Taking out a home loan is a big decision since it’s usually the biggest loan most people ever take, both in terms of the amount and the long repayment period, often over 15 years. The appeal of a home loan is that it helps you buy a valuable asset that can grow in worth over time, making it a smart choice.
Before committing, it’s important for anyone considering a home loan to compare Interest rates from different banks and financial institutions.
Here are the top 20 banks that offer the lowest Interest rates for home loans, according to Paisa Bazaar:
1. Union Bank of India
Loan amount: Up to Rs 30 lakh
Interest rate: 8.35-10.75%
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.35-10.90%
Loan amount: Above Rs 75 lakh
Interest rate: 8.35-10.90%
2. Bank of Maharashtra
Loan amount: Up to Rs 30 lakh
Interest rate: 8.35-11.15%
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.35-11.15%
Loan amount: Above Rs 75 lakh
Interest rate: 8.35-11.15%
3. Bank of Baroda
Loan amount: Up to Rs 30 lakh
Interest rate: 8.40-10.65%
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.40-10.65%
Loan amount: Above Rs 75 lakh
Interest rate: 8.40-10.90%
4. Bank of India
Loan amount: Up to Rs 30 lakh
Interest rate: 8.40-10.85%
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.40-10.85%
Loan amount: Above Rs 75 lakh
Interest rate: 8.40-10.85%
5. Indian Overseas Bank
Loan amount: Up to Rs 30 lakh
Interest rate: 8.40-10.60%
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.40-10.60%
Loan amount: Above Rs 75 lakh
Interest rate: 8.40-10.60%
6. Punjab National Bank
Loan amount: Up to Rs 30 lakh
Interest rate: 8.45-10.25%
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.40-10.15%
Loan amount: Above Rs 75 lakh
Interest rate: 8.40-10.15%
7. Central Bank of India
Loan amount: Up to Rs 30 lakh
Interest rate: 8.45-9.80%
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.45-9.80%
Loan amount: Above Rs 75 lakh
Interest rate: 8.45-9.80%
8. UCO Bank
Loan amount: Up to Rs 30 lakh
Interest rate: 8.45-10.30%
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.45-10.30%
Loan amount: Above Rs 75 lakh
Interest rate: 8.45-10.30%
9. Kotak Mahindra Bank
Loan amount: Up to Rs 30 lakh
Interest rate: 8.70% onwards
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.70% onwards
Loan amount: Above Rs 75 lakh
Interest rate: 8.70% onwards
10. South Indian Bank
Loan amount: Up to Rs 30 lakh
Interest rate: 8.70-11.70%
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.70-11.70%
Loan amount: Above Rs 75 lakh
Interest rate: 8.70-11.70%
11. HSBC Bank
Loan amount: Up to Rs 30 lakh
Interest rate: 8.50% onwards
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.50% onwards
Loan amount: Above Rs 75 lakh
Interest rate: 8.50% onwards
12. LIC Housing Finance
Loan amount: Up to Rs 30 lakh
Interest rate: 8.50-10.35%
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.50-10.55%
Loan amount: Above Rs 75 lakh
Interest rate: 8.50-10.75%
13. Bajaj Housing Finance
Loan amount: Up to Rs 30 lakh
Interest rate: 8.50% onwards
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.50% onwards
Loan amount: Above Rs 75 lakh
Interest rate: 8.50% onwards
14. Punjab and Sind Bank
Loan amount: Up to Rs 30 lakh
Interest rate: 8.50-10.00%
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.50-10.00%
Loan amount: Above Rs 75 lakh
Interest rate: 8.50-10.00%
15. City Union Bank
Loan amount: Up to Rs 30 lakh
Interest rate: 8.25-9.50%
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.50-10.00%
Loan amount: Above Rs 75 lakh
Interest rate: 8.75-10.50%
16. Tamilnad Mercantile Bank
Loan amount: Up to Rs 30 lakh
Interest rate: 8.60-9.95%
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.60-9.95%
Loan amount: Above Rs 75 lakh
Interest rate: 8.60-9.95%
17. Aditya Birla Capital
Loan amount: Up to Rs 30 lakh
Interest rate: 8.60% onwards
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.60% onwards
Loan amount: Above Rs 75 lakh
Interest rate: 8.60% onwards
18. Godrej Housing Finance
Loan amount: Up to Rs 30 lakh
Interest rate: 8.55% onwards
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.55% onwards
Loan amount: Above Rs 75 lakh
Interest rate: 8.55% onwards
19. ICICI Bank
Loan amount: Up to Rs 30 lakh
Interest rate: 8.75% onwards
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.75% onwards
Loan amount: Above Rs 75 lakh
Interest rate: 8.75% onwards
20. Sammaan Capital (Formerly Indiabulls Housing Finance)
Loan amount: Up to Rs 30 lakh
Interest rate: 8.75% onwards
Loan amount: Above Rs 30 lakh & up to Rs 75 lakh
Interest rate: 8.75% onwards
Loan amount: Above Rs 75 lakh
Interest rate: 8.75% onwards
These banks offer some of the most competitive Interest rates for home loans as of August 21, 2024.
Meanwhile, the State Bank of India (SBI) is currently offering up to a 100% waiver on processing fees for home loans as part of a special monsoon promotion. This limited-time offer is valid until 30th September 2024.
SBI announced the offer on social media platform X, stating, “Monsoon Magic is here! Unlock your dream home with up to 100% waiver on processing fees. Offer valid for a limited period. Grab it now! T&C apply.”
What is a home loan processing fee?
A processing fee is a one-time charge that banks and lending institutions apply to various types of home loans. This fee, which is paid separately by the borrower, is used to cover the costs involved in processing the loan. It is generally not deducted from the Loan amount. Sometimes, banks may waive this fee as part of special promotions, like SBI’s current offer.
Regular processing fees for home loans
According to BankBazaar, a fintech platform, here’s what you’d normally pay for processing fees on home loans:
* Regular Home Loans (including NRI, Realty, Maxgain, CRE, Flexi-pay, Non-salaried, PAL, Tribal Plus, Apon Ghar Loan above Rs 15 lakh): Minimum Rs 2,000 plus GST, maximum Rs 10,000 plus GST, or 0.35% of the Loan amount.
* Personal loan against property (P-LAP): 1% of the Loan amount plus taxes, with a maximum of Rs 50,000 plus taxes.
* YONO insta home top-up loan (digital product): Rs 2,000 plus GST.
* Reverse mortgage loan: 0.50% of the Loan amount, minimum Rs 2,000 and maximum Rs 10,000 plus GST.
Exceptions to the processing Fee
No processing fees are charged for Suraksha Loan, Privilege & Shaurya Home Loans, Apon Ghar (home loan up to Rs 15 lakh), and the Kerala Government Employees Home Loan scheme.
