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| 09 March, 2025, 08:56 PM IST | Today's ePaper
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    Lowest home loan interest rates in banks and housing finance companies

    What matters most in taking a home loan is the interest rate at which you get the loan as it decides what is the total amount you will have to pay to get your house debt free. Higher the rate higher will be your total payout. To get the lowest possible option you need to compare the interest rates of various lenders and check if it works for you. We have made the job easy by giving the top option you have to find the lowest interest rate home loan for you in the relevant category.

    Table of Content

    Top 10 Lenders with Lowest Home Loan Interest Rate (Up to Rs 25 lakh)

    (Below is the list of top lenders that are offering the lowest interest rate on home loan up to Rs 25 lakh)
    Loan ProviderBorrower ProfileAdditional conditionInterest RateMax Tenure
    Central Bank of IndiaSalaried / Self – EmployedSalaried :Up to 90% of loan cost and Self Employed: Upto 80% of loan cost8.45upto 30 years
    UCO bankGovt EmployeesFor Home Loan (Borrowers with Cibil Score or Equivalent greater than or equal to 800 (Direct) (LTV less than 80% and 80% less than LTV less than or equal to 90%)8.45upto 30 years
    LIC Housing FinanceSalaried / Self – EmployedTop Up Loan Home Loan For Pensioners/Home Renovation Loan CIBIL greater than or equal to 750 & Advantage plus Scheme (Housing Loan Component)8.45upto 30 years
    Indian BankN/AIB Home Loan to Elite Customers (Rs.15 lakhs and above) – Takeover and Home Loan to Corporate Entity8.45upto 30 years
    LIC Housing FinanceSelf – Employed IndivdualTop Up Loan Home Loan For Pensioners/Home Renovation Loan (CIBIL greater than or equal to 750)8.525 years
    Saraswat Co-operative BankSalariedVastu Siddhi Home Loan Cibil Score (750 and above)8.6Maximum 20 years
    UCO BankSalariedFor Home Loan (Borrowers with Cibil Score or Equivalent greater than or equal to 800 (DSA) (LTV less than 80% and 80% less than LTV less than or equal to 90%)8.65upto 30 years
    Axis BankSalariedN/A8.75upto 30 years
    Standard Chartered BankSalaried / Self – EmployedN/A8.75upto 30 years
    HSBC BankSalariedN/A8.75upto 25 years
    PNB Housing Finance LtdSalaried / Self – Employed professionalCibil Score greater than or equal to 8258.75upto 30 years
    PNB Housing Finance LtdSalaried / Self – EmployedCibil Score greater than 775 to 7998.8upto 30 years
    India BullsSalaried / Self – EmployedN/A8.815 to 30 years

    Top 10 Lenders with Lowest Home Loan Interest Rate (Above Rs 25 lakh to Rs 50 lakh)

    (Below is the list of top lenders that are offering the lowest interest rate on home loan above Rs 25 lakh to Rs 50 lakh)
    Loan ProviderBorrower ProfileAdditional conditionInterest RateMax Tenure
    Central Bank of IndiaSalaried / Self – EmployedSalaried : Upto 90% of loan cost and Self Employed: Upto 80% of loan cost8.45upto 30 years
    UCO BankGovt EmployeesFor Home Loan (Borrowers with Cibil Score or Equivalent greater than or equal to 800 (Direct) (LTV less than 80% and 80% less than LTV less than or equal to 90%)8.45upto 30 years
    LIC Housing FinanceSalaried / Self – EmployedTop Up Loan Home Loan For Pensioners/Home Renovation Loan CIBIL greater than or equal to 750 & Advantage plus Scheme (Housing Loan Component)8.45upto 30 years
    LIC Housing FinanceSelf – Employed IndivdualTop Up Loan Home Loan For Pensioners / Home Renovation Loan Cibil greater than or equal to 7508.525 years
    UCO BankSalariedFor Home Loan (Borrowers with Cibil Score or Equivalent greater than or equal to 800 (DSA) (LTV less than 80% and 80% less than LTV less than or equal to 90%)8.55upto 30 years
    Saraswat Co-operative BankSalariedVastu Siddhi Home Loan cibil Score (750 and above)8.6Maximum 20 years
    Axis BankSalariedN/A8.75upto 30 years
    Standard Chartered BankSalaried / Self – EmployedN/A8.75upto 30 years
    HSBC BankSalariedN/A8.75up to 25 years
    PNB Housing Finance LtdSalaried / Self – Employed ProfessionalCibil Score greater than or equal to 8258.75upto 30 years
    HDFC BankSalaried / Self – EmployedWomen8.95upto 30 years
    PNB Housing Finance LtdSalaried / Self – Employed ProfessionalCibil Score greater than 775 to 7999.1upto 30 years
    Jammu and Kashmir BankSalariedCIBIL equal to Above 800 and LTV (less than 80%)9.1upto 30 years

