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Home loans: 5 banks that are offering the lowest interest rates

Home loans: 5 banks that are offering the lowest interest rates

Home loans: 5 banks that are offering the lowest interest rates
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By Mar 8, 2022 6:21:45 PM IST (Published)

The interest rates in India are at a record low, making it an ideal time to apply for home loans.

Currently, home loan rates in India are enticingly low, starting from 6.4 percent. For first-time home buyers, it is the ideal time to apply for a home loan. Home loans are a long-term liability, therefore it is important to be thorough with your research and make the right decision at the right time to avail maximum benefits.

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However, lower rates are not always good as they often come with a variety of terms and conditions. Moreover, the same interest rates are not provided to all borrowers. The interest rate may differ according to your credit score. 

Some lenders offer special interest rates to women borrowers as well. It is advisable to shortlist a few plans from lenders and then make a comparative study to reach the best conclusion. Lower interest rates can help lower the EMI payments.

Here are five banks that are offering the lowest interest rates as per Bank Bazar:

  • Bank of Maharashtra: 6.40 percent
  • Bandhan Bank: 6.40 to 13.5 percent
  • Bank of Baroda: 6.50 percent
  • IDFC First Bank: 6.50 percent
  • Punjab National Bank: 6.50 percent
  • An excellent credit score may fetch you the lowest interest rates. Also, having a women co-applicant may lower the interest rate by 0.05 percent.

    How to Calculate EMI

    There are many online calculators available to help you calculate your EMI. Alternatively, the EMI calculation formula can be used.

    EMI = /

    Here, P is Principal, r is rate of interest, and n is number of instalments or loan tenure in months.

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