Banks With The Lowest Home Loan Interest Rates

For most of us  buying a new house  is their most valuable purchase. It's a place to raise a family, create memories, and build a future. However, owing to rising  real estate prices, the dream of owning a home can be out of reach for many would-be homeowners. In fact, in some markets, costs are rising faster than incomes. A home loan is a viable solution, enabling you to achieve the dream of homeownership by funding up to 80%-85% of the property cost.

But just like any other type of loan, the interest rates can significantly impact the total cost of the loan. The higher the interest rate, the more money the borrower will have to pay over the loan tenure. Thus, it is crucial to explore multiple options to find the right loan with the lowest home loan interest rates. 

1. IDFC FIRST Bank

For salaried - 7.95% onwards

For self-employed - 8.40% onwards

Along with low home loan interest rates, easy documentation, and instant processing, the IDFC FIRST Bank Home Loan also offers a maximum loan amount of ₹5 crores with low EMI options. Moreover, a home loan from IDFC FIRST Bank provides several other benefits like:

• Customised loan: You get a home loan that fits your budget and does not impact your financial obligations.
  
  
• Maximum tenure: If eligible, you can reduce the EMIs by opting for a 30-year loan repayment tenure.
  
  
• Minimal documentation: IDFC FIRST Bank requires you to submit only a few documents to process your loan. These include property proof, income proof, and address proof.

1. Axis Bank

Axis Bank offers home loans starting at 8.10%. Borrowers get reduced EMIs, an option to space out the payment by extending the tenure, doorstep service, no pre-payment charges, lowest interest rates, easy home loan application process, etc.

1. HDFC Bank

HDFC Bank offers competitive interest rates on home loans starting from 8.10*% p.a. The bank also offers an adjustable-rate loan (floating rate loan or a TRUFIXED loan) where the housing loan interest rate remains fixed for a particular tenure.

1. ICICI Bank

With ICICI Bank, borrowers can avail of house loans with interest rates starting from 8.10%. The bank offers lower EMIs and no pre-payment charges on floating loan rates. You can get easy repayment options with extended loan tenures of up to 30 years. However, note that the home loan interest rates can vary depending on various parameters such as credit score, income, etc.

A house loan can be a great way to finance the purchase of your new home, but it is equally important to remember that you are taking out a large debt. So, before availing of a loan, use a home loan EMI calculator to figure out how much your monthly payments will be and plan the repayment structure accordingly.