Examine the interest rate that most banks charge on home loans before deciding to purchase your ideal home. Over time, a slight variation in the interest rate can have a substantial impact on the overall cash flow.
An interest rate of 9 percent and 9.5 percent, for example, can result in total cash outflows of ₹96.71 lakh and ₹99.48 lakh, respectively, when you borrow ₹50 lakh for 15 years. This is a difference of ₹2.77 lakh over the loan tenure.
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Because of this, a slight variation in the interest rate can eventually result in a large variation in the cash outlay.
Best banks with the lowest interest rates
HDFC Bank- Special interest rates ranging from 8.75 percent to 9.65 percent are available from HDFC Bank. The range of the standard interest rate is 9.40 to 9.95 percent. Thus, the bank’s lowest interest rate on a home loan is 6.75%, and the highest rate is 9.95%.
ICICI Bank –Special and standard interest rates are the two types of interest rates that ICICI Bank charges on home loans.
Depending on the CIBIL score, the bank charges interest rates between 9 and 9.10 percent annually. For example, the bank charges 9 percent when the credit score is 800, and 9 percent for salary borrowers and 9.10 percent for self-employed borrowers when the score is between 750 and 800. These prices are good through May 31, 2024.
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Standard Rates-Depending on the loan amount, these rates can be anywhere from 9.25 percent to 10.05 percent. The interest rate ranges from 9.25 percent to 9.65 percent for loans under ₹35 lakh. The interest rate for loans ranging from ₹35 to ₹75 lakh is 9.5 to 9.95 percent, as indicated in the table below.
SBI- Based on the CIBIL score, SBI offers home loans with interest rates ranging from 9.15 percent to 9.65 percent. The interest rate decreases with increasing score. The bank charges 9.15 percent when the CIBIL score is over 750, and 9.65 percent when the score is between 550 and 649. These rates became operative on May 1, 2023.
Kotak Mahindra bank- The interest rate charged by the private lender starts at 8.70 percent for those with salaries and 8.75 percent for independent contractors. The actual interest rate may be higher than these; these are the minimum rates.
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Bank of Baroda- The state lender levies interest rates between 9.15 and 10.50 percent annually for salaried individuals and between 9.25 and 10.60 percent annually for non-salaried individuals.
