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Home Loan Interest Rates at Top 5 Banks

Submitted by admin on February 24th, 2024

The first thing potential borrowers check before taking out a home loan is the rate of interest. Usually, the rate is pegged at 9-11 percent. However, it is not a static figure and varies from one Institution to another, depending on the borrower’s credit history and the amount of loan borrowed.

Before taking out a home loan, borrowers compare interest rates charged by different banks. Most banks have the rate set at 9-11 percent. However, the rate is neither uniform nor static. The variation is a subject to different factors, including the borrower’s credit score and the amount he/she takes out as loan.

Home Loan Interests at India’s Top Banks

We will put the banks under two  categories  – Public Sector and Private Sector.

Public Sector Banks

Punjab  National Bank: This lending institution offers housing loans at the interest rate of 9.40-11.10 percent, depending on the borrower’s credit score, the amount of loan, and loan-to-value  (LTV ) ratio.

For example, if credit score is more than 800 percent  and LTV is less than or equal to 80 percent, the bank will charge an interest rate of 9.40 percent on the home loan for the period of 10 years and 9.90 percent for longer time periods. The interest rate rises if the credit score dips and the LTV ratio goes up.

Bank of Baroda: Their home loan interest is fixed anywhere in the range from 8.40 percent to 10.60 percent for the self-employed and salaried borrowers. This current interest rate is of flexible nature.

The fixed type ranges from 10.15 percent to 11.50 percent and from 10.25 percent to 11.60 percent for salaried and non-salaried borrowers respectively.

Private Sector Banks

ICICI Bank: This bank charges 9 percent interest on home loan from the borrowers with a proven credit score of 800. Borrowers with a  credit score of 750-800 are required to pay an interest rate of 9 percent (for salaried) and 9.10 percent (for self-employed), according to the special rates valid till the last day of February, 2024.

The standard home loan rate varies from 9.25-9.90 percent for salaried borrowers, and from 9.40-10.05 percent for their self-employed counterparts, subject to the amount of loan borrowed.

HDFC Bank: This bank charges an interest rate of 8.55-9.10 per cent for salaried and self-employed persons. The standard home loan interest rate ranges from 8.9 to 9.90 per cent for salaried and self-employed borrowers.

Kotak Mahindra Bank: This private bank charges 8.75 percent and 8.70 percent from the self-employed and salaried borrowers respectively.