Festive Home Loan Offers: Top Public and Private Banks Offering the Lowest Interest Rates
Diwali, the festival of lights, brings an auspicious time for new beginnings, including purchasing or moving into a dream home. Many banks are seizing this opportunity to offer attractive home loan deals. The top 15 banks are offering interest rates between 8.35% and 8.7% for a loan amount of Rs 75 lakh over a 20-year tenure, aiming to facilitate these milestones for prospective homebuyers.
Festive Home Loan Promotions
To make the home-buying journey smoother, banks have launched enticing festive offers. These include lower-than-usual interest rates for borrowers with good credit scores, reduced processing fees, and flexible repayment options. While these deals offer substantial savings, financial advisors urge buyers to assess their financial capabilities carefully and avoid hasty decisions that could lead to long-term burdens.
For example, according to Paisabazaar.com, a Rs 75-lakh loan with a 20-year tenure can have monthly EMIs of around Rs 64,613 at interest rates starting from 8.4%, offered by major banks like Bank of Baroda, Canara Bank, Indian Bank, Indian Overseas Bank, and Punjab National Bank.
UCO Bank & Punjab & Sind Bank
These banks charge an interest rate starting at 8.45 per cent on home loans. The EMI on a home loan of Rs 75 lakh with a 20-year tenure will be Rs 64,850.
| INTEREST RATES ON A HOME LOAN | ||
| Bank | Lowest interest rate p.a. offered by the bank (%) | EMI on a Rs 75-lakh home loan for 20-year tenure |
| Union Bank of India | 8.35 | 64,376 |
| Bank of India | 8.35 | 64,376 |
| Bank of Maharashtra | 8.35 | 64,376 |
| Bank of Baroda | 8.4 | 64,613 |
| Punjab National Bank | 8.4 | 64,613 |
| Canara Bank | 8.4 | 64,613 |
| Indian Overseas Bank | 8.4 | 64,613 |
| UCO Bank | 8.45 | 64,850 |
| Punjab and Sind Bank | 8.45 | 64,850 |
| State Bank of India | 8.5 | 65,087 |
| HSBC Bank | 8.5 | 65,087 |
| Karnataka Bank | 8.5 | 65,087 |
| Tamilnad Mercantile Bank | 8.6 | 65,562 |
| South Indian Bank | 8.7 | 66,039 |
| Rates as of October 23, 2024 | ||
| Source: Paisabazaar.com | ||
HSBC Bank, Karnataka Bank & State Bank of India
These bank charges interest starting at 8.5 per cent on home loans. The EMI on a home loan of Rs 75 lakh with a 20-year tenure will be Rs 65,087.
Tamilnad Mercantile Bank
This bank charges interest, starting at 8.6 per cent. The EMI on a home loan of Rs 75 lakh with a 20-year tenure will be Rs 65,562.
South Indian Bank
This bank charges interest, starting at 8.7 per cent. The EMI on a home loan of Rs 75 lakh with a 20-year tenure will be Rs 66,039.
Homebuyer Tips for the Festive Season
Amidst the festive season’s home loan offers, potential homebuyers should approach their purchase with caution and careful planning. Here are some key tips to consider:
- Prepare for the Down Payment: Ensure you have sufficient savings for the initial down payment before committing to a home loan.
- Research the Developer: Conduct thorough research on the developer’s reputation and track record to ensure reliability. Review project details on the Real Estate Regulatory Authority (RERA) website for transparency.
- Be Wary of Hidden Costs: While festive offers can be appealing, carefully examine the terms to identify any hidden costs or biases that may affect the long-term affordability of the loan.
- Assess Affordability: Prioritize a realistic evaluation of your budget and align the purchase with your future goals.
- Account for Additional Expenses: Don’t overlook extra costs like registration fees, stamp duty, interior setup, and home insurance, all of which add to the overall cost of purchasing a home.
Thankyou !