The Reserve Bank of India (RBI) kept the repo rate constant in its latest monetary policy, earlier this month. The repo rate and reverse repo rate remain at 4% and 3.35%, respectively, after the announcement. This means that home loan interest rates will continue to remain attractive over the next few weeks.
Currently, home loans rates are at a multi-year low with some banks even offering loans at interest rates below 7%. What’s more? Well, some banks have even waived off their processing fee. Additionally, to encourage prospective buyers to take the plunge, some states have slashed the circle rates. All these factors combined make it a good time to buy a home.
To help you in your home buying journey, we have curated the list of current interest rates offered by major banks in India.
State Bank of India (SBI)
To offer attractive concessions to the homebuyers, SBI announced further interest concession of upto 30 bps on home loans and 100% waiver on processing fees in January 2021. SBI Home loan interest rates are linked to CIBIL score and start from 6.80% for loans upto Rs 30 Lakh and 6.95% for loans above Rs 30 Lakh.
“With SBI’s lowest interest on home loans, we believe this move will facilitate and encourage homebuyers to take the home buying decision with confidence,” said CS Setty, MD (Retail & Digital Banking), SBI. This offer is only valid till March 2021.
HDFC
ICICI
Axis Bank
Punjab National Bank (PNB)
Other Banks
Now that you have a fair understanding of the interest rates, let us share some simple tips that will help you grab the best home loan deal:
- Get home loans quotes from different banks and do a comparative analysis of interest rates offered.
- Do not overlook the processing fees, prepayment charges, and all the other hidden costs.
- Once you are done with your analysis, start meeting the home loan managers to understand what they are offering. See if any bank is ready to waive off processing fee or any other charges for you.
- Don’t forget to ask about the processing time and disbursement timelines to avoid any hassles in the future.
(Please note that the interest rates may be subject to a revision after a specified tenure depending on the bank’s terms and conditions.)