 "Home Loan EMI")
This festive season, banks and housing finance companies have introduced special offers and discounts on home loans to attract borrowers. With interest rates as low as 8.35 per cent and up to a 50 per cent discount on processing fees, it might be the perfect time to consider taking out a loan.
State Bank of India, Bank of Baroda, and Union Bank of India are offering home loans at low interest rates starting at 8.40 per cent. As a festive offer, HDFC Bank is providing mortgages at a cheaper rate, starting at 8.35 per cent across tenures.
Here are tables compiled by Paisabazaar.com of home loan interest rates from public sector banks, private sector banks, and housing finance companies (HFCs) as of November 15, 2023, for a quick comparison.
Public Sector Banks
SBI, Bank of Baroda, Union Bank of India and Indian Overseas Bank offer rates ranging from 8.40 per cent to 10.15 per cent for loans up to Rs 30 lakh, while PNB's rates vary between 8.45 per cent and 10.25 per cent.
| Name of Lender | Loan Amount (Rs) | ||
| Upto 30 Lakh | Above 30 Lakh & Upto 75 Lakh | Above 75 Lakh | |
| PUBLIC SECTOR BANKS | |||
| State Bank of India | 8.40-10.15 | 8.40-10.05 | 8.40-10.05 |
| Bank of Baroda | 8.40-10.65 | 8.40-10.65 | 8.40-10.90 |
| Union Bank of India | 8.40-10.80 | 8.40-10.95 | 8.40-10.95 |
| Punjab National Bank | 8.45-10.25 | 8.40-10.15 | 8.40-10.15 |
| Bank of India | 8.30-10.75 | 8.30-10.75 | 8.30-10.75 |
| *Canara Bank | 8.50-11.25 | 8.45-11.25 | 8.40-11.15 |
| UCO Bank | 8.45-10.30 | 8.45-10.30 | 8.45-10.30 |
| Bank of Maharashtra | 8.50-11.15 | 8.50-11.15 | 8.50-11.15 |
| Punjab and Sind Bank | 8.50-10.00 | 8.50-10.00 | 8.50-10.00 |
| Indian Overseas Bank | 8.40 onwards | 8.40 onwards | 8.40 onwards |
| Central Bank of India | 8.45-9.80 | 8.45-9.80 | 8.45-9.80 |
Source:Paisabazaar.com
Here are some of the festive offers by PSUs you can grab:
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- SBI’s festive campaign offers a discount, starting home loan rates at 8.4 per cent per annum compared to its regular 9.15 per cent loan rate.
- The special campaign also includes discounted rates for top-up home loans.
- Punjab National Bank’s Deepawali Dhamaka 2023 festival offer provides home loans with 8.4 per cent interest.
- Full waiver of upfront/processing fees and documentation charges. Offers are available until November 30, 2023.
- Bank of Baroda’s Festivanza Offers features home loan rates starting from 8.4 per cent per annum.
- Applicable to takeovers, fully completed, or government projects.
- Special offers include nil process fees and concessional upfront fees. Offers are available until December 31, 2023.
- Notably, Canara Banks is offering an additional 5 bps concession for takeover/ready-to-move home loan proposals and a 5 bps concession for salaried employees working in central/state government/PSUs/MNCs/Bluechip Companies and corporates maintaining or switching salary accounts with Canara Bank including Canara SB Premium Payroll package payroll accounts. The offer is applicable in all loan slabs up to the floor/ceiling rate.
Private Sector Banks
Most of the private sector banks are offering home loans at a higher rate compared to PSUs, with some exceptions like HDFC Banks' loan rates starting from 8.35 per cent onwards and HSBC’s home loan interest rates starting from 8.45 per cent onwards, across tenures. Other leading private lenders, like Kotak Mahindra Bank, ICICI Bank and Axis Bank are providing competitive interest rates starting from 8.7 per cent.
