Buying a house is the dream of every man. The satisfaction of becoming financially stable and buying your own house is out of this world. However, where only a few become fortunate enough to buy a home without financial support, most apply for a home loan to fulfil their dreams. A home loan is a type of loan for which a person applies once in a lifetime. The repayment period or tenures are very long and almost lasts half the life span of the borrower. That’s why comparing home loan interest rates with every borrower is crucial to ease your financial burden. In this blog, we will help you to compare the interest rates between all major lenders.
Updated List of Major Banks or HFCs Offering the Lowest Home Loan Interest Rates
|Lender||Interest Rate for Up to Rs 30 Lakh||Interest Rate for Above Rs 30 Lakh & Up to Rs 75 Lakh||Interest Rate for Above Rs 75 Lakh|
|State Bank of India||8.50-10.15||8.50-10.05||8.50-10.05|
|HDFC Bank||8.40 onwards||8.40 onwards||8.40 onwards|
|Kotak Mahindra Bank||8.75 onwards||8.75 onwards||8.75 onwards|
|Punjab National Bank||8.55-10.25||8.50-10.15||8.50-10.15|
|Bank of Baroda||9.15-10.65||9.15-10.65||9.15-10.90|
|Union Bank of India||8.50-10.75||8.50-10.95||8.50-10.95|
|IDFC First Bank||8.85 onwards||8.85 onwards||8.85 onwards|
|Bajaj Housing Finance||8.50% onwards||8.50% onwards||8.50% onwards|
What are the Deciding Factors for Your Interest Rate on Home Loan?
1. Credit Score
Your credit score denotes how creditworthy you are in the eyes of lenders. The more it will be close to 900 the more lucrative interest rates a bank or any other lender will offer you. An ideal credit score is considered as 750 or above it. You are scored based on multiple factors by the credit bureaus and remember the score is ever changing. It varies as per your financial activities.
One of the crucial deciding factors is your income and its source. Lenders take into account such details including your employment type, employer profile and the monthly income to decide home loan interest rate.
3. Loan Amount
The higher the loan amount the higher the lender will charge interest rates. For instance, the interest rate of ₹30 lakh home loan will be less as compared to a higher amount.
4. Home Loan Type
Major lenders have different types of home loans in the menu with varying interest rates and repaying time.