According to the recent report of the finance, there are in total 16 private banks along with some of the housing finance companies that are offering interest rates for the home loan below seven percent. The above data is represented by Bankbazaar.com. Among the banks that offer the lowest interest rate are the Kotak Mahindra Bank along with Punjab and Sind Bank.
Kotak Mahindra bank comes under Private sector holdings whereas Punjab and Sind Bank comes under Public sector holdings. Both of them offer an interest rate of 6.655 which is below 7 percent.
When we talk about the other large lenders that include State Bank of India (SBI) and HDFC. Both of them charge between 6.95 percent – 7 percent for the home loan amount. Despite the offer to the people who are still in the wait to take the home loan or to fund the property purchase.
The person who already has a repaying loan amount can also avail of the same offer. The person just needs to shift the lender ownership from the bank to a private investor. This can remove the burden of the high-interest rates from the people.
But at the same time, the offer can be availed by those only who have taken the loan before 1st October 2019. It was the time when RLLR, Repo Link Lending Rate Regime made the policy of rate transmission more effective and easy for the borrowers. With this, according to the previous year’s report of Bankbazaar.com.
It was reported that the lowest interest rate for home loans was around 8.40 percent. But now the interest rates for the same loan are down between 6.49-6.95 percent. It is considered to be a very low interest rate as compared to the previous year.
It has been suggested that the action was done after the introduction of the RLLR in the industry. Also, the second point comes that the Reserve Bank of India (RBI) pointed out the point of cumulative 115 in May 2020. So, if a person’s home loan offers are between 35-50 basis points whether is going on or it is going to start.
Then it is suggested that the person should move towards other lenders who are offering less. But before that, the person needs to check with the current bank. If they agree then there is no need but if not then there is a need. Also if the current bank agrees to the same then the time and money will be saved for the person.
All the (BSE) public and private banks, and HFCs as listed on NHB’s website which offers home loans have been considered for data compilation. Moreover, the Banks and other lenders whose data has not been disclosed are not allowed to give home loans at this interest.
Data from all the bank’s websites were collected on July 1, 2021. The banks and the other lenders have been listed in ascending order from the party that is offering the lowest interest rate to the party that is offering the highest interest rate.
The lowest interest rate is being offered by Bank or HFC at a loan of rupees 75 Lakhs for 20 years. The interest rate is calculated based on the interest mentioned in the above table.