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Lowest Home Loan Interest Rates

Banks with lowest Home Loan Rates

Last Updated 19th Jan 2021

Currently, Citibank offers the lowest home loan interest rate of 6.75% and hence, is one of the best banks for home loan. The loan is benchmarked to TBLR. The processing fee levied on Citibank home loan is NIL.

Bank Interest Rate Processing Fee Benchmark Type
Citibank 6.75% NIL TBLR
HDFC 6.80% 0.25%, Min ₹ 3,000, Max ₹ 10,000 PLR
SBI 6.80% 0.20% , Min ₹ 4,000, Max ₹ 17,400 RLLR
Bank of Baroda 6.85% Min ₹ 7,500 RLLR
Bank of India 6.85% 0.25% , Min ₹ 1,500, Max ₹ 20,000 RLLR
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Best Banks for Home Loan

India has more than 50 banks and HFCs offering home loan which makes choosing the best bank to take a loan a difficult process. The key criteria that should be considered and compared to choose a home loan are the current interest rate, the 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 lower discounted rates for small amount 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 6.75% NIL TBLR
HDFC 6.80% 0.25%, Min ₹ 3,000, Max ₹ 10,000 PLR
SBI 6.80% 0.20% , Min ₹ 4,000, Max ₹ 17,400 RLLR
Bank of Baroda 6.85% Min ₹ 7,500 RLLR
Bank of India 6.85% 0.25% , Min ₹ 1,500, Max ₹ 20,000 RLLR
Central Bank of India 6.85% 0.50% , Max ₹ 20,000 RLLR
Axis Bank 6.90% 0.20% , Min ₹ 5,000, Max ₹ 25,000 RLLR
Bajaj Finserv 6.90% 0.35% PLR
LIC Housing Finance 6.90% Min PLR
UCO Bank 6.90% 0.50% , Min ₹ 1,500, Max ₹ 15,000 RLLR

As compared on the loan amount, Citibank offers the lowest interest rate of 6.75% on housing loan which makes it a better option for low value amount.

Banks with lowest home loan rates for female borrowers

Bank Interest Rate Processing Fee Tenure
HDFC 6.80% 0.25%, Min ₹ 3,000 - Max ₹ 10,000 30 years
SBI 6.80% 0.20%, Min ₹ 4,000 - Max ₹ 17,400 30 years
PNB 7.15% 0.35%, Min ₹ 2,500 - Max ₹ 15,000 30 years
Indian Bank 7.55% 0.23%, Max ₹ 20,381 20 years
Syndicate Bank 8.00% 0.13%, Min ₹ 500 - Max ₹ 5,000 30 years

HDFC offers the lowest interest rates on housing loan for women borrowers starting at 6.80%. One can take the home loan in the name of a female applicant to get the benefit of lower interest rates. Other than HDFC, other top lenders offering low interest home loan schemes for female borrowers are SBI, PNB, Indian Bank and Syndicate Bank as per the current rates as on 19 Jan, 2021.

Banks with Zero Processing Fees or Low Processing Fees on Housing 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 fee is to be paid additionally and is not deducted from the loan amount. Further, most of the time processing fees is non-refundable making it a big cost for any loan borrower. As on Jan 2021, 1 bank charges zero processing fees on home loan making them a preferred choice for any prospective home buyer. Presently, Citibank charges the lowest processing fee on a home loan as a % of loan amount, that is NIL. Citibank have the lowest cap on processing fees, making them a good choice for borrowers like to take a large loan amount.

Bank Processing Fee
SBI 0.20% , Min ₹ 4,000, Max ₹ 17,400
HDFC 0.25%, Min ₹ 3,000, Max ₹ 10,000
Citibank NIL
Bank of Baroda Min ₹ 7,500
ICICI Bank 1.00%

Latest Home Loan Schemes for Balance Transfer

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 6.75% NIL 25 years
HDFC 6.80% 0.25%, Min ₹ 3,000, Max ₹ 10,000 30 years
SBI 6.80% 0.20%, Min ₹ 4,000, Max ₹ 17,400 30 years
Bank of Baroda 6.85% Min ₹ 7,500 30 years
Bank of India 6.85% 0.25%, Min ₹ 1,500, Max ₹ 20,000 30 years

Any applicant who is planning to transfer their home loan can consider opting for home loan transfer with Citibank as it offers lowest rates on home loan balance transfer starting at 6.75%. Some of the best banks for home loan balance transfer are HDFC, SBI, Bank of Baroda and Bank of India.

Popular Home Loan Overdraft Schemes

With 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 interest rates on overdraft 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
Citibank 6.75% 0.20%, Min ₹ 4,000 - Max ₹ 17,400 25 years
SBI 6.80% 0.20%, Min ₹ 4,000 - Max ₹ 17,400 30 years
Axis Bank 6.90% 0.50%, Max ₹ 2,500 30 years
IDBI Bank 7.40% 0.50%, Min ₹ 2,500 30 years
Federal Bank 8.35% 0.50%, Min ₹ 3,000 - Max ₹ 7,500 30 years

Current Top Up Rates for Home Loans

A home loan top-up allows one to borrow additional money on an existing home loan. Various banks and financial institutions offer the top-up loan facility to existing home loan borrowers based on their repayment ability. Currently Citibank offers the lowest top-up home loan interest rate of 6.75%.

Bank Top-Up Interest rate Processing Fee Tenure
Citibank 6.75% 0.25%, Min ₹ 3,000 - Max ₹ 10,000 25 years
HDFC 6.80% 0.25%, Min ₹ 3,000 - Max ₹ 10,000 30 years
SBI 6.80% 0.20%, Min ₹ 4,000 - Max ₹ 17,400 30 years
Axis Bank 6.90% 0.20%, Min ₹ 5,000 - Max ₹ 25,000 30 years
Bajaj Finserv 6.90% 0.35%, 20 years

FAQs

Which bank is best for lowest home loan interest rates?

As per the current rates, Citibank is offering the lowest interest rate on home loan starting at 6.75% 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.

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.

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

HDFC offers lowest home loan rates for female borrowers starting at 6.80%.


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*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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