Owning a home is a dream for everyone, and the easiest way to fulfill it is through a home loan. But before taking a loan, the biggest concern is its interest rate.
Even a small change in the rate can greatly affect your EMI.
If you are planning to buy a house, here’s a list of 5 major government banks offering home loans at affordable rates.
Bank-wise Home Loan Interest Rates
Bank of India
Bank of India offers the lowest home loan rate, starting at 7.35% per annum. This is best suited for customers with a strong credit score.
A lower rate means a smaller EMI, which can save you thousands of rupees in the long run.
Union Bank of India
Union Bank’s home loans start at 7.45% per annum. The bank provides better rates to customers with a good credit profile, making it another reliable choice for home buyers.
Bank of Baroda
At Bank of Baroda, the home loan rate also begins at 7.45% per annum.
Along with affordable rates, its processing fees are competitive, and the bank often launches attractive offers for borrowers.
Punjab National Bank (PNB)
PNB is offering loans starting at 8.25% per annum, similar to Bank of Baroda.
With its widespread branch network across the country, getting a loan from PNB is convenient for many people.
State Bank of India (SBI)
As India’s largest and most trusted bank, SBI’s home loan rate starts at 7.50% per annum.
Recently, SBI increased its upper range from 8.45% to 8.70%, but customers with a good credit score can still get loans at the lower rate.
Key Things to Know Before Taking a Home Loan
Impact of Credit Score
Yes, your credit score (like CIBIL) directly affects the loan rate. If your score is above 750, banks will likely give you loans at a lower interest rate.
A poor score can lead to higher rates or even rejection of your loan application.
Other Charges Besides Interest
Apart from the interest rate, banks also charge processing fees, legal fees, stamp duty, and valuation fees. Always confirm all charges before finalizing your loan.
Special Discount for Women
Many banks encourage women borrowers by offering a discount of up to 0.05% on the interest rate.
To avail this, you can make a woman (like your wife or mother) a co-applicant in the loan.
