10 banks offering lowest home loan interest rates

Home loan interest rates vary and depend on a variety of factors; this is critical since even minor changes in loan interest rates can have a significant impact on borrowers. Changes in the lending rate, which the RBI regulates, may have an influence on home loan EMIs in particular.

The RBI implemented the Base Lending Rate (BLR) system in 2010, and subsequently transitioned to the Marginal Cost of Funds-Based Lending Rate (MCLR) scheme in 2016. It has now implemented the Repo Linked Lending Rate, or RLLR, since October 2019.

Loans that are liked to the RLLR change depending on the repo rates announced by the Reserve Bank of India. Here are banks offering the lowest interest rates on home loans and note that rate may vary depending on the loan amount, credit score amongst other factors.

Cheapest home loan interest rates

MISSING: summary MISSING: current-rows.

Indian Bank	9.20	8.45%	9.1%
HDFC Bank	--	8.45%	9.85%
Indusind Bank	--	8.5%	9.75%
Punjab National Bank	9.25	8.6%	9.45%
Bank of Maharashtra	9.30	8.6%	10.3%
Bank of Baroda	9.15	8.6%	10.5%
Bank of India	9.25	8.65%	10.6%
Karnataka Bank	--	8.75%	10.43%
Union Bank of India	9.30	8.75%	10.5%
Kotak Mahindra Bank	--	8.85%	9.35%

Interest rates as on June 1, 2023

Transferring your debt to a lender offering low home loan interest rates may be a good solution if you are finding it tough to pay your mortgage due to rising interest rates. However, one should weigh the benefits and drawbacks and determine the extra savings that come from selecting a house loan balance transfer.

As you may be aware, a home loan has additional costs in addition to interest, such as processing fees, stamp duties, legal fees, valuation fees, and other transfer-related technical fees. So, when considering transferring your house loan balance, be sure the advantages exceed the disadvantages.

When to switch or transfer your old regime loan

If you find that your interest rate is significantly higher than the current one offered under EBLR after comparing it to the rates of new borrowers from the same lender, it can be advantageous for you to convert to the new regime by paying the necessary minimal costs. Transferring your loan to a new lender is preferable if your current lender does not provide this benefit or if competing lenders are providing rates that are significantly cheaper.