Rates on mortgages: In an effort to stem rising inflation, the Reserve Bank of India (RBI) has increased interest rates six times since May 2022. Unfortunately, this has caused many banks to raise loan interest rates. Customers are feeling the impact of higher loan EMI payments as a result. On the other hand, some banks provide their customers with lower home loan interest rates.
A total loan at the Central Bank of India, a public sector bank, has an interest rate of 8.55 percent for customers. The EMI would be Rs 65,324 for a loan of Rs 75 lakh spread out over 20 years. In a similar vein, home loans from Union Bank of India are available with an interest rate of 8.60 percent and an EMI of Rs 65,662 for the same loan amount and time period.
Home loans from Kotak Mahindra Bank also come with an interest rate of 8.65 percent, which is quite low. The customer would be required to pay an EMI of Rs 65,801 for a loan of Rs 75 lakh spread out over 20 years. An interest rate of 8.45% is being offered by HDFC, a major private sector bank. This amounts to a 20-year EMI payment of Rs. 64,850 on a loan of Rs. 75 lakh.
However, on home loans, Axis Bank—one of the largest private sector banks—offers a higher interest rate of 8.75 percent. The EMI would be Rs 66,278 for a loan of Rs 75 lakh spread out over twenty years. Customers should therefore, prior to making a decision, compare the interest rates offered by various banks.
BankBazaar.com has compiled this list based on their research. Customers must remain vigilant and compare rates offered by different banks before making a decision because interest rates on home loans continue to fluctuate. Customers can find the best interest rate and loan repayment plan for them with a little bit of research.