Are you preparing to buy a new home for yourself with a home loan? Are you searching for top banks with lowest home loan interest rates? Then this article is for you. Home Loan plays a significant role in building your home or buy ready to move, fully furnished home. Top lenders are offering home loan at competitive rates. Always compare home loan interest rates, processing fees or other charges before choosing lender for home loan. Home Loan is a better option to raise a property, save money in the form of rent and save income tax.
Credit Score and Eligibility for home loan are the important factors that can fetch you low rate of interest and also enable you to negotiate with the lender.
Buying a house by taking a home loan may be a compulsion for some people, while it also has some advantages. You can avail a deduction of up to ₹ 1.5 lakh in income tax on payment of its principal, while Today we will tell about top banks which have the lowest home loan interest rates.
Important Factors that Affect Home Loan (HL) Interest Rate
Here are the factors that affect the home loan interest rates in various ways –
- Credit Score – if your credit score is good, you are likely to get low interest rate.
- Quantum of Loan – More Loan amount may lead to low interest rate.
- Income – A person with stable and steady source of income is more likely to get low interest rate.
- Interest rate type – Fixed or Floating Interest rate. Fixed Interest rate is higher than floating interest rate.
- Gender – As many lenders offer concession on interest rate for women borrowers.
- Location of the property
- Loan Tenure
Home Loan (HL) Interest Rates of All Banks and NBFCs 2019
Don’t waste your precious time searching for interest rates on home loan. Here is the comparison table to find and compare interest loan on home loan offered by all banks in 2019. You can also check for lender with lowest rate of interest on home loan which you can choose to apply for home loan.
|Bank Name||Interest Rate|
|State Bank of India||8.20%-11.60% p.a.|
|HDFC Ltd||8.25%-9.60% p.a.|
|Axis Bank||8.90%-12.45% p.a.|
|Bank of Baroda||9.15% p.a. onward|
|PNB Housing Finance Ltd||9.25%-11.50% p.a.|
|Karnataka Bank||8.65%-14.30% p.a.|
|Kotak Mahindra Bank||8.90%-9.25% p.a.|
|Sundaram BNP Paribas Home Finance||8.55%-9.25% p.a.|
|DBS Bank||9.35%-11.95% p.a.|
|Aditya Birla Capital Housing Finance||9.00%-12.50% p.a.|
|LIC Housing Finance Ltd||8.95%-9.05% p.a.|
|IDFC First Bank||8.00%-14.00% p.a.|
|Canara Bank||8.50%-9.50% p.a.|
|Federal Bank||8.90%-9.10% p.a.|
|Andhra Bank||8.55%-9.65% p.a.|
|Dhanalakshmi Bank||9.80% p.a. onwards|
|Bank of India||8.50%-8.55% p.a.|
|Bank of Maharashtra||8.55%-9.00% p.a.|
|IDBI Bank||8.30%-9.30% p.a.|
|Indian Overseas Bank||8.50%-11.20% p.a.|
|Karur Vysya Bank||8.80%-12.45% p.a.|
|South Indian Bank||9.10%-10.45% p.a.|
|Tamilnad Mercantile Bank||9.20% p.a.|
|Central Bank of India||8.55% p.a.|
|Tata Capital||9.25% p.a.|
|Yes Bank||9.85%-12% p.a.|
|J &K Bank||8.65%-8.95% p.a.|
|Aavas Financiers||10%-19% p.a.|
|Indian Shelter Finance Corporation||16% p.a.|
|DHFL Housing Finance||9.75% p.a. onwards|
Get Home Loan at Lowest Interest Rate
Interest Rate on Home Loan is at the discretion of lender. But you can fetch lowest interest rate with following tips –
- Opt Home Loan Jointly With Wife – you can avail home loan jointly with wife, making her primary applicant. As some banks offers concession in rate of interest for women borrowers. It will also help you to increase your home loan eligibility.
- Switch Bank – You can switch your bank, if current bank is charging higher interest rate.
- Improve Credit Score – Maintain your credit score, as great score will empower you to bargain the interest rate with bank or financial institution.
Lowest Interest Rate on Home Loan 2019
Now the query is which bank offer lowest interest rate on home loan. Currently, All top lenders like SBI, PNB, HDFC, Axis Bank, Canara Bank, DHFL, ICICI among others are offering home loan at low interest rate. Home Loan at lowest interest rates is available at these banks. But as already discussed, Credit score and eligibility play a vital role in getting low interest rate home loan.
With good credit score, lender can offer you low rate to retain a good and creditworthy customer like you. If you fulfill the eligibility criteria, you can avail the loan at low interest rates.
Important Points to Consider while Opting for Home Loan
- Quantum of Loan
- Interest Rate
- Moratorium period
- Repayment Schedule
- Fees and Charges
- Pre-Payment Charges
With so many options and home loan products, it becomes a little bit confusing to choose the best one. You must be very careful while taking home loan. You must compare not only interest rate but also do research and compare processing fees, documentation charges, prepayment charges or any hidden fee before availing home loan (HL). As these charges may end you paying up high rate on home loan.