Six Banks that Provide the Lowest Interest Rates for Home Loans

by Vanshika Kumari Financial Writer

When it comes to home loans, a small percentage in interest rates could fetch a borrower a measurable saving from it. And, because of the lower interest rates, and several offers by banks during this festive season, now is a good time to get one.

Following are three private and three public banks that offer the best Home Loan Interest Rates. Presently, State Bank of India, Bank of Baroda, Punjab National Bank, HDFC Bank, ICICI Bank, and Axis Bank offer the most affordable housing deals.

Although interest rates apply differently to different people based on income, age, profession, and other such factors, below mentioned is an indication of the interest rates offered by these banks.






8.35% - 8.55%


Axis Bank

8.35% - 8.70%



8.35% - 8.80%


Bank of Baroda

8.35% - 9.60%


Punjab National Bank

8.55% - 8.65%


State Bank of India

8.35% - 8.80%

These banks offer nominal processing fees, superlative interest rates, and the government-launched, ‘Pradhan Mantri Awas Yojana’ (PMAY) scheme, also known as the Credit Linked Subsidy Scheme (CLSS). The CLSS was presented for the Economically Weaker Sections (EWS) and Low Income Groups (LIG) looking for home loans. They can gain the loan for a subsidised interest rate of 6.5% for a term of 20 years or lower with this scheme.

To help compare the offers better, below mentioned are specified offers by each of these banks.

  • Axis Bank-  This bank’s new product allows you a waiver of 12 EMIs. Naturally, this will reduce the total sum payable towards the loan.
  • HDFC Bank-  HDFC’s adjustable rate home loan is allied to Retail Prime Lending Rate (RPLR). In the event that the RCLR changes, the bank will then modify the interest rate once in 3 months. This might not necessarily alter the EMI.
  • ICICI Bank-  The multinational bank offers an overdraft facility on home loans. Salaried borrowers having home loan with the bank can avail additional loans, maximum up to Rs.1 crore, for personal requirements as overdraft.
  • State Bank Of India- SBI’s product, MaxGain, also offers an overdraft facility. However, unlike ICICI bank’s overdraft facility, the overdraft limit is equal to the approved loan amount.
  • Bank of Baroda(BoB)-  BoB’s ‘home loan advantage’ gives customers the ability to synchronize home loan deposits to different savings bank account that is linked to the home loan. Therefore, one doesn’t have to pay interest linked to the loan.
  • Punjab National bank- PNB also allows an overdraft facility in their Flexible Housing Loan and allows the repayment of the same via EMIs. 

A major part of the interest rate one has to pay for a home loan goes towards the Marginal Cost Lending Rate (MCLR) and/or base rate category. Therefore, even a minuscule difference in the interest rates or scheme can result in a discount in the amount payable to a large magnitude. 

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About Vanshika Kumari Innovator   Financial Writer

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Joined APSense since, August 8th, 2017, From Bhubaneshwar, India.

Created on Oct 17th 2017 04:11. Viewed 624 times.


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