The lowest interest rates on home loans under Rs 30 lakh: here’s what 15 banks are offering
The Reserve Bank of India’s decision to keep the repo rate unchanged at a low of 4% for over a year has helped many banks cut interest rates on fixed deposits, demoralizing investors . However, this downward trend in pensions has also led many banks to cut their floating interest rates on home loans to decades-long lows, especially since October 2019, when the central bank ordered all banks. to compare their loans externally.
In fact, there are currently at least 15 banks that offer home loans starting at less than 7% per annum. Compare that to September 2019, when the lowest mortgage rates were around 8.40% per annum. , having the necessary margin funds, a credit score above 750, and adequate repayment capacity, this could indeed be the perfect time to make your home buying dreams come true, according to BankBazaar.
The current phase of low interest rates on home loans, especially by banks that have compared their loans to the RBI repo rate, also offers an opportunity for borrowers who are managing home loans under the MCLR or rate scheme. (i.e. for loans taken out before October 2019) to refinance their loans into repo-linked loans to take advantage of lower rates and save on the outflow of interest.
Borrowers can contact their banks to convert their loans to the new scheme or refinance their loan with another lender after carefully assessing the costs of refinancing and the potential savings on interest.
Note, however, that the loans linked to pensions will experience a rapid and proportional increase whenever the central bank decides to increase the rate of pensions. These loans also involve customer risk extending beyond the repo rate and the bank spread which could be triggered if the borrower’s credit rating suffers a substantial decline during the life of the loan, resulting in a higher applicable interest rate and EMI amount, according to BankBazaar.
So, if you are planning to take out a home loan for less than Rs 30 lakh, here is a list of the top 15 government and private banks that currently offer the lowest interest rates. Note that the interest rate that is applicable to you would be determined according to your age, your income, your gender, your credit rating, the amount of the loan, the loan / value ratio or any other condition of the lender. you have chosen.
15 Best Banks Currently Offering Lowest Interest Rates On Home Loans Under Rs 30 Lakh
Disclaimer: Interest rates that vary with tenure terms or credit scores in the specified loan amount are shown as a range, and banks have been listed in ascending order based on their current mortgage rates for loans below Rs 30 lakh. Data taken from the banks’ respective websites on July 2, 2021.
Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.