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Lowest interest on home loan

Last updated by BankersClub on January 11, 2017

Looking for a housing loan? But not sure, which bank is offering Lowest Interest on home loan? Here we have compared the rate of interest offered by top lenders, so that you can get best home loan at lowest interest rate.

  • Bank of Baroda
    Bank of Baroda is offering lowest interest on home loan in the India. But this is with some conditions. Yes, if you have good credit score, you can get housing loan from Bank of Baroda at MCLR, as on date, which is 8.35% (check latest MCLR of all banks). The range of home loan interest in Bank of Baroda is MCLR to MCLR + 1%.

 

  • Punjab National Bank:
    Punjab National Bank is second in offering lowest interest on home loan. PNB offers home loan at MCLR (which is presently 8.45%) to Cenral/State Government Employee/Defence Personnel & Para Military Forces under ‘PNB Pride Scheme’. For others home loan interest of PNB is MCLR + 0.05% i.e., 8.50%. 

 

  • State Bank of India:
    Third bank in this list to offer lowest home loan interest is SBI. SBI’s home loan interest is 8.50% for woman and 8.55% for others for first 2 years and thereafter linked to MCLR. If you wan floating rate for first day, home loan interest will be MCLR + 0.60% i.e., 8.60%, for loan upto Rs.75 lacs and 8.65% for loan above Rs.75 lacs.

 

  • ICICI Bank:
    ICICI bank is offering home loan at the interest rate of 8.65% (MCLR + 0.45%) for women borrowers for loan upto Rs.75 lacs and 8.70% for loan above Rs.75 lacs. For salaried employees and self employed persons, housing loan interest rate of ICICI Bank is 8.70% and 8.75% for loan upto Rs.75 lacs and above Rs.75 lacs.

 

  • Banks apply one year MCLR for retail loans including home loans. Banks generally announce MCLR every month, which may or may not change. However, generally a reset period of one year is fixed for MCLR, during that period your home loan interest rate will not change. Suppose you have taken a loan at MCLR (8%) + 0.50% and next month MCLR is reduced to 7.50% or increases to 9%, your home loan interest will not change and will remain at 8.50% for one year.
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