Home Loan Interest Rates : A Comparison of Top 5 Banks.

Home Loan Interest Rates : Before securing a home loan, prospective borrowers often compare interest rates offered by various banks. While most banks typically charge interest rates ranging between 9-11 percent, these rates can vary based on the borrower’s credit score and the loan amount.

Interest Rates Offered by Leading Banks:

  1. HDFC Bank: For both salaried and self-employed borrowers, HDFC Bank charges an interest rate ranging from 8.55 percent to 9.10 percent. The standard home loan rates fall between 8.9 to 9.60 percent.
  2. ICICI Bank: ICICI Bank offers special rates until Feb 29, 2024, with an interest rate of 9 percent for those with a credit score of 800. Borrowers with a credit score between 750-800 are offered 9.10 percent (self-employed) and 9 percent (salaried). Standard home loan rates range between 9.25 percent to 9.90 percent for salaried individuals and 9.40 percent to 10.05 percent for self-employed borrowers.
  3. Kotak Mahindra Bank: This private lender charges 8.70 percent for salaried borrowers and 8.75 percent for self-employed individuals.
  4. Bank of Baroda: For salaried and non-salaried borrowers, Bank of Baroda offers flexible interest rates ranging from 8.40 percent to 10.60 percent. Fixed interest rates for salaried borrowers range from 10.15 to 11.50 percent, while non-salaried borrowers are offered rates between 10.25 to 11.60 percent.
  5. Punjab National Bank (PNB): PNB provides housing loans with interest rates ranging from 9.40 percent to 11.10 percent. The rates are based on factors such as the loan amount, credit score, and loan-to-value (LTV) ratio. For instance, when the LTV is less than or equal to 80 percent and the credit score is over 800, the interest rate is 9.40 percent for tenures up to 10 years and 9.90 percent for longer tenures.

As the LTV ratio increases and the credit score falls, the interest rate also increases. Borrowers should carefully consider these factors when choosing a home loan from the top banks in India.

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