Despite the changes and amendments being made to customers by banks and other private sector lenders ahead of the festive season, many borrowers remain tied to their old loans, which is linked to the base rate or the fund-based marginal cost of funds. Lending Rates (MCLR). On the other hand new loans are linked to an external benchmark which is the RBI’s repo rate for most banks.
External benchmarks serve the purpose of transparency when it comes to benchmark-linked loans. This often leaves lenders with no option but to pass on the benefits of repo rate reduction to customers. However, there is hope. Take a look at some of the housing finance companies and banks that offer the lowest interest rates to customers home Loan.
Mahindra Bank Box
Mahindra Bank Box is a private sector bank that offers some of the cheapest rates on home loans. This has been the case since November of 2020. As it stands, the bank offers a home loan interest rate of 6.5 per cent to its customers for a loan of Rs 75 lakh with a tenure of 20 years. It was for the salaried persons. For those who are self-employed, the bank has given an interest rate of 6.60 per cent onwards. The overall limit on loan basis for salaried individuals starts at 6.50 per cent and ends at 7.10 per cent. For self-employed, it may start from 6.65 per cent and end at 7.25 per cent.
Punjab And Sind Bank
Similar to Kotak Mahindra Bank, Punjab & Sind Bank offers a home loan interest rate of 6.65 per cent to its customers for a tenure of 40 years. The bank also offers a loan-to-value ratio of up to 90 percent of the property value with zero processing fees. The abolition of processing fee was applicable till June 30, 2021.
state Bank of India
NS state Bank of India Recently, revised interest rates for home loan offerings were announced. The change will be applicable for new as well as balance transfer borrowers. Borrowers taking home loans from this lender can further expect to see a loan interest rate of 6.7 per cent. It was launched in an attempt to attract a larger audience during the festive season with more affordable prices. Some may call it a first of its kind initiative as SBI customers will get the benefit of home loans at a revised rate of interest based on their credit score.
According to information received from BankBazaar and Moneycontrol, Tata Capital is offering an interest rate of 6.7 percent to its customers on home loans. This interest rate is applicable on a home loan of Rs 75 lakh with a tenure of 20 years. The EMI for this is estimated to be Rs 56,805.
Bank Of Baroda
Bank of Baroda is also offering a similar home loan interest rate to its customers which is 6.75 per cent for a home loan of Rs 75 lakh with a tenure of 20 years. This too was started before the festive season as did SBI.
Bajaj Finserv Bank
This public sector lender is offering customers a home loan that comes with an interest rate that starts at a comfortable rate of 6.8 per cent. This indicates that the bank is giving him an EMI of Rs 57,250. This is the same that Punjab National Bank is giving in terms of rates. The only difference is the EMI, in which Punjab National Bank is offering an EMI of Rs 57,250.