Cheapest home loan option for you to buy your home

Check out 10 banks offering cheapest home loan interest rates

Home loan interest rate: It is to be noted that the final interest rate may vary marginally based on your credit score and repayment history.

Buying a home is never easy. From finalizing the property to conducting background checks and arranging funds, it takes months and sometimes, years to get a home of your own. With skyrocketing property prices, it is likely that you will need a home loan to secure your purchase. Home loan rates have increased significantly over the last one year, with the recent announcement of an increase in the repo rate by the Reserve Bank of India. If you are also confused about whom home loanShould you choose, we are here to provide some assistance.

Here are 10 banks offering the cheapest interest rates in the country. However, it should be noted that the final interest rate may vary marginally depending on your credit score and repayment history.

  1. Indian Bank: The lowest interest rate you can secure from an Indian bank is 8.45 per cent which goes up to 9.1 per cent.
  2. Bank of Maharashtra: Bank gives home loan at 8.4 to 10.3 percent.
  3. IndusInd Bank: Depending on your profile, an IndusInd Bank home loan will cost you somewhere between 8.5 to 9.85 per cent.
  4. HDFC bankHDFC: India’s largest private sector lender offers home loans starting at 8.6 per cent. However, the cost of borrowing can go up to 9.6 per cent depending on various factors.
  5. Bank of Baroda: Home loan from Bank of Baroda is available at interest rates between 8.6 to 10.5 per cent.
  6. Punjab National Bank: PNB home loan starts at the rate of 8.75 to 10.65 percent.
  7. UCO Bank: Public sector lenders offer home loans at an interest rate ranging between 8.85 to 10.40 per cent.
  8. Kotak Mahindra Bank: Home loan from Kotak Mahindra Bank is available at interest rates ranging between 8.85 to 9.35 per cent.
  9. Union Bank of India: Secured home loan from Union Bank of India starts at 9 per cent which goes up to 12 per cent in some cases.
  10. IDBI Bank: Financing for your new home from IDBI will be at an interest rate between 9.1 and 12.25 per cent.

To avail a home loan, you will need to submit documents related to your assets, income and other details. This includes sale deed, title deed, approved building plan, account certificate, completion certificate (in case of newly constructed property) and others. The final requirement can be checked with the lender.

However, there are several important things to keep in mind while taking a home loan. First, consider your financial situation and ensure that you can comfortably repay the loan EMI without compromising on your monthly budget. Assess your income stability and future prospects to assess your ability to repay the loan in the long term.

Second, compare the interest rates offered by various lenders and choose the most competitive rate that suits your needs. Pay attention to the type of interest rate (fixed or floating) and its impact on your EMI.

Additionally, be aware of any additional charges, such as processing fees or prepayment penalties. Third, read and understand the loan agreement carefully, including the terms and conditions, repayment schedule and any hidden clauses.

Seek clarity on any doubts or concerns you may have before signing the agreement. Consider the loan tenure and choose a suitable tenure that suits your financial goals.