Top 3 Banks Offering the Lowest Interest Rates on Home Loans

Welcome to The News Namaste, where we bring you the latest information to help you make informed financial decisions. Buying a home is a major milestone, and securing the right home loan is essential. Paying a lower interest rate can save you a significant amount of money over the loan tenure.

Here’s a quick look at the Top 3 Indian Banks currently offering the lowest home loan interest rates.

Please Note: Interest rates may vary depending on individual eligibility, loan amount, and other conditions. It is always best to contact the banks directly for the most current rates and a custom-made quotation.

 

1. Union Bank of India: Top 3 Banks

Minimum Interest Rate: 7.85% – 8.10% per annum
They may offer slightly different rates depending on borrower profile and loan amount.

2. Bank of Maharashtra: Top 3 Banks

Minimum Interest Rate: 7.85% – 8.10% per annum
Bank of Maharashtra often waives processing fees, making it a strong contender.

3. Central Bank of India: Top 3 Banks

Minimum Interest Rate: 7.85% per annum
They occasionally provide promotional offers that include waived processing fees.

Things to Keep in Mind When Choosing a Home Loan: Top 3 Banks

A low interest rate is important, but it’s not the only factor to consider. Here are a few key points to remember:

• Processing Fee: Banks charge a fee to process your loan application — either as a percentage of the loan or a flat fee.
• Tenure: Shorter tenure means higher EMIs but lower overall interest. Choose a tenure that balances feasibility with total interest paid.
• Credit Score: A good credit score is essential to qualify for the lowest interest rates.
• Other Charges: Ask about other charges like prepayment penalties or annual maintenance fees.

Comparison Table:

Bank	Starting Interest Rate (Per Annum)	Processing Fee
Union Bank of India	7.85% – 8.10%	0.50% of the loan amount
Bank of Maharashtra	7.85% – 8.10%	0.25% of the loan amount
Central Bank of India	7.85% – 9.75%	Waived off till 31.03.2025

How to Get the Lowest Interest Rate: Top 3 Banks

• Good Credit Score: A credit score of 750 or above can help you secure a better rate.
• Shop Around: Compare offers from multiple banks before finalizing your choice.
• Negotiate: If you have a strong credit history, don’t hesitate to negotiate a lower rate.
• Choose a Shorter Tenure: Whenever possible, opt for a shorter tenure to reduce total interest.
• Make a Higher Down Payment: A higher down payment reduces the loan amount and may qualify you for a better interest rate.

By comparing your options carefully and shopping smartly, you can find a home loan that fits your budget and turns your dream of owning a home into reality. For more financial tips and updates, stay connected with The News Namaste!