Top 10 Banks With The Cheapest Interest Rates On Home Loans

Following the Reserve Bank of India's decision to maintain the repo rate at a record low of 4%, numerous banks have reduced their floating home loan rates since last year. In India, home loan rates have dropped to record lows, with banks giving loans as low as 6.65% provided by Kotak Mahindra Bank for instance. Meanwhile, housing loans from the country's largest lender, State Bank of India, commenced at 6.70 percent. On home loans up to Rs 30 lakh, certain banks give their best rates. Lenders usually give the best rates to people with the best credit scores. So, for a loan amount of less than Rs 30 lakh, you may get the best home loan rates from the banks listed below, based on your credit score and income criteria.

5 Best Commercial Banks With The Cheapest Interest Rates On Home Loans

Punjab & Sind Bank, followed by the State Bank of India (SBI), are now offering the lowest interest rates on home loans among government sector banks. Here are the top five commercial banks that are presently offering the best home loan interest rates.

Banks	Interest Rates
Punjab & Sind Bank	6.65% to 7.35%
State Bank of India	6.70% to 7.15%
Bank of Baroda	6.75% to 8.25%
Union Bank of India	6.80% to 7.35%
Punjab National Bank	6.80% to 7.60%
Source: Bank Websites

5 Best Private Sector Banks With The Cheapest Interest Rates On Home Loans

Kotak Mahindra Bank, followed by ICICI Bank and HDFC Bank, is now offering the lowest interest rates on home loans among private sector banks. Here are the top five private sector banks that are presently offering the lowest home loan interest rates.

Banks	Interest Rates
Kotak Mahindra Bank	6.65% to 7.30%
ICICI Bank	6.75% to 7.30%
HDFC Bank	6.75% to 7.30%
IDBI Bank	6.95% to 10.05%
Axis Bank	6.90% to 8.55%
Source: Bank Websites

Note

Just as a matter of concern, borrowers should and should first check their credit score before applying for a home loan. But just like all other criteria, CIBIL score criteria also vary from lender to lender. As it is widely known that a CIBIL score of 750 is required by the banks to sanction a loan amount, but there are some lenders which may provide you a loan with a CIBIL score of 700. And finally, as an advice home loans should be availed by female borrowers, as banks provide an additional 5-10 basis points to male borrowers on loan amounts.