Cheapest Home Loan

Cheapest Home Loan

It is almost everyone's dream to have a home of their own. To fulfill this dream, some people add pie-pie throughout their life. At the same time, some people take loans from friends or take loans from any bank to fulfill this dream as soon as possible. It is easy to take a loan from the bank to buy a house and at this time it has become a better option as one can get loans at less than 7 percent rate.

With the festive season approaching, banks are also offering attractive offers to attract customers. Apart from banks, housing finance companies are also providing loans to banks at low rates. You can get loans from five housing finance companies of the country, including LIC Housing Finance, at the rate of less than 8 percent per annum. LIC Housing Finance is offering loan at the rate of 6.9 percent.

Home Loan @ 6.65% in Kotak Mahindra Bank

Kotak Mahindra Bank is providing Home Loans at the cheapest rates in the country. Kotak Mahindra Bank is offering home loans at the rate of 6.65 per cent per annum, although home buyers will also have to pay a processing fee of 0.50 per cent. Union Bank of India is offering loan @ 6.8 per cent and there is no processing fee.

Attractive offers from SBI for home loan customers

The country's largest bank SBI is offering home loans up to Rs 30 lakh at a minimum rate of 6.9 per cent and home loans above Rs 30 lakh at a minimum rate of 7 per cent. 

There will be an additional discount of 0.05 percent (5 bps) for applying for a loan through the YONO app. 

Apart from this, in 8 cities of the country, the bank is giving a discount of 0.2 percent (20 bps) in interest rates for loans up to Rs 3 crore and this rebate is available for the remaining locations for loans up to Rs 30 lakh to Rs 2 crore. 

A rebate of 25 basis points (0.25 per cent) will be available on home loans above Rs 75 lakh. However, keep one thing in mind that the relaxation in interest rates is linked to the credit score.

Home loan interest rate is determined by these things

Interest is not charged at the same rate from all the customers for the home loan. The bank adopts special criteria for this. Home loan rate depends on income, credit score, property location, loan amount, loan type, loan tenure, employment status, promo offers.


If there is a stable and high income, the bank will assume that you are able to afford the loan and interest will be charged at a lower rate.

Credit Score

The credit report is also taken into consideration when it comes to scrutiny while applying for a loan. If the credit score is high then the chances of getting the loan application increase and you can also negotiate the interest rates.

Location of the property

If the property for which you are taking the loan is at a price location or taking it from a reliable builder or agency, then you can get relief in the charges on interest rates.

Loan Amount

The interest rate also depends on the loan amount.

Loan Type: The interest rates also depend on the type of home loan you are taking. Buying a new house will attract a standard rate, whereas if you are taking a loan for any improvement in the house, then you will get a loan at higher rates.

Loan Tenure

 If you are taking a loan of longer tenure then the interest rates can be lower.

Types of Interest Rate:

Fixed rate is generally higher than floating rate.

Types of Employment

Salaried workers get home loans at lower rates while self-employed people are more prone to loans, due to which they get loans at higher rates. Banks make separate slabs for salaried and non-salaried. 


Banks also offer several promo offers which are offered in tie-ups with builders or aggregators. Under this also you can get relief in interest rates.

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