List of banks, housing finance companies offering cheapest home loans 
Key Highlights
- External benchmark-linked loans are easier to understand and ensure that policy rate changes are transmitted transparently
- With external benchmark linked loans, banks have no choice but to pass on any repo rate cut benefits to borrowers
- Compared to banks, documentation is simpler and turnaround time is also much quicker in HFCs
New Delhi: Ahead of the festive season, India’s largest bank SBI has announced a festival bonanza for new home loans as well as balance transfer borrowers. Borrowers with high credit scores will now get an interest rate of 6.7 per cent, irrespective of the loan amount. The lender waived off processing fees as well as premium on interest charged to non-salaried borrowers.
The country’s largest mortgage lender HDFC, too, announced credit score-linked festive home loan offer, with interest rates starting at 6.7 percent. Still, many borrowers continue to be tied to their old loans that are linked to Base Rate or Marginal Cost of funds-based Lending Rates (MCLR), unlike new rates that are link to an external benchmark, which is RBI’s Repo Rate for most banks.
These banks and housing finance companies (HFCs) are offering the lowest interest rates on home loans:
| Loan Amount (Rs) | Interest Rate | |
| Kotak Mahindra Bank | 75 lakh | 6.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} |
| Punjab and Sindh Bank | 75 lakh | 6.65{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} |
| State Bank of India | 75 lakh | 6.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} |
| Tata Capital | 75 lakh | 6.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} |
| Bank of Baroda | 75 lakh | 6.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} |
| Bajaj Finserv | 75 lakh | 6.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} |
| Punjab National Bank | 75 lakh | 6.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} |
It is worth noting that Kotak Mahindra Bank has been offering the cheapest rate in the private sector bank home loan space since November last year.
LIC Housing Finance: Home loan at LIC Housing Finance starts at 6.66 per cent interest rate per annum. If the home loan applicant is a salaried person and has CIBIL score above 700, they can avail home loan at 6.66 per cent interest rate per annum. For, non-salaried and non-professionals with more than 700 CIBIL score, interest rate for home loan up to Rs 50 lakh can be 7.00 per cent.
For a Rs 50 lakh to Rs 1 crore home loan, a salaried individual with more than 700 CIBIL Score will be levied 6.90 per cent home loan interest rate. The same for non-salaried and non-professionals will be 7.00 per cent.
HDFC: HDFC home loan interest rate starts at 6.75 per cent per annum onwards. For applicants with credit score above 800, the interest rate is 6.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. For women applicants, the company is offering home loan up to Rs 30 lakh at an interest rate of 6.75 per cent per annum to 7.25 per cent per annum. For general appilicants, interest rate for loan up Rs 30 lakh home loan is available 6.80 per cent to 7.30 per cent per annum.
For home loan of Rs 30 lakh to Rs 75 lakh, women can get 7.00 per cent to 7.50 per cent per annum. For others, the interest rate applicable is 7.05 per cent to 7.55 per cent per annum.