    Top 10 Lenders with Lowest Home Loan Interest Rate (Above Rs 50 lakh to Rs 75 lakh)

    (Below is the list of top lenders that are offering the lowest interest rate on home loan above Rs 50 lakh to Rs 75 lakh)
    Loan ProviderBorrower ProfileAdditional conditionInterest RateMax Tenure
    Central Bank of IndiaSalaried / Self – EmployedSalaried : Upto 90% of loan cost and Self Employed: Upto 80% of loan cost8.45upto 30 years
    UCO BankGovt EmployeesFor Home Loan (Borrowers with Cibil Score or Equivalent greater than or equal to 800 (Direct) (LTV less than 80% and 80% less than LTV less than or equal to 90%)8.45upto 30 years
    LIC Housing FinanceSalaried / Self – EmployedTop Up Loan Home Loan For Pensioners/Home Renovation Loan CIBIL greater than or equal to 750 and Advantage plus Scheme (Housing Loan Component)8.45upto 30 years
    UCO BankGovt EmployeesFor Home Loan (Borrowers with Cibil Score or Equivalent greater than or equal to 750 and less than or equal to 799 (80 percentage less than LTV less than or equal to 90 percentage)8.65upto 30 years
    LIC Housing FinanceSalaried / Self – Employed Professional(Interest Rate on Griha Suvidha Home Loan) Cibil greater than or equal to 7508.7upto 30 years
    Axis BankSalariedN/A8.75upto 30 years
    Standard Chartered BankSalaried / Self – EmployedN/A8.75upto 30 years
    HSBC BankSalariedN/A8.75upto 25 years
    Saraswat Co-operative BankSelf – Employed (SE)Vastu Siddhi Home Loan (750 and above)8.75Maximum 20 years
    RBL BankSalariedN/A9.1upto 25 years
    Jammu and Kashmir BankSalariedCibil Above 800 LTV (less than70 percentage)9.1upto 30 years
    State Bank of IndiaIncludes Flexipay,NRi Home Lonas to Non salared-Differential offering Privilege/Shaury,and Apon GharCibil score greater than or equal to 8009.1530 years

    Top 10 Lenders with Lowest Home Loan Interest Rate (Above Rs 75 lakh to Rs 1 crore)

