The interest rate on your home loan is one of the most important factors and also has the ability to affect the total cost of your home. A higher value and a longer tenure – these are the characteristics usually requested of a mortgage. Therefore, even a small difference in interest rates can turn out to have considerable financial implications. Lower interest rates for home loans will not only reduce outgoing EMIs, but will also affect the overall payment of interest. It is very imperative to look at all the possible options and choose the one that offers the lowest interest rate.
People looking for home loans should be well informed that in addition to interest rates, several other fees also impact the total cost of your loan. These other costs also include the prepayment and CERSAI fees. It is essential to pay attention to these additional charges, in order to boil down to the best home loan option.
Sometimes some lenders have the same home loan interest, but the additional fees vary. In such cases, the associated fees can make a huge difference in the total cost of the mortgage.
Currently, home loans are offered with interest rates that can change over time. These are called floating rates and are linked to external benchmarks. Loan rates change if there is a change in the benchmark. Most banks have made the RBI repo rate their external benchmark.
Here is a list of mortgage interest rates offered by banks –
1) Kotak Mahindra Bank
Kotak Mahindra Bank cut the mortgage interest rate by 10 basis points (bps) to 6.65% per annum. This is currently the lowest interest rate offered on home loans on the market. Processing fees, including GST, can be up to 0.50% plus statutory contributions.
2) Bank of Punjab and Sindh
Punjab & Sind Bank also offers home loans at an attractive interest rate of 6.65% and above, up to 40 years. Processing fees were reduced to zero until June 30 of this year.
3) State Bank of India
State Bank of India home loans are available at an interest rate of 6.70% up to 0.4% of the loan amount, a minimum of Rs 10,000 and a maximum of Rs 30,000. bank offers an additional concession to female mortgage borrowers. Interest on home loans granted by the State Bank of India is charged on a daily declining balance.
4) HDFC Bank
The private sector lender offers an interest rate for housing of 6.75 to all, but the processing fees vary for salaried or self-employed professionals and self-employed non-professionals. In the case of salaried / self-employed professionals, the processing fee is up to 0.5% of the loan amount or Rs. 3000, whichever is greater. And for the non-professional self-employed, the fees can go up to 1.5% of the loan amount or Rs. 4,500.
5) ICICI Bank
ICICI also offers an interest rate of 6.75% on home loan projects. But the processing fees vary depending on your job category.
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