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Lowest Home Loan Interest Rates

Banks with Lowest Home Loan Rates

Last Updated 29th Jul 2021

Bank Interest Rate Processing Fee Benchmark Type
Citibank 6.50% NIL TBLR
HSBC Bank 6.64% 1.00% , Max ₹ 10,000 RLLR
Kotak Bank 6.65% Max ₹ 10,000 RLLR
Axis Bank 6.66% 0.20% , Min ₹ 10,000, Max ₹ 25,000 RLLR
LIC Housing Finance 6.66% Min ₹ 10,000, Max ₹ 15,000 PLR

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Best Banks Lowest Home Loan Interest Rates

The key criteria that you should consider and compare, to choose a home loan are current interest rate, benchmark type, loan tenure, processing fees, product features as well as level of customer service.
Large government banks like SBI, Bank of Baroda and housing finance companies like LIC Housing Finance and HDFC offer the lowest housing loan interest rate for small home loan below ₹ 30 Lakh. If you are looking to take a home loan of up to ₹ 30 Lakh, here is a list of top ten banks which offer the lowest rates at present.

Bank Interest Rate Processing Fee Benchmark Type
Citibank 6.50% NIL TBLR
HSBC Bank 6.64% 1.00% , Max ₹ 10,000 RLLR
Kotak Bank 6.65% Max ₹ 10,000 RLLR
Axis Bank 6.66% 0.20% , Min ₹ 10,000, Max ₹ 25,000 RLLR
LIC Housing Finance 6.66% Min ₹ 10,000, Max ₹ 15,000 PLR
SBI 6.70% 0.40% , Min ₹ 10,000 RLLR
Bank of Baroda 6.75% Min ₹ 7,500 RLLR
HDFC 6.75% 0.50%, Min ₹ 3,000, Max ₹ 10,000 PLR
ICICI Bank 6.75% 0.25% , Min ₹ 3,000, Max ₹ 5,000 RLLR
Bajaj Home Finance 6.80% 0.35% PLR

As compared on the basis of loan amount, Citibank offer the lowest housing loan interest rate of 6.50% which makes it a better option for low value amounts.

Banks with Lowest Home Loan Interest Rates for Female Borrowers

Bank Interest Rate Processing Fee Tenure
SBI 6.70% 0.40%, Min ₹ 10,000 30 years
HDFC 6.75% 0.50%, Min ₹ 3,000 - Max ₹ 10,000 30 years
Corporation Bank 6.80% 0.50%, Max ₹ 50,000 30 years
Bank of Maharashtra 6.90% 0.25%, 30 years
Canara Bank 6.90% 0.50%, Min ₹ 1,500 - Max ₹ 10,000 30 years

SBI offers the lowest interest rates on housing loans for women borrowers starting at 6.70%. You can take the home loan in the name of a female applicant to get the benefit of lower interest rates. Other top lenders offering low interest home loan schemes for female borrowers are HDFC, Corporation Bank, Bank of Maharashtra and Canara Bank as per the current rates as on 29 Jul, 2021.

Top Banks with Zero Processing Fees or Low Processing Fees on Home Loan

A home loan processing fee is a one-time fee collected by the home loan lender in order to process the loan, get the property valued and verified and complete the loan documentation. The processing fee on home loan is to be paid additionally and is not deducted from the loan amount. Further, most of the time processing fee is non-refundable. As of Jul 2021, 2 banks charge zero processing fees on home loans making them a preferred choice for any prospective home buyer. Presently, Citibank charges the lowest processing fee on a home loan that is . Citibank has the lowest cap on processing fees, making it a good choice for borrowers opting for larger loan amount.

Bank Processing Fee
SBI 0.40% , Min ₹ 10,000
HDFC 0.50%, Min ₹ 3,000, Max ₹ 10,000
Citibank NIL
Bank of Baroda Min ₹ 7,500
ICICI Bank 0.25% , Min ₹ 3,000, Max ₹ 5,000

Lowest Home Loan Balance Transfer Interest Rates

Balance transfer of home loan allows existing home loan borrowers to switch from one lender to another who offers a lower interest rate. A home loan balance transfer is a popular home loan scheme as it is a smart way to lower the home loan repayment. Various lender offers the balance transfer facility as listed below:

Bank Interest Rate Processing Fee Tenure
Citibank 6.50% NIL 25 years
HSBC Bank 6.64% 1.00%, Max ₹ 10,000 25 years
Kotak Bank 6.65% Max ₹ 10,000 20 years
Axis Bank 6.66% 0.20%, Min ₹ 10,000, Max ₹ 25,000 30 years
LIC Housing Finance 6.66% Min ₹ 10,000, Max ₹ 15,000 30 years

If you are planning to transfer your home loan you can consider opting for home loan transfer with Citibank as it offers lowest rates on home loan balance transfer starting at 6.50%. Some of the best banks for home loan balance transfer are HSBC Bank, Kotak Bank, Axis Bank and LIC Housing Finance.

Lowest Home Loan Overdraft Interest Rate & Processing Fee

With a home loan overdraft facility, you can save interest on the home loan and pay interest only on the utilized amount. This scheme is mostly preferred by self-employed businessman or borrowers who have fluctuating fund requirements. The home loan overdraft interest rate is 0.10- 0.25% higher than normal home loan rates. Some of the banks that offer overdraft facilities that are quite popular with borrowers.

Bank Overdraft Interest rate Processing Fee Tenure
Axis Bank 6.66% 0.40%, Min ₹ 10,000Max ₹ 10,000 30 years
SBI 6.70% 0.40%, Min ₹ 10,000 30 years
IDBI Bank 6.95% 0.50%, Min ₹ 2,500 30 years
Federal Bank 7.65% 0.50%, Min ₹ 3,000 - Max ₹ 7,500 30 years
Standard Chartered Bank 7.99% 1.00%, Min ₹ 5,000 - Max ₹ 10,000 20 years

Compare Lowest Top Up Rates for Home Loans

A home loan top-up allows you to borrow additional money on an existing home loan. Various banks and financial institutions offer the top-up home loan facility to existing home loan borrowers based on their repayment ability. Currently Citibank offers the lowest top-up home loan interest rate of 6.50%.

Bank Top-Up Interest rate Processing Fee Tenure
Citibank 6.50% 0.50%, Min ₹ 3,000 - Max ₹ 10,000 25 years
Axis Bank 6.66% 0.20%, Min ₹ 10,000 - Max ₹ 25,000 30 years
SBI 6.70% 0.40%, Min ₹ 10,000 30 years
HDFC 6.75% 0.50%, Min ₹ 3,000 - Max ₹ 10,000 30 years
ICICI Bank 6.75% 0.25%, Min ₹ 3,000 - Max ₹ 5,000 30 years

FAQs

Which bank is best for lowest home loan interest rates?

As per the current rates, Citibank Bank offer the lowest home loan interest rate starting at 6.50% and is one of the best banks for home loan.

Which bank is best for lowest processing fee on home loan?

Citibank is the best bank to take a home loan at NIL processing fee.Always check the processing fees before applying for a home loan because it significantly increases liability over your loan amount and has to be paid seperately.

Which bank is best for home loan?

HDFC, Axis Bank and ICICI Bank are considered as the best banks for home loan as they are highly customer focussed and offer easy process and quick turn around on home loan.However, as per the current interest rate, Citibank offer lowest home loan rate of 6.50%.

What is the lowest rates on home loan for female borrowers?

SBI offers lowest home loan rates for female borrowers starting at 6.70%.Other banks which offer lower interest rates to female borrowers are- HDFC and Corporation Bank at 6.75%, 6.80%, respectively.


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