    (Below is the list of top lenders that are offering the lowest interest rate on home loan above Rs 75 lakh to Rs 1 crore)
    Loan ProviderBorrower ProfileAdditional conditionInterest RateMax Tenure
    UCO BankGovt EmployeesFor Home Loan (Borrowers with Cibil Score or Equivalent greater than or equal to 800 (Direct) (LTV less than 80% and 80% less than LTV less than or equal to 90%)8.45upto 30 years
    LIC Housing FinanceSalaried / Self – Employed Professional/ IndividualTop Up Loan Home Loan For Pensioners/Home Renovation Loan Cibil greater than or equal to 750 and Advantage plus Scheme (Housing Loan Component)8.45upto 30 years
    LIC Housing FinanceNon Salaried and Non ProfessionalTop Up Loan Home Loan For Pensioners/Home Renovation Loan Cibil greater than or equal to 7508.525 years
    PNB Housing Finance LtdSelf – Employed (SE)Cibil Score greater than or equal to 8008.55upto 30 years
    UCO BankSalariedFor Home Loan (Borrowers with Cibil Score or Equivalent greater than or equal to 800 (DSA) (LTV less than 80% and 80% less than LTV less than or equal to 90%)8.55upto 30 years
    Saraswat Co-operative BankSalariedVastu Siddhi Home Loan Cibil Score (750 and above)8.6Maximum 20 years
    Standard Chartered BankSalaried / Self – EmployedN/A8.75upto 30 years
    HSBC BankSelf-EmployedN/A8.85upto 25 years
    UCO BankIndividual -Other than Govt. EmployeesN/A9.05upto 30 years
    Jammu and Kashmir BankSalariedCibil Score greater than 800 LTV (less than 65%)9.1upto 30 years
    State Bank of IndiaIncludes Flexipay,NRi Home Lonas to Non salared-Differential offering Privilege/Shaury,and Apon GharCibil Score greater than or equal to 8009.1530 years
    Jammu and Kashmir BankNON-SALARIEDCibil Score greater than 800 LTV (less than 65%)9.2upto 30 years
    Karnatraka BankIndividualN/A9.26upto 30 years
    Indian Overseas BankIndividualN/A9.9upto 30 years

    Top 10 Lenders with Lowest Home Loan Interest Rate (Above Rs 1 crore)

    (Below is the list of top lenders that are offering the lowest interest rate on home loan above Rs 1 crore)
    Loan ProviderBorrower ProfileAdditional conditionInterest RateMax Tenure
    UCO BankGovt EmployeesFor Home Loan (Borrowers with Cibil Score or Equivalent greater than or equal to 800 (Direct) (LTV less than 80% and 80% less than LTV less than or equal to 90%)8.45upto 30 years
    LIC Housing FinanceSalaried / Self – Employed ProfessionalTop Up Loan Home Loan For Pensioners/Home Renovation Loan CIBIL greater than or equal to 700-7498.45upto 30 years
    Axis BankSalariedN/A8.75upto 30 years
    Standard Chartered BankSalaried / Self – EmployedN/A8.75upto 30 years
    HSBC BankSalariedN/A8.75upto 25 years
    UCO BankGovt EmployeesFor Home Loan (Borrowers with Cibil Score or Equivalent greater than or equal to 700 and less than or equal to 749 (80% less than LTV less than or equal to 90%)8.85upto 30 years
    Axis BankSelf Employed IndividualsN/A8.85upto 30 years
    Tamilad Mecrchantile BankN/ATMB Affordable Home Loan9.1upto 30 years
    Yes BankSalaried / Self – Employed IndividualsN/A9.15N/A
    Indian Overseas BankINDIVIDUALSN/A9.15upto 30 years
    State Bank of IndiaIncludes Flexipay,NRi Home Lonas to Non salared-Differential offering Privilege/Shaury,and Apon GharCibil score 750-7999.1530 years
    State Bank of IndiaIncludes Flexipay,NRi Home Lonas to Non salared-Differential offering Privilege/Shaury,and Apon GharCibil score 700-7499.2530 years
    State Bank of IndiaIncludes Flexipay,NRi Home Lonas to Non salared-Differential offering Privilege/Shaury,and Apon GharCibil score 650-6999.3530 years
    State Bank of IndiaIncludes Flexipay,NRi Home Lonas to Non salared-Differential offering Privilege/Shaury,and Apon GharCibil score 550-6499.4530 years

    What is a home loan?

    For many people, purchasing a home is a significant event often once in a lifetime. Nowadays, most people opt for a home loan to finance their home buying or building. A home loan bridges the funding gap and offers you the money that you can use to purchase, renovate, repair, or construct a house.

    A home loan makes is easy for you to buy your dream house even when you only have a capacity to pay a small fraction of its value. When you take a home loan, you have to pay a certain amount upfront as your initial contribution to the home purchase, while the rest is arranged through a home loan. You can typically borrow up to 90% of the property value from banks or other financial institutions.

