Home Loan Interest Rates Comparison in Banks: It is not easy for a middle-class and lower-class person to purchase a home with their savings. So they need to depend on the home loan service which is provided by multiple banks including private sector banks and public banks. Each Bank has specific criteria to provide home loans to their customers and charge interest rates according to the situation. Today we are listing the interest rates of a few banks of the public sector and private sector. It will help you if you are looking for a home loan interest rate comparison in 2023 in different banks.
Interest rates are charged by banks annually from their borrowers over the principal amount of the loan that they have asked for. Banks have a special plan for individual customers according to the Banking history and relationship of the customer with the bank so usually banks do not disclose the exact interest rates on the official website. They provide a range of interest rates starting from a specific number. After that, it can be increased or decreased according to the condition of the customer.
Home Loan Interest Rates Comparison in Banks
There are many private banks including HDFC Bank, ICICI, Axis Bank, Kotak Mahindra Bank, etc which are providing lower interest rates to their customers to purchase home loan products from their company. However, the loan amount is also a big factor when deciding the interest rates. If you are getting a low amount then it may be low interest rates while if any customer applies for a higher amount then he may have to pay the higher interest. We have listed a list of some famous banks in the statical where you can check amount-wise interest rates in different Banks.
|Name of Bank||Up to Rs. 30 Lakh||Above Rs. 30 Lakh & Up to Rs. 75 Lakh||Above Rs. 75 Lakh|
|HDFC Bank Ltd.||8.35% onwards||8.35% onwards||8.35% onwards|
|Kotak Mahindra Bank||8.70% onwards||8.70% onwards||8.70% onwards|
|ICICI Bank||9.00% – 9.80%||9.00% – 9.95%||9.00% – 10.05%|
|Axis Bank||8.70% – 13.30%||8.70% – 13.30%||8.70%- 9.10%|
|Karur Vysya Bank||9.23% – 10.73%||9.23% – 10.73%||9.23% – 10.73%|
|South Indian Bank||9.57% – 10.97%||9.57% – 10.77%||9.57% – 11.42%|
|Karnataka Bank||8.75% – 10.43%||8.75% – 10.43%||8.75% – 10.43%|
|Federal Bank||8.80% onwards||8.80% onwards||8.80% onwards|
|Dhanlaxmi Bank||9.35% – 10.50%||9.35% – 10.50%||9.35% – 10.50%|
|Tamilnad Mercantile Bank||9.45% – 9.95%||9.45% – 9.95%||9.45% – 9.95%|
|Bandhan Bank||9.15% – 15.00%||9.15% – 13.32%||9.15% – 13.32%|
|RBL Bank||9.15% – 11.55%||9.10% – 11.30%||9.10% – 11.30%|
Home loan interest rates in government banks
By comparing interest rates of private and public sector banks, we can see a big difference in interest rates that, most of the private banks are providing less interest rates than government banks. However, government-funded banks are more trustworthy among senior citizens and adults who have been using the banking facilities in these companies for many years. However, due to privatization and industrialization, private sectors are also getting interested in the banking sector and are providing sufficient interest rates to get the interest of customers in their banks.
If you are searching for Bank of Baroda home loan interest rates then they start from 8.40% to 10.90%. Bank of India is starting BOB home loan interest rates from 8.30% for their customers. But this facility will be provided only to strong and regular customers who are trustworthy. Most of the government banks are providing 8.40% to 11.5% interest rates on home loans for different principle amounts including 30 lakh, 50 lakh, or 70 lakh rupees.
Criteria of interest rates on home loan
Home loans are usually long-term investment programs for banks where customers prepare for EMI from 10 years to 30 years according to their needs. So banks have multiple criteria to decide the interest rates for their customers. If you have a regular source of income either you are a businessman or getting a salary from a good company or government department then it will be easy for you to get a low-interest rates loan as you have regular source of income and the Bank can trust on you on the behalf of your salary record. The credit score of the customers is also a good factor that is used by all banks to provide home loans.
If you have a good CIBIL score then you will get lower interest but if you have a bad CIBIL score then your approval can be rejected or the Bank can charge higher interest rates from you. The amount of the loan is also an important factor that decides the interest rates. If you are applying for a loan amount that is Many times higher than your salary then you may face difficulty in submitting or representing alone amount, so banks charge higher integrated on higher amounts accordingly. However, the type of customers including applicants from the reserve category, female applicants, and senior citizen applicants can also get special offers from the banks according to the criteria decided by the specific Bank.