTV ≤ 90% | 8.55% | Up to 30 years |
Saraswat Co-operative Bank | Salaried | Vastu Siddhi Home Loan, CIBIL ≥ 750 | 8.6% | Max 20 years |
Standard Chartered Bank | Salaried / Self-Employed | N/A | 8.75% | Up to 30 years |
HSBC Bank | Self-Employed | N/A | 8.85% | Up to 25 years |
UCO Bank | Non-Govt Employees | N/A | 9.05% | Up to 30 years |
Jammu and Kashmir Bank | Salaried | CIBIL > 800, LTV < 65% | 9.1% | Up to 30 years |
5. Top 10 Lenders with Lowest Home Loan Interest Rate (Above Rs 1 Crore)
For high-value home loans above Rs 1 Crore, securing the lowest interest rate is critical to minimize the long-term repayment amount.
Loan Provider | Borrower Profile | Additional Condition | Interest Rate | Max Tenure |
---|---|---|---|---|
UCO Bank | Govt Employees | CIBIL ≥ 800, LTV 80-90% | 8.45% | Up to 30 years |
LIC Housing Finance | Salaried / Self-Employed | CIBIL ≥ 700-749 | 8.45% | Up to 30 years |
Axis Bank | Salaried | N/A | 8.75% | Up to 30 years |
Standard Chartered Bank | Salaried / Self-Employed | N/A | 8.75% | Up to 30 years |
HSBC Bank | Salaried | N/A | 8.75% | Up to 25 years |
UCO Bank | Govt Employees | CIBIL ≥ 700-749 | 8.85% | Up to 30 years |
Axis Bank | Self-Employed | N/A | 8.85% | Up to 30 years |
Tamilnad Mercantile Bank | N/A | Affordable Home Loan | 9.1% | Up to 30 years |
Yes Bank | Salaried / Self-Employed | N/A | 9.15% | N/A |
Indian Overseas Bank | N/A | N/A | 9.15% | Up to 30 years |
What is a Home Loan?
A home loan is a financial product provided by banks and financial institutions to help individuals purchase or build a house. Typically, home loans are secured loans, meaning the property being purchased acts as collateral. Home loans are repaid over an extended period (usually 10 to 30 years) through monthly installments (EMIs). The amount that can be borrowed depends on factors such as the property value, the borrower’s income, and their credit score.
How Does a Home Loan Work?
- Loan Application: Fill out an application with your personal details, income, and loan amount.
- Document Submission: Provide documents like income proof, property details, identity, and address verification.
- Approval & Disbursement: The lender assesses your eligibility and approves the loan, disbursing it to the seller or to you.
- EMI Payments: Start repaying the loan in monthly installments, which include principal and interest.
- Loan Closure: Once you’ve paid off the loan in full, the lender releases the lien on the property.
What Are the Purposes for Which One Can Take a Home Loan?
- Buying a Home: To purchase a ready-to-move-in house or apartment.
- Constructing a House: For funding the construction of a new house.
- Renovating a House: For major repairs or improvements to an existing home.
- Extending a House: To add additional rooms or expand your existing living space.
By comparing interest rates across lenders, you can select a loan that minimizes your financial burden. Ensure you understand all the terms and conditions before committing to any lender.
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