With the government’s increased thrust on affordable housing, many large banks have reduced their interest rates on home loans this month to make your dream of owning a house more affordable. From State Bank of India (SBI) to ICICI Bank, many lenders cut their interest rates on home loans by 15-30 basis points (one basis point is equal to one hundredth of a percentage point) to 8.35 per cent this month. Here are some of the cheapest housing loans available for you.
SBI Home Loan @ 8.35%: State Bank of India, the country’s largest lender, has reduced its interest rate on home loans up to Rs. 30 lakh by 25 basis points to 8.35 per cent. SBI had said that the new rate of 8.35 per cent was the lowest in the market. Eligible borrowers can also avail an interest subsidy of Rs. 2.67 lakh under the Pradhan Mantri Awas Yojana scheme, which aims to provide subsidised housing loans to the middle income group. You can also transfer your existing home loans to SBI to avail lower rates. (Read: Transfer loan to SBI at zero processing fee)
ICICI Bank Home Loan @ 8.35%: India’s largest private sector bank also reduced interest rates on home loans below Rs. 30 lakh by 30 basis points to 8.35 per cent for salaried women and 8.4 per cent for other salaried borrowers. ICICI Bank offers these rates both under floating and fixed rates for 24/36 months.
HDFC Home Loan @ 8.35%: India’s biggest mortgage lender now offers special rates of 8.35 per cent on home loans up to Rs. 30 lakh for salaried women borrowers. For others, the interest rate will be 8.4 per cent. The “special offer” on home loans is available for a limited period ending on June 30, 2017 and first disbursement on or before July 31, 2017, HDFC said.
Axis Bank Home Loan @ 8.35%: With effect from May 16, Axis Bank has cut interest rates on home loans by about 30 basis points. Salaried borrowers can now avail home loans up to Rs. 30 lakh from Axis Bank at an interest rate of 8.35 per cent. For self-employed people, the interest rates will be 8.4 per cent.