Home Loan Offers: The Reserve Bank of India (RBI) has recently decided to cut repo rates. In this context many public and private banks are offering attractive interest rates.
With the festive season fast approaching, many public and private banks are announcing offers to impress their customers. As part of this, State Bank of India and HDFC Bank have announced offers on home loans, vehicle loans and personal loans to their customers. The Reserve Bank of India (RBI) has recently decided to cut repo rates. In this context many public and private banks are offering attractive interest rates. However, not only public and private banks but also many housing finance companies (HFCs) are competitively lowering interest rates on home loans.
Let us look at the table of interest rates and monthly EMIs implemented by the Bank / HFCs on 75 lakh home loans for a period of 20 years as per the data collected from Bank Bazaar as on 24th September 2020.v
Also Read: Loan moratorium: Bumper offer for those who do not take moratorium
Banks that offer low interest home loans, their interest rates
| Bank | Interest rate (percentage) | EMI |
| Bank of India | 6.85 | Rs.57,474 |
| Central Bank of India | 6.85 | Rs.57,474 |
| Central Bank | 6.90 | Rs.57,698 |
| Punjab and Synth Bank | 6.90 | Rs.57,698 |
| Union Bank | 6.95 | Rs.57,923 |
| Bank of Baroda | 7.00 | Rs.58,147 |
| Bank of Maharashtra | 7.05 | Rs.58,373 |
| Kotak Bank | 7.10 | Rs.58,598 |
| IOB | 7.15 | Rs.58,825 |
In Housing Finance Companies ..
| Company | Interest rate (percentage) | EMI |
| LIC Housing Finance | 7.00 | Rs.58,147 |
| HDFC Limited | 7.00 | Rs.58,147 |
| Bajaj Finance | 7.50 | Rs.60,419 |
| Con Fin Homes | 7.95 | Rs.62,500 |
| AAVAS Financier | 8.00 | Rs.62,733 |
| Repco Home | 8.25 | Rs.63,905 |
| Tata Capital | 8.50 | Rs.65,087 |
| PNB Housing Finance | 8.60 | Rs.65,562 |
| Devan Housing | 8.75 | Rs.66,278 |
| Indiabulls Housing Finance | 8.99 | Rs.67,431 |
Bank of India and Central Bank of India are implementing an interest rate of 6.85 per cent on a home loan of Rs 75 lakh for a period of 20 years. The monthly EMI for this is Rs.57,474. With the exception of Kotak Mahindra Bank, all the top ten low interest home loans are in the public sector. However, SBI, the country’s largest public sector bank, is not on the list. SBI implements an interest rate of 7.20 per cent on home loans. Non-banking finance companies (NBFCs) generally charge much higher rates than banks. However, HDFC Limited and LIC Housing Finance are among the low interest rate home loans. Both HFCs offer loans at 7% interest. All the above data was taken from Bank Bazaar.
