Home Loan Lowest Rate: A home loan helps you fulfill your dream of owning a house. A home loan is a loan whose installments you have to repay for a very long tenure. Home loan interest rate plays a big role in deciding your upcoming Equated Monthly Installment (EMI). In addition, the home loan interest rates also help you choose the lender. Home loan interest depends on various factors like credit history and high credit score, tenure, whether the individual is salaried or non-salaried, etc.
In October 2019, the RBI had asked banks to link their interest rates to external benchmarks. Most of the banks have linked their interest rates to the repo rate of RBI. Such loans are called Repo Rate Linked Lending Rate (RLLR), also referred to as External Benchmark Lending Rate (EBLR) by some banks. On the other hand, there are some banks that have not linked their interest rates to RLLR and instead have linked their loan rate to Marginal Cost of Funds Based Lending (MCLR).
Many reputed banks have increased home loan interest rates linked to the marginal cost of funds-based lending rates. Some renowned banks like the State Bank of India, Bank of Baroda, and Axis Bank have increased their Marginal Cost of Funds Based Lending Rates (MCLR).
The Reserve Bank of India in its last Monetary Policy Committee meeting (MPC) has decided not to make any changes in the repo rates. But RBI Governor Shaktikanta Das, while announcing the MPC's decisions, also said that while the accommodative stance on rates remains intact, the focus will be on the withdrawal of the accommodative stance to keep inflation within the target. This would indicate that there may be a hike in key rates in June.
Home loan interest rates are still running low, so if you are planning to take a home loan or switch to a lower home loan interest rate, this might be the best time. The table below provides a list of 10 banks that are currently offering the lowest interest rates for floating-rate loans below Rs 30 lakh. Note that the interest rate applicable to you will be determined by your lender based on your age, gender, income, credit score, loan amount, loan to value ratio, or any other terms and conditions.
Data retrieved from the respective bank's website as of April 29, 2022, compiled by bankbazaar.com. Bankbazaar.com is India's largest fintech co-branded credit card issuer.
