The RBI repo rate increases since May 2022, including the 50 basis-point rises on September 30, may have brought interest rates back to their pre-COVID-19 levels, but borrowers can still get home loans from multiple banks for less than 8.05 percent. According to data from Bankbazaar.com, several banks provide interest rates below 8% as of October 4, 2022, while some may subsequently adjust their rates to match the banking regulator’s rate hike. All floating-rate mortgages approved after October 1, 2019, are correlated to an external benchmark, commonly the repo rate. Therefore, policy rate changes will be completely passed down to borrowers.
Central Bank of India
The Central Bank of India gives a 7.5 percent interest rate on a Rs 75 lakh home loan with a repayment term of 20 years. The equated monthly installment (EMI) will be Rs 60,419 per month.
The non-banking financial company (NBFC) charges 20 basis points (bps) more for house loans, at 7.7 percent. The monthly installment will be Rs 61,340. Unlike banks, housing finance firms’ home loans are not tied to an external benchmark, but market competition maintains comparable, and in some cases lower, interest rates.
This government-owned banking giant’s interest rate on house loans is 7.75 percent. Every month, customers will have to repay an EMI of Rs 61,571.
Kotak Mahendra Bank
With a rate of 7.99 percent, this private sector bank is the only institution on this list to provide rates below 8%, even in a rising interest rate environment. The EMI comes to Rs 62,686.
Another government-owned bank, IDBI Bank, offers a home loan of Rs 75 lakh with a 20-year payback tenure at an interest rate of 8%. Indian Overseas Bank also provides a comparable rate.
This massive public housing finance organization also assesses an interest rate of 8% on such loans. In this instance, the EMI will be Rs 62,733.
Aditya Birla Group
Aditya Birla Home Finance’s 8 percent offer is comparable to that of other banks and housing finance giants.
The interest rate for this government-run bank is significantly higher at 8.05 percent. The EMI is Rs 62,967 in total.
Karur Vysya Bank – KVB
The interest rate charged by this private sector bank for a home loan of Rs. 75 lakh with a 20-year term is also 8.05 percent.
With an interest rate of 8.1 percent, it may not be the most affordable house loan on the market right now, but it is one of the few lenders from the private sector to make the list of affordable lenders. Several NBFCs, including Tata Capital, Repco Home Finance, and GIC Housing Finance, also provide borrowers with comparable rates.
The data collection took into account the interest rates on home loans for all public and private sector banks registered on the Bombay Stock Exchange (BSE) and housing finance businesses listed on the National Housing Bank website and offer home loans up to Rs 75 lakh. Banks and HFCs whose website data is not accessible have not been taken into account. Information was gathered on October 4, 2022, from the relevant bank and HFC websites. The banks and HFCs are ranked according to their interest rates, with the top bank/HFC offering the lowest rate on a home loan (with a loan amount of Rs. 75 lakh) and the bottom bank/HFC offering the highest rate. The table includes the bank’s or HFC’s lowest interest rates on a loan of Rs 75 lakh.