Taking a home loan is one of the best decisions, especially if you are paying a good amount of money for your house rent. Your EMI will be more than your rent, but the pleasure of living in your own house is a non-measurable thing. Also, the returns provided by the value of your house over a long period are always greater than the interest paid by you. This is the reason why home loan’s EMI is considered as “Good EMI” and people don’t regret paying interest for this purpose.
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Interest Rates for Home Loan :
Interest rates for a home loan are generally lower as compared to other varieties of loans. It may range from 8.55% to 11% depending upon the bank or NBFC providing the loan. That’s why it is very important to choose among different banks and NBFCs very wisely. Also, if your tenure is longer, then your EMI will be lesser, but you will end up paying more interest. Based on tenure and interest rate, you can calculate your EMI using Home Loan EMI Calculator available on the websites of respective bank or NBFCs and then plan accordingly.
List of Banks Charging Lower Interest Rates :
Interest rate is not the only factor that should be kept in mind while availing a home loan but certainly, it should be on the topmost priority. Choosing a bank with lower interest rates can help you in saving hundreds of thousands of rupees from the total interest. Following is the list of top 15 banks which provide the lowest interest rate for a home loan in India.
- United Bank of India (8.55%)
- State Bank of India (8.55% – 9.75%)
- UCO Bank (8.55% – 11.80%)
- HDFC Bank (8.60% – 9.15%)
- Corporation Bank (8.60% – 9.20)
- Allahabad Bank (8.60% – 9.60%)
- Punjab National Bank (8.60% – 9.65%)
- Union Bank of India (8.65% – 8.80%)
- Indian Overseas Bank (8.65% – 8.90%)
- Indian Bank (8.65% – 9.60%)
- Syndicate Bank (8.65% – 9.75%)
- Oriental Bank of Commerce (8.70% – 8.8%)
- Canara Bank (8.70% – 9.45%)
- Bank of Baroda (8.70% – 9.70%)
- Punjab & Sind Bank (8.75% – 9.00%)
Tips while Availing a Home Loan :
- As you can see on the list, most of the banks providing low interest rates are nationalized banks. So, one must always give higher priority to nationalized banks over the private ones.
- Your credit score and tenure of loan are two most important factors which can alter your interest rate. You must maintain a good credit score and choose the most profitable tenure.
- Among the banks charging the same interest, you should look for the processing fee and go with the bank which is charging a lower processing fee for your loan amount.
- If your repaying capacity is not so strong, then you can always increase your tenure and that will lessen the burden of EMI.
- State Bank of India is one of the cheapest and most reliable sources of home loan in India and hence you must prefer them over other banks or NBFCs.
SBI Home Loan :
As mentioned earlier also, SBI home loans are quite cheap and you can always rely on the name as it is one of the leading nationalized banks of India. You can calculate your EMI by using the SBI Home Loan EMI Calculator
Home loans are the best way to purchase the house if you can’t afford to pay the price upfront. No matter what your purpose is, SBI home loans are one of the cheapest ways to get home and you should avail the benefits of SBI home loan to get a better place for you and your family.