| Name of Lender | Loan Amount (Rs) | ||
| Upto 30 Lakh | Above 30 Lakh & Upto 75 Lakh | Above 75 Lakh | |
| PRIVATE SECTOR BANKS | |||
| Kotak Mahindra Bank | 8.70 onwards | 8.70 onwards | 8.70 onwards |
| ICICI Bank | 9.00-9.80 | 9.00-9.95 | 9.00-10.05 |
| Axis Bank | 8.70-13.30 | 8.70-13.30 | 8.70-9.10 |
| HSBC Bank | 8.45 onwards | 8.45 onwards | 8.45 onwards |
| South Indian Bank | 9.57-10.97 | 9.57-10.77 | 9.57-11.42 |
| Karur Vysya Bank | 9.23-10.73 | 9.23-10.73 | 9.23-10.73 |
| Karnataka Bank | 8.75-10.43 | 8.75-10.43 | 8.75-10.43 |
| Federal Bank | 8.80 onwards | 8.80 onwards | 8.80 onwards |
| Dhanlaxmi Bank | 9.35-10.50 | 9.35-10.50 | 9.35-10.50 |
| Tamilnad Mercantile Bank | 9.45-9.95 | 9.45-9.95 | 9.45-9.95 |
| Bandhan Bank | 9.15-15.00 | 9.15-13.32 | 9.15-13.32 |
| RBL Bank | 9.15-11.55 | 9.10-11.30 | 9.10-11.30 |
| CSB Bank | 11.27-13.12 | 11.27-13.12 | 11.27-13.12 |
| HDFC Bank Ltd. | 8.35 onwards | 8.35 onwards | 8.35 onwards |
| City Union Bank | 12.25 - 14.00 | 12.75 - 14.50 | 13.25 - 14.75 |
Source:Paisabazaar.com
Here are some of the festive offers from private lenders:
- During the Festive Treats 2023 campaign, HDFC Bank introduced special interest rates of 8.35 per cent per annum cheapest home loan interest rates. As an additional benefit, HDFC customers can avail up to 50 per cent off on processing fees, enhancing cost savings.
- As part of Festive Bonanza, ICICI Bank is offering special processing fees for its exciting customers. ICICI borrowers can also avail of home loans in the form of overdrafts.
- Kotak Mahindra Bank is offering minimal documentation and a 50 per cent processing fee discount for digital applications of home loans.
Housing Finance Companies
Housing Finance Companies (HFCs) provide specialised home loan solutions with diverse interest rates. Notable HFCs, including Bajaj Housing Finance, Tata Capital, and PNB Housing Finance, offer competitive rates starting at 8.50 per cent. The state-owned LIC Housing Finance is providing rates ranging from 8.40 per cent to 10.75 per cent.
Housing Finance Companies (HFCs) provide specialised home loan solutions with diverse interest rates. Notable HFCs, including Bajaj Housing Finance, Tata Capital, and PNB Housing Finance, offer competitive rates starting at 8.50 per cent. The state-owned LIC Housing Finance is providing rates ranging from 8.40 per cent to 10.75 per cent.
| Name of Lender | Loan Amount (Rs) | ||
| Upto 30 Lakh | Above 30 Lakh & Upto 75 Lakh | Above 75 Lakh | |
| HOUSING FINANCE COMPANIES (HFCs) | |||
| LIC Housing Finance | 8.40-10.35 | 8.40-10.55 | 8.40-10.75 |
| Bajaj Housing Finance | 8.50 onwards | 8.50 onwards | 8.50 onwards |
| Tata Capital | 8.70 onwards | 8.70 onwards | 8.70 onwards |
| PNB Housing Finance | 8.50-14.50 | 8.50-11.45 | 8.50-11.45 |
| GIC Housing Finance | 8.80 onwards | 8.80 onwards | 8.80 onwards |
| SMFG India Home Finance | 9.50 onwards | 9.50 onwards | 9.50 onwards |
| Indiabulls Housing | 8.75 onwards | 8.75 onwards | 8.75 onwards |
| Aditya Birla Capital | 8.80-14.75 | 8.80-14.75 | 8.80-14.75 |
| ICICI Home Finance | 9.20 onwards | 9.20 onwards | 9.20 onwards |
| Godrej Housing Finance | 8.55 onwards | 8.55 onwards | 8.55 onwards |
Source:Paisabazaar.com
Festive offers:
- LIC Housing Finance has introduced special home loan rates for the festive season, starting from 8.40 per cent per annum for new applicants seeking home loans up to Rs 2 crore with a CIBIL score of 750 and above.These rates apply to applications submitted after October 27, 2023, with the condition that the first disbursement occurs on or before December 31, 2023.
- PNB Finance Limited's Diwali offers feature home loans starting from 8.50 per cent, with a loan tenure of up to 30 years and the option to secure loans up to 90 per cent of the property value.
In October, the Reserve Bank of India (RBI) opted to maintain the repo rate at 6.5 per cent for the fourth consecutive time. The RBI has consistently increased this rate since May 2022 to address elevated inflation. With the repo rate stabilisation and the introduction of new RBI guidelines, allowing borrowers to switch to fixed-rate home loans as desired, it becomes favourable for buyers to explore loan options.