    There are various kinds of home loans in India, such as home purchase loan, home construction loan, home extension loan, home improvement loan, etc. The interest rate on your home loan can differ depending on the lender, your credit score, your income, the loan amount and the tenure. You have to repay the loan in monthly installments with interest.

    The total cost of the loan that you pay throughout the tenure of the loan depends directly on the interest rate of your home loan. So higher the interest more you pay as cost of the loan and lower the rate lesser is this cost. Since home loan amount is often very big, often multiple times of annual earnings, the total interest payment is also huge. So, picking a home loan with lowest interest rate is very critical which will ensure that you pay the lowest possible cost for your home loan.

    Here is the list of interest rates that you can get on home loans from various lenders.

    How does a home loan work?

    A home loan is a form of financial assistance offered by banks and housing finance companies to individuals seeking to acquire a residential property. The process of securing a home loan typically involves the following steps:

    Application: The borrower has to first fill a loan application providing relevant information, including income, employment details, existing loan commitments, and specifics about the intended property purchase.

    Documentation: The borrower is required to furnish various documents such as proof of identity, proof of address, proof of income, property-related documents, and bank statements to support their loan application.

    Loan Approval: The lender carefully assesses the borrower's application and supporting documents to ascertain their creditworthiness and the property's suitability for financing. If the application is deemed suitable, the lender extends a loan offer to the borrower.

    Loan Disbursement: Once the borrower accepts the loan offer, the lender releases the loan amount either directly to the seller or builder, or sometimes deposits it into the borrower's account.

    Repayment: The borrower is obligated to repay the loan amount through regular installments, commonly known as EMIs (Equated Monthly Installments), over a predetermined period. EMIs encompass both the principal amount and the accrued interest. Borrowers have the option to select either a fixed or floating interest rate.

    Collateral: Home loans in India typically require collateral, wherein the property being purchased serves as security for the loan. In the event of default, the lender retains the right to recover the outstanding amount by selling the property.

    It is crucial for borrowers to carefully evaluate the terms and conditions, interest rates, and repayment alternatives provided by various lenders before finalizing a home loan.

    What are the purposes for which one can take a home loan?

    Home loans can be obtained for a range of purposes related to residential properties. These purposes primarily encompass buying a completed house, acquiring a unit within an ongoing housing project, and funding the construction of a house on a designated plot of land. Home loans are tailored to fulfill these specific needs and offer financial assistance to individuals aiming to own or build a residential property.
    Borrow Top Trending Terms: Personal loan interest rateBank holidays in JuneBOI FD interest ratesPM KisanPersonal LoanCredit CardsSensexNiftyGold Loan RatesHome Loan

    Related Home Loan News

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    Subvention schemes were supposed to make things easier for buyers, but in many cases, became instruments that gave builders access to loans without accountability and left homebuyers in the city to bear the aftershocks, like demand letters to pay EMIs despite houses running years behind schedule.

    How an easy home loan EMI scheme turned into a nightmare for many homebuyers in Delhi NCR

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    Lower EMI for home loan borrowers of Canara Bank, PNB, Union Bank and others as these banks cut repo linked lending rates

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    Pardeshi should prepay home loan, review and rebalance investments to meet kids' graduation, own retirement goals

    The Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals and, if required, recommends corrective measures. The advice given is based on the performance of the funds, the risk profile of the investor as well as his financial goals.

    Big relief for home loan borrowers as EMIs to fall by 1.8% on a 20 year loan tenure as RBI reduced repo rate by 25 bps

    Home Loan Interest Rate: RBI has reduced the repo rate by 25 basis points, providing relief to home loan borrowers. The repo rate cut could lead to lower interest rates on floating rate home loans. Further cuts this year will depend on sustained low inflation and growth concerns. The next rate cut's timing is uncertain and will be influenced by economic factors.

    Waiting for interest rate cuts on home loan to buy your dream house? Here's why a delay may not help

    If you are a prospective home buyer, solely focusing on interest rate cuts to reduce your home loan EMI may not be a smart move. This is because rising property prices could potentially offset the benefits. What should your plan of action be, if you are looking to buy a property for self-use or investment purposes? Read on to know more

    The Economic Times