Due to the COVID-19 pandemic and the following lockdown, there has been a serious liquidity crunch in the market and most of the banks have reduced their home loan interest rates to counter it. The Reserve Bank of India, too, had taken so major steps like reducing the repo rate by 40 bps (basis points i.e. one-hundredth of a percentage point) to 4% and reducing the reverse repo rate by 40 bps to 3.35%.
Home Loan Interest Rates
Since July 1, 2020, the State Bank of India had reduced its starting interest rate to 6.95%, while the other government-owned banks have reduced their starting interest rates to just 6.70%.
Also visit eligibility criteria for home loan at dialabank.
People are usually inclined towards home loans as it offers higher loan amounts as well as a longer tenure than other loans, up to 15 years. Even though the final amount to be paid by the borrower can be even double of what he borrowed, a home loan is still the cheapest and most convenient way to buy a house.
Also check the documents required for home loan.
A home loan helps the borrowers acquire tangible assets that last for a long period of time and achieve their dreams of owning a house. Since many building projects take a very long time in the country, financial advisers usually advise their customers to go for a ready-to-accommodate house.
Also check emi loan calculator for home loan
Here’s a table of various interest rates:
|Banks||Interest Rate||Processing Fee|
|HDFC||6.95% to 7.85%||up to 0.50% of the loan amount or Rs. 3000, whichever is higher|
|Union Bank of India||6.70% to 7.15%||0.50% of the loan amount, maximum Rs.15000 + taxes|
|Bank of India||6.85% to 7.85%||up to 0.25% of the loan amount, minimum Rs. 1500, maximum Rs. 20000|
|Bank of Baroda||6.85% to 8.35%||up to 0.50% of the loan amount, minimum Rs. 8500, maximum Rs. 25000|
|Central Bank of India||6.85% to 9.05%||up to 0.50% of the loan amount, Rs. 20000|
|Punjab and Sind Bank||6.90% to 7.25%||Full waiver of processing fee during the festival campaign period|
|Canara Bank||6.90% to 8.90%||up to 0.50% of the loan amount, minimum Rs. 1500, maximum Rs. 10000|
|Private Bank||6.95% to 8.05%||1% to 2% of the loan amount, or Rs. 1500 (Rs. 2000 for Mumbai, Delhi, and Bangalore), whichever is higher|
|Punjab National Bank||7% to 7.60%||up to 0.35% of the loan amount, minimum Rs. 2500, maximum Rs. 15000|
|State Bank of India||7% to 7.85%||up to 0.50% of the loan amount + GST|
|Indian Bank||7% to 8%||up to 0.230% of the loan amount, maximum 20470|
|Indian Overseas Bank||7.05% to 7.30%||For loans up to Rs. 75 lakhs – 0.50%, maximum Rs. 20